VAT Treatment of Refunds Made by Manufacturers
HMRC's consultation document on the VAT treatment of refunds made by manufacturers has been published. The deadline for responses is 31 August 2013.
The consultation deals with the VAT treatment of refunds paid by manufacturers directly to consumers. UK law currently expressly allows a business in a direct relationship with a customer to adjust the VAT originally accounted for in the case of a post-supply adjustment to the consideration. It is however silent on the position where a manufacturer, which has no direct relationship with the final consumer of its products, makes a post-supply payment