Good Afternoon All,
I am wanting some advice or guidance on a query I have regarding a client. The question, which when I say it out loud seems a simple one, yet I am struggling to find an answer - well a straight one!
My client supplies packs to parents which include a storybook, and e-book, an accessories kit (basically stationary), and a dolls house with dolls. We both agree this is a multiple supply half being xero rated and the other half being standard. So, the question is, does he charge VAT on the whole amount for example £20 + VAT being £24.
I understand that there is a calculation to apportion of the output VAT based on the cost of the items to us but is that the apportionment we must use when we supply the goods too? So, £20 + vat on the std rated items based on the apportionment?
After reading I had been following the https://www.gov.uk/guidance/vat-guide-notice-700#apportionment-of-output... sec 31.2.1 I read it as we charge the whole amount of the VAT so £4?
Any help or practical examples would be greatly appreciated.
Thank you in advance