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HMRC internal manual

VAT Valuation Manual

From
HM Revenue & Customs
Updated
, see all updates

Special valuation provisions: example direct-selling arrangements

A B C D Notice of Direction (NoD)
         
Registered Principal trader Agent (does not take property in the goods) Final customer   No NoD as A is selling to C and must account for tax on the final selling price
Registered Principal trader Independent distributor / organiser (unregistered) Party organiser /club or group Final customer Issue to A
Registered Principal trader Agent (does not take property in the goods) Distributor (unregistered) Final customer Issue to A because A is selling to C who resells by retail
Registered Principal trader Registered distributor /organiser Party organiser /club or group (unregistered) Final customer Issue to B as the last registered person in the chain of supply

The above are only basic examples. Bear in mind that an individual trader may have different trading methods within one business. It is also likely that some of the supplies made will fall outside the scope of the Notice.