Value Added Tax

Supply and consideration ― overview

Produced by Tolley
  • 16 May 2022 05:15

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

  • Supply and consideration ― overview
  • Key issues
  • Related reading

Supply and consideration ― overview

This guidance provides an overview of the topic of supply and consideration.

For detailed commentary on the legislation and case law on supply and consideration, see De Voil Indirect Tax Service V3.1.

Key issues

A number of key issues arise in relation to supply and consideration from a VAT perspective. The table below sets out a number of the most important areas to consider, along with links to more detailed guidance:

AreaDescriptionGuidance note
Supplies of goods or servicesIt is often important to determine whether a supply is one of goods or services for VAT purposes (for example, this can influence both the time and place of supply of a transaction). Rules therefore exist for determining what is a supply of goods and what is a supply of servicesSupply and consideration ― goods or services?
Supplies made for considerationAt a very high level, only supplies that are made ‘for consideration’ come within the scope of VAT. It is therefore important to determine whether there is a direct link between a supply and consideration (‘payment’) supplied in returnSupply and consideration ― is the supply for consideration?
Deemed and self-suppliesIn certain circumstances, rules dictate that ‘deemed supplies’ or ‘self-supplies’ take place where supplies would not otherwise occurSupply and

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

There's no margin for error. Think Tax.
Think Tolley.

TolleyGuidance gives you direct access to critical, comprehensive and up-to-date tax information and expertise you can rely on.

TAKE A FREE TRIAL

Popular Articles

‘Bed and breakfasting’ with shares

‘Bed and breakfasting’ was the pre-1998 practice of selling shares and repurchasing them the following day. This technique can still be used in a modified form to achieve capital gains tax (CGT) savings for current or future tax years using:•a spouse / civil partner•a self-invested pension plan

22 Mar 2022 09:43 | Produced by Tolley Read more Read more

Trading losses carried forward

The reform of corporate losses within Finance (No 2) Act 2017 included a mixture of relaxations to the use of losses within the previous regime which applied before 1 April 2017 and also a major restriction (50% for most companies) on the amount of profits after 1 April 2017 that can be covered by

19 May 2022 08:21 | Produced by Tolley Read more Read more

Share for share exchange

This guidance note considers the capital gains tax implications where shares are sold in exchange for new shares.The consideration paid by a purchasing company to the shareholder(s) for their shares in a target company could be in the form of either:•new shares in the purchasing company in exchange

19 May 2022 08:22 | Produced by Tolley Read more Read more