Part 6Other taxes

Value added tax

75Zero-rating: splitting of supplies

(1)

In Part 2 of Schedule 8 to VATA 1994 (zero-rating: groups), Group 3 (books, etc) is amended as follows.

(2)

For “Note: Items 1 to 6—” substitute—

“(1)Notes

Items 1 to 6—”.

(3)

At the end insert—

“(2)

Items 1 to 6 do not include goods in circumstances where—

(a)

the supply of the goods is connected with a supply of services, and

(b)

those connected supplies are made by different suppliers.

(3)

For the purposes of Note (2) a supply of goods is connected with a supply of services if, had those two supplies been made by a single supplier—

(a)

they would have been treated as a single supply of services, and

(b)

that single supply would have been a taxable supply (other than a zero-rated supply) or an exempt supply.”

(4)

The amendments made by this section have effect in relation to supplies made on or after the day on which this Act is passed.