V2.201B Business—overview
This paragraph provides and overview of 'business' (or, to use the corresponding European term, 'economic activity') for VAT purposes. It cross refers to further detailed commentary on the subject.
Significance of business
Business and business activities are broadly significant for VAT purposes because:
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•ÌýÌýÌýÌý the scope of VAT is limited to business activities
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•ÌýÌýÌýÌý it can be determinative of liability
Significance of business—scope of VAT
VAT is, broadly, levied on supplies of goods and services in the course or furtherance of a business1.
Input tax is, again broadly, VAT charged on the supply to, or acquisition or importation by, a taxable person (in the UK sense), of goods or services used or to be used for the purposes of a business carried on by him2.
A person is liable or entitled to be registered for VAT only if he makes, or intends to make, taxable supplies in the course or furtherance of a business3.
It follows from the above that a
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