Can I claim back VAT when paying with gift card / vouchers

andyuk2005

Hi all,

I run a VAT registered company and my current laptop is starting to give up. I plan to get a macbook as a replacement soon.

I can get a discount on Apple Store gift cards.

If I purchased these Apple Store gift cards, and then purchased a new laptop from the store, then can I still claim back the VAT part of the purchase?

Thanks for your help folks!

trailingspouse

You can reclaim whatever VAT is itemised on your receipt.

andyuk2005

Awesome thanks for confirming that!

martindow

Trailing's reply seems like common sense but is it as straightforward as that?


The OP will buy gift vouchers but I don't think they have a VAT element so would this cause a problem if HMRC picked up on this? The vouchers are then used on an item liable to VAT but the receipt for the original payment will have no VAT associated with it.


Can you approach Apple and get them to match the discounted price without bothering with gift cards? That would make everything simpler for both of you.

trailingspouse

If the gift vouchers don't have a VAT element, then the OP hasn't paid any VAT and there's nothing to reclaim.
If they're then used to pay for an item that includes a VAT element, they would be treated like cash, and whatever the VAT element of the item purchased would be claimable.

comeandgo

There is no vat on gift vouchers. The vat will be on the computer purchase if purchased from a vat registered company. You claim vat as you would with any other vat invoice.

00ec25

there is no INPUT Vat on the purchase of vouchers

the vendor of the vouchers will have to account for OUTPUT Vat, but let's take as read that such a vendor knows what they are doing when selling vouchers as it is a relatively complex area (particularly if sold at a discount to face value)
https://www.gov.uk/guidance/business-promotions-and-vat-notice-7007

OP on the other hand is merely paying for an item using vouchers with a face value and will be given a purchase invoice/receipt showing payment (incl VAT) at the value the item was sold at.
As trailing spouse has stated, OP therefore claims his input VAT at face value stated on the (VAT) invoice/receipt for the item purchased

obviously if OP pays £100 for vouchers with a face value of £120, and then pays for a computer costing £120 using his vouchers, the OP will get an invoice/receipt for £100 + £20 VAT and can claim back the input VAT of £20 on a £120 purchase "cost"

if the face value is more, then OP is quids in

martindow

Interesting replies from everyone but I'm still rather mystified.



Using OOec25's figures this bank account will show £100 withdrawn for an item worth £100+VAT. Reclaiming the input VAT, as I'm sure is allowed as you are far more expert than me, seems very generous of HMRC as this money has not been paid and VAT appears out of thin air.


If I were a tax collector I would say that regardless of the invoice figure I will only allow a VAT element that reflects the money paid - £83.33 nett + £16.67 VAT.

trailingspouse

I don't think it's any different from, say, buying something using a credit card that gives cashback - you're paying slightly less (in the end), but the VAT remains the same.

trailingspouse

And from a practical point of view, how would HMRC know? I doubt if the invoice will say 'paid for with vouchers that were bought at a discount'.

Pennywise

It's what is shown as input VAT on the VAT receipt/invoice that matters, not the amount paid (or not). Claiming input VAT is all about what is shown on the VAT invoice.