Section 3 Supply of goods
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(1) [In this Act "supply", in relation to goods, means―]1
(a) the transfer of ownership of the goods by agreement [[including]2 the transfer of ownership of the goods to a person supplying financial services of the kind specified in subparagraph (i)(e) of the First Schedule, where those services are supplied as part of an agreement of the kind referred to in paragraph (b) in respect of those goods]3,
[(aa) the sale of movable goods pursuant to a contract under which commission is payable on purchase or sale by an agent or auctioneer who concludes agreements in such agent's or auctioneer's own name but on the instructions of, and for the account of, another person,]4
(b) the handing over of the goods to a person pursuant to an agreement which provides for the renting of the goods for a certain period subject to a condition that ownership of the goods shall be transferred to the person on a date not later than the date of payment of the final sum under the agreement,
[(c) the handing over by a person (in this paragraph referred to as the developer) to another person of immovable goods which have been developed from goods entrusted to the developer by that other person for the purpose of such development, whether or not the developer has supplied any part of the goods used,]5
(d) the transfer of ownership of the goods pursuant to-
(i) their acquisition, otherwise than by agreement, by or on behalf of the State or a local authority, or
(ii) their seizure by any person acting under statutory authority,
[(e) the application (otherwise than by way of disposal to another person) by a person for the purposes of any business carried on by him of the goods, [being movable goods]6 which were developed, constructed, assembled, manufactured, produced, extracted, purchased, [imported or otherwise acquired]7 by him or by another person on his behalf, except where tax chargeable in relation to the application would, if it were charged, be wholly deductible under section 12 ...8
[(f) the appropriation of goods by [an accountable person]9 for any purpose other than the purpose of his business or the disposal of goods free of charge by [an accountable person]9 where-
(i) tax chargeable in relation to those goods-
(I) upon their purchase, intra-Community acquisition or importation by [the accountable person]9, or
(II) upon their development, construction, assembly, manufacture, production, extraction or application under paragraph (e),
as the case may be, was wholly or partially deductible under section 12, or
(ii) the ownership of those goods was transferred to [the accountable person]9 in the course of a transfer of a business or part thereof and that transfer of ownership was deemed not to be a supply of goods in accordance with subsection (5)(b), and]10
[(g) the transfer by a person of goods from his business in the State to the territory of another Member State for the purposes of his business, [or a transfer of a new means of transport by a person in the State to the territory of another Member State,]11 other than for the purposes of any of the following:
(i) the transfer of the goods in question under the circumstances specified in paragraph (b)[, (cc)]12 or (d) of subsection (6),
[(ii) the transfer of the goods to another person under the circumstances specified in [paragraphs 1(1) to (3), 3(1) and (3), and 7(1) to (4) of Schedule 2 and the transfer of the goods referred to in paragraphs 4(2), (4) and (5) and 5(2) to that Schedule]13,]14
...15
[(iiia) the transfer of goods for the purpose of having a service carried out on them:
Provided that the goods which were so transferred by the person are, after being worked upon, returned to that person in the State,]16
(iv) the temporary use of the goods in question in the supply of a service by him in that other Member State,
(v) the temporary use of the goods in question, for a period not exceeding 24 months, in that other Member State, where the importation into that other Member State of the same goods with a view to their temporary use would be eligible for full exemption from import duties.]17
