Vat on received statement for retrospective discount

Forum Categories GENERAL VAT DISCUSSIONS Vat on received statement for retrospective discount

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  • #55642
    Fiona365
    Member

    Our company sells vet products to vet practices who are part of large corporate groups. We give retrospective rebate to the corporate group based on the sales made. And they have always issued us with an invoice for this rebate inclusive of VAT which was fine but recently they have changed procedures and we now get a monthly statement which includes VAT (data they provide us shows the list of individual practices, quantity purchased rebate claimed including Vat). My question is how do we reclaim the VAT on the statement?  Do we have to issue credit note or what? 

    #55999
    Fiona365
    Member

    Can anyone provide advise on my query above? 

    #56000
    Spidersong
    Member

    Unless you and they have agreed a self billing arrangement then yes you’ll need to issue them a credit note, or credit the disocunt against future sales, adjusting the VAT and consideration on those invoices. How are you actually arranging the exchange of money, presumably when they invoiced before you paid, but what are you doing now there’s just a statement? Answering that will probably guide you on how you should proceed. 

    If they’re knocking it off the money they pay you on future supplies then show it on those invoices, if you’re paying them the money still, then issue them a credit note at the time you pay them. It’s basically whatever you agree between the two of you as to how this rebate should work.

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