VBNB14000 - VAT Business and Non-Business Basics: UK Law

Scope of VAT on taxable supplies

Section 4 Value Added Tax Act 1994 provides that:

(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.

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Input Tax

Section 24, Value Added Tax Act 1994 provides that:

(1) Subject to the following provisions of this section, “input tax”, in relation to a taxable person, means the following tax, that is to say -

(a) VAT on the supply to him of any goods or services; and

(b) VAT paid or payable by him on the importation of any goods from a place outside the UK

being (in each case) goods or services used or to be used for the purpose of any business carried on or to be carried on by him.

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