Commentary

V7.335 Incorrectly charging VAT on a zero-rated supply

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.335 Incorrectly charging VAT on a zero-rated supply

Part V7 Tax planning | Commentary

V7.335 Incorrectly charging VAT on a zero-rated supply

There may be occasions when a business has charged VAT on goods or services supplied to a customer, and then belatedly discovered that the item in question should have been zero-rated. This situation can be particularly common for some of the more complex groups. For example, the liability of children's clothing (Group 16) is based on garment measurements and how items are held out for sale, and Group 1 (food) can also include some interesting rulings on products that may qualify for zero-rating.

A taxpayer who discovers he has incorrectly charged VAT on

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