Client Login

Money off discounts and pre-paid payments

Chris Young
04 Feb 2016 3min read

Everybody loves a discount. Whether you are getting money off your order or redeeming a pre-paid gift voucher you received for Christmas, discounts are a welcome bonus to any purchase.

Kobas already allowed you to create fixed value discounts, such as £5 off a bill, but we have now made the distinction between money off discounts and pre-paid vouchers clearer for both you and your customers.

  • Discount (tax exempt) – This is when you are giving money off as a reward, apology when something has gone wrong or as a special offer. In this instance, tax is not charged on the discounted amount as the discount is essentially reducing the amount of money that is received for the item sold.
  • Pre-paid (taxable) – This is used to allow redemption of pre-paid payment methods on your till, for example redeeming gift vouchers you have previously sold or when a customer has placed an advance deposit. In this instance, tax is not charged when the voucher is sold, but is applied to the full transaction value at the time of redemption. This is because the total amount of money received ultimately covers the full cost of the item purchased. More information about UK voucher VAT law.

The distinction between the two is now displayed at every step of the process; when you set up the discount in Cloud’s Discount Manager; apply it to an order on the Take Payments screen on your EPoS; and in the payment method displayed on customers’ receipts.

Discount Manager

For more information on other types of discounts and promotions, please see our guide.

More Posts

31 May 2022 11min read

Finding The Best EPoS System For Your Hospitality Business

Finding the best system for your business can be challenging due to [...]

29 May 2024 4min read

Leveraging Swiftonomics: 6 Tips to Prepare for The Eras Tour in Hospitality

Taylor Swift’s award-winning and record-breaking tour, The Eras Tour is landing in [...]

24 May 2024 7min read

Managing Irregular Hours: What Your Business Needs To Know

Legal changes from 1 January 2024 in the UK specifically address how [...]

Stay updated with the latest news and updates from Kobas.