Skip to content
Solved

VATF34200 | What to consider prior to determining whether to use an intervention: applying VAT basics: was there a supply for VAT purposes?

From HM Revenue & Customs · VAT Fraud

As set out in VATSC03100 a transaction is within the scope of UK VAT if the following four conditions are met:

  1. it is a supply of goods or services;

  2. it takes place in the UK;

  3. it is made by a taxable person (someone who is, or is required to be registered) ; and

  4. it is made in the course or furtherance of any business carried on or to be carried on by that person.

To decide whether a transaction is within the scope of UK VAT, you should be satisfied that it meets all the above conditions. When a transaction does not meet all of the conditions it is outside the scope of VAT.

It is essential that you confirm that a transaction falls within the scope of VAT before moving to second-level questions looking at mechanics (for example time of supply, input tax etc) or liability.