India - Railway Electrification and Workshop Modernization Project
Value added tax shall be charged, in accordance with the provisions of this Act— and references in this Act to VAT are references to value added tax.
on the supply of goods or services in the United Kingdom (including anything treated as such a supply),
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on the importation of goods from places outside the member States,
on the importation of goods into the United Kingdom,
VAT on any supply of goods or services is a liability of the person making the supply and (subject to provisions about accounting and payment) becomes due at the time of supply.
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VAT on the importation of goods into the United Kingdom shall be charged and payable as if it were import duty.
Subject to the following provisions and to the provisions of section 29A of this section ..., VAT shall be charged at the rate of 20 per cent and shall be charged—
on the supply of goods or services, by reference to the value of the supply as determined under this Act; and
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on the importation of goods ..., by reference to the value of the goods as determined under this Act.
The Treasury may by order increase or decrease the rate of VAT for the time being in force under this section by such percentage thereof not exceeding 25 per cent. as may be specified in the order, but any such order that has not previously expired or been revoked shall cease to be in force at the expiration of a period of one year from the date on which it takes effect, unless continued in force by a further order under this subsection.
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In relation to an order made under subsection (2) above to continue, vary or replace a previous order, the reference in that subsection to the rate for the time being in force under this section is a reference to the rate which would be in force if no order under that subsection had been made.
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A person is a taxable person for the purposes of this Act while he is, or is required to be, registered under this Act.
Schedules 1 to 3A shall have effect with respect to registration (and see also Parts 8 and 9 of Schedule 9ZA which contain further provisions about registration).
Persons registered under any of those Schedules and Part 8 and 9 of Schedule 9ZA shall be registered in a single register kept by the Commissioners for the purposes of this Act; and, accordingly, references in this Act to being registered under this Act are references to being registered under any of those Schedules or those Parts.
The Commissioners may by regulations make provision as to the inclusion and correction of information in that register with respect to the Schedule under which any person is registered.
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VAT shall be charged on any supply of goods or services made in the United Kingdom, where it is a taxable supply made by a taxable person in the course or furtherance of any business carried on by him.
A taxable supply is a supply of goods or services made in the United Kingdom other than an exempt supply.
Schedule 4 shall apply for determining what is, or is to be treated as, a supply of goods or a supply of services.
Subject to any provision made by that Schedule and to Treasury orders under subsections (3) to (6) below—
“supply” in this Act includes all forms of supply, but not anything done otherwise than for a consideration;
anything which is not a supply of goods but is done for a consideration (including, if so done, the granting, assignment or surrender of any right) is a supply of services.
The Treasury may by order provide with respect to any description of transaction— and without prejudice to the foregoing, such an order may provide that paragraph 5(4) of Schedule 4 is not to apply, in relation to goods of any prescribed description used or made available for use in prescribed circumstances, so as to make that a supply of services under that paragraph ....
that it is to be treated as a supply of goods and not as a supply of services; or
that it is to be treated as a supply of services and not as a supply of goods; or
that it is to be treated as neither a supply of goods nor a supply of services;
Without prejudice to subsection (3) above, the Treasury may by order make provision for securing, with respect to services of any description specified in the order, that where— such services are treated for the purposes of this Act as being supplied by him in the course or furtherance of that business.
a person carrying on a business does anything which is not a supply of services but would, if done for a consideration, be a supply of services of a description specified in the order; and
such other conditions as may be specified in the order are satisfied,
An order under subsection (3) may provide that paragraph 30 of Schedule 9ZB does not apply, in such circumstances as may be described in the order, so as to make a removal of assets a supply of goods under that paragraph.
The Treasury may by order make provision for securing, subject to any exceptions provided for by or under the order, that where in such circumstances as may be specified in the order goods of a description so specified are taken possession of or produced by a person in the course or furtherance of a business carried on by him and— the goods are treated for the purposes of this Act as being both supplied to him for the purpose of that business and supplied by him in the course or furtherance of it.
are neither supplied to another person nor incorporated in other goods produced in the course or furtherance of that business; but
are used by him for the purpose of a business carried on by him,
The Treasury may by order make provision for securing, with respect to services of any description specified in the order, that where— such services are treated for the purposes of this Act as being both supplied to him for the purpose of that business and supplied by him in the course or furtherance of it.
a person, in the course or furtherance of a business carried on by him, does anything for the purpose of that business which is not a supply of services but would, if done for a consideration, be a supply of services of a description specified in the order; and
such other conditions as may be specified in the order are satisfied,
For the purposes of this section, where goods are manufactured or produced from any other goods, those other goods shall be treated as incorporated in the first-mentioned goods.
An order under subsection (4) or (6) above may provide for the method by which the value of any supply of services which is treated as taking place by virtue of the order is to be calculated.
The provisions of this section shall apply, subject to sections 18, 18B , 18C and 57A for determining the time when a supply of goods or services is to be treated as taking place for the purposes of the charge to VAT.
Subject to subsections (4) to (14) below, a supply of goods shall be treated as taking place—
if the goods are to be removed, at the time of the removal;
if the goods are not to be removed, at the time when they are made available to the person to whom they are supplied;
if the goods (being sent or taken on approval or sale or return or similar terms) are removed before it is known whether a supply will take place, at the time when it becomes certain that the supply has taken place or, if sooner, 12 months after the removal.
Subject to subsections (4) to (14) below, a supply of services shall be treated as taking place at the time when the services are performed.
If, before the time applicable under subsection (2) or (3) above, the person making the supply issues a VAT invoice in respect of it or if, before the time applicable under subsection (2)(a) or (b) or (3) above, he receives a payment in respect of it, the supply shall, to the extent covered by the invoice or payment, be treated as taking place at the time the invoice is issued or the payment is received.
If, within 14 days after the time applicable under subsection (2) or (3) above, the person making the supply issues a VAT invoice in respect of it, then, unless he has notified the Commissioners in writing that he elects not to avail himself of this subsection, the supply shall (to the extent that it is not treated as taking place at the time mentioned in subsection (4) above) be treated as taking place at the time the invoice is issued.
The Commissioners may, at the request of a taxable person, direct that subsection (5) above shall apply in relation to supplies made by him (or such supplies made by him as may be specified in the direction) as if for the period of 14 days there were substituted such longer period as may be specified in the direction.
