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Thank you for that, however how does the freely given bit work?
The scenario is that they are buyng a product, say pack of sausages that cost £1.00 (zero rated supply) from Asda. We are the supplier of the sausages, i.e. we sell them to Asda. For every pack of sausgaes we sell to Asda we give £0.10 to say, Help the Heroes.
Can you confirm we dont have to account for VAT on the £0.10 donation to Save the Heroes?