Amendments
1 Substituted by Value-Added Tax (Amendment) Act 1978 section 4(a) from 1 March 1979.
2 Substituted by Finance Act 2007 section 76(a) from 1 May 2007.
3 Inserted by Finance Act 1995 section 120(a) from 2 June 1995.
4 Subs (1)(aa) substituted by Finance Act 1996 section 89(a)(i) from 15 May 1996.
5 Subs (1)(c) substituted by Finance Act 1996 section 89(a)(ii) from 1 January 1996.
6 Substituted by Finance Act 2008 section 85(a) from 1 July 2008.
7 Substituted by Finance Act 1992 section 167(a)(i)(I) from 1 January 1993.
8 Deleted by Finance Act 1992 section 167(a)(i)(II) from 1 January 1993.
9 Substituted by Finance Act 2008 section 109 and Schedule 4 from 1 July 2008.
10 Subs (1)(f) substituted by Finance Act 1998 section 105 from 27 March 1998.
11 Inserted by Finance Act 1993 section 82 from 17 June 1993.
12 Inserted by European Communities (Value-Added Tax) Regulations 1992 regulation 5(a)(i) from 1 January 1993.
13 Substituted by Finance Act 2010 section 131 and Schedule 2 item 3(a).
14 Subs (1)(g)(ii) substituted by Finance Act 1999 section 120(a) from 25 March 1999.
15 Subs (1)(g)(iii) deleted by Finance Act 1996 section 89(a)(iii)(I) from 1 January 1996.
16 Subs (1)(g)(iiia) substituted by Finance Act 1996 section 89(a)(iii)(II) from 1 January 1996.
17 Subs (1)(g) inserted by Finance Act 1992 section 167(a)(iii) from 1 January 1993.
(1A) Anything which is a supply of goods by virtue of paragraph [(e), (f) or (g)]1 of subsection (1) shall be deemed, for the purposes of this Act, to have been effected for consideration in the course or furtherance of the business concerned:
Provided, however, that the following shall not be deemed to have been effected for consideration, that is to say:
(a) a gift of goods made in the course or furtherance of the business (otherwise than as one forming part of a series or succession of gifts made to the same person) the cost of which to the donor does not exceed a sum specified for that purpose in regulations,
(b) the gift, in reasonable quantity, to the actual or potential customer, of industrial samples in a form not ordinarily available for sale to the public.
Amendments
Subs (1A) inserted by Finance Act 1973 section 78 from 3 September 1973.
1 Substituted by Finance Act 1992 section 167(b) from 1 January 1993.
By what mechanism are self-supplies brought within the charge to VAT?
(1A) Self-supplies of goods (see (1)(e) and (1)(f)) and intra-EU branch transfers of goods (see (1)(g)) are deemed to have been made in the course or furtherance of business. This means that you cannot avoid tax on a self-supply by claiming that it w...
(1B) The provision of electricity, gas and any form of power, heat, refrigeration or ventilation shall be deemed, for the purposes of this Act, to be a supply of goods and not a supply of services.
Amendments
Subs (1B) inserted by Value-Added Tax (Amendment) Act 1978 section 4 from 1 March 1979.
Is the provision of electricity, gas, or other power, or heat or ventilation deemed to be a supply of goods?
(1B) The provision of electricity, gas, and any form of power, heat, refrigeration or ventilation is deemed to be a supply of goods (and not a supply of services)....
(1C) For the purposes of this Act in the case of immovable goods "supply" in relation to goods shall be regarded as including—
(a) the transfer in substance of the right to dispose of immovable goods as owner or the transfer in substance of the right to dispose of [immovable goods.]1
...2
Amendments
Subs (1C) inserted by Finance Act 2008 section 85(b) from 1 July 2008.
1 Substituted by Finance (No. 2) Act 2008 section 68(a).
2 Para (b) deleted by Finance (No. 2) Act 2008 section 68(b).
What change was applied to the self-supply rules in 2008?
(1C) From 1 July 2008, the self-supply rules are confined to movable goods, and transfers in substance of immovable goods (including transfers where 50% or more of the open market value is transferred within five years) are treated as supplies.
Confirmation of the time of supply for VAT on property transactions: Tax Briefing Issue 81 - 2009
(2) If three or more persons enter into agreements concerning the same goods and fulfil those agreements by a direct [supply]1 of the goods by the first person in the chain of sellers and buyers to the last buyer, then the [supply]1 to such last buyer shall be deemed, for the purposes of this Act, to constitute a simultaneous [supply]1 by each seller in the chain.
Amendments
1 Substituted by Value-Added Tax (Amendment) Act 1978 section 30(2) and Schedule 2.
Where there is a chain of buyers and sellers, how is it treated for VAT?
(2) If three or more people in a chain of buyers and sellers agree that goods are to be supplied directly from the first seller to the last buyer, the supply is deemed to be a simultaneous supply by each person in the chain....
(3) ...
Amendments
Subs (3) deleted by Finance Act 1996 section 89(b) from 15 May 1996.
(4) Where an agent or auctioneer makes a sale of goods in accordance with paragraph (aa) of subsection (1) the transfer of those goods to that agent or auctioneer shall be deemed to be a supply of goods to the agent or auctioneer at the time that that agent or auctioneer makes that sale.
Amendments
Subs (4) substituted by Finance Act 1996 section 89(c) from 15 May 1996.
If I am an auctioneer or a selling agent and I sell goods on a commission basis, how do I account for VAT?
(4) As an auctioneer or selling agent who sells movable goods on a commission basis on behalf of a seller, you are deemed to have simultaneously bought and sold the goods. This means that your commission or mark up is taxed at the same VAT rate as th...
