VAT Case Law

Question 1

Is a river cruise and a meal a multiple or composite supply? (3)

Answer 1

• Following the decision in case law Durham River Trips, this is a multiple supply.
• This is because the meal is a distinct feature of the cruise.
• It is both practical and realistic to separate the zero-rated from the standard-rated supply in the instant case

Question 2

Is a flight and a meal a multiple or composite supply? (4)

Answer 2

• Following the decision in case law British Airways, this is a single supply.
• This is because the supply was in essence a flight, with an ancillary / incidental supply of food.
• The supply was a single economic supply as the customer was not offered a lower price if the meal was not required.
• The fact there was no contractual obligation to supply the food also indicated that this was a single supply.