Commentary

V7.341 Mixed supplies—planning points to consider

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.341 Mixed supplies—planning points to consider

Part V7 Tax planning | Commentary

V7.341 Mixed supplies—planning points to consider

The following planning points should be given consideration.

  1.  

    •     When assessing whether a single or multiple supply situation exists, it is necessary to consider whether each supply constitutes an aim in itself, or whether it is incidental to the main supply.

  2.  

    •     Remember that an analysis of mixed supply situations is only relevant if goods or services within the supply attract VAT at different rates.

  3.  

    •     Be aware of the two different methods of apportionment in mixed supply situations (ie cost-based and revenue-based calculations) and identify if one of the methods gives a fairer

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