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

Exporting goods ― proof of export

Exporting goods ― proof of exportIn addition to the requirements laid down in the Exporting goods ― overview guidance note, businesses intending to zero-rate exported goods must hold satisfactory evidence that the goods have been delivered to a destination outside of the UK. If satisfactory evidence

15 Dec 2020 14:02 | Produced by Tolley Read more Read more

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

Payments to trust beneficiaries

Payments to trust beneficiariesThis guidance note considers the trustees powers to make payments and whether the payment made is income or capital.This guidance note is designed to give outline and background for accountants and tax advisers who deal with clients establishing trusts. It is not

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