Multiple supplies ― output tax apportionment

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Multiple supplies ― output tax apportionment

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
imgtext

This guidance note provides information about output tax apportionment. It should be read in conjunction with the Single or multiple supplies ― overview, Single or multiple supplies ― indicators that it is a single or multiple supply and Single or multiple supplies ― other considerations guidance notes.

What is output tax apportionment?

Output tax apportionment is relevant to businesses that sell goods or services with different VAT liabilities in a package or bundle for a single price. For example, a business may sell a zero-rated cold takeaway sandwich and a standard-rated drink for a single VAT-inclusive price. In such situations, it is necessary to calculate the amount of VAT to account for the supply on a fair and reasonable basis using an appropriate method of output tax apportionment.

Output tax apportionment is particularly relevant to retailers and other businesses that sell items with different VAT liabilities to consumers. Such businesses may offer items for sale in a package or bundle, often at a price that is less than the total price that

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+

Popular Articles

Payment of tax due under self assessment

Payment of tax due under self assessmentNormal due dateIndividuals are usually required to pay any outstanding income tax, Class 2 and Class 4 national insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2025 for the 2023/24 tax year).

14 Jul 2020 12:52 | Produced by Tolley Read more Read more

Definition of a close company

Definition of a close companyThe detailed definition of a close company is set out below, but in summary the rules are targeted at those companies where the owners can manipulate the activities of the company to influence their own tax position. Therefore, broadly speaking, in most cases an

14 Jul 2020 11:24 | Produced by Tolley Read more Read more

Payment of the remittance basis charge

Payment of the remittance basis chargeRemittance basis chargeThe remittance basis charge is an annual charge payable by ‘long-term’ UK residents for the privilege of claiming the remittance basis.Taxpayers who wish to utilise the remittance basis (but do not qualify for it automatically) must pay

14 Jul 2020 12:52 | Produced by Tolley Read more Read more