Value Added Tax Act 1994 Schedule 10B paragraph 11

Composite transactions

Section 11 deals with composite transactions where goods or services and a voucher are supplied together, and determines when the voucher element is treated as having no consideration.

• Applies where goods or services are supplied to a person and a voucher is issued or transferred to that person as part of the same composite transaction.
• If the total price of the transaction is the same, or not significantly different, from what it would be without the voucher, the voucher supply is treated as made for no consideration.
• This prevents businesses from artificially allocating part of the price to a voucher when the customer has not genuinely paid anything extra for it.
• The test is whether the inclusion of the voucher makes no real difference to the overall amount the customer pays.