Goods and services where you have to charge VAT

Supplies at different rates of VAT

Supplies at different rates of VAT are sometimes called 'mixed supplies'. This is where you charge a single price for a number of separate supplies of goods or services but one or all of them are at different VAT rates.

You need to work out the value of each supply you make at each different VAT rate to see how much VAT you need to charge. If the VAT value is based on the total price that you charge your customer, you need to split that price between each supply - this is called 'apportionment'.

There isn't a special way to do apportionment unless you are using the Tour Operators Margin Scheme where you have to use the method explained in VAT Notice 709/5. Your calculations must be fair and you will need to be able to explain them if HM Revenue & Customs (HMRC) visits or contacts you. There are different ways to do apportionment, and although you can use your own method, there are examples in VAT Notice 700, The VAT Guide.

Read about how to do apportionment in VAT Notice 700 - The VAT Guide - on the HMRC website.

Find out about the Tour Operators Margin Scheme in VAT Notice 709/5 on the HMRC website.

Developed with:

HM Revenue & Customs