HMRC Policy paper: VAT and value shifting consultation update — apportionment of consideration

Purpose of this brief

This brief sets out HMRC’s conclusions and actions taken following the consultation and subsequent evidence gathering exercise. This may result in some businesses reviewing previously submitted returns.

Background

Between January and March 2021, the government ran a consultation on ‘VAT and value shifting’. The consultation proposed fixed rules for how the consideration (amount paid) must be apportioned when items with different VAT liabilities are supplied for a single price.

Following the responses to the consultation HMRC engaged with stakeholders to gain more understanding of the range of views on the proposals.

Source

• Consultation – gov.uk
• Guidance – gov.uk

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