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