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

Enterprise investment scheme tax relief

Enterprise investment scheme tax reliefOverview of EIS tax reliefsThe enterprise investment scheme (EIS) offers significant tax reliefs to encourage individuals to invest money in qualifying shares issued by qualifying unquoted companies. The scheme is designed to encourage investment in small,

14 Jul 2020 11:36 | Produced by Tolley Read more Read more

Simple assessments

Simple assessmentsFrom 2016/17 onwards, HMRC has the power to make a ‘simple assessment’ of the taxpayer’s income tax and / or capital gains tax liability outside of the self assessment system. As HMRC already receives significant amounts of information on the income received and tax paid by

14 Jul 2020 13:40 | Produced by Tolley Read more Read more

Self assessment ― amendments and corrections

Self assessment ― amendments and correctionsOnce a self assessment tax return has been filed, both HMRC and the taxpayer (or the agent) has the right to make changes to the return. There are different time limits depending on whether it is a correction by HMRC or an amendment made by the

14 Jul 2020 13:37 | Produced by Tolley Read more Read more