VATSC06512 | Consideration: Payments that are not consideration: Payments in specific sectors: Management charges and directors’ services: How to confirm management charges

Accounting entries or invoices alone are not sufficient evidence to establish that a supply has taken place. The rules governing whether a supply is made as described in VATSC02000 are also applicable here. The three main points for management charges that have to be considered are:

• Do the supplies exist? Does the value given represent any actual supplies made, or is it just a book figure?

• Who is making the supply and what supply is being made?

• What is the value of the supply? How is the supply costed and does the value have any relation to the supply being made?