Commentary

V7.338 Mixed supplies—introduction

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.338 Mixed supplies—introduction

Part V7 Tax planning | Commentary

Mixed supplies at different rates of VAT

V7.338 Mixed supplies—introduction

One of the more controversial subjects involving VAT has been the interpretation of the rules when a business sells two or more different items within one supply (goods or services), and these individual items attract different rates of VAT. In such situations, the suggested approach is as follows:

  1.  

    •     the question to resolve is whether each of the individual elements constitutes an aim in its own right – if so, there is more than one supply

  2.  

    •     if one of the supplies is regarded as being insignificant or incidental

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