Transactions subject to VAT

All transactions are not necessarily subject to VAT. Certain are optional, others are definitively excluded from its scope.

1.Transactions subject to VAT

• Supplies of goods: The supply of goods is the transfer of the power to dispose of tangible movable property as an owner. The most common transaction for the supply of goods is the sale, but some transactions are treated as such by law. This includes the physical delivery of tangible movable property under a hire-purchase agreement or an agreement containing a retention of title clause.
• Services provided: Any transaction of a commercial nature involving the provision of a service for a fixed fee, another service or any other consideration constitutes a supply of services. 

The following are considered to be supplies of services: leases of movable, tangible (vehicles, equipment) or intangible property (goodwill, patents), or immovable property; transport of persons and goods; repairs; real estate work; on-the-spot sales of food or drink products; loans; waivers of receivables or subsidies granted for commercial reasons.

The distinction between the supply of goods and services is important because it makes it possible to determine the applicable territoriality rules, the date on which the VAT due by the supplier is due, and the date on which the VAT paid or due to the suppliers by the customer is deducted.