VAT on out of date stock

[Leeloo]

Hi,

I am VAT registered and am slightly at a loss as to what I do about stock (mainly skincare) that is out of date. I have already claimed back the input VAT on this, so do I have to pay that back? Or am I allowed to record it as a loss? When I've looked on the VAT help page, it only seems to talk about when you take items from stock for personal use or if items are stolen or destroyed.

While I'm on it, does anyone know what you do about loyalty points earned by the customer. In understand that you've already paid VAT on whatever it is that they've earned points with, but if they spent the points on a retail product, do you have to pay back the input tax, pay RRP output tax or do you count it as a gift?

Thank you in advance for any advice!

 

[squidgernetball]

I think you're probably best talking to an accountant. We're vat registered, but the accountant deals with it all. At a guess, your stock would be classed as destroyed as it's out of date.

Re loyalty points, regardless of how the client pays, you pay vat, so if the client buys a moisturiser for £40 and uses £10 of loyalty points, you pay vat on the transaction of £30. I don't accept loyalty points for products but it's the same with treatments although no vat is initially paid.

So to clarify, your vat is paid on goods purchased and on monies taken - loyalty points aren't monies taken.

Vic x