Gap Group Limited v The Commissioners for HMRC
The supplies of plant hire and red diesel fuel by the appellant constitute multiple supplies for VAT purposes because customers had a genuine economic choice whether to purchase fuel from the appellant or supply their own, the supplies were separately invoiced and priced, and the economic reality was that the fuel supply was not inseparable or indispensable to the plant hire. Thus, the fuel supply is not part of a single composite supply and should be taxed at the reduced rate.
Source excerpt
- Value added tax (vat)
- Composite and multiple supplies
- Plant hire
- Supply of fuel
- Vat assessment
- Reduced rate vat