Supply of More Than One Component – Article 4 – VAT Executive Regulations

Article 4 – Supply of More Than One Component

1. Where a Person made a supply consisting of more than one component for one price, the Person shall determine
   whether the supply constitutes a single composite supply or multiple supplies.
2. The phrase “single composite supply” means a supply of Goods or Services, where there is more than one component
   to the supply, and taking into account the contract and the wider circumstance of the supply.
3. A single composite supply shall exist in the following cases:
   1. Where there is a supply of all of the following:
      1. A principal component.
      2. A component or components which either are necessary or essential to the making of the supply, including
         incidental elements which normally accompany the supply but are not a significant part of it; or do not
         constitute an aim in itself, but are instead a means of better enjoying the principal supply.
   2. Where there is a supply which has two or more elements so closely linked as to form a single supply which it
      would be impossible or unnatural to split.
4. A single composite supply may exist under Clause 2 of this Article if all of the following conditions are met:
   1. The price of the different components of the supply is not separately identified or charged by the supplier.
   2. All components of the supply are supplied by a single supplier.
5. Where a Taxable Person supplies more than one component for one price and the supply is not a single composite
   supply, then the supply of the components shall be treated as multiple supplies.