Value Added Tax Act 1994, Schedule 4, paragraph 1

SCHEDULE 4 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—

(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.

Cases considering Schedule 4, paragraph 1 8

Beynon and Partners v Customs and Excise Comrs

[2002] EWCA Civ 1870 · 20 December 2002Interprets

Interprets the statutory distinction between a transfer of property in goods and a supply of services. The injection of a drug involves a transfer of property and can therefore constitute a supply of goods. (see [The Appeal])

Stewart & Anor (t/a GT Shooting) v Commissioners of Customs & Excise

[2001] EWCA Civ 1988 · 12 December 2001

Applies the rule that any transfer of the whole property in goods is a supply of goods. The surrender transferred the appellants’ title to the State and was therefore taxable. (see Laws LJ judgment)

Revenue and Customs v News Corp UK & Ireland Ltd

[2021] EWCA Civ 91 · 28 January 2021Defines

The provision treats transfers of possession of goods as supplies of services. Its incorporation through Note 1(b) showed that Group 3 contemplated lending services in respect of its tangible goods. (see para [69](iv))

What each judgment says about Schedule 4, paragraph 1 is in the case-law panel in the full Act.