Supplies of services

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Supplies of services
  • What is a supply of services?
  • Is a service being supplied?

This guidance note provides an overview of what constitutes a supply of services. For supplies of goods please see the Supplies of goods guidance note for more information. It is also advisable to read this note in conjunction with the Consideration and Consideration ― specific situations guidance notes.

What is a supply of services?

A supply of services is defined in VATA 1994 as:

“anything which is not a supply of goods but is done for a consideration (including, if so done, the granting, assignment or surrender of any right) is a supply of services.”

VATA 1994, s 5(2)(b)

Particular transactions are also identified as supplies of services rather than goods. These supplies are:

  • lease / hire of goods
  • transfer / sale of an undivided share of title in goods
  • undertaking work on goods owned by a third party
  • the temporary application of business assets for non-business use, whether or not for a consideration

VATA 1994, Sch 4, paras 1(1), 5(4)

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