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Open consultation: VAT and value shifting

HMRC have issued a consultation seeking to legislate against “value shifting”. The closing date is 30 March 2021.

Value shifting can potentially occur when a number of items with different VAT liabilities are sold as a single package, requiring the sale price to be apportioned between the VAT rates. While courts have ruled whether specific packages require appointment, they tend not to specify the actual calculation method to use.

Source gov.uk

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