Wednesday 20 April 2011

VAT on business samples

Following a European Court Case HMRC have changed its view that only one free sample of a product can be treated as free of VAT. HMRC now accept the position that that all samples provided for marketing purposes are free of VAT and should not be treated as full value sales.

VAT previuosly paid in respect of the above samples can now be reclaimed, subject to the four-year time limit.

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