Business promotion schemes ― overview

Produced by Tolley

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Business promotion schemes ― overview
  • What are promotion schemes?
  • What are not regarded as business promotion schemes?
  • What are the most common types of business promotion schemes?
  • VAT considerations
  • Further reading

Business promotion schemes ― overview

This guidance note provides an overview of the various types of promotion schemes that can be used by businesses in promoting the sales of goods and services.

See De Voil Indirect Tax Service V6.169 for more in-depth commentary.

What are promotion schemes?

Business promotion schemes are commonplace and vary in scale and nature and can range from:

  1. giving gifts of goods or services

  2. giving away samples

  3. cashback schemes

  4. loyalty schemes

  5. vouchers

  6. coupons and other forms of discounts

What are not regarded as business promotion schemes?

The following are not regarded as business promotion schemes from a VAT perspective:

  1. supplies of

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