Information on the use of Funbutler Voucher system as multi-purpose vouchers

Funbutler’s gift card feature is primarily designed to manage multi-purpose vouchers, which is essential for complying with EU accounting regulations. According to these regulations, revenue from gift cards is considered a liability until the service or activity covered by the gift card is actually provided, typically at the check-in for the activity. Only at this point is the liability converted into revenue. VAT is not reported at the time of the gift card purchase but rather when the service is rendered, that is, when the activity takes place. This approach ensures that VAT is accounted for at the correct time, in accordance with EU requirements.
These rules and recommendations apply to businesses within the EU. However, each activity operator is responsible for determining, in consultation with their accountant, an accounting method approved in the country in which they operate.
Since Funbutler’s booking system supports packages that may include multiple activities and products with varying VAT rates, all vouchers must be managed as multi-purpose vouchers to meet these regulations.

EXAMPLE OF HOW GIFT CARDS AND ADVANCE PAYMENTS WORK IN FUNBUTLER – STEP BY STEP

Here is an example illustrating how a customer uses Funbutler to purchase a gift card, book a package, and check in, demonstrating the process clearly.

1. Selling the Gift Card

Anna purchases a gift card from the Trampoline Park for €50 as a present. When the purchase is made, the following happens:

• What happens in the system:
  The gift card is registered as a liability of €50 in the Trampoline Park’s accounting. This represents a future obligation to deliver activities or products.
  No VAT is reported at the time of the gift card sale, as no service or product has been provided yet.
• Analogy:
  It’s like giving someone a prepaid card to use for a future activity. The money is held in the company’s system but is only recognized as revenue when the service or product is used.

2. The Guest Books a Package

In March, Anna’s friend Erik visits the Trampoline Park’s website and books a package using the gift card. The package includes:

• A trampoline activity for €30.
• A lunch at the café for €20.

Erik decides to pay for the entire package in advance using his gift card.

• What happens in the system:
  Even though the booking is paid for in advance, the liability recorded for the gift card remains unchanged. No revenue is recorded at the time of booking since the services have not yet been delivered.
• Analogy:
  It’s like booking a hotel and paying in advance – the money is allocated for future use, but the hotel cannot recognize it as revenue until the guest actually checks in.

3. Check-In and Redeeming the Gift Card

On the booking day, Erik checks in at the Trampoline Park and uses the gift card to cover the cost of the trampoline activity and lunch. Upon check-in, the following happens:

• What happens in the system:
  • The liability decreases: €50 of the recorded liability for the gift card is removed.
  • Revenue is recorded:
    • €30 is recorded as revenue for the trampoline activity (with the correct VAT rate).
    • €20 is recorded as revenue for food and beverages (with a different VAT rate).
  • VAT is reported: VAT is reported at this point because the services and products are now being delivered.

Process Summary

1. When the gift card is sold:
   The gift card is recorded as a liability in accounting. No VAT is reported at this time.
2. When a package is booked:
   The liability remains unchanged, even if the customer pays in advance using the gift card. No revenue is recorded until the services or products are delivered.
3. At check-in and delivery:
   • The liability is reduced and converted into revenue.
   • VAT is reported based on the services and products actually delivered.

Why Is This Important?
Funbutler’s system ensures that all transactions comply with current accounting and VAT regulations. Whether a customer pays in advance or at check-in, Funbutler guarantees that revenue and VAT are recognized at the correct time – when the services are delivered.

This allows you to focus on delivering an excellent customer experience without worrying about the details of accounting.