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  • FIRST POST
    • andyuk2005
    • By andyuk2005 13th Sep 18, 11:09 PM
    • 102Posts
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    andyuk2005
    Can I claim back VAT when paying with gift card / vouchers
    • #1
    • 13th Sep 18, 11:09 PM
    Can I claim back VAT when paying with gift card / vouchers 13th Sep 18 at 11:09 PM
    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!
Page 1
    • trailingspouse
    • By trailingspouse 14th Sep 18, 9:07 AM
    • 2,842 Posts
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    trailingspouse
    • #2
    • 14th Sep 18, 9:07 AM
    • #2
    • 14th Sep 18, 9:07 AM
    You can reclaim whatever VAT is itemised on your receipt.
    • andyuk2005
    • By andyuk2005 14th Sep 18, 9:11 AM
    • 102 Posts
    • 8 Thanks
    andyuk2005
    • #3
    • 14th Sep 18, 9:11 AM
    • #3
    • 14th Sep 18, 9:11 AM
    Awesome thanks for confirming that!
    • martindow
    • By martindow 15th Sep 18, 11:36 AM
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    martindow
    • #4
    • 15th Sep 18, 11:36 AM
    • #4
    • 15th Sep 18, 11:36 AM
    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
    • By trailingspouse 15th Sep 18, 4:31 PM
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    trailingspouse
    • #5
    • 15th Sep 18, 4:31 PM
    • #5
    • 15th Sep 18, 4:31 PM
    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
    • By comeandgo 15th Sep 18, 4:44 PM
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    comeandgo
    • #6
    • 15th Sep 18, 4:44 PM
    • #6
    • 15th Sep 18, 4:44 PM
    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
    • By 00ec25 15th Sep 18, 7:34 PM
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    00ec25
    • #7
    • 15th Sep 18, 7:34 PM
    • #7
    • 15th Sep 18, 7:34 PM
    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
    • By martindow 16th Sep 18, 12:21 PM
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    martindow
    • #8
    • 16th Sep 18, 12:21 PM
    • #8
    • 16th Sep 18, 12:21 PM
    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
    • By trailingspouse 16th Sep 18, 12:36 PM
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    trailingspouse
    • #9
    • 16th Sep 18, 12:36 PM
    • #9
    • 16th Sep 18, 12:36 PM
    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
    • By trailingspouse 16th Sep 18, 12:39 PM
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    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
    • By Pennywise 16th Sep 18, 12:46 PM
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    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.
    • trailingspouse
    • By trailingspouse 16th Sep 18, 4:14 PM
    • 2,842 Posts
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    trailingspouse
    Trailing's reply seems like common sense but is it as straightforward as that?
    Originally posted by martindow

    Yes. Yes it is.
    • 00ec25
    • By 00ec25 17th Sep 18, 2:08 AM
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    00ec25
    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.
    Originally posted by martindow
    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
    Last edited by 00ec25; 17-09-2018 at 2:12 AM.
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