• 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.
      Last modified: 22 May 2014QC 16694