Commentary

V7.413 Supply—difference between goods and services

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.413 Supply—difference between goods and services

Part V7 Tax planning | Commentary

V7.413 Supply—difference between goods and services

HMRC considers that 'You supply services if you do something, other than supplying goods, for a consideration' (VAT Notice 700, para 4.5).

The phrase 'done for a consideration', means there is no VAT to worry about on a free supply of services, eg an accountant doing the year-end accounts for a local charity without making any charge for his time.

The difference between goods and services is clear in most cases because goods are usually tangible and can be clearly seen (and touched) by the customer.

To give everyday examples, a washing machine, television and dishwasher are

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