VAT and Business Promotion Schemes

Business promotion schemes although aimed at driving sales and bottom-line profit can cause major VAT complications for finance departments. Promotion schemes are generally the marketing director's brainchild and the tax implications of any campaign are therefore not always at the forefront of any discussions about the relative merits of such schemes. As a result promotion schemes may fail dismally due to unforeseen VAT issues either in terms of accounting headaches or in the worst cases because of an increase...