VTAXPER36000 – Issues to consider: agency and disbursements: revenue risks associated with agency
Since agents, potentially, only have to account for VAT on the value of their own agency services, incorrect classification of a principal as an agent will mean that output tax is accounted for on a much reduced value: the revenue loss may be considerable. There are also input tax risks associated with agency: in particular, companies may seek to reclaim input tax on expenses which are not their own, but are the expenses of unregistered agents acting on their behalf.
Source gov.uk
Latest Posts in "United Kingdom"
- UK Court Rules HMRC Wrongly Denied Hotel Supplier’s £10.2 Million VAT Claims
- New Updates on Correcting VAT Errors: Key Changes and Guidance for Businesses
- Tribunal Rules on VAT Status of Government Grants for Free Educational Services by Colleges
- Colleges Win £2.8 Million Tax Rebates Amid VAT Rule Dispute with HMRC
- The UK Should Lower or Abolish, Not Raise, Its VAT Registration Threshold