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the removal of the goods from the United Kingdom; and
their acquisition in another member State by a person who is liable for VAT on the acquisition in accordance with provisions of the law of that member State corresponding, in relation to that member State, to the provisions of section 10,
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the 15th day of the month following that in which the removal in question takes place; and
the day of the issue, in respect of the supply, of a VAT invoice or of an invoice of such other description as the Commissioners may by regulations prescribe.
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“the Management Act” means the Customs and Excise Management Act 1979;
purports to be a VAT invoice in respect of a supply of goods or services to him by another taxable person; and
is in accordance with regulations under paragraph 2 of Schedule 11 treated as the VAT invoice required by the regulations to be provided by the supplier,
“VAT credit” has the meaning given by section 25(3);
the provision of the document to himself by the first-mentioned taxable person were the issue by the supplier of a VAT invoice in respect of the supply; and
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“motor dealer” means a person whose business consists in whole or in part of obtaining supplies of, ... or importing, new or second-hand motor cars for resale with a view to making an overall profit on the sale of them (whether or not a profit is made on each sale);
Supplies for qualifying use of—
coal, coke or other solid substances held out for sale solely as fuel;
coal gas, water gas, producer gases or similar gases;
petroleum gases, or other gaseous hydrocarbons, whether in a gaseous or liquid state;
fuel oil, gas oil or kerosene; or
electricity, heat or air-conditioning.
“Medical courier charity” means a charity that meets condition A or B.
NOTES:
Services of—
reception, disposal or treatment of foul water or sewage in bulk, and
emptying of cesspools, septic tanks or similar receptacles which are used otherwise than in connection with the carrying on in the course of a business of a relevant industrial activity.
The grant, by a person substantially reconstructing a protected building, of a major interest in, or in any part of, the building or its site.
removable contents other than goods of a kind mentioned in item 4 of Group 5; or
The supply before the delivery of an entry (within the meaning of regulation 5 of the Customs Controls on Importation of Goods Regulations 1991)) under an agreement requiring the purchaser to make such entry of goods imported from a place outside the member States.
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distilled water, deionised water and water of similar purity, . . .
water comprised in any of the excepted items set out in Group 1.
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the supply of accommodation in a caravan or houseboat.
The supply to or by an overseas authority, overseas body or overseas trader, charged with the management of any defence project which is the subject of an international collaboration arrangement or under direct contract with any government or government-sponsored international body participating in a defence project under such an arrangement, of goods or services in the course of giving effect to that arrangement.
For the purposes of this Group “energy-saving materials” means any of the following— An electrical storage battery is within this sub-paragraph if it is intended for use solely for storing energy converted from electricity that was— In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act). In sub-paragraph (1)(m), “smart diverter” means a device capable of automatically diverting electricity generated by a microgeneration system to one or more appliances, in particular circumstances. In sub-paragraphs (2) and (4), “microgeneration system” means equipment—
The supply to an overseas authority, overseas body or overseas trader of jigs, patterns, templates, dies, punches and similar machine tools used in the United Kingdom solely for the manufacture of goods for export ....
For the purposes of item 1, “installing energy-saving materials” includes carrying out groundworks, or dredging a body of water, in order to install pipework or other equipment necessary for the operation of a ground source heat pump or a water source heat pump.
the keeping and preservation of records, and
“Air ambulance charity” means a charity the main purpose of which is to provide an air ambulance service in pursuance of arrangements made by, or at the request of, a relevant NHS body.
In subsection (3) “relevant NHS body” means a body the main purpose of which is to provide ambulance services and which is—
an NHS trust in England,
an NHS foundation trust in England,
an NHS trust in Wales,
a Special Health Board constituted under section 2 of the National Health Service (Scotland) Act 1978, or
a Health and Social Care trust established under the Health and Personal Social Services (Northern Ireland) Order 1991.
The supply of goods and services by a charity in connection with a fund-raising event organised for charitable purposes by a charity or jointly by more than one charity.
The supply of goods and services by a qualifying body in connection with an event—
that is organised exclusively for the body’s own benefit,
whose primary purpose is the raising of money, and
that is promoted as being primarily for the raising of money.
For the purposes of this Group “residential accommodation” means— For the purposes of this Group “use for a relevant residential purpose” has the same meaning as it has for the purposes of Group 1 (see paragraph 7(1) of the Notes to that Group). In sub-paragraph (1)(d) “houseboat” has the meaning given by paragraph 7(3) of the Notes to Group 1.
For the purposes of this Group a building is used “for a relevant charitable purpose” if it is used by a charity—
otherwise than in the course or furtherance of a business, or
as a village hall or similarly in providing social or recreational facilities for a local community.
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For the purposes of this Group “relevant supplies” means supplies made on or after 1st April 2027.
Condition A is that the main purpose of the charity is to provide services for the transportation of items intended for use for medical purposes, including in particular—
blood;
medicines and other medical supplies;
items relating to people who are undergoing medical treatment.
the keeping of accounts,
“the Commissioners” means the Commissioners of Customs and Excise;
This Table shows the derivation of the provisions of the Bill.
The following abbreviations are used in the Table:—
with intent to deceive produces, furnishes or sends for the purposes of this Act or otherwise makes use for those purposes of any document which is false in a material particular; or
The supply to the Royal National Institute for the Blind, the National Listening Library or other similar charities of—
magnetic tape specially adapted for the recording and reproduction of speech for the blind or severely disabled;
apparatus designed or specially adapted for the making on a magnetic tape, by way of the transfer of recorded speech from another magnetic tape, of a recording described in paragraph (f) below;
apparatus designed or specially adapted for transfer to magnetic tapes of a recording made by apparatus described in paragraph (b) above;
apparatus designed or specially adapted for transfer to magnetic tapes of a recording made by apparatus described in paragraph (b) above;
apparatus for re-winding magnetic tape described in paragraph (f) below;
apparatus for re-winding magnetic tape described in paragraph (f) below;
apparatus designed or specially adapted for the reproduction from recorded magnetic tape of speech for the blind or severely handicapped which is not available for use otherwise than by the blind or severely handicapped;
apparatus designed or specially adapted for the reproduction from recorded magnetic tape of speech for the blind or severely disabled which is not available for use otherwise than by the blind or severely disabled;
magnetic tape upon which has been recorded speech for the blind or severely handicapped, such recording being suitable for reproduction only in the apparatus mentioned in paragraph (e) above;
magnetic tape upon which has been recorded speech for the blind or severely disabled, such recording being suitable for reproduction only in the apparatus mentioned in paragraph (e) above;
apparatus solely for the making on a magnetic tape of a sound recording which is for use by the blind or severely disabled;
parts and accessories (other than a magnetic tape for use with apparatus described in paragraph (g) above) for goods comprised in paragraphs (a) to (g) above;
the supply of a service of repair or maintenance of any goods comprised in paragraphs (a) to (h) above.
