VAT: issues of single and multiple supply

Stanley Dencher, senior technical writer at Croner-i, examines various recent tax cases where questions have arisen over whether a deal should be treated as single supply or multiple supply for VAT

VAT advisers handle some tricky questions, eg, whether a deal involves:

multiple supplies, where not all of the supplies are treated the same for VAT purposes; or
a single (composite) supply.

A composite supply is a single supply, but with multiple components. VAT is charged at one rate on all the consideration. If the components could be supplied separately, the various components may have mixed liabilities to VAT. There can be a single composite supply:

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