Background: scope of this guidance
Our books of guidance are the main reference material for people in the HMRC. All HMRC formal procedures and work systems are outlined in these books which give managers and staff the Department’s rules and guidelines and general advice on interpreting them. The guidance is aimed at HMRC staff and should not be relied upon by businesses in calculating their taxes and duties.
The purpose of this book is to provide you with the necessary background, information and guidance to enable you to determine whether a supply is to be valued under normal or special valuation rules and to determine the value of a supply.
The aim of this book is to help you make decisions by enabling you to identify:
- the relevant law
- the facts it may be necessary for you to establish
- any relevant legal tests and precedents
- Headquarters’ policy and agreements with trade organisations.
It comments on the relevant UK and EU legislation and includes summaries of important Tribunal, UK court and European Court of Justice decisions that have either influenced or upheld policy.
To obtain the full benefit of the guidance contained in this book you will need a broad understanding of the principles of VAT, which is contained in the following books:
- VATSC: Supply and consideration, will help you to decide whether a supply has taken place
- VATPOSG: Place of Supply of Goods; VATPOSS: Place of Supply of Services and VATPOSTR: Place of supply of Transport, will help you to decide whether that supply was made in the United Kingdom
- VTAXPER: Taxable person, will help you to decide whether the supplier was a “taxable person”
- VBNB: Business/non-business, will help you to decide whether that supply was made in the course or furtherance of the supplier’s business.
If after having consulted these books you conclude that there is a supply within the scope of UK VAT, you may have to consider the liability of the supply. Guidance on this aspect is contained in the following books:
- V1-07 VAT: Liability
- VATLP: Land and Property
- VCONST: Construction
- V1-09 VCHAR: VAT Charities
It is only at this stage that you should consider further issues such as the time of supply, input tax or valuation of the supply (this book).