Search Legislation

Value Added Tax Act 1994

 Help about what version

What Version

 Help about advanced features

Advanced Features

Status:

Point in time view as at 01/01/2004.

Changes to legislation:

There are currently no known outstanding effects for the Value Added Tax Act 1994, SCHEDULE 4. Help about Changes to Legislation

Close

Changes to Legislation

Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.

Section 5.

SCHEDULE 4U.K. Matters to be treated as supply of goods or services

1(1)Any transfer of the whole property in goods is a supply of goods; but, subject to sub-paragraph (2) below, the transfer—U.K.

(a)of any undivided share of the property, or

(b)of the possession of goods,

is a supply of services.

(2)If the possession of goods is transferred—

(a)under an agreement for the sale of the goods, or

(b)under agreements which expressly contemplate that the property also will pass at some time in the future (determined by, or ascertainable from, the agreements but in any case not later than when the goods are fully paid for),

it is then in either case a supply of the goods.

F12U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Sch. 4 para. 2 repealed (29.4.1996 with application to supplies made on or after 1.1.1996) by 1996 c. 8, ss. 29(4)(5), 205, Sch. 41 Pt. IV(2)

3U.K.The supply of any form of power, heat, refrigeration or ventilation is a supply of goods.

4U.K.The grant, assignment or surrender of a major interest in land is a supply of goods.

5(1)Subject to sub-paragraph (2) below, where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, that is a supply by him of goods.U.K.

(2)Sub-paragraph (1) above does not apply where the transfer or disposal is—

[F2(a)a business gift the cost of which, together with the cost of any other business gifts made to the same person in the same year, was not more than £50.]

(b)subject to sub-paragraph (3) below, a gift to any person of a sample of any goods.

[F3(2ZA)In sub-paragraph (2) above—

  • business gift” means a gift of goods that is made in the course or furtherance of the business in question;

  • cost”, in relation to a gift of goods, means the cost to the donor of acquiring or, as the case may be, producing the goods;

  • the same year”, in relation to a gift, means any period of twelve months that includes the day on which the gift is made.]

[F4(2A)For the purposes of determining the cost to the donor of acquiring or producing goods of which he has made a gift, where—

(a)the acquisition by the donor of the goods, or anything comprised in the goods, was by means of a transfer of a business, or a part of a business, as a going concern,

(b)the assets transferred by that transfer included those goods or that thing, and

(c)the transfer of those assets is one falling by virtue of an order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services,

the donor and his predecessor or, as the case may be, all of his predecessors shall be treated as if they were the same person.]

(3)Where—

(a)a person is given a number of samples by the same person (whether all on one occasion or on different occasions), and

(b)those samples are identical or do not differ in any material respect from each other,

sub-paragraph (1) above shall apply to all except one of those samples or, as the case may be, to all except the first to be given.

(4)Where by or under the directions of a person carrying on a business goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, that is a supply of services.

[F5(4A)Notwithstanding paragraph 9(1) below, sub-paragraph (4) above does not apply to—

(a)any interest in land,

(b)any building or part of a building,

(c)any civil engineering work or part of such a work, or

(d)any goods incorporated or to be incorporated in a building or civil engineering work (whether by being installed as fixtures or fittings or otherwise).]

(5)Neither sub-paragraph (1) nor [F6sub-paragraph (4) above] shall require anything which a person carrying on a business does otherwise than for a consideration in relation to any goods to be treated as a supply except in a case where that person [F7or any of his predecessors is a person who (disregarding this paragraph) has or will become] entitled—

[F8(a) under sections 25 and 26, to credit for the whole or any part of the VAT on the supply, acquisition or importation of those goods or of anything comprised in them; or

(b) under a scheme embodied in regulations made under section 39, to a repayment of VAT on the supply or importation of those goods or of anything comprised in them. ]

[F9(5A)In relation to any goods or anything comprised in any goods, a person is the predecessor of another for the purposes of this paragraph if—

(a)that other person is a person to whom he has transferred assets of his business by a transfer of that business, or a part of it, as a going concern;

(b)those assets consisted of or included those goods or that thing; and

(c)the transfer of the assets is one falling by virtue of an order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services;

and references in this paragraph to a person’s predecessors include references to the predecessors of his predecessors through any number of transfers.]

(6)Anything which is a supply of goods or services by virtue of sub-paragraph (1) or (4) above is to be treated as made in the course or furtherance of the business (if it would not otherwise be so treated); and in the case of a business carried on by an individual—

(a)sub-paragraph (1) above applies to any transfer or disposition of goods in favour of himself personally; and

(b)[F6sub-paragraph (4) above]applies to goods used, or made available for use, by himself personally.

