VATSC06511 - Consideration: Payments that are not consideration: Payments in specific sectors: Management charges and directors鈥� services: Background
There is no pure definition of what these services cover, but a payment described as a management charge will only be consideration for a supply if something is done in return by the recipient of the payment.
The term 鈥榤anagement charge鈥� or 鈥榮ervice charge鈥� frequently covers recharging of expenses such as heating or telephone bills on shared premises - this provision of services is explained in .
The terms can also be used to describe the provision of staff or directors - this is covered in VATSC03540. Often the terms represent a supply of consulting services, but you should remember that almost anything can be described as a management charge and you should therefore look at the underlying supply before making a decision.