Can anyone share their views please on this matter. Assume that VISA has ‘buy one get one' free movie ticket offer wherein when we buy one ticket, we get one ticket free. What will be the VAT treatment of this free ticket where this free ticket cost is borne by VISA? Will this be VATable or not?
The ‘buy one get one' free movie ticket offer by VISA involves multiple parties. The agreement between the parties must be studied to assess the VAT impact. As a guideline, you can refer one article by Mr. Deepak Agarwal, https://www.gccfintax.com/articles/vat-implications-of-a-multiple-entity-loyalty-programme-955.asp The article can be useful in understanding the details of the scheme and concluding the VAT impact.0 Like
Buy one and get one free movie ticket offer involve three parties or more. If we assume that there are 3 parties involved, the seller is charging from the customer with discounted price and charge Vat on the same. And for free ticket, seller is charging the amount from third party with Vat.0 Like