Value Added Tax

Supply and consideration ― goods or services?

Produced by Tolley
  • 10 Nov 2021 12:11

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

  • Supply and consideration ― goods or services?
  • What is a supply of goods for VAT purposes?
  • When is the whole property in goods transferred?
  • When is it expressly contemplated that title will pass in future?
  • What is a supply of services for VAT purposes?
  • Practical points ― supply of goods or services

Supply and consideration ― goods or services?

This guidance note looks at what constitutes a supply of goods and what constitutes a supply of services for VAT purposes.

For an overview of supply and consideration generally, see the Supply and consideration ― overview guidance note.

For detailed commentary on the legislation and case law, see De Voil Indirect Tax Service V3.112 and V3.113.

What is a supply of goods for VAT purposes?

All of the following are regarded as supplies of goods for VAT purposes:

  1. the transfer of the ‘whole property in goods’

  2. the transfer of the possession of goods either under a sale agreement or under agreements which ‘expressly contemplate that the property also will pass at some time in the future’

  3. the supply of any form of power, heat, refrigeration, other cooling or ventilation

  4. the supply of a ‘major interest’ in land and property (for major interests, see the Sale or grant of a long lease ― major interests guidance note)

  5. land supplied for no consideration

  6. the transfer or disposal of business assets out of the business, including:

    1. the sale of assets (eg fixed assets)

    2. assets that are taken permanently into private use

    3. assets given away (excluding certain business gifts and samples ― see the Business gifts and samples guidance note)

  7. sales of goods in satisfaction of a debt

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