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VAT on Gifts & Samples: Revisited

  • Consideration is usually required for a transaction to be considered a supply for VAT purposes.
  • Deeming rules exist to ensure that input VAT recovery is balanced by output VAT on onward disposals of assets or services.
  • Exceptions to the deeming rules exist for scenarios such as giving goods away for business promotion or providing samples to potential customers.

Source CJMTax

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