(5)(a) The transfer of ownership of goods pursuant to a contract of the kind referred to in subsection (1)(b) [by the person supplying financial services of the kind specified in subparagraph (i)(e) of the First Schedule as part of that contract]1 shall be deemed, for the purposes of this Act, not to be a [supply]2 of the goods.
(b) The transfer of ownership of goods-
(i) as security for a loan or debt, or
(ii) where the goods are held as security for a loan or debt, upon repayment of the loan or debt, or
[(iii) being the transfer to [an accountable person]3 of a totality of assets, or part thereof, of a business even if that business or part thereof had ceased trading, where those transferred assets constitute an undertaking or part of an undertaking capable of being operated on an independent basis,]4
shall be deemed, for the purposes of this Act, not to be a [supply]2 of the goods ...5.
[(c) Where a person, in this subsection referred to as an "owner"-
(i) supplies financial services of the kind specified in [paragraph (i)(e) of Schedule 1]6 in respect of a supply of goods within the meaning of paragraph (b) of subsection (1), ...7 and
(ii) enforces such owner's right to recover possession of those goods,
then the disposal of those goods by such owner [shall be deemed for the purposes of this Act to be a supply of goods to which [paragraph 12 of Schedule 1]8 does not apply]9.]10
[(d) The disposal of goods by an insurer who has taken possession of them from the owner of those goods, in this subsection referred to as the ''insured'', in connection with the settlement of a claim under a policy of insurance, being goods-
(a) in relation to the acquisition of which the insured had borne tax, and
(b) which are of such a kind or were used in such circumstances that no part of the tax borne was deductible by the insured,
shall be deemed for the purposes of this Act not to be a supply of goods.]11
Amendments
1 Inserted by Finance Act 2007 section 76(b)(i) from 1 May 2007.
2 Substituted by Value-Added Tax (Amendment) Act 1978 section 30(2) and Schedule 2.
3 Substituted by Finance Act 2008 section 109 and Schedule 4 from 1 July 2008.
4 Substituted by Finance Act 2005 section 99 from 25 March 2005.
5 Deleted by Value-Added Tax (Amendment) Act 1978 section 30(1) and Schedule 1 from 1 March 1979.
6 Substituted by Finance Act 2010 section 131 and Schedule 2 item 3(b).
7 Deleted by Finance Act 2007 section 76(b)(ii)(I) from 1 May 2007.
8 Substituted by Finance Act 2010 section 131 and Schedule 2 item 3(c).
9 Substituted by Finance Act 2007 section 76(b)(ii)(II) from 1 May 2007.
10 Subs (5)(c) inserted by Finance Act 1999 section 120(b) from 25 March 1999.
11 Para (d) inserted by Finance Act 2001 section 182(b) from 30 March 2001.
(6) The place where goods are supplied shall be deemed, for the purposes of this Act, to be-
(a) in the case of goods dispatched or transported and to which paragraph (d) does not apply, the place where the dispatch or transportation to the person to whom they are supplied begins,
[Provided that where the goods are dispatched or transported from a place outside the Community, the place of supply by the person who imports the goods and the place of any subsequent supplies shall be deemed to be where the goods are imported,]1
(b) in the case of goods which are installed or assembled, with or without a trial run, by or on behalf of the supplier, the place where the goods are installed or assembled,
(c) in the case of goods not dispatched or transported, the place where the goods are located at the time of supply,
[(cc) in the case of goods supplied on board vessels, aircraft or trains during transport, the places of departure and destination of which are within the community, the place where the transport began,]2
(d) notwithstanding paragraph (a) or (b), in the case of goods, other than new means of transport, dispatched or transported by or on behalf of the supplier-
(i)(I) from the territory of another Member State, or
(II) from outside the Community through the territory of another Member State into which the said goods have been imported,
to a person who is not [an accountable person]3 in the State, or
(ii) from ...4 the State to a person in another Member State who is not registered for value-added tax,
the place where the goods are when the dispatch or transportation ends:
[Provided that this paragraph shall not apply to the supply of goods, other than goods subject to a duty of excise, where the total consideration for such supplies does not exceed or is not likely to exceed-
(A) in the case of goods to which subparagraph (i) relates, [€35,000]5 in a calendar year, unless the supplier, in accordance with regulations elects that it shall apply, and
(B) in the case of goods to which subparagraph (ii) relates, the amount specified in the Member State in question in accordance with [Article 34 of Council Directive No. 2006/112/EC of 28 November 2006]6 unless the supplier elects that it shall apply and registers and accounts for value-added tax in that Member State in respect of [such supplies,]7]8
[(e) in the case of the supply of gas through the natural gas distribution system, or of electricity, to a taxable dealer, whether in the State, or in another Member State of the Community, or outside the Community, the place where that taxable dealer has established the business concerned or has a fixed establishment for which the goods are supplied, or in the absence of such a place of business or fixed establishment the place where that taxable dealer has a permanent address or usually resides,
(f) in the case of the supply of gas through the natural gas distribution system, or of electricity, to a customer other than a taxable dealer, the place where that customer has effective use and consumption of those goods; but if all or part of those goods are not consumed by that customer, then the goods not so consumed shall be deemed to have been supplied to that customer and used and consumed by that customer at the place where that customer has established the business concerned or has a fixed establishment for which the goods are supplied or in the absence of such a place of business or fixed establishment, the place where that customer has a permanent address or usually resides,]9
Amendments
Subs (6) substituted by Finance Act 1992 section 167(c) from 1 January 1993.
