Value Added Tax Act 1994 section 4

Scope of VAT on taxable supplies

Section 4 sets out the basic scope of VAT by defining the conditions under which a supply of goods or services is subject to VAT in the United Kingdom.

• VAT is charged on supplies of goods or services made in the United Kingdom by a taxable person in the course or furtherance of a business.
• A taxable supply is any supply of goods or services made in the UK that is not an exempt supply.
• All four conditions — supply, UK location, taxable person, and business activity — must be met for a transaction to fall within the scope of UK VAT.
• If a supply qualifies as exempt, it falls outside the charge to VAT even though it may meet the other conditions.