A taxable person is still treated as supplying goods even if, under any power exercisable by another person, the goods are sold by that other person in satisfaction of a debt (VATA 1994, Sch. 4, para. 7; Notice 700, para. 18.4 (2017 edn)).

Example: Goods sold to satisfy a debt

Axe Ltd carried on a business and was VAT-registered. A creditor of the company sold some of the company’s stock in or towards satisfaction of a debt owed by Axe Ltd to the creditor.

The supply for VAT purposes is treated as made by Axe Ltd, not by the creditor.

Sales by auction: Form VAT 833

However, if an auctioneer sells the goods on behalf of the person exercising the power of sale it is the auctioneer who within 21 days of the sale must:

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