700/7/20 Business promotions

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

700/7/20 Business promotions

Part V8 HMRC Notices | Commentary

Business promotions

December 2020

This notice cancels and replaces Notice 700/7 (28 May 2012).

1 Overview

1.1 Information in this notice

This notice explains the VAT treatment of:


    •     business gifts


    •     samples


    •     different kinds of business promotion schemes

It is intended to help you ensure that the correct amount of VAT is accounted for and paid.

It does not cover:


    •     supplies of sponsorship for which you should see Notice 701/41


    •     business entertainment for which you should see Notice 700/65


    •     the detailed operation of retail schemes (covered in Notice 727) for bespoke retail schemes (covered in Notice 727/2)

1.2 Changes to this notice

The technical content of section 8 has been updated to take account of developments in both law and policy on vouchers.

Section 9 has been added on the treatment of vouchers issued after 1 January 2019.

Paragraph 2.2 has been amended to clarify the meaning of a gift.

Paragraph 2.14 has been added to explain the treatment of the disposal of obsolete stock.

Other text has been changed to improve readability.

1.3 Who should use this notice

This notice is intended for businesses who:


    •     make gifts of goods or services


    •     give away goods which are samples of their supplies


    •     are involved in business promotion schemes, for example cashback schemes or where goods or services are given as rewards to either retail or trade customers


    •     are involved in the issue, supply or redemption of coupons or vouchers.

1.4 Guidance on interpretation

The guidance in this notice is not a part of, and does not override, the

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