4.2.1 Different types of single, composite supplies

In my view, only two types of composite transactions, i.e. multiple-element transactions that are considered one single supply from a VAT perspective, exist where the nature of the ‘composite transaction’ determines the VAT treatment of that transaction. The first type is a transaction where the ‘main’ transaction determines the VAT treatment of the ‘ancillary supplies’, which can be symbolised as follows:

A + b = A

The second type is where the supply should not be split because of the strong economic links without one of the elements absorbing the other(s). This type of composite supply can be symbolised as follows:

A + B = C

I will elaborate on both types of composite transactions now.