RCB/5/18 VAT liability on goods supplied on approval
Revenue & Customs Brief, Issue 5. 18 June 2018
The purpose of this brief is to explain HMRC policy on when goods are supplied on approval, and the liability of the delivery charges for these goods.
This brief should be read by mail order retailers and anyone supplying goods delivered on approval.
We recently reviewed our guidance in this area and concluded that in our guidance (VRS9150) the statement “normally”, in that mail order retailers “normally supply goods on approval terms” is not correct. Such companies may supply goods on approval terms but often this will not be the case.
“Sale on approval” was considered by the Tribunal in the case of Littlewoods Organisation plc (VTD 14977). The Tribunal held that goods were supplied on