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Composite/multiple supplies

Difficulties may arise when a supply of insurance, or a purported supply of insurance, is sold together with other goods or services. In such cases, the following questions need to be addressed:

1. Ìý

   –ÌýÌýÌýÌý Is there a composite supply of goods or services other than insurance, to which the supply of insurance is ancillary¹?

2. Ìý

   –ÌýÌýÌýÌý Is there a composite supply of insurance, to which other goods or services are ancillary²?

3. Ìý

   –ÌýÌýÌýÌý Are there multiple supplies of goods/services and insurance³?

The question of the nature of a supply was dealt with by the ECJ in Card Protection Plan Ltd v C & E Comrs⁴, where it was held that:

1. Ìý

   •ÌýÌýÌýÌý every supply must be regarded as distinct and independent, and a supply which comprises a single supply from an economic point of view should not be artificially split, so as to distort the functioning of the VAT system. With this in mind, the essential