HMRC launch consultation on VAT and value shifting

Released 05 December 2021

HMRC are seeking views on a proposed revision of the rules for apportioning the consideration between supplies with mixed liabilities in a single transaction.

The current law in VATA 1994, s. 19(4) is non-prescriptive and some businesses pay less VAT by apportioning more consideration (or ‘shifting the value’) to non-standard rated items.

Although the broad principles of the new rules are set, businesses can comment on how these can be written into UK law and suggest other ways to tackle value shifting.

This consultation runs until 30 March 2021.

View the consultation documents.

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