It’s a compensation payment – so no VAT applies?
Is a question that we are often asked and the answer starts with “Well it depends….”
Quite often we find that, actually, the payment being made is linked to an earlier supply which was subject to VAT. Therefore, it can be difficult to break the link between the supply originally made and the payment later received, in order to treat the later payment as “outside the scope” of VAT.
Source: centurionvat.com
Latest Posts in "United Kingdom"
- UK Domestic Reverse Charge for Construction: Five Key Tests Every Business Should Know
- HMRC Updates VAT Recovery Rules for Pension Scheme Services
- HMRC Updates VAT Notice 709/1 on Catering and Takeaway Food
- HMRC Updates VAT Recovery Rules for Pension Scheme Services
- HBS Enterprises VAT Appeal on Online Marketplace Deemed Supplier Rules
