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.