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V3.111 Classification of supplies

VAT is charged on supplies of goods and services¹, and it follows that a transaction that amounts to neither a supply of goods nor a supply of services is outside the scope of VAT. Therefore, it is possible to classify transactions under one of the following headings²:

1. Ìý

   •ÌýÌýÌýÌý a supply of goods³

2. Ìý

   •ÌýÌýÌýÌý a supply of services⁴, or

3. Ìý

   •ÌýÌýÌýÌý neither a supply of goods nor a supply of services⁵

These descriptions are terms of art to be interpreted under the technical meaning given them by the legislation, rather than the ordinary and natural meaning which they would otherwise bear.

The use of technical meanings gives rise to important, if subtle, linguistic distinctions. The term 'goods' is not defined in the legislation but, in general, presumably refers to something which is at once tangible, moveable and visible, and possession of which can be taken. (The term 'tangible property' is used in Archived Directive 2006/112/EC, art 14(1)⁶,