This guidance note provides an overview of the VAT treatment of cashbacks and multi-save promotions.

Businesses involved in other types of promotion schemes should see the Business promotion schemes ― overview guidance note for more information.

An extra statutory concession, which has been withdrawn, applied to minor promotional items supplied with other supplies. If a transaction was a multiple supply in which a minor promotional item was sold with another item (the main item) for a single price, the concession allowed the VAT treatment of the minor promotional item to follow that of the main item. The extra statutory concession was withdrawn on 8 January 2026. See Notice 48, extra statutory concession 3.7.

For more detailed commentary, see De Voil Indirect Tax Service V3.158.