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VAT on purchase made with discounted vouchers

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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23rd Jan 2019 12:51

What does the tax invoice say ?

I bet it doesn't say £200 VAT on £1000 paid.

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to lionofludesch
23rd Jan 2019 13:29

As the voucher was purchased through a third party, the invoice from PC World shows the full amount - £200 VAT on £1,000 paid.

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to LauraBeeton
23rd Jan 2019 13:37

That's 25% VAT.

£800 net, £200 VAT, £1000 paid.

£200 is 25% of £800.

Check your facts.

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to lionofludesch
23rd Jan 2019 13:47

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.

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to LauraBeeton
23rd Jan 2019 13:52

Right - we're dragging it out of you bit by bit.

Now - are we dealing with the new rules or the old rules ?

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to lionofludesch
23rd Jan 2019 13:54

New Rules - vouchers were purchased after 1st Jan 19

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23rd Jan 2019 13:12

Have a look at this. There were changes from 1 Jan 2019.

https://www.gov.uk/government/publications/changes-to-the-vat-treatment-...

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