Value Added Tax Act 1994 Schedule 10B paragraphs 9-10

Intermediaries

Paragraphs 9 and 10 deal with how VAT applies when an agent, acting in their own name, issues or transfers a voucher, and how any additional services provided alongside the voucher are treated.

• When an agent issues or transfers a voucher in their own name and the underlying supply would normally be treated as a supply of services under section 47(3), the normal agency rules in section 47(3) are disapplied.
• Instead, the underlying supply is treated as both a supply to the agent and a supply by the agent, creating two separate supplies in the VAT chain.
• This ensures that the agent is regarded as receiving and then making the supply in their own right, rather than being treated merely as an intermediary arranging a supply between other parties.
• Any additional services the agent provides beyond the mere issuing or transferring of the voucher remain subject to the normal VAT rules and are unaffected by the voucher provisions in this Schedule.