Discount (club) cardis a cardthat is issued and distributed bynon-financial institutions ( companies , associations of buyers , clubs , etc.), confirming that its holder has the right to receive appropriate services , discounts , etc. from mentioned above institutions. What are the features of discount cards accounting?
It should be noted that according to par. 2 p.1.3 of NBU Regulation 'On transactions with using special means of payment conducting' of 30.04.2010 № 223 the requirements of this document do not apply to entities that produce telephone, transportation, fuel , and other discount cards that do not include to payment and are intended to show electronically debt of issuer to holder of such cards for prepaid products (services) , and on transactions conducted with their use.
Organizational aspects of discount cards emission, offering discounts and bonuses on them, changes in retail prices in sale with discount cards should be shown in Order of companies’ head. In addition , it is necessary to adopt the Regulation on sale of goods and services with discount cards . Here should be presented all the organizational aspects and emphasize the fact that the discount card is a property of the seller and buyer - its user. It is allow not to consider the supply of goods to the buyer discount card transfer, and therefore not to charge VAT liabilities.
Costs on producing (purchase) discount cards are directly related to economic activity of enterprise. According to UAS 16 and subparagraph . 'з' subparagraph 138.10.3 of the Tax Code of Ukraine (hereinafter - TCU) such costs are included in distribution costs as the cost for marketing and advertising at the date of recognition of costs and should be reflected in the line 06.2 of the Declaration on Income Tax . The company is entitled to a tax credit on VAT.
Discount cards can get not only physical persons, but also businesses . According to the Ministry of Finance Order 'On Approval of Amendments to Some Legal Acts of the Ministry of Finance Concerning Accounting' of 27.06.2013 № 627 discount card for user is not considered as electronic cash.
About sale of goods and services with discount cards. As sellers of goods, that operate in retail, according to paragraph 11 Article 3 of the Law of Ukraine 'On cash register in trade, catering and services' (hereinafter - the Law on PPO), are required to use cash registers with pre-programming mode for good (services) description and prices and taking into account their quantity, discounts enter in cash registers. In Order of companies’ head and in the Regulation on sale of goods and services with discount cards mentioned - discount cards could be personalized or payable on demand. Personalized card includes Personal Income Tax (PIT). According to subparagraph 'e' subparagraph. 164.2.17 of TCU income arises as an additional benefit as the discount amount of goods, works and services . If discount card is payable on demand, the amount of discount is not a subject of Personal Income Tax (PIT).
