(1) If a commission agent renders domestic services on behalf of a principal, the services generally are independent supplies that are taxable unless they are zero rated under section 16 of the Act or exempt under section 17 of the Act.
(2) The use, by a taxable person, of capital goods to provide entertainment constitutes a supply of entertainment by the taxable person under section 4 of the Act, and is subject to tax.
(3) For the purposes of subregulation (2), capital goods include yachts, power boats, leisure facilities and private aircrafts.
(4) The use of leased or licensed goods or the use of corporate or individual membership is a supply of entertainment under section 4 of the Act and is subject to tax.
(5) For the purposes of subregulation (4), leased or licensed goods include yachts, power boats, leisure facilities and private aircrafts, and corporate or individual membership includes membership of a golf club, gym or other leisure facility.
(6) (a) Where —
(i) land is compulsorily acquired from a taxable person under the Land Acquisition Act or any other Act under which land can be compulsorily acquired,
(ii) compensation is paid to that person in relation to the acquisition, and
(iii) a sale of that land by the person would have been a taxable supply if it had been made on the day on which the land was compulsorily acquired, the taxable person is treated as making a taxable supply of the land under section 4 of the Act on the day on which the land is compulsorily acquired and for a consideration equal to the amount of compensation paid or payable in relation to the compulsory acquisition.
(b) Regulation 3(6)(a) applies whether or not the taxable person consents to the compulsory acquisition or agrees to the amount of compensation paid.
(c) For the purposes of regulation 3(6), land is compulsorily acquired on the day on which title to the land is vested in the Crown, or in a person other than the Crown who has compulsorily acquired the land.
(7) (1) Where two or more goods, services or both are combined to form the subject matter of a single supply and the VAT treatment of each would be different if they were not combined, the VAT treatment of the supply as either a single supply or as two or more separate supplies is determined as follows:
(a) if —
(i) one part of the supply (the subsidiary part) is ancillary or incidental to another part of the supply (the dominant part), and
(ii) looked at objectively, the subsidiary part does not constitute an object in itself for the recipient but is merely a means of better enjoying the dominant part, or is something necessarily supplied as an integral part of the dominant part,
then the subsidiary part is treated as part of the dominant part and has the same VAT treatment as the dominant part;
(b) if and to the extent that paragraph (a) does not apply, then each part of the supply is treated as a separate supply; and
(c) if appropriate, paragraphs (a) and (b) may be applied in iterative steps in respect of each thing supplied so as to determine the true character of the supply and the extent, if any, to which the supply should be treated as two or more separate supplies.
(2) If a single supply consists of more than one part, each part is treated as a separate supply if —
(a) neither part is ancillary or incidental to the other; and
(b) had the parts been capable of being separately supplied, they would have had different VAT treatments.
(3) For the purposes of working out the value of each supply, the consideration for a single supply that is treated as two or more separate supplies because of subregulation (1) or (2) should be apportioned between each separate supply in such a way as to provide a true reflection of the price paid by the recipient for each separate supply.
(4) The way in which the supplier and recipient agreed to apportion the consideration may be considered in determining the value of a supply in accordance with this regulation, but should not be taken to be conclusive.