The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the VAT treatment of supplies of business gifts and samples. A gift of business assets is treated as a supply of goods for VAT purposes which is liable to VAT at the relevant rate unless it comes within one of the exceptions mentioned in ‘What are not usually treated as business gifts?’ below when different VAT rules will most likely apply.
Businesses that are involved in providing ‘gifts’ in the following situations may not come within the scope of the business gift rules explained in this guidance note and they should refer to the relevant guidance note for more information on the relevant VAT treatment.
there is no supply (and no VAT liability arises) on a gift of goods made in the course or furtherance of a business where ‘the cost to the donor of acquiring or producing the goods’, together with the cost of any other such business gifts made to the same person within a 12 month period, was not more than £50 (excluding VAT). Please note that the £50 relief only applies to gifts made in the course or furtherance of business. Therefore, if a gift is made for non-business purposes, including those applied to personal use (eg a gift to a relative or friend), it is not a business asset and as a result the VAT incurred is not input tax so cannot be recovered
samples (see below)
no VAT is due on free meals or drinks to employees by way of catering or the provision of accommodation for employees in a hotel ― see the Overview of VAT recovery on employee related expenses and Business and staff entertainment guidance notes
where certain additional goods or services are offered together with normal taxable supplies as part of a business promotion ― see the Vouchers ― VAT treatment from 1 January 2019, Coupons
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
Almost all companies will have some loan relationships. However, some items that are commonly assumed to be loan relationships are not (eg outstanding consideration for the sale / purchase of property and inter-company balances relating to unpaid amounts for goods or services, in each case where
A time to pay arrangement, which may also be referred to as TTP in practice, is a negotiated agreement between HMRC and the taxpayer to allow for tax to be paid after its due date.The guidance in this note applies to individuals under self assessment and companies paying corporation tax. It does not
VAT fuel scale chargesWhat are fuel scale charges?The VAT fuel scale charge is a simplified method that can be used by a business that funds both business and private mileage costs for employees to account for any output tax due on the private use of the vehicle. The charge was introduced to
Introduction to the regimeThe aim of the patent box regime is to provide an incentive for companies to develop and retain patents and other qualifying intellectual property within the UK as part of the Government’s growth agenda. Finance Act 2012 originally introduced the legislation governing the