A client purchased vouchers through PerkBox at a discount of 8% and used these to buy a new phone from PC World. Can they reclaim VAT on the full price of the phone as shown on the receipt from PC World, or can they only claim a restricted amount of VAT since they received a discount.
E.g. £1,000 vouchers purchased through PerkBox with 8% discount (so actually paid £920). Then purchased phone worth £1,000 including 20% VAT. Can I reclaim the VAT on the full amount (£200) or can I only claim VAT on 20% of the amount actually paid (£184)?
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As the voucher was purchased through a third party, the invoice from PC World shows the full amount - £200 VAT on £1,000 paid.
Invoice shows £1,000 inc VAT - £166.67. Even with the correct maths, this still doesn't answer whether or not I can claim the full VAT or if this is restricted due to the discounted vouchers.
Right - we're dragging it out of you bit by bit.
Now - are we dealing with the new rules or the old rules ?
Have a look at this. There were changes from 1 Jan 2019.
https://www.gov.uk/government/publications/changes-to-the-vat-treatment-...
Here's a better link.
https://www.gov.uk/guidance/find-out-about-changes-to-vat-legislation-on...
£153.33