Caravans exceeding the limits of size for the time being permitted for the use on roads of a trailer drawn by a motor vehicle having an unladen weight of less than 2,030 kilogrammes.
The supply of services by a person registered or enrolled in any of the following—
the register of medical practitioners ...;
either of the registers of ophthalmic opticians or the register of dispensing opticians kept under the Opticians Act 1989 or either of the lists kept under section 9 of that Act of bodies corporate carrying on business as ophthalmic opticians or as dispensing opticians;
the register kept under the Health Professions Order 2001 ;
the register of qualified nurses, midwives and nursing associates maintained under article 5 of the Nursing and Midwifery Order 2001;
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in furnishing any information for the purposes of this Act makes any statement which he knows to be false in a material particular or recklessly makes a statement which is false in a material particular,
The supply to a charity of— being goods solely for gratuitous loan to the blind. Note: The supply mentioned in items 1 and 2 includes the letting on hire of goods comprised in the items.
wireless receiving sets; or
apparatus solely for the making and reproduction of a sound recording on a magnetic tape permanently contained in a cassette,
Houseboats being boats or other floating decked structures designed or adapted for use solely as places of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion.
The supply of any services consisting in the provision of medical care, or the supply of dental prostheses, by—
a person registered in the dentists' register;
a person registered in the dentists’ register;
a person enrolled in any roll of dental auxiliaries having effect under section 45 of the Dentists Act 1984; or
a person registered in the dental care professionals register established under section 36B of the Dentists Act 1984; ...
a dental technician.
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The supply of such services as are described in paragraph 1(1) or 5(4) of Schedule 4 in respect of a caravan comprised in item 1 or a houseboat comprised in item 2.
The supply of any services consisting in the provision of medical care by a person registered in the register maintained under article 19 of the Pharmacy Order 2010 or in the register of pharmaceutical chemists kept under the Pharmacy (Northern Ireland) Order 1976.
The provision of care or medical or surgical treatment and, in connection with it, the supply of any goods, in any hospital or state-regulated institution.
The provision of a deputy for a person registered in the register of medical practitioners ....
Human blood.
Products for therapeutic purposes, derived from human blood.
Human (including foetal) organs or tissue for diagnostic or therapeutic purposes or medical research.
The supply by— of welfare services and of goods supplied in connection with those welfare services.
a charity,
a state-regulated private welfare institution or agency, or
a public body,
The supply, otherwise than for profit, of goods and services incidental to the provision of spiritual welfare by a religious community to a resident member of that community in return for a subscription or other consideration paid as a condition of membership.
The supply of transport services for sick or injured persons in vehicles specially designed for that purpose.
Condition B is that the main purpose of the charity is to support, develop and promote the activities of a charity which meets condition A.
In subsection (10) “item” includes any substance.
“bingo” includes any version of that game, whatever name it is called;
in relation to Scotland, means the ... interest of the owner;
Yoghurt unsuitable for immediate consumption when frozen.
The provision by an eligible body of—
education;
... or
vocational training.
“Palliative care charity” means a charity the main purpose of which is the provision of palliative care at the direction of, or under the supervision of, a medical professional to persons who are in need of such care as a result of having a terminal illness.
Drained cherries.
The supply of private tuition, in a subject ordinarily taught in a school or university, by an individual teacher acting independently of an employer.
In subsection (1) “medical professional” means—
a registered medical practitioner, or
a registered nurse.
Candied peels.
The provision of examination services—
by or to an eligible body; or
by or to an eligible body; or
to a person receiving education or vocational training which is—
exempt by virtue of items 1, 2 , 5 or 5A (or would be so exempt but for item 1 or 2 of Part 3); or
provided otherwise than in the course or furtherance of a business.
to a person receiving education or vocational training which is—
Tea, maté, herbal teas and similar products, and preparations and extracts thereof.
The supply of any goods or services (other than examination services) which are closely related to a supply of a description falling within item 1 (or would be so exempt but for item 1 or 2 of Part 3) (the principal supply) by or to the eligible body making the principal supply provided—
the goods or services are for the direct use of the pupil, student or trainee (as the case may be) receiving the principal supply; and
the goods or services are for the direct use of the pupil, student or trainee (as the case may be) receiving the principal supply; and
where the supply is to the eligible body making the principal supply, it is made by another eligible body.
where the supply is to the eligible body making the principal supply, it is made by another eligible body.
Cocoa, coffee and chicory and other roasted coffee substitutes, and preparations and extracts thereof.
The provision of vocational training, and the supply of any goods or services essential thereto by the person providing the vocational training, to the extent that the consideration payable is ultimately a charge to funds provided pursuant to arrangements made under section 2 of the Employment and Training Act 1973, section 1A of the Employment and Training Act (Northern Ireland) 1950 or section 2 of the Enterprise and New Towns (Scotland) Act 1990.
Milk and preparations and extracts thereof.
The provision of facilities by—
a youth club or an association of youth clubs to its members; or
an association of youth clubs to members of a youth club which is a member of that association.
Preparations and extracts of meat, yeast or egg.
The disposal of an object with respect to which estate duty is not chargeable by virtue of section 30(3) of the Finance Act 1953, section 34(1) of the Finance Act 1956 or the proviso to section 40(2) of the Finance Act 1930.
Relevant supplies of services of installing energy-saving materials in —
residential accommodation, or
a building intended for use solely for a relevant charitable purpose.
The disposal of an object with respect to which inheritance tax is not chargeable by virtue of paragraph 1(3)(a) or (4), paragraph 3(4)(a), or the words following paragraph 3(4), of Schedule 5 to the Inheritance Tax Act 1984.
Relevant supplies of energy-saving materials by a person who installs those materials in —
residential accommodation, or
a building intended for use solely for a relevant charitable purpose.
The disposal of property with respect to which inheritance tax is not chargeable by virtue of section 32(4) or 32A(5) or (7) of the Inheritance Tax Act 1984.
