Hello,
My client is VAT registered, a normal accrual scheme client. They bought a printer from HP, and accounted for this as normal treating the VAT as fully deductible. However, they have received a cashback payment from HP, with an accompanying "tax voucher". The tax voucher shows the following:
- It is from HP in Switzerland
- It shows my clients VAT number
- It shows how much the cashback is and the date
- There is no reference of any kind to tax
I think that because Switzerland is outside the EU the idea is to treat it as an outside the scope item that goes, in full to reduce the net cost of the printer.
But I don't feel too confident in that position.
Anyone else come across this one before?
Thank you!
Replies (2)
Please login or register to join the discussion.
Non-EU
If non-EU, then it's outside the scope of UK VAT. It seems ineffective for the manufacturer to structure it this way, but I can't see how a different result could be reached.
Assuming there isn't, the logical entry would indeed be to credit FA additions with the full amount.
If it was EU, then it would be topical , as there has been a big change in manufacturer's refunds recently.