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Posted Wed, 03 Apr 2024 08:37:47 GMT by mikeocuk
Hello We are a VAT registered business and recently made some business purchases on Ebay while they were running a 20% off promotion. The items were purchased from VAT registered businesses who each supplied VAT invoices. Each of the invoices are for the full amount and don't show the discount as I assume this is funded by Ebay. For example: item purchased for £250 on Ebay buy it now and paid Ebay £200 (-£50 discount coupon) the invoice provided for the item is £250 inc VAT, £41.67 VAT, £208.33 Net How do I correctly account for the VAT for this purchase? I am assuming I shouldn't claim the VAT amount on the invoice provided (even though it is correct) as I paid a lower amount to Ebay?
Posted Wed, 10 Apr 2024 11:45:46 GMT by HMRC Admin 19
Hi,

Please see the guidelines below for the input tax recovered on discounts:

Introduction to output tax

Thank you.

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