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Store card discounts

Where a customer has a store card issued by that particular retailer, and makes a qualifying purchase using that card, they receive a credit for a specified sum that is credited to that card. The VAT treatment of the sale of the goods and any discount offered depends on the following:

1. •

   if the retailer and store card company are in the same VAT group ― the group should only account for VAT on the discounted amount

2. •

   if the two companies are not in the same VAT group ― VAT should be accounted for on the full value of the goods supplied, as the discount has