In C & E Commrs v Leightons Ltd; C & E Commrs v Eye-Tech Opticians (No. 1) [1995] BVC 192, the court held that the optician made two supplies when it dispensed spectacles:

(1)one supply of goods (the spectacles), standard-rated; and

(2)one exempt supply of dispensing services (VATA 1994, Sch. 9, Grp. 7, item 1(b)).

The court used the substance and reality test in deciding that the two supplies could be made separately. It was not a single supply of standard-rated spectacles.

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