Hi all,
Our business had a competition last year that meant our customers could enter and the prize was to win a gift card for £30.
Could anyone explain how I go about logging this when entering it on Xero. I.e. Are the gift cards vatable, can i claim back VAT on them?
Thanks in advance
Replies (9)
Please login or register to join the discussion.
Depends what you can buy with them.
It's a complex area, there might be VAT included, there might not.
Try and decipher this .......
https://www.gov.uk/government/publications/changes-to-the-vat-treatment-...
If there are input VAT consequences, then output VAT consequences probably ensue, but the waters will be muddied by a precise application of the vouchers rules (specifically, whether the voucher is considered goods, services or neither).
However, for the sake of an unwell octopus's cousin, you might prefer to assume that there's no input VAT to recover.
However, for the sake of an unwell octopus's cousin, you might prefer to assume that there's no input VAT to recover.
Surely not as much as that.....
Would it be fair to say that there's more than one gift card on offer ?
If so, how many ?
A couple ? Dozens ? Hundreds ? Millions ?
Yes there are 10 gift cards and they are for a store that sells shower gels, bubble bath etc.
I'd claim on that. You'll need a tax invoice though. The cost is over £250 so a less detailed tax invoice won't be enough.
There's maybe £50 if you go back and ask.
Maybe establishing whether you'd paid any VAT might have been a better first step, rather than wondering how you could claim it back.