HMRC is consulting on a proposed revision of the rules for apportioning consideration between supplies with mixed liabilities in a single transaction. The current law in VATA 1994 s 19(4) does not prescribe any particular method on how to apportion the price of items bundled together in a single transaction, and some businesses pay less VAT by apportioning more consideration or ‘shifting the value’ to non-standard rated items. Businesses are also invited to suggest other ways to tackle value shifting. The consultation closes at 11:45pm on 30 March 2021.
HMRC is consulting on a proposed revision of the rules for apportioning consideration between supplies with mixed liabilities in a single transaction. The current law in VATA 1994 s 19(4) does not prescribe any particular method on how to apportion the price of items bundled together in a single transaction, and some businesses pay less VAT by apportioning more consideration or ‘shifting the value’ to non-standard rated items. Businesses are also invited to suggest other ways to tackle value shifting. The consultation closes at 11:45pm on 30 March 2021.
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