A Ltd is a company which offers prepaid debit cards
If a cardholder spends money with one of their partners (say the Y emporium) that person gets 5% cashback
So Ms X spends £100 at Y Emporium
Subsequently A Ltd refunds Ms X £5
A Ltd invoices Y Emporium £7 (the £5 and a handling charge)
I don't think A Ltd can exempt their invoice as being an intermediary for financial services. Y is just selling their goods, X just buying them
My query is whether A has to add VAT to the entire £7 or whether they can charge it on only the £2. I have now argued myself in 3 different directions
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