Article 4 - Supply of More Than One Component

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:
a. Where there is 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.
b. 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:
a. The price of the different components of the supply is not separately identified or charged by the supplier.
b. 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.