1 Subs (6)(a)(proviso) inserted by European Communities (Value-Added Tax) Regulations 1992 regulation 5(b)(i) from 1 January 1993.
2 Subs (6)(cc) inserted by European Communities (Value-Added Tax) Regulations 1992 regulation 5(b)(ii) from 1 January 1993.
3 Substituted by Finance Act 2008 section 109 and Schedule 4 from 1 July 2008.
4 Deleted by European Communities (Value-Added Tax) Regulations 1992 regulation 5(b)(iii)(I) from 1 January 1993.
5 Substituted by Finance Act 2001 section 240(2) and Schedule 5 from 1 January 2002.
6 Substituted by Finance Act 2007 section 97 and Schedule 3.
7 Substituted by Finance Act 2004 section 56(a).
8 Subs (6)(d)(proviso) substituted by European Communities (Value-Added Tax) Regulations 1992 regulation 5(b)(iii)(II) from 1 January 1993.
9 Paras (e)-(f) inserted by Finance Act 2004 section 56(a).
(6A) In subsection (6) "taxable dealer" means [an accountable person]1 whose principal business in respect of supplies of gas through the natural gas distribution system, or of electricity, received by that person, is the supply of those goods for consideration in the course or furtherance of business and whose own consumption of those goods is negligible.
Amendments
Subs (6A) inserted by Finance Act 2004 section 56(b).
1 Substituted by Finance Act 2008 section 109 and Schedule 4 from 1 July 2008.
(7)(i) Where, in the case of a business carried on, or that has ceased to be carried on, by [an accountable person]1, goods forming part of the assets of the business are, under any power exercisable by another person, including a liquidator and a receiver, disposed of by the other person in or towards the satisfaction of a debt owed by [the accountable person]1, or in the course of the winding-up of a company, they shall be deemed to be supplied by [the accountable person]1 in the course or furtherance of his business.
(ii) A disposal of goods under this subsection shall include [any assignment or surrender that is deemed to be a supply of immovable goods as provided by section 4C(4)]2.
Amendments
Subs (7) inserted by Finance Act 1983 section 78 from 1 September 1983.
1 Substituted by Finance Act 2008 section 109 and Schedule 4 from 1 July 2008.
2 Substituted by Finance Act 2010 section 132 and Schedule 3 para 2.
If the assets of my company are disposed of due to liquidation, receivership or a winding up, how is the disposal regarded for VAT purposes?
(7) This rule applies to the disposal of the assets of a taxable person where the disposal occurs due to a liquidation, receivership, or in the course of a company being wound up. Such a disposal is deemed to be a disposal by the company concerned in...
VAT Treatment of "Forced Sales" and similar situations involving a Mortgagee in Possession or an Asset Receiver: Tax Briefing Issue 10 - 2010
(8) [Where a person who is not established in the State makes an intra-Community acquisition of goods in the State and makes a subsequent supply of those goods to an accountable person in the State]1, the person to whom the supply is made shall be deemed for the purposes of this Act to have made that supply and the intra-Community acquisition shall be disregarded:
Provided that this provision shall only apply where-
(a) [the person]2 who is not established in the State has not exercised his option to register in accordance with section 9 by virtue of section 8(3D), and
(b) the person to whom the supply is made is registered in accordance with section 9.
Amendments
Subs (8) inserted by European Communities (Value-Added Tax) Regulations 1992 regulation 5(c) from 1 January 1993.
1 Substituted by Finance Act 2008 section 85(c)(i) from 1 July 2008.
2 Substituted by Finance Act 2008 section 85(c)(ii) from 1 July 2008.
