{
  "url": "https://openlegislation.uk/indirect-taxes-notifiable-arrangements-regulations-2017/regulation-4",
  "json_url": "https://openlegislation.uk/indirect-taxes-notifiable-arrangements-regulations-2017/regulation-4.json",
  "legislation": "uksi/2017/1216",
  "legislation_title": "The Indirect Taxes (Notifiable Arrangements) Regulations 2017",
  "legislation_url": "https://openlegislation.uk/indirect-taxes-notifiable-arrangements-regulations-2017",
  "path": "regulation/4",
  "kind": "regulation",
  "number": "4",
  "heading": "Retail supplies – splitting and value shifting",
  "text": "(1) An arrangement which meets the following description is a notifiable arrangement.\n(2) A person (“A”) makes a supply (“supply 1”) of goods or services to a retail customer (“C”).\n(3) A, or another person (“B”), makes a supply (“supply 2”) of other goods or services to C.\n(4) In relation to supply 1 and supply 2—\n(a) condition 1 or 2 is met; and\n(b) condition 3 is met.\n(5) Condition 1 is met if—\n(a) were supply 1 and supply 2 made as a single supply or part of a single supply to C, that single supply would be taxable at the standard or reduced rate of VAT; and\n(b) supply 1 or supply 2 is, or both are,—\n(i) taxable at the reduced rate of VAT;\n(ii) a zero-rated supply; or\n(iii) an exempt supply, except a supply which is subject to insurance premium tax at the higher rate.\n(6) Condition 2 is met if—\n(a) were supply 1 and supply 2 made as a single supply or part of a single supply to C, that single supply would be an exempt supply; and\n(b) supply 1 or supply 2 is, or both are,—\n(i) taxable at the standard or reduced rate of VAT; or\n(ii) a zero-rated supply.\n(7) Condition 3 is met if it would be reasonable to conclude that two or more of the following apply—\n(a) C would not agree to receive supply 1 without also agreeing to receive supply 2;\n(b) where supply 2 is made to C by B, B makes the supply with the agreement of A;\n(c) supply 1 and supply 2 would be made as a single supply or part of a single supply to C were it not for a VAT advantage which is obtained, or which may be obtained, by making those supplies separately to C;\n(d) the business model of A or B (or both) assumes that—\n(i) only A will make supply 1 to C;\n(ii) only A or B (as the case may be) will make supply 2 to C; and\n(iii) the agreements to make supply 1 and supply 2 will be entered into with C at or about the same time;\n(e) of supply 1 and supply 2, at least one is dependent on the other;\n(f) were supply 1 and supply 2 made as a single supply or part of a single supply to C, that supply would be made at or about the same price as the price of both supply 1 and supply 2 are made to C;\n(g) a higher profit is generated from whichever of supply 1 or supply 2 is the supply which obtains the greater VAT advantage.\n(8) In this regulation, “zero-rated supply” has the meaning given by section 30 of the Value Added Tax Act 1994, excluding a supply of goods or services within items 2(d) and (g) and 8 to 13 of Group 12 in Part 2 of Schedule 8 to that Act.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "I",
      "label": "I1",
      "text": "Reg. 4 in force at 1.1.2018, see reg. 1"
    },
    {
      "type": "footnote",
      "label": "f1",
      "text": "Section 30 was amended by section 28 of the Finance Act 1995 and section 29(2) of, and paragraph 7 of Schedule 3 to, the Finance Act 1996 (c. 8)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2017/1216/regulation/4",
    "retrieved_at": "2026-10-28T23:05:11.938269+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}