Business promotion schemes ― coupons

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note covers the VAT implications of issuing or redeeming of coupons.

See the Business promotion schemes ― overview guidance note for details of the other types of business promotion schemes that can be used.

For more in depth commentary, see De Voil Indirect Tax Service V6.169.

What are money-off coupons?

Coupons are normally issued in order to give a customer a discount off a future purchase and are often referred to as discount vouchers. The decision in Boots confirmed that money-off coupons are not to be treated as consideration when used to buy other goods but are simply evidence of entitlement to a discount.

Coupons can be issued in a number of ways, including (this list is not exhaustive):

•
when a product is purchased
•
by purchasing goods of a certain value
•
email or other electronic means
•
via the post
•
via magazines or newspapers

The coupons can be issued either by the retailer or the manufacturer.

What is the VAT treatment of the sale and

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Personal Tax

Taxation of dividend income

Taxation of dividend incomeIntroductionA dividend is a distribution of profit by a company to its shareholders.A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash

14 Jul 2020 13:48 | Produced by Tolley Read more

Tax Returns

Owner-Managed Businesses

Trade or hobby

Trade or hobbyInteraction of hobby farming rules and commercialityFarming has its own set of ‘hobby farming rules’, which historically have stated that a profit must be made every six years. This is known as ‘the five-year rule’, in that there can be five years of losses but there must be a profit

14 Jul 2020 13:50 | Produced by Tolley Read more

Employment Tax

Payroll record keeping

Payroll record keepingUnder SI 2003/2682, reg 97, “...an employer must keep, for not less than 3 years after the end of the tax year to which they relate, all PAYE records which are not required to be sent to [HMRC]...”. Reasons for keeping the records include:•being able to calculate tax and

14 Jul 2020 12:52 | Produced by Tolley in association with Ian Holloway Read more

��Ƶ