Gift cards and VAT

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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)

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RLI
By lionofludesch
23rd Jan 2020 16:55

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-...

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By The Dullard
23rd Jan 2020 17:13

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.

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Replying to The Dullard:
RLI
By lionofludesch
23rd Jan 2020 17:52

The Dullard wrote:

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.....

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RLI
By lionofludesch
23rd Jan 2020 17:54

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 ?

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By oliviaw
24th Jan 2020 08:33

Yes there are 10 gift cards and they are for a store that sells shower gels, bubble bath etc.

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Replying to oliviaw:
RLI
By lionofludesch
24th Jan 2020 09:36

oliviaw wrote:

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.

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By oliviaw
24th Jan 2020 09:41

They were bought in store and having now been given the receipts, they dont show the vat, nor does the receipt had any vat number on it although they are vat registered?

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Replying to oliviaw:
RLI
By lionofludesch
24th Jan 2020 09:55

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.

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Replying to lionofludesch:
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By The Dullard
24th Jan 2020 10:24

And, if there is input VAT, what is the output VAT position?

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