BB/1B/06 VAT—company formation services with ancillary printed matter—clarification of treatment post CPP
Business Brief, Issue 1. 18 January 2006
The Commissioners are aware that traders providing company formation services may be incorrectly treating some supplies as separate zero-rated supplies of printed matter and standard-rated services.
This Business Brief article clarifies HMRC guidance previously issued. HMRC confirms its view, in the light of the Card Protection Plan case, on the correct treatment of these supplies. It aims to ensure that all traders providing such services treat them correctly for VAT purposes.
Furthermore there may be cases where traders have attempted to secure a competitive advantage over traders that have been treating the supplies correctly by using this incorrect treatment as a basis for value shifting by invoicing a breakdown of the package price.
Business Brief 02/2001, issued on 16 February 2001, explained the ECJ and House of Lords decisions in the case of Card