Consideration: Payments that are not Consideration: Management charges and directors’ services: How to confirm management charges
Accounting entries or invoices alone are not sufficient evidence to establish that a supply has taken place. The rules governing whether a supply is made as described in VATSC03000 are also applicable here. The three main points for management charges that have to be considered are:
- Do the supplies exist? Does the value given represent any actual supplies made, or is it just a book figure?
- Who is making the supply and what supply is being made?
- What is the value of the supply? How is the supply costed and does the value have any relation to the supply being made?