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The disposal of an asset in a case in which any gain accruing on that disposal is not a chargeable gain by virtue of section 258(2) of the Taxation of Chargeable Gains Act 1992.
any notice of election given or request made by the first-mentioned taxable person for the purposes of those provisions had been given or made by the supplier.
“tax” means VAT;
in the case of goods which are subject to a duty of excise, the time when the requirement to pay the duty on those goods takes effect; and
the payment of a VAT credit; or
Books, booklets, brochures, pamphlets and leaflets.
The supply, repair or maintenance of any ship which is neither—
a ship of a gross tonnage of less than 15 tons; nor
a ship designed or adapted for use for recreation or pleasure.
The grant of any interest in or right over land or of any licence to occupy land, or, in relation to land in Scotland, any personal right to call for or be granted any such interest or right, other than—
the grant of the fee simple in—
a building which has not been completed and which is neither designed as a dwelling or number of dwellings nor intended for use solely for a relevant residential purpose or a relevant charitable purpose;
a building which has not been completed and which is neither designed as a dwelling or number of dwellings nor intended for use solely for a relevant residential purpose or a relevant charitable purpose;
a new building which is neither designed as a dwelling or number of dwellings nor intended for use solely for a relevant residential purpose or a relevant charitable purpose after the grant;
a civil engineering work which has not been completed;
a new civil engineering work;
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the grant of any interest, right or licence consisting of a right to take game or fish unless at the time of the grant the grantor grants to the grantee the fee simple of the land over which the right to take game or fish is exercisable;
the provision in an hotel, inn, boarding house or similar establishment of sleeping accommodation or of accommodation in rooms which are provided in conjunction with sleeping accommodation or for the purpose of a supply of catering;
the grant of any interest in, right over or licence to occupy holiday accommodation;
the provision of seasonal pitches for caravans, and the grant of facilities at caravan parks to persons for whom such pitches are provided;
the provision of pitches for tents or of camping facilities;
the grant of facilities for parking a vehicle;
the grant of any right to fell and remove standing timber;
the grant of facilities for housing, or storage of, an aircraft or for mooring, or storage of, a ship, boat or other vessel;
the grant of any right to occupy a box, seat or other accommodation at a sports ground, theatre, concert hall or other place of entertainment;
the grant of facilities for playing any sport or participating in any physical recreation; ...
the grant of any right, including— to call for or be granted an interest or right which would fall within any of paragraphs (a) or (c) to (ma) above.
an equitable right,
a right under an option or right of pre-emption, or
in relation to land in Scotland, a personal right,
The supply to its members of such services and, in connection with those services, of such goods as are both referable only to its aims and available without payment other than a membership subscription by any of the following non-profit-making organisations—
a trade union or other organisation of persons having as its main object the negotiation on behalf of its members of the terms and conditions of their employment;
a professional association, membership of which is wholly or mainly restricted to individuals who have or are seeking a qualification appropriate to the practice of the profession concerned;
an association, the primary purpose of which is the advancement of a particular branch of knowledge, or the fostering of professional expertise, connected with the past or present professions or employments of its members;
an association, the primary purpose of which is to make representations to the Government on legislation and other public matters which affect the business or professional interests of its members.
a refund under section 35 or 36 of this Act or section 22 of the 1983 Act; or
Newspapers, journals and periodicals.
The supply, repair or maintenance of a qualifying aircraft or the modification or conversion of any such aircraft provided that when so modified or converted it will remain a qualifying aircraft.
an aircraft of a weight of less than 8,000 kilogrammes; nor
an aircraft designed or adapted for use for recreation or pleasure.
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Children’s picture books and painting books.
The supply to and repair or maintenance for a charity providing rescue or assistance at sea of—
any lifeboat;
carriage equipment designed solely for the launching and recovery of lifeboats;
tractors for the sole use of the launching and recovery of lifeboats;
winches and hauling equipment for the sole use of the recovery of lifeboats.
The construction, modification, repair or maintenance for a charity providing rescue or assistance at sea of slipways used solely for the launching and recovery of lifeboats.
The supply of spare parts or accessories to a charity providing rescue or assistance at sea for use in or with goods comprised in paragraph (a) above or slipways comprised in paragraph (b) above.
The supply to a charity providing rescue or assistance at sea of equipment that is to be installed, incorporated or used in a lifeboat and is of a kind ordinarily installed, incorporated or used in a lifeboat.
The supply of fuel to a charity providing rescue or assistance at sea where the fuel is for use in a lifeboat.
a repayment under section 39;
Music (printed, duplicated or manuscript).
Transport of passengers—
in any vehicle... designed or adapted to carry not less than 10 passengers;
by a universal service provider;
on any scheduled flight; or
from a place within to a place outside the United Kingdom or vice versa, to the extent that those services are supplied in the United Kingdom.
Maps, charts and topographical plans.
The transport of goods—
in the course of an importation from a place outside to a place within the United Kingdom, or
in the course of an exportation from a place within to a place outside the United Kingdom.
Covers, cases and other articles supplied with items 1 to 5 and not separately accounted for.
Any services provided for—
the handling of ships, aircraft or railway vehicles—
in a port, customs and excise airport or international railway area, or
outside the United Kingdom;
the handling or storage— of goods carried in a ship, aircraft or railway vehicle.
in a port,
on land adjacent to a port,
in a customs and excise airport,
in an international railway area, or
in a temporary storage facility,
Pilotage services.
Salvage or towage services.
Any services supplied for or in connection with the surveying of any ship or aircraft or the classification of any ship or aircraft for the purposes of any register.
The making of arrangements for—
the supply of, or of space in, any ship or aircraft; . . .
the supply of any service included in items 1 and 2, 3 to 9 and 11.
the supply of any goods of a description falling within items 2A or 2B , or paragraph (d) of item 3.
The supply—
of services consisting of
the transport of goods to or from a place—
from which they are to be exported to a place outside the United Kingdom, or
to which they have been imported from a place outside the United Kingdom,
the handling or storage of those goods at the place from which the goods are to be so exported, or the place to which they have been so imported, or
of services consisting of
the handling or storage of those goods in connection with their transport to or from that place, or
to a person who receives the supply for the purpose of a business carried on by him and who belongs outside the United Kingdom, of services of a description specified in paragraph (a) of item 6, item 9 or paragraph (a) of item 10 of this Group.
to a person who receives the supply for the purpose of a business carried on by him and who belongs outside the United Kingdom, of services of a description specified in paragraph (a) of item 6, item 6A, item 9 or paragraph (a) of item 10 of this Group.
