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HMRC internal manual

VAT Supply and Consideration

Whether supplies are goods or services: Introduction

Establishing that either a transfer of title or a transfer of possession has taken place will determine whether the supply is of goods or services, as follows:

  • Where title is to pass immediately the supply is of goods. (See VATSC70400).
  • Where an undivided share of title in goods, that is a part-share in something that is indivisible, like a racehorse, is passed, the supply is of services. (See VATSC71600).
  • The transfer of possession only (for example hire) is a supply of services. (See VATSC71800).
  • The transfer of possession with an intention to transfer title at a future date is a supply of goods. (VATSC72400).