VAT mixed supplies

Ask most VAT practitioners which areas of VAT continue to have the most interesting array of disputes and single/multiple supply debates would probably be quite high up the list.

The issue has led to many famous cases both domestically and in Europe and there seems to be no let-up in sight given the factual sensitivities in each case. Perhaps this is because the issue stimulates the mind without the need to trawl through vast amounts of legislation. Two recent cases have focused on the issue but before discussing them further a quick recap on the state of play is in order.

Predominant and ancillary elements

Supplies often have different elements. The question to be determined is whether it is correct to treat each element separately if they have different VAT rates or designated places of supply – otherwise it tends not to matter...