V3.112 Supply of goods

The supplies described in the headings below amount to a 'supply of goods'1 unless they are specifically excluded from this category and treated as either a supply of services2 or as neither a supply of goods nor a supply of services3.

Any transfer of the whole property in goods4

The term 'whole property' appears to encompass all the rights which are derived from ownership. In short, all the rights of ownership existing in the goods must be transferred without retaining any reversionary right. 'Property' means ownership, or general property. Provided that the seller contracts to transfer that interest to the buyer, the agreement is a contract of sale.

This interpretation gains support from the relevant EU provisions, which provide that 'supply of goods' means the transfer of the right to dispose of tangible property as owner5. However, the ECJ (as it then was) has held that a person can transfer the right to dispose of tangible property as owner even if there is no transfer of legal ownership of, or title to, the property6. However, this was in the context of a transaction where a company (S) agreed to transfer an unconditional right to a property to another company (K). Any changes in the value of the property and all profits and outgoings were for the benefit or at the expense of K, which acquired the power to dispose of the property. It was agreed that S would transfer title to the property to K at a later

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