VCM17080 - Qualifying trades: wholesale and retail distribution

ICTA/S297 (3); ITA/S193; ITA/S304; FA00/SCH15/PARA27

The legislation excludes dealing in goods except where this occurs in the course of an ordinary trade of wholesale or retail distribution. Not all dealing amounts to distribution, which has connotations of selling goods obtained from one or more sources to a much larger number of customers.

' Wholesale' and ' retail' distribution are defined as follows.

• A trade of wholesale distribution is one in which the goods are offered for sale and sold to persons for resale by them or for processing and resale by them, to members of the general public for their use or consumption.
• A trade of retail distribution is one in which the goods are offered or exposed for sale and sold to members of the general public for their use or consumption.

No objection should be taken on the grounds that the type of goods is such that only a small and specialised group of the general public is likely to be interested in using or consuming them.

As regards what is meant by an ' ordinary' trade of wholesale or retail distribution, see VCM17090.