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 https://www.gov.uk/government/consultations/vat-and-value-shifting.