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HMRC internal manual

VAT Supply and Consideration

Basic principles and underlying law: Treasury Orders / Statutory Instruments (SIs)

The VAT Act 1994 also gives powers for the Treasury to make orders by statutory instrument which provide:

  • that a transaction is to be treated as a supply of goods and not services (VAT Act 1994, Section 5(3)(a))
  • that a transaction is to be treated as a supply of services and not goods (VAT Act 1994, Section 5(3)(b))
  • that a transaction is to be treated as a supply of services which would be a supply if done for consideration (VAT Act 1994, Section 5(4) and (8))
  • that certain transactions are neither a supply of goods nor a supply of services (VAT Act 1994, Section 5(3)(c))
  • for certain transactions to be treated as supplies made to and by the business (VAT Act 1994, Sections 5(5) and 5(6)). (See VATSC04700).

The following Orders, which are in full or in part made under the above sections of the VAT Act 1994, are currently in force:

Order Statutory Instrument Made under
VAT (Treatment of Transactions) Order 1987 SI 1986/896 s. 5(3)(c)
VAT (Tour Operators) Order 1987 SI 1987/1806 as amended s. 5(3)
VAT (Cars) Order 1992 SI 1992/3122 s. 5(3) and s. 5(5)
VAT (Self-supply of Construction Services) Order 1989 SI 1989/472 s. 5(6) and s. 5(8)
VAT (Water Order) 1989 SI 1989/1114 s. 5(3)
VAT (Treatment of Transactions) Order 1992 SI 1992/630 s. 5(3)
VAT (Removal of Goods) Order 1992 SI 1992/3111 s. 5(3)
VAT (Supply of Temporarily Imported Goods) Order 1992 SI 1992/3130 s. 5(3)
VAT (Supply of Services) Order 1993 SI 1993/1507 as amended s. 5(4) and s. 5(8)
VAT (Treatment of Transactions) Order 1995 SI 1995/958 s. 5(3)
VAT (Special Provisions) Order 1995 SI 1995/1268 s. 5(3) and s. 5(5)
VAT (Fiscal Warehousing) (Treatment of Transactions) Order 1996 SI 1996/1255 s. 5(3)