Reply To: Temporary Reduction of VAT for Restaurant/Cafe Food and Beverage Sales

[Mark Wilson]

Hi Tom,

On the first point, I attended a KPMG event today and they were very clear that VAT is payable on the gross of discount value. This makes sense because we will be reimbursed with the gross of VAT amount of the discount. They were suggesting that we treated the discount as a means of payment rather than a discount, if you see what I mean.