VAT ISSUES - & WOWCHER

[m3sye]

Looking to run a deal with Wowcher (yes we understand the pitfalls)

Basically you give them your sell price in this instance say £30.50 - they are then going to sell at £35.00, we then expected to be invoicing them for the money + vat but they are a media company and exempt from VAT.

We have to pay the VAT on the product so obviously wanted to claim this back, as they are not VAT reg we can now not do this...

Due to this we then put our sell price to them up to cover the VAT but they are arguing there is no need for this and we can claim it -

Can someone clear this up for me please

[rpguk]

http://businessdatabase.indicator.co.uk/business_a... - some info there. Seems to be the exemption is on it being a voucher rather then media company and I guess to stop VAT being charged twice (i.e when the voucher is sold and then when the voucher is redeemed)

Can't offer any advice but it seems you need to tred carefully and I'll watch with interest.

[m3sye]

This is there response on this - So based on this if we pay the vat on the product can we claim it back?

With regards to VAT, our suppliers are responsible for meeting their VAT obligations on their revenue share. Due to the type of voucher we are issuing, we are unable to apply VAT at the point of purchase. Accordingly we will issue you with a remittance slip, but not a VAT invoice.

[marshalla]

It all looks a bit messy to me, but I don't "do" VAT (yet) - http://www.hmrc.gov.uk/briefs/vat/brief1212.htm

[The Moose]

The way I see it is that when someone redeems a voucher (or should that be wowcher) with you, they're getting £30.50 credit on their account. There's no VAT element as they've just given you £30.50.

The VAT element comes when the item is purchased.

So, if normally it's £60 inc VAT (£50 + VAT) and you want to do it at half price for the end user - £30 (which is actually £25 for you and £5 for WOWCHER) it ends up being £20.83 + VAT.

So, your £30.50 actually equates to £25.42 + VAT.