VAT – Exercise of a power of sale
Value Added Tax
Several queries have come up on this during 2014. Getting it right can be tricky. The principle is that where a business is carried on by a taxable person and goods forming part of that business are sold by a third party exercising a power of sale, those goods are deemed to be supplied by the taxable person in the course or furtherance of his business and VAT is chargeable (or not) on that basis.