1. Value Added Tax Supplies of Goods
A transfer of ownership of goods by agreement
The sale of movable goods through an undisclosed agent
The handing over of goods that are subject to a hire-purchase agreement
The compulsory purchase of legal seizure of goods
The transfer of goods within a business from a taxable activity to an exempt activity
The appropriation of movable goods by a business person for private use

2. Value Added Tax
Supplies of Goods – Deemed not to be supplies for VAT purposes:
Advertising and industrial samples
Goods supplied free of charge as replacement for original goods under warranty or guarantee
Goods provided for security for a loan or debt
Transfer of a business from one VAT registered person to another

3. Value Added Tax Supplies of Services
Supply, in relation to a service, means the performance or omission of any act or tolerance of any situation other the supply of goods
Any supply that is not a supply of goods

4. Value Added Tax Supplies of Services includes:
The supply of food and drink fit for consumption with further preparation:
By a vending machine
By a hotel, canteen, restaurant
The operation of a canteen by a business
The supply of a service through an undisclosed agent
Leasing and hiring goods

5. Value Added Tax Other supplies – Multiple and composite supplies
When two or more supplies are made together it may be difficult to determine if it was a supply of a good or a service or both
Difficulty assigning VAT rate to the supply

6. Value Added Tax Other supplies – Multiples supplies
Two or more individual supplies made in conjunction with each other for a total consideration covering all of the elements of the supply, but each of the supplies are physically and economically dissociable from each other
Each supply is an individual supply and taxable in its own right

7. Value Added Tax Other supplies – Multiples supplies Examples
A restaurant meal with food and a soft drink or wine
A hamper
A car service along with new tyres
A school book and exercise book for a single consideration with neither described as free

8. Value Added Tax Other supplies – Composite supplies
A composite supply is a supply comprising two or more supplies in conjunction with each other where one supply is a principle supply and one is an ancillary supply
The principal supply constitutes the predominant part of the supply
The ancillary supply is not physically and economically dissociable from the principal supply

9. Value Added Tax Other supplies – Composite supplies
The VAT rate applying to the principal supply will apply to the full composite supply
Examples:
A mobile phone with instruction manual
Computer equipment with training
Supply of coal in a bag

10. Value Added Tax The two thirds rule
Applies to a contract for the supply of a service which involves the supply of a goods
Contract must be for the supply of a service
Example: contract from repair of washing machine that requires replacement of parts

11. Value Added Tax The two thirds rule
Where the VAT exclusive cost of the goods in a contract from the supply of a service is less than two thirds of the total contract price, the rate of VAT applicable to the entire supply is the rate applicable to the supply of the service

12. Value Added Tax The two thirds rule
Where the VAT exclusive cost of the goods in a contract from the supply of a service is two thirds or more of the total contract price, the rate of VAT applicable to the entire supply is the rate applicable to the supply of the goods