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The general rules described in V3.131–V3.134 apply in a modified and abridged form (as set out below) to goods sent or taken on approval, sale or return, or on similar terms. Goods are not delivered in these ways, unless the supplier makes an irrevocable offer to sell the goods, which the recipient can approve, accept or adopt (see Diaform Ltd¹). For example, in The Littlewoods Organisation plc², a case in which a mail order company allowed customers to return goods within 14 days of delivery, provided that they were in 'new condition', it was held that sales subject to a condition are not sales on approval.

Consider also ABB Power Ltd³, in which the Tribunal considered that HMRC's discretion to treat a document as a VAT invoice could not be exercised to the detriment, and against the wishes, of the taxpayer. See also Léa Jeunehomme and Société Anonyme d'Etude et de Gestion Immobilière v Belgian State⁴, which held that, in