Details of administrative agreements relating to VAT on certain specific transactions between members of trade bodies and HMRC are set out in VAT Notice 700/57, which can be found on the Gov.uk website.

The agreements set out in the notice allow members of the trade bodies to use procedures which reflect their individual circumstances in order to meet their VAT obligations. The agreements only apply to areas in which HMRC can exercise their discretion. Further, they do not provide any financial advantage or relief from tax.

The agreements provide a unique solution to a particular problem and in doing so, reduce burdens on business. While some of the arrangements may benefit other businesses, the method set out in the agreements cannot be adopted without advance approval from HMRC.

HMRC publish details of new agreements reached in their Business Briefs, and will include them in the next edition of Notice 700/57.