CREOATE is acting as an intermediary.
As a marketplace, CREOATE acts as an intermediary between Wholesalers and Retailers. This means that the transaction that takes place is entirely between the Wholesaler and the Retailer. CREOATE is simply the platform that allows this transaction to take place.
Taking this into account:
- VAT is determined by the Total Value of Goods sold (SubTotal line item on your invoice)
- The Total Value of Goods sold (Sub Total line item on your invoice) is product and seller dependent. So any brand discounts etc are taken into account at this stage.
- This Sub Total does not include Creoate Vouchers, since Creoate is just the intermediary in this transaction
How VAT is applied to Money Off Vouchers
Although there may not be times you are charged the full Order cost, the Wholesaler is not applying any discounts to any of the individual products. Instead, CREOATE is subsidising the cost with a Voucher.
This means:
- CREOATE Vouchers come into the picture after the Sub Total on your invoice.
- UK Government rules as stated here say that no VAT can be charged on Money Off Vouchers
- What this means is that if Creoate Voucher is deducted from SubTotal and VAT is then computed it means that VAT is computed on the money-off voucher too.