The supply of a designated travel service to be enjoyed outside the United Kingdom, to the extent to which the supply is so enjoyed.
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The Commissioners may, at the request of a taxable person, by direction alter the time at which supplies made by him (or such supplies made by him as may be specified in the direction) are to be treated as taking place, either—
by directing those supplies to be treated as taking place— the resulting times or dates being in every case earlier than would otherwise apply; or
at times or on dates determined by or by reference to the occurrence of some event described in the direction; or
at times or on dates determined by or by reference to the time when some event so described would in the ordinary course of events occur,
by directing that, notwithstanding subsections (5) and (6) above, those supplies shall (to the extent that they are not treated as taking place at the time mentioned in subsection (4) above) be treated as taking place—
at the beginning of the relevant working period (as defined in his case in and for the purposes of the direction); or
at the end of the relevant working period (as so defined).
Where goods are treated as supplied by an order under section 5(5), the supply is treated as taking place when they are appropriated to the use mentioned in that section.
Where there is a supply of goods by virtue only of paragraph 5(1) of Schedule 4, the supply is treated as taking place when the goods are transferred or disposed of as mentioned in that paragraph.
Where there is a supply of services by virtue only of paragraph 5(4) of Schedule 4, the supply is treated as taking place when the goods are appropriated to the use mentioned in that paragraph.
The Commissioners may by regulations make provision with respect to the time at which (notwithstanding subsections (2) to (6) and (11) to (13) above or section 55(4)) a supply is to be treated as taking place in cases where— and for any such case as is mentioned in this subsection the regulations may provide for goods or services to be treated as separately and successively supplied at prescribed times or intervals.
it is a supply of goods or services for a consideration the whole or part of which is determined or payable periodically, or from time to time, or at the end of any period, or
it is a supply of goods for a consideration the whole or part of which is determined at the time when the goods are appropriated for any purpose, or
there is a supply to which section 55 applies, or
there is a supply of services by virtue of paragraph 5(4) of Schedule 4 or an order under section 5(4);
In this Act “VAT invoice” means such an invoice as is required under paragraph 2A of Schedule 11, or would be so required if the person to whom the supply is made were a person to whom such an invoice should be issued.
... this section and any regulations under this section or section 8(4) shall have effect subject to section 97A.
This section applies where—
a person (“P”) makes a taxable supply of goods in the course or furtherance of a business to another person (“R”),
that supply is facilitated by an online marketplace, and
one of the following applies—
the imported consignment condition is met, or
the supply of goods to R does not involve those goods being imported, but P is established outside the United Kingdom.
But this section does not apply in a case where P is established outside the United Kingdom and the imported consignment condition is not met if—
R is registered under this Act,
R has provided the operator of the online marketplace with R's VAT registration number, and
the operator of the online marketplace has provided P with that number and details of the supply before the end of the relevant period.
For the purposes of this Act—
P is to be treated as having supplied the goods to the operator of the online marketplace, and
the operator is to be treated as having supplied the goods to R in the course or furtherance of a business carried on by the operator.
The imported consignment condition is met where—
the supply of the goods to R involves those goods being imported,
the intrinsic value of the consignment of which the goods are part is not more than £135, and
the consignment of which the goods are part—
does not contain excepted goods, and
is not a consignment in relation to which a postal operator established outside the United Kingdom has an obligation under an agreement with the Commissioners to pay any import VAT that is chargeable on the importation of that consignment into the United Kingdom.
For the purposes of subsection (3)(c)(i), “excepted goods” means goods of a class or description subject to any duty of excise whether or not those goods are in fact chargeable with that duty, and whether or not that duty has been paid on the goods.
The Commissioners may by regulations—
specify the details that must be provided for the purposes of subsection (1A)(c);
substitute a different figure for a figure that is at any time specified in subsection (3)(b).
In this section—
This section shall apply (subject to sections ... 18 , 18B and 57A) for determining, for the purposes of this Act, whether goods ... are supplied in the United Kingdom.
Subject to the following provisions of this section, if the supply of any goods does not involve their removal from or to the United Kingdom they shall be treated as supplied in the United Kingdom if they are in the United Kingdom and otherwise shall be treated as supplied outside the United Kingdom.
Goods shall be treated—
as supplied in the United Kingdom where their supply involves their installation or assembly at a place in the United Kingdom to which they are removed; and
as supplied outside the United Kingdom where their supply involves their installation or assembly at a place outside the United Kingdom to which they are removed.
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the supply involves the removal of the goods to the United Kingdom by or under the directions of the person who supplies them;
the supply is a transaction in pursuance of which the goods are acquired in the United Kingdom from another member State by a person who is not a taxable person;
the supplier—
is liable to be registered under Schedule 2; or
would be so liable if he were not already registered under this Act or liable to be registered under Schedule 1; and
the supply is neither a supply of goods consisting in a new means of transport nor anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) or 6 of Schedule 4.
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the supply involves the removal of the goods, by or under the directions of the person who supplies them, to another member State;
the person who makes the supply is taxable in another member State; and
provisions of the law of that member State corresponding, in relation to that member State, to the provisions made by subsection (4) above make that person liable to VAT on the supply;
Goods whose place of supply is not determined under any of the preceding provisions of this section shall be treated as supplied in the United Kingdom where—
their supply involves their being imported ...; and
the person who supplies them is the person by whom, or under whose directions, they are so imported.
Goods whose place of supply is not determined under any of the preceding provisions of this section shall be treated as supplied outside the United Kingdom where the supply—
meets the imported consignment condition in section 5A; and
is deemed to be to the operator of an online marketplace.
Goods whose place of supply is not determined under any of the preceding provisions of this section but whose supply involves their removal to or from the United Kingdom shall be treated—
as supplied in the United Kingdom where their supply involves their removal from the United Kingdom without also involving their previous removal to the United Kingdom; and
as supplied outside the United Kingdom in any other case.
