5.8.1 ‘Joint payment, shared deduction’ also applicable to other rebates granted by another person than the party making the (direct) supply?

In section 5.4.6 I described other rebates granted by other persons than the party making the (direct) supply. In my view, based on the same rationale as I described above, a business granting such rebates should be able to deduct the VAT on the part of the transaction it funds under the proposed ‘joint payment, shared deduction’ rules. This should of course only apply to situations where the economic and commercial reality of the transaction would be that these payments should be treated the same as other payments for goods or services that are used for the taxed transaction of the business.

The concept of ‘joint payment, shared deduction’ could possibly even have a wider application than only to discounts and rebates. However, even though in my view, this would deserve additional, separate research, it is outside the scope of this thesis. It could (and should) be the basis for future research.