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HMRC internal manual

VAT Taxable Person Manual

Scope and legal basis of VAT: Defining and identifying the taxable person

Section 1(2) of the VAT Act 1994 states:

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.

Section 3(1) of the VATA 1994 defines a taxable person as follows:

A person is a taxable person for the purposes of this Act while he is or is required to be registered under this Act.

It follows from this that, in order to decide whether a transaction meets the third of the four essential conditions of VTAXPER21000, it is necessary to establish:

  • whether a person is required to be registered (see Section 3(i)), and;
  • which person is making the supply and thus liable for tax on that transaction (Section 1(2)).