Chapter 15 - Definition of Supplies

Question 1

Five Conditions

Answer 1

Conditions to determine whether a supply merits a charge to VAT:

• the supply must amount to a supply of goods or services
• the supply must be made by a taxable person
• the supply must have been made in the UK
• the supply must have been made in the course of furtherance of business
• it must be a taxable supply by definition

Question 2

Reduced Rate (5%)

Answer 2

In Schedule 7A of VATA 1994 - 13 groups. Look at the leg.

Question 3

Reduced Rate Groups

Answer 3

1) Domestic fuel and power
2) Energy saving material installations
3) Grant funded installation of heating equip, security goods, or connection of gas supply
4) Women’s sanitary products
5) Kid’s car seats
6) Residential conversions
7) Residential renovations and alternations
8) Contraceptive products
9) Welfare advice and info
10) Mobility aid installation for the elderly
11) Smoking cessation products
12) Certain caravans
13) Cable-suspended passenger transport systems

Question 4

Zero Rate

Answer 4

In Schedule 8 of VATA 1994. Look at the leg

Question 5

Exempt Supplies

Answer 5

In Schedule 9 of VATA 1994. Look at leg

Question 6

Outside Scope of VAT

Answer 6

No VAT is due on things like:

• Salaries
• Tips
• Intra-group transactions if there’s a VAT group
• Sale of a business as a going concern
• Supplies that take place wholly outside the UK