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Post Info TOPIC: Cash Gift Received
Silly Digits


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Cash Gift Received
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Hi

One of my clients has received a small cash gift from a potential customer.  As they are VAT registered do I have to take the VAT element as output tax?  The possible customer gave this to my client for a potential order that did not go through in the end.  They are a limited company.

 

Thanks

 



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Wella


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Hi

I would be inclined to treat it as a non refundable deposit, therefore treat it as an income subject to VAT.

It is not really a gift, as it was meant to secure a sale.

Bill

Edit: Pesky dyslexic fingers, keep miss-typing

 



-- Edited by Wella on Tuesday 19th of July 2011 10:40:39 AM

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Shamus


Forum Moderator & Expert

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Sorry, can't stop as got to go off doing paying stuff but as a quickie, what are the bribery implications of this.

Don't forget that the new bribery act came out just a week or so back.

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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
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