Vouchers, VAT and business users

Discussion in 'Customer Service' started by virtox, Apr 21, 2011.

  1. virtox
    virtox Active Member Moderator
    I'm probably missing something but I can't figure out how VAT fits/works with vouchers. (from a business user perspective)

    Trivial case:
    When I buy a $25 voucher, my cart shows a value of $0 in VAT.
    Which seems logical, as a voucher essentially equals money.

    However when I then buy something with that voucher, the prices on the invoice include VAT.

    Let's assume the product is $21 ex VAT, so the invoice price inc VAT shows $25.

    Then it discounts/deducts the voucher leaving a total of $0.
    And at the bottom it shows the amount of VAT 19% of $0 is $0.

    But $4,- of VAT have still been payed, but are never declared on the invoices?

    I know it's kinda silly to buy a voucher and use it yourself, but something still seems strange?

    Oh well, it's way to late for this (1 am) but it been driving me nuts ;)
    Anyone with some bright insights?

  2. roy
    roy New Member
    Hi Stijn,

    Let me try to get rid of the confusion.

    You are right in saying that when you buy a voucher of say 25$ it is equal to money so no VAT is charged.

    Now when you use that voucher to buy a model of 25$ including VAT it is deducted to 0$. Actually there is no VAT impact at this point because you buy something worth 25$ incl VAT but we also give you a discount of the 25$ including VAT.

    It would be different if you e.g. would buy a model of 50$ including VAT and use a voucher of $25. In that case the vat calculation only applies to the difference of $25, which would then be split into say $4 VAT 21$ for the model.

    I hope this makes sense/helps.


    Roy - Financial manager Shapeways