Book contents
- Frontmatter
- Dedication
- Contents
- List of Tables and Charts
- List of Cases
- Preface to the Second Edition
- 1 Introduction
- 2 Consumption Tax Forms and Base Alterations
- 3 Varieties of VAT in Use
- 4 Registration, Taxpayer, and Taxable Activity
- 5 Taxable Supplies and Tax Invoices
- 6 The Tax Credit Mechanism
- 7 Introduction to Cross-Border Aspects of VAT
- 8 Timing and Valuation Rules
- 9 Zero-Rating, Exemptions, and Exempt Entities
- 10 VAT Evasion and Avoidance
- 11 Gambling and Financial Services (Other than Insurance)
- 12 Insurance
- 13 Real Property
- 14 An Anatomy of the Chinese VAT
- 15 Interjurisdictional Aspects
- Appendix VATs Worldwide
- Index
- References
5 - Taxable Supplies and Tax Invoices
Published online by Cambridge University Press: 05 February 2015
- Frontmatter
- Dedication
- Contents
- List of Tables and Charts
- List of Cases
- Preface to the Second Edition
- 1 Introduction
- 2 Consumption Tax Forms and Base Alterations
- 3 Varieties of VAT in Use
- 4 Registration, Taxpayer, and Taxable Activity
- 5 Taxable Supplies and Tax Invoices
- 6 The Tax Credit Mechanism
- 7 Introduction to Cross-Border Aspects of VAT
- 8 Timing and Valuation Rules
- 9 Zero-Rating, Exemptions, and Exempt Entities
- 10 VAT Evasion and Avoidance
- 11 Gambling and Financial Services (Other than Insurance)
- 12 Insurance
- 13 Real Property
- 14 An Anatomy of the Chinese VAT
- 15 Interjurisdictional Aspects
- Appendix VATs Worldwide
- Index
- References
Summary
Introduction
Most VAT regimes impose VAT on a supply only if it is for consideration, and there is a clear connection between the supply and that consideration. This chapter first examines the question, what is a supply for VAT purposes? It explores notions of supply, consideration, and the required link between a supply and the consideration received by the seller.
A sale for a single price may incorporate elements of multiple supplies that are taxed differently. For example, a portion of the supply, if independent, is taxable at a positive rate, and another portion, if independent, is exempt from tax. It is significant for VAT purposes if the transaction is respected as a single supply of these two components or is treated as two separate supplies. A major part of this chapter therefore focuses on resolving the perplexing question, what is “the supply”? In some cases, the VAT legislation and case law may draw a distinction between mixed supplies (with main and incidental elements) that are classified as a single supply of the main element and composite supplies that can be disaggregated and classified as multiple independent supplies.
Finally, a VAT invoice containing required information and issuable only by registered persons is considered central to a European-style invoice VAT. Some aspects of the VAT invoice are discussed in this chapter.
- Type
- Chapter
- Information
- Value Added TaxA Comparative Approach, pp. 92 - 135Publisher: Cambridge University PressPrint publication year: 2015