VAT on 2008 Sales Rebates

VAT on 2008 Sales Rebates

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Hi

I am currently in the process of calculating payments to be made to customers for 2008 purchase rebates where the customer has hit a particular sales target and we pay them a retrospective rebate based on this. (I.e. 2% of full year sales)

Now with the change in VAT I am confused as to what VAT rate I should credit the customers back with. With the rebate not being paid until Jan 09, should I use the 15% rate or should i match the rebate to the sales periods and credit 17.5% on Jan-Nov sales and then 15% on December sales? (Pain!)

Would this also be affected if the customer only qualified for the rebate due to the volumes they purchased in December?

Any help on this matter would be appreciated as I don't won't to get bitten if a VAT audit rears its head during 2009.

Thanks

Gareth
John Hopper

Replies (2)

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By User deleted
14th Jan 2009 13:04

I agree
Rebate must be a calculation on Net Sales and the tax point will be when you raise the credit note so current rate applies

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By pawncob
14th Jan 2009 11:47

Surely
Any rebates are on the net sales, so why is VAT involved?
Any credit involving VAT would be at the current rate.

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