Goods whose place of supply is not determined under any of the preceding provisions of this section shall be treated as supplied in the United Kingdom where—
they are supplied by a person in the course or furtherance of a business carried on by that person;
the supply involves the goods being imported;
the intrinsic value of the consignment of which the goods are part is not more than £135; and
the consignment of which the goods are part—
does not contain goods of a class or description subject to any duty of excise whether or not those goods are in fact chargeable with that duty, and whether or not that duty has been paid on the goods; and
is not a consignment in relation to which a postal operator established outside the United Kingdom has an obligation under an agreement with the Commissioners to pay any import VAT that is chargeable on the importation of that consignment into the United Kingdom.
For the purposes of the preceding provisions of this section, where goods, in the course of their removal from a place in the United Kingdom to another place in the United Kingdom, leave and re-enter the United Kingdom the removal shall not be treated as a removal from or to the United Kingdom.
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in the United Kingdom if the supplier belongs in the United Kingdom; and
in another country (and not in the United Kingdom) if the supplier belongs in that other country.
The Treasury may by order provide, in relation to goods ... generally or to particular goods ... specified in the order, for varying the rules for determining where a supply of goods ... is made.
The Commissioners may by regulations substitute a different figure for a figure that is at any time specified in subsection (5B)(c).
The Commissioners may by regulations provide that any rule for determining where a supply of goods is made is subject to such conditions relating to the notification of matters to the Commissioners, or such other conditions, as may be specified in the regulations.
Where services are supplied by a person who belongs in a country other than the United Kingdom in circumstances in which this subsection applies, this Act has effect as if (instead of there being a supply of the services by that person)—
there were a supply of the services by the recipient in the United Kingdom in the course or furtherance of a business carried on by the recipient, and
that supply were a taxable supply.
Subsection (1) above applies if— and, where the supply of the services is one to which any paragraph of Part 1 or 2 of Schedule 4A applies, the recipient is registered under this Act.
the recipient is a relevant business person who belongs in the United Kingdom, and
the place of supply of the services is inside the United Kingdom,
Supplies which are treated as made by the recipient under subsection (1) above are not to be taken into account as supplies made by him when determining any allowance of input tax in his case under section 26(1).
In applying subsection (1) above, the supply of services treated as made by the recipient shall be assumed to have been made at a time to be determined in accordance with regulations prescribing rules for attributing a time of supply in cases within that subsection.
The Treasury may by order amend subsection (4A) by altering the descriptions of services specified in that subsection.
Subsection (1) does not apply to services of any of the descriptions specified in Part 2 of Schedule 9 and not specified in Part 3 of that Schedule.
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The power of the Treasury by order to amend subsection (4A) shall include power to make such incidental, supplemental, consequential and transitional provision in connection with any amendment of that subsection as they think fit.
Without prejudice to the generality of subsection (7) above, the provision that may be made under that subsection includes—
provision making such modifications of section 43(2A) to (2E) as the Treasury may think fit in connection with any amendment of subsection (4A); and
provision modifying the effect of any regulations under subsection (4) above in relation to any services added to that subsection.
This section has effect for determining for the purposes of section 7A (or Schedule 4A) or section 8, in relation to any supply of services, whether a person who is the supplier or recipient belongs in one country or another.
A person who is a relevant business person is to be treated as belonging in the relevant country.
he has there a business establishment or some other fixed establishment and no such establishment elsewhere; or
he has no such establishment (there or elsewhere) but his usual place of residence is there; or
he has such establishments both in that country and elsewhere and the establishment of his which is most directly concerned with the supply is there.
In subsection (2) “the relevant country” means—
if the person has a business establishment, or some other fixed establishment, in a country (and none in any other country), that country,
if the person has a business establishment, or some other fixed establishment or establishments, in more than one country, the country in which the relevant establishment is, and
otherwise, the country in which the person's usual place of residence or permanent address is.
In subsection (3)(b) “relevant establishment” means whichever of the person's business establishment, or other fixed establishments, is most directly concerned with the supply.
either of the conditions mentioned in paragraphs (a) and (b) of subsection (2) above is satisfied; or
he has such establishments as are mentioned in subsection (2) above both in that country and elsewhere and the establishment of his at which, or for the purposes of which, the services are most directly used or to be used is in that country.
A person who is not a relevant business person is to be treated as belonging—
in the country in which the person's usual place of residence or permanent address is (except in the case of a body corporate or other legal person);
in the case of a body corporate or other legal person, in the country in which the place where it is established is.
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This section applies where—
goods are supplied by a person (“A”) to another person (“B”),
B is registered under this Act,
the supply involves the goods being imported,
the intrinsic value of the consignment of which the goods are part is not more than £135, and
the consignment of which the goods are part—
does not contain goods of a class or description subject to any duty of excise whether or not those goods are in fact chargeable with that duty, and whether or not that duty has been paid on the goods, and
is not a consignment in relation to which a postal operator established outside the United Kingdom has an obligation under an agreement with the Commissioners to pay any import VAT that is chargeable on the importation of that consignment into the United Kingdom.
This Act has effect as if, instead of there being a supply of the goods by A to B—
there were a supply of the goods by B in the course of furtherance of a business carried on by B, and
that supply were a taxable supply.
The Commissioners may by regulations substitute a different figure for a figure that is at any time specified in subsection (1)(d).
This section applies , subject to section 57A, for determining, for the purposes of this Act, the country in which services are supplied.
A supply of services is to be treated as made—
in a case in which the person to whom the services are supplied is a relevant business person, in the country in which the recipient belongs, and
otherwise, in the country in which the supplier belongs.
The place of supply of a right to services is the same as that in which the supply of the services would be treated as made if made by the supplier of the right to the recipient of the right (whether or not the right is exercised); and for this purpose a right to services includes any right, option or priority with respect to the supply of services and an interest deriving from a right to services.
For the purposes of this Act a person is a relevant business person in relation to a supply of services if— whether or not the services are received in the course of business.
the person carries on a business, and
the services are not received by the person wholly for private purposes,
Subsection (2) has effect subject to Schedule 4A.
The Treasury may by order—
amend subsection (4),
amend Schedule 4A, or
otherwise make provision for exceptions from either or both of the paragraphs of subsection (2).
An order under subsection (6) may include incidental, supplemental, consequential and transitional provision.
