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Where Taxpayers and Advisers Meet

Rebate from brewery

pawncob
Posts:5164
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex
Rebate from brewery

Postby pawncob » Tue Nov 05, 2024 8:41 pm

Molson Coors have given a client retrospective refunds, but don't show any VAT element.
The statement looks like this:
Bank Account ending ****1940 will be debited on 25.10.2024 or within 3 working days, with Collection Advice
document number F110001395. This is in accordance with your Terms of Payment: 1 week rolling
Date
Doc.
Type
Our Document
Reference
Your Document
Reference Gross amount
15.10.2024 RX 907897106 NOT APPLICABLE 1268.08
15.10.2024 RX 980947786 0980947786 -344.86
15.10.2024 RX 980947790 0980947790 -6.92
15.10.2024 RX 980947794 0980947794 -127.18
15.10.2024 RX 980947797 0980947797 -183.09
15.10.2024 RX 980947799 0980947799 -287.16
Sum Total 318.87
They say VAT is not applicable. They've credited it as a payment against a gross invoice and it's stated as "Reference Gross Amount".
Can anyone confirm the VAT position?
With a pinch of salt take what I say, but don't exceed your RDA

Trevor S
Posts:115
Joined:Tue Jan 01, 2019 12:37 am

Re: Rebate from brewery

Postby Trevor S » Wed Nov 06, 2024 11:39 pm

If this is a statement, presumably there's an invoice/credit note produced for each line? Would be worth getting a copy of those documents, to see if they give any more information about what the credits are.

pawncob
Posts:5164
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Rebate from brewery

Postby pawncob » Thu Nov 07, 2024 10:04 am

No paperwork produced for the credits other than the Statement. (and none available).
With a pinch of salt take what I say, but don't exceed your RDA

Trevor S
Posts:115
Joined:Tue Jan 01, 2019 12:37 am

Re: Rebate from brewery

Postby Trevor S » Fri Nov 08, 2024 12:25 am

Without supporting paperwork, you aren't going to be able to tell for certain. Might they be refunds of returnable packaging deposits (see section 8 of the terms and conditions on the internet here: https://www.molsoncoors.com/sites/molsonco/files/General%2520TCs%2520of%2520Sale%252020201005_1.pdf)? The credit amounts seem a bit high compared to the invoice value, but maybe purchases were unusually low or returns unusually high during the period. If they are returned deposits, invoices should show the deposits being charged outside the scope of VAT too.

Otherwise, section 18 of notice 700 says that where a supplier issues a credit note to a customer who is entitled to recover VAT, the VAT doesn't need to be adjusted if the parties agree. Although in this case, it appears that the customer hasn't (knowingly) agreed!

pawncob
Posts:5164
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Rebate from brewery

Postby pawncob » Fri Nov 08, 2024 10:11 am

The credits represent a "rebate" for past 6 months purchases.
Good spot on S18.
I think I'll just get client to "agree" and leave well alone.
Many thanks.
With a pinch of salt take what I say, but don't exceed your RDA


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