Commentary

V7.461 Agents—planning points to consider

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.461 Agents—planning points to consider

Part V7 Tax planning | Commentary

V7.461 Agents—planning points to consider

The following planning points should be given consideration.

  1.  

    •     The VAT liability of services provided by an agent can be different to the VAT liability of the goods being traded. For example, the services of an estate agent selling new residential properties (zero-rated) for a national housebuilder will be standard rated.

  2.  

    •     Always review correspondence between an agent and a principal to be clear that a genuine agency arrangement is in place. The main condition is normally that the agent will never take ownership of the goods or services being provided and will receive his

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