[F10(7)The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (2)(a) above such sum, not being less than £10, as they think fit.]

Textual Amendments

F2Sch. 4 para. 5(2)(a) substituted (with application in accordance with s. 21(4) of the amending Act) by Finance Act 2003 (c. 14), s. 21(2)

F3Sch. 4 para. 5(2ZA) inserted (with application in accordance with s. 21(4) of the amending Act) by Finance Act 2003 (c. 14), s. 21(3)

F4Sch. 4 para. 5(2A) inserted (31.7.1998 with effect as mentioned in s. 21(6) of the amending Act) by 1998 c. 36, s. 21(3)(6)

F5Sch. 4 para. 5(4A) inserted (retrospective to 9.4.2003) by Finance Act 2003 (c. 14), s. 22(1)(2) (with s. 22(3)(4))

F6Words in Sch. 4 para. 5(5)(6)(b) substituted (retrospectively) by 1995 c. 4, s. 33(3)(a)

F7Words in Sch. 4 para. 5(5) substituted (31.7.1998 with effect as mentioned in s. 21(6) of the amending Act) by 1998 c. 36, s. 21(4)(6)

F8Sch. 4 para. 5(5)(a)(b) substituted for words in Sch. 4 para. 5(5) (28.7.2000 with effect as mentioned in s. 136(10) of the amending Act) by 2000 c. 17, s. 136(9)

F9Sch. 4 para. 5A inserted (31.7.1998 with effect as mentioned in s. 21(6) of the amending Act) by 1998 c. 36, s. 21(5)(6)

F10Sch. 4 para. 5(7) inserted (29.4.1996) by 1996 c. 8, s. 33(2)

6(1)Where, in a case not falling within paragraph 5(1) above, goods forming part of the assets of any business—U.K.

(a)are removed from any member State by or under the directions of the person carrying on the business; and

(b)are so removed in the course or furtherance of that business for the purpose of being taken to a place in a member State other than that from which they are removed,

then, whether or not the removal is or is connected with a transaction for a consideration, that is a supply of goods by that person.

(2)Sub-paragraph (1) above does not apply—

(a)to the removal of goods from any member State in the course of their removal from one part of that member State to another part of the same member State; or

(b)to goods which have been removed from a place outside the member States for entry into the territory of the Community and are removed from a member State before the time when any Community customs debt in respect of any Community customs duty on their entry into that territory would be incurred.

7U.K.Where in the case of a business carried on by a taxable person goods forming part of the assets of the business are, under any power exercisable by another person, sold by the other in or towards satisfaction of a debt owed by the taxable person, they shall be deemed to be supplied by the taxable person in the course or furtherance of his business.

8(1)Where a person ceases to be a taxable person, any goods then forming part of the assets of a business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless—U.K.

(a)the business is transferred as a going concern to another taxable person; or

(b)the business is carried on by another person who, under regulations made under section 46(4), is treated as a taxable person; or

(c)the VAT on the deemed supply would not be more than [F11£1,000].

(2)This paragraph does not apply to any goods in the case of which the taxable person can show to the satisfaction of the Commissioners—

(a)that no credit for input tax has been allowed to him in respect of the supply of the goods, their acquisition from another member State or their importation from a place outside the member States;

(b)that the goods did not become his as part of the assets of a business which was transferred to him as a going concern by another taxable person; and

(c)that he has not obtained relief in respect of the goods under section 4 of the M1Finance Act 1973.

(3)This paragraph does not apply where a person ceases to be a taxable person in consequence of having been certified under section 54.

(4)The Treasury may by order increase or further increase the sum specified in sub-paragraph (1)(c) above.

Textual Amendments

F11Words in Sch. 4 para. 8(1)(c) substituted (1.4.2000) by S.I. 2000/266, art. 2

Marginal Citations

9(1)Subject to sub-paragraphs (2) and (3) below, paragraphs 5 to 8 above have effect in relation to land forming part of the assets of, or held or used for the purposes of, a business as if it were goods forming part of the assets of, or held or used for the purposes of, a business.U.K.

(2)In the application of those paragraphs by virtue of sub-paragraph (1) above, references to transfer, disposition or sale shall have effect as references to the grant or assignment of any interest in, right over or licence to occupy the land concerned.

(3)Except in relation to—

(a)the grant or assignment of a major interest; or

(b)a grant or assignment otherwise than for a consideration,

in the application of paragraph 5(1) above by virtue of sub-paragraph (1) above the reference to a supply of goods shall have effect as a reference to a supply of services.

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.

Close

See additional information alongside the content

Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.

Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Timeline of Changes

This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.

Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources