Employee Gift Voucher(Amazon) FRS Treatment

Accounting
1

Hey Guys,

As part of trivial benefits we are giving amazon vouchers to our employees.
We are on flat rate scheme. Is this a reverse charge?

When filling the VAT return do we fill in the boxes 1 & 4 (cancelling out the VAT impact effectively) or do we add these to box 2 and end up paying VAT on them?

thanks
al

2

unfortunately cannot claim back under FRS, its one way stream almost

3

thanks. but how does it work with trivial benefit gift vouchers?
do we as a business need to pay vat on this?

4

This would be down to the supplier normally. Please check the invoice they issue to you which would normally state the VAT rate, if applicable. However, as @FaradayKeynes mentions, with the flat rate scheme you wouldn’t normally be able to reclaim the VAT paid.