In Associated Newspapers v HMRC [2015] UKFTT 409 (13 August 2015) the FTT found that the supply of vouchers by retailers as part of promotion schemes was subject to VAT (VATA 1994 Sch 10A).
Associated Newspapers (AN) publishes the Daily Mail and the Mail on Sunday newspapers. It had run promotions in which participating readers became contractually entitled to receive retailer vouchers (typically Marks & Spencer ASDA or Sainsbury’s) which AN sourced at a discount to face value. The retailers charged VAT on the issue of the vouchers to AN.
The FTT accepted that AN had run the promotion schemes for commercial purposes in order to increase its sales of newspapers. Therefore to the extent that input tax had been incurred on the purchase of the vouchers from retailers it was recoverable.
The FTT also found that AN had incurred input tax on its acquisition...
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