‘Cash back’ payment by manufacturer

A ‘cash back’ is a payment usually made by a manufacturer directly, or via a recovery agency, to the customer of a wholesaler or retailer. Usually, it reflects the volume of purchases. Similar payments may be made under manufacturer's discount schemes, or may be referred to as ‘volume bonuses’ or described in similar terms. Such payments occur outside the direct supply chain, so credit notes should not be used (Notice 700/7).

A cash back should be distinguished from a credit note (¶56-050).

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