- HMRC is withdrawing the linked goods concession (ESC in VAT Notice 48) for VAT on minor promotional items.
- Supplies previously eligible under the concession will now be treated as single supplies under existing legislation and case law.
- HMRC’s policy on single and multiple supplies remains unchanged; businesses should refer to VATSC11113 for guidance.
- The withdrawal does not introduce new compliance obligations or change the VAT treatment of such supplies.
- Most small value ancillary supplies will still be treated as part of a single supply if closely linked to the main supply.
Source: taxscape.deloitte.com
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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