Scope of VAT on taxable supplies
Part I The charge to tax
(1)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.
(2)A taxable supply is a supply of goods or services made in the United Kingdom other than an exempt supply.
“VAT” means value added tax charged in accordance with this Act;
Defined in s.96(1) · see it in the full Act“taxable supply” has the meaning given by section 4(2);
Defined in s.96(1) · see it in the full Act“taxable person” means a person who is a taxable person under section 3;
Defined in s.96(1) · see it in the full Act(1) In this Act “business” includes any trade, profession or vocation.
Defined in s.94(1) · see it in the full ActVAT was chargeable because the Association, as a taxable person, made taxable supplies of services in the course of its business (see paras [27]–[31]; [36]–[38]). The Association’s non-exempt supplies of services were taxable supplies (see paras [3]–[4]; [22]).
The court used section 4(1) to frame the domestic VAT charge as applying to taxable supplies made for consideration in the course or furtherance of business. The issue was whether the funding formed consideration. (see para [40])
The court used the provision to frame the requirement for a taxable supply by a taxable person in the course or furtherance of business. (see paras [9], [66]) The court held that the business assumption in section 43 did not prevent the post-departure supply from being made in the course or furtherance of Silverfleet’s business. (see paras [66]-[71])
27 more judgments, and what each says about section 4, are in the case-law panel in the full Act.