This section applies if relevant goods are supplied— for the purposes of any business carried on by the recipient.
by a person who is outside the United Kingdom,
to a person who is registered under this Act,
This section also applies if relevant goods are supplied by a person (“A”) to another person (“B”) for the purposes of any business carried on by B and—
A is in Great Britain and B is registered under this Act and is identified for the purposes of VAT in Northern Ireland, or
A is in Northern Ireland and B is so registered but is not so identified.
The same consequences follow under this Act (and particularly so much as charges VAT on a supply and entitles a taxable person to credit for input tax) as if—
the recipient had himself supplied the relevant goods in the course or furtherance of his business, and
that supply were a taxable supply.
But supplies which are treated as made by the recipient under subsection (2) are not to be taken into account as supplies made by him when determining any allowance of input tax in his case under section 26(1).
In applying subsection (2) the supply of relevant goods treated as made by the recipient shall be assumed to have been made at a time to be determined in accordance with regulations prescribing rules for attributing a time of supply in cases to which this section applies.
Relevant goods” means—
gas supplied through a natural gas system in Great Britain or any network connected to a natural gas system in Great Britain,
gas supplied through a natural gas system situated within Northern Ireland or the territory of a member State or any network connected to such a system,
electricity, and
heat or cooling supplied through a network.
Whether a person is outside the United Kingdom , in Great Britain or in Northern Ireland is to be determined in accordance with an order made by the Treasury.
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VAT shall be charged on any acquisition from another member State of any goods where—
the acquisition is a taxable acquisition and takes place in the United Kingdom;
the acquisition is otherwise than in pursuance of a taxable supply; and
the person who makes the acquisition is a taxable person or the goods are subject to a duty of excise or consist in a new means of transport.
An acquisition of goods from another member State is a taxable acquisition if—
it falls within subsection (3) below or the goods consist in a new means of transport; and
it is not an exempt acquisition.
An acquisition of goods from another member State falls within this subsection if—
the goods are acquired in the course or furtherance of—
any business carried on by any person; or
any activities carried on otherwise than by way of business by any body corporate or by any club, association, organisation or other unincorporated body;
it is the person who carries on that business or, as the case may be, those activities who acquires the goods; and
the supplier—
is taxable in another member State at the time of the transaction in pursuance of which the goods are acquired; and
in participating in that transaction, acts in the course or furtherance of a business carried on by him.
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Subject to the following provisions of this section, references in this Act to the acquisition of goods from another member State shall be construed as references to any acquisition of goods in pursuance of a transaction in relation to which the following conditions are satisfied, that is to say— and references in this Act, in relation to such an acquisition, to the supplier shall be construed accordingly.
the transaction is a supply of goods (including anything treated for the purposes of this Act as a supply of goods); and
the transaction involves the removal of the goods from another member State;
It shall be immaterial for the purposes of subsection (1) above whether the removal of the goods from the other member State is by or under the directions of the supplier or by or under the directions of the person who acquires them or any other person.
Where the person with the property in any goods does not change in consequence of anything which is treated for the purposes of this Act as a supply of goods, that supply shall be treated for the purposes of this Act as a transaction in pursuance of which there is an acquisition of goods by the person making it.
The Treasury may by order provide with respect to any description of transaction that the acquisition of goods in pursuance of a transaction of that description is not to be treated for the purposes of this Act as the acquisition of goods from another member State.
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Subject to section 18 and any regulations under subsection (3) below, where goods are acquired from another member State, the acquisition shall be treated for the purposes of this Act as taking place on whichever is the earlier of—
the 15th day of the month following that in which the event occurs which, in relation to that acquisition, is the first relevant event for the purposes of taxing the acquisition; and
the day of the issue, in respect of the transaction in pursuance of which the goods are acquired, of an invoice of such a description as the Commissioners may by regulations prescribe.
For the purposes of this Act the event which, in relation to any acquisition of goods from another member State, is the first relevant event for the purposes of taxing the acquisition is the first removal of the goods which is involved in the transaction in pursuance of which they are acquired.
The Commissioners may by regulations make provision with respect to the time at which an acquisition is to be treated as taking place in prescribed cases where the whole or part of any consideration comprised in the transaction in pursuance of which the goods are acquired is determined or payable periodically, or from time to time, or at the end of a period; and any such regulations may provide, in relation to any case to which they apply, for goods to be treated as separately and successively acquired at prescribed times or intervals.
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This section shall apply (subject to section 18) for determining for the purposes of this Act whether goods acquired from another member State are acquired in the United Kingdom.
The goods shall be treated as acquired in the United Kingdom if they are acquired in pursuance of a transaction which involves their removal to the United Kingdom and does not involve their removal from the United Kingdom, and (subject to the following provisions of this section) shall otherwise be treated as acquired outside the United Kingdom.
Subject to subsection (4) below, the goods shall be treated as acquired in the United Kingdom if they are acquired by a person who, for the purposes of their acquisition, makes use of a number assigned to him for the purposes of VAT in the United Kingdom.
Subsection (3) above shall not require any goods to be treated as acquired in the United Kingdom where it is established, in accordance with regulations made by the Commissioners for the purposes of this section that VAT—
has been paid in another member State on the acquisition of those goods; and
fell to be paid by virtue of provisions of the law of that member State corresponding, in relation to that member State, to the provision made by subsection (2) above.
The Commissioners may by regulations make provision for the purposes of this section—
for the circumstances in which a person is to be treated as having been assigned a number for the purposes of VAT in the United Kingdom;
for the circumstances in which a person is to be treated as having made use of such a number for the purposes of the acquisition of any goods; and
for the refund, in prescribed circumstances, of VAT paid in the United Kingdom on acquisitions of goods in relation to which the conditions specified in subsection (4)(a) and (b) above are satisfied.
