SolvedVATVAL08000 | Special valuation provisions: example direct-selling arrangements
From HM Revenue & Customs · VAT Valuation Manual
| 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.