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

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more Read more

Ministers of religion

Ministers of religionMost ministers of religion or members of the clergy are either office-holders or employees and so their earnings are taxable under ITEPA 2003 as employment income and are subject to Class 1 National Insurance.For the purposes of the tax system, a minister does not have to belong

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

Furnished holiday lets

Furnished holiday letsThis guidance note sets out the qualifying conditions for a property let to be treated as a furnished holiday let (FHL) for tax purposes and the subsequent tax implications.Whether or not a property qualifies as an FHL can make an important difference to the taxation

14 Jul 2020 11:46 | Produced by Tolley Read more Read more