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HMRC internal manual

VAT Land and Property

Taxable Person: general

Note: this guidance only covers the taxable person issues that are particular to land and property. It does not reproduce, or replace, the comprehensive guidance provided by VTAXPER Taxable person.

VAT Act 1994 Section 1(2) states that:

“VAT on any supply of goods or services is a liability of the person making the supply and (subject to provisions about accounting and payment) becomes due at the time of supply”.

Identifying the person who is making the supply is therefore vitally important when establishing the VAT treatment of any transaction. However, due to the complexity of many land and property agreements, identification of the taxable person can sometimes prove difficult.

This guidance covers several types of property transaction that are frequently encountered, gives advice on how to identify the taxable person within each field and gives practical advice on resolving areas of difficulty.