HMRC has published an updated version of VAT Notice 700/57: Administrative agreements with trade bodies.
This is an unusual publication as it lists situations where there are, or can be, deviations from “normal” VAT rules.
The agreements in the Notice permit members of trade bodies to use procedures which take into account their individual circumstances so they may meet their obligations under VAT law. The agreements apply only to areas where HMRC can exercise discretion, and HMRC say that they convey no direct financial advantage or relief from the legal requirements of the tax. However, there can be benefits a business can derive from the arrangements, including, but not limited to; simplification, cashflow, compliance and management.
The agreements can provide unique solutions to particular problems and reduce the burdens on businesses. Some of them might usefully be applied by other businesses, but it should be born in mind that a business cannot adopt any special method based on these agreements unless HMRC has given approval in advance.
The trade bodies covered in the Notice are:
London Bullion Market Association
Brewers’ Society
Association of British Factors and Discounters
Finance Houses Association Ltd
Association of British Insurers
Association of Investment Trust Companies
British Printing Industries Federation
Marine, Aviation and Transport Insurance Underwriters
Association of British Insurers, Lloyd’s of London, the Institute of London Underwriters and British Insurance and Investment Association
National Caravan Council Limited and the British Holiday and Home Park Association Limited
Association of Unit Trust and Investment Managers
British Bankers’ Association
British Vehicle Rental and Leasing Association
Society of Motor Manufacturers and Traders
Gaming Board for Great Britain and the British Casino Association
British Phonographic Industry
Thoroughbred Breeders Association and the British Horseracing Board
Meat and Livestock Commission
Society of Motor Manufacturers and Traders Limited
Retail Motor Industry Federation
if you or your clients are involved in business covered by, or similar to, the above entities, it maybe worthwhile considering whether any specialised trade agreements may be of benefit.