Commentary

V7.120 The purpose of VAT planning

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.120 The purpose of VAT planning

Part V7 Tax planning | Commentary

VAT planning generally

V7.120 The purpose of VAT planning

It is suggested that VAT planning is aimed at achieving one or more of the following:

  1.  

    •     The maximisation of input tax.

  2.  

    •     The minimisation of output tax (if it is not fully recoverable as input tax in the hands of the purchaser).

  3.  

    •     An improvement in cash flow.

  4.  

    •     Ease of administration.

  5.  

    •     Minimisation of risk.

The importance of individual categories my be greater for some businesses than others; a small concern with few staff may be more concerned with the time it takes to complete the VAT return than

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial