On 31 July 2018, HMRC published “Revenue and Customs Brief 10 (2018): VAT – cost share exemption”. The Brief explains HMRC’s revised policy for identifying supplies made by costs sharing groups (CSGs). The revised guidance, which is set out in paragraphs CSE3850 to CSE3895 of the Cost Sharing Exemption (CSE) Manual, is due to take effect from 15 August 2018.

Where a CSG has correctly used the previous guidance for “directly necessary” services, the previous guidance can continue to be used until 31 December 2018, to allow CSGs time to ensure correct records are kept.

A copy of the Brief can be viewed here.