RCB/67/07 VAT—rebates and credit notes relating to customer discounts and associated payments
Revenue & Customs Brief, Issue 67. 9 November 2007
This Revenue & Customs Brief explains the VAT treatment of rebates, credit notes and similar transactions relating to business promotions between suppliers and their customers.
Revenue & Customs Brief 8/07 (RCB/8/07, Division V16.3) explains the VAT treatment of manufacturers' cash back payments. That brief covers payments that occur outside the direct supply chain. This brief explains the correct VAT treatment for supplier discounts, volume rebates and charges made by the customer when promoting the suppliers' products.
The table below outlines the differing forms that these transactions take and their VAT treatment.
With effect from 1 January 2008, you are required to apply the correct VAT treatment as outlined. We do not wish to create any