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HMRC internal manual

VAT Valuation Manual

Apportionment of monetary consideration: basic apportionment "principles"

Before it is possible to perform an apportionment calculation, there are four basic questions that have to be addressed in order to determine whether an apportionment is appropriate and if so, what supplies it relates to.

  1. Is there more than one supply?
  2. Is there a single consideration?
  3. Can any part of the payment be treated as outside the scope of VAT?
  4. What are the liabilities of the supplies in question?

You should not attempt to consider the acceptability of an apportionment method until these four questions have been determined.