New VAT Rules Redefine Composite vs Multiple Supplies: Bundled Services Face Increased Tax Scrutiny

• New definitions of “composite supply” vs “multiple supplies” significantly affect businesses bundling products or services.
• If contracts or invoices show separate component pricing, supplies can’t be treated as composite, impacting VAT treatment.
• Original suppliers may remain responsible for VAT even if parts are subcontracted.
• Bundled service providers must review and possibly restructure contracts and pricing to avoid unexpected tax liabilities.
• Immediate review of existing bundled offers is advised to prevent VAT compliance issues.

Source: acme-group.me

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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