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Subject to subsection (3) below, where— the supply by the original supplier to the intermediate supplier shall be disregarded for the purposes of this Act and the supply by the intermediate supplier to the customer shall be treated for the purposes of this Act, other than Schedule 3, as if it did involve the removal of the goods from another member State to the United Kingdom.
a person (“the original supplier”) makes a supply of goods to a person who belongs in another member State (“the intermediate supplier”);
that supply involves the removal of the goods from another member State and their removal to the United Kingdom but does not involve the removal of the goods from the United Kingdom;
both that supply and the removal of the goods to the United Kingdom are for the purposes of the making of a supply by the intermediate supplier to another person (“the customer”) who is registered under this Act;
neither of those supplies involves the removal of the goods from a member State in which the intermediate supplier is taxable at the time of the removal without also involving the previous removal of the goods to that member State; and
there would be a taxable acquisition by the customer if the supply to him involved the removal of goods from another member State to the United Kingdom,
Subject to subsection (3) below, where— that supply shall be so treated except for the purposes of Schedule 3.
a person belonging in another member State makes such a supply of goods to a person who is registered under this Act as involves their installation or assembly at a place in the United Kingdom to which they are removed; and
there would be a taxable acquisition by the registered person if that supply were treated as not being a taxable supply but as involving the removal of the goods from another member State to the United Kingdom,
Neither subsection (1) nor subsection (2) above shall apply in relation to any supply unless the intermediate supplier or, as the case may be, the person making the supply complies with such requirements as to the furnishing (whether before or after the supply is made) of invoices and other documents, and of information, to— as the Commissioners may by regulations prescribe; and regulations under this subsection may provide for the times at which, and the form and manner in which, any document or information is to be furnished and for the particulars which it is to contain.
the Commissioners, and
the person supplied,
Where this section has the effect of treating a taxable acquisition as having been made, section 12(1) shall apply in relation to that acquisition with the omission of the words from “whichever” to “acquisition; and” at the end of paragraph (a).
For the purposes of this section a person belongs in another member State if— but, in determining for the purposes of paragraph (b) above whether a person is required to be registered under this Act, there shall be disregarded any supplies which, if he did belong in another member State and complied with the requirements prescribed under subsection (3) above, would fall to be disregarded by virtue of this section.
he does not have any business establishment or other fixed establishment in the United Kingdom and does not have his usual place of residence in the United Kingdom;
he is neither registered under this Act nor required to be so registered;
he does not have a VAT representative and is not for the time being required to appoint one; and
he is taxable in another member State;
Without prejudice to section 13(4), where— the supply to him of those goods and the supply by him of those goods to the person who would be the customer in that corresponding case shall both be disregarded for the purposes of this Act, other than the purposes of the information provisions referred to in section 92(7).
any goods are acquired from another member State in a case which corresponds, in relation to another member State, to the case specified in relation to the United Kingdom in subsection (1) above; and
the person who acquires the goods is registered under this Act and would be the intermediate supplier in relation to that corresponding case,
References in this section to a person being taxable in another member State shall not include references to a person who is so taxable by virtue only of provisions of the law of another member State corresponding to the provisions of this Act by virtue of which a person who is not registered under this Act is a taxable person if he is required to be so registered.
This section does not apply in relation to any supply of goods by an intermediate supplier to whom the goods were supplied before 1st August 1993.
This section determines for the purposes of this Act when, and by whom, goods are imported into the United Kingdom.
having been removed from a place outside the member States, they enter the territory of the Community;
they enter that territory by being removed to the United Kingdom or are removed to the United Kingdom after entering that territory; and
the circumstances are such that it is on their removal to the United Kingdom or subsequently while they are in the United Kingdom that any Community customs debt in respect of duty on their entry into the territory of the Community would be incurred.
Goods are imported when they are declared for a Customs procedure under Part 1 of TCTA 2018.
goods shall not be treated for the purposes of this Act as imported at any time before a Community customs debt in respect of duty on their entry into the territory of the Community would be incurred, and
the person who is to be treated for the purposes of this Act as importing any goods from a place outside the member States is the person who would be liable to discharge any such Community customs debt.
But—
in the case of goods declared under TCTA 2018 for a storage procedure, a transit procedure or an inward processing procedure, the goods are imported when a liability to import duty is, or on the relevant assumptions would be, incurred in respect of them under section 4 of that Act, and
in the case of goods which are liable to forfeiture as a result of section 5(1) of, or paragraph 1(5) or 3(4) of Schedule 1 to, that Act (goods not presented to Customs or Customs declaration not made), the goods are imported when they become liable to forfeiture as a result of those provisions.
Each person who is, or on the relevant assumptions would be, liable to import duty in respect of goods imported into the United Kingdom is a person who has imported the goods.
For the purposes of this section “the relevant assumptions” are—
an assumption that a liability to import duty at a nil rate is replaced by a liability to import duty at a higher rate, and
an assumption that no relief from import duty is available.
If two or more persons are regarded as importing goods, those persons are jointly and severally liable to any VAT that is payable on the importation.
The preceding provisions of this section are to be ignored in reading any reference to importation or to an importer in anything applied for the purposes of this Act by section 16(1) or (2).
But subsection (7) does not apply so far as the context otherwise requires or provision to the contrary is contained in regulations under section 16(3).
The provision made by or under— apply (so far as relevant) in relation to any VAT chargeable on the importation of goods into the United Kingdom as they apply in relation to any duty of customs or excise.
the Customs and Excise Acts 1979 (as defined in the Management Act), and
the other enactments for the time being having effect generally in relation to duties of customs and excise charged by reference to the importation of goods into the United Kingdom,
The provision made by section 1(4) for VAT on the importation of goods to be charged and payable as if it were import duty is to be taken as applying, in relation to any VAT chargeable on the importation of the goods, the provision made by or under Part 1 of TCTA 2018.
The Commissioners may by regulations—
provide for exceptions from the effect of subsection (1) or (2), or
provide for the provision mentioned in subsection (1) or (2) to have effect with modifications specified in the regulations.
Subsections (1) and (2) do not apply so far as the context otherwise requires.
Regulations under section 105 of the Postal Services Act 2000 (which provides for the application of customs enactments to postal packets) may make special provision in relation to VAT.
This section applies in relation to VAT chargeable on the importation of goods ...; and in this section “free zone” has the meaning given by section 100A(2) of the Management Act.
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The Commissioners may by regulations (“free zone regulations”) make provision with respect to the movement of goods into, and the removal of goods from, any free zone and the keeping, securing and treatment of goods which are within a free zone, and subject to any provision of the regulations, “free zone goods” means goods which are within a free zone.
Without prejudice to the generality of subsection (3), free zone regulations may make provision—
for enabling the Commissioners to allow goods to be removed from a free zone without payment of VAT in such circumstances and subject to such conditions as they may determine;
for determining where any VAT becomes payable in respect of goods which cease to be free zone goods—
the rates of any VAT applicable; and
the time at which those goods cease to be free zone goods;
for determining for the purpose of enabling VAT to be charged in respect of free zone goods in a case where a person wishes to pay that VAT notwithstanding that the