½Û×ÓÊÓƵ

This paragraph considers the meaning of the term 'consideration' in the context of value added tax.

This term is significant since, by virtue of VATA 1995, s 5(2)(b), a supply is in principle outside the scope of VAT unless it is made for a consideration. This is subject to certain exceptions where a transaction is deemed to be within the scope of VAT despite the absence of consideration. Deemed supplies for no consideration are covered in V3.211–V3.216.

The principles discussed in this paragraph should be considered (in particular) alongside the following closely related paragraphs:

1. Ìý

   •ÌýÌýÌýÌý V3.104 which considers the significance of the link between supply and consideration

2. Ìý

   •ÌýÌýÌýÌý V3.104A which provides a number of examples of transactions held not to be supplies for consideration

3. Ìý

   •ÌýÌýÌýÌý V3.104B which provides a number of examples of transactions held to be supplies for consideration