The characterisation test for a single supply is fundamental to VAT. Perhaps surprisingly, the relevant test has recently received important clarification from the Court of Appeal. It is now clear that the primary test to be applied when characterising a single supply for VAT purposes is to determine the predominant element from the point of view of the typical consumer with regard to the qualitative and not merely the quantitative importance of the constituent elements. This has significant practical consequences for the presentation of evidence in characterisation disputes.
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The characterisation test for a single supply is fundamental to VAT. Perhaps surprisingly, the relevant test has recently received important clarification from the Court of Appeal. It is now clear that the primary test to be applied when characterising a single supply for VAT purposes is to determine the predominant element from the point of view of the typical consumer with regard to the qualitative and not merely the quantitative importance of the constituent elements. This has significant practical consequences for the presentation of evidence in characterisation disputes.
If you are not a subscriber, subscribe now to read this content.
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