Your intention and your rebate
You must consider your intention when working out whether a rebate you pay or receive:
- reduces the price of the goods and services sold or purchased
- is payment for a separate sale.
You can work out your intention by considering written evidence showing your obligations and expectations, and your actions in relation to the rebate.
Written evidence may include:
- contracts of sale
- documentation of the terms of trade
- promotional plans
- reports about conducting or monitoring the activities
- minutes of meetings between the parties
- calculations and invoices
- claim forms or credit notes.
Actions may include:
- whether other rebates are paid
- actual activities conducted
- the supplier's influence on the purchaser's activities
- accounting treatment of the rebate.