- Business promotions related to VAT are complex due to changing legislation and case law.
- Key considerations include whether there is a supply and its value.
- Discounts: VAT is charged on the discounted price.
- Gifts: VAT is charged on the full value, with exceptions.
- Multi-buys: VAT is charged on the combined price if items have the same VAT rate; otherwise, it is apportioned.
- Money-off coupons and vouchers: No VAT if given free at purchase; otherwise, VAT is due on the price charged.
- Multi-purpose vouchers: No VAT if sold at or below monetary value.
- Single-purpose vouchers: VAT is due on the value when issued.
- Redeemed vouchers: VAT is charged on the full transaction value.
- No VAT on gifts under £50 to the same person in a year.
- Free samples, loans, gifts, and services have specific conditions to avoid VAT.
- Recent changes affect UK rules for face value vouchers.
- Single-purpose vouchers are for one type of good or service with a single VAT rate.
- Multi-purpose vouchers cover various goods or services.
Source: marcusward.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
