Scope and legal basis of VAT
02/09/2021

The scope and legal basis of how VAT is charged on taxable supplies is defined as follows in the VAT Act 1994:

VAT shall be charged on any supply of goods or services made in the United Kingdom, where it is a taxable supply made by a taxable person in the course or furtherance of any business carried on by him.

There are four conditions that must be satisfied in order for an activity to be within the scope of UK VAT. These conditions are that the activity:

  1. Is a supply of goods or services
  2. That the supply takes place in the UK
  3. Is made by a taxable person
  4. Is made in the course or furtherance of any business carried on or to be carried on by that person

The fourth point above is a condition that needs to be carefully considered when deciding whether an activity is within the scope of VAT. This concept of 'business' is one of the less well-known rules and care must be taken to ensure that VAT is correctly charged.


Accreditation

    

Contact Us

Fox Jennings Cullen
Tarn House, 77 High Street
Yeadon
Leeds
LS19 7SP

0113 250 1599
mail@fjca.co.uk

 

Newsletter Sign Up

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login

Newsfeed Search