Commentary

RCB/19/14 Avon Cosmetics Limited First-tier VAT Tribunal decision on the UK's “party-plan” derogation

Part V16 Forms and other HMRC material

RCB/19/14 Avon Cosmetics Limited First-tier VAT Tribunal decision on the UK's “party-plan” derogation

RCB/19/14 Avon Cosmetics Limited First-tier VAT Tribunal decision on the UK's “party-plan” derogation

Revenue & Customs Brief, Issue 19. 16 April 2014

Purpose of this Brief

To explain HM Revenue & Customs's (HMRC's) position following the Avon Cosmetics Ltd First-tier Tribunal (FTT) VAT decision [LON/2004/1028] to make a reference to the European Court of Justice (ECJ) on the United Kingdom's (UK) “party-plan” derogation which ensures that VAT is declared on retail sales made through non-registered representatives.

Who needs to read this?

Businesses involved in direct selling through independent individuals who are not registered for VAT.

Background

We directed Avon that it must account for VAT on sales, by its non-VAT registered representatives, at their open market value. This was to ensure that VAT is accounted for on the full price charged to final

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