HMRC internal manual – VAT Supply and Consideration has been updated.

The manual provides guidance on determining the liability of the supply of goods or services effected for a consideration including:

• basic principles and underlying law
• identifying a supply
• consideration
• illegal supplies
• goods or services
• supplies of goods for both consideration and no consideration
• supplies of services for both consideration and no consideration
• definition of consideration
• indicators of consideration
• off-setting
• compensation
• payments which are not consideration
• payments in specific sectors
• settlement of disputes

The amendments are in respect of payments that are not consideration: Carbon offsetting which adds two new pages giving examples of outside the scope activities and commentary on other ecosystem services.