HMRC report on VAT and value shifting consultation

Released 20 July 2021

HMRC have published a summary of responses to the recent consultation on VAT and value shifting.

This consultation sought views on a proposal to legislation to mandate methods for apportioning the consideration when items with different VAT liabilities are supplied together for a single price as part of a package or bundle.

The proposal is designed to prevent those businesses that seek to exploit the current non-prescriptive rules by apportioning less of the total bundle price to products that are subject to VAT standard rate than appears to be justified, given the normal price a customer would pay for those items if sold individually.

HMRC will continue to engage with stakeholders to gain a fuller understanding of the range of views on the proposals set out in the consultation and will keep matters under review.

Further details can be found at

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