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

trailingspouse

martindow wrote: »

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

Yes. Yes it is.

00ec25

martindow wrote: »

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Using OOec25's figures this bank account will show £100 withdrawn for an item worth £100+VAT.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.

you are mixing up 2 totally separate transactions

the amount you pay for the vouchers has nothing whatsoever at all to do with your input VAT claim

the company selling the item has declared the sales value in its books. It will pay output Vat on that value and will give you a receipt/invoice stating that value (including VAT). If they sell it for £120 in their accounts then they pay £20 VAT to HMRC and you recover £20 VAT from HMRC as your input tax, That is not appearing from thin air, that is actual matching cash.

how much VAT the person selling the vouchers to you pays to HMRC is none of your concern (as I said VAT on vouchers is monstrously complex) as thankfully in the context of your question, it is utterly irrelevant

all that matters to you is how much VAT is shown on the purchase invoice you will hold and claim