Introduction to deemed supplies

V3.201 The charge to tax

The charge to tax on deemed supplies—UK legislation

Under VATA 1994, VAT is charged on anything 'treated as' a supply of goods or services made in the UK1. The purpose of this provision is to bring within the scope of VAT, such as supplies:

  1.  

    •     that would amount to taxable supplies but for the fact that they lack some essential requirement, eg they are not made for a consideration. For the requirements concerned, see V3.112, V3.113

  2.  

    •     in connection with which supplies in respect of which the person liable to account for tax is someone other than the person who makes or is deemed to make them

Transactions falling into either of these two categories are individually described in V3.211–V3.267.

Purpose of the deeming provisions

The purpose of both EU retained law and UK provisions is threefold:

  1.  

    •     to prevent the final customer from benefiting from goods or services which have not borne VAT

  2.  

    •     to simplify tax accounting and administration, and

  3.  

    •     to combat fraud

Time of deemed supply

The time when a transaction, which is treated as a supply is deemed to take place for the purposes of charging tax is described in relation to individual transactions in V3.211–V3.267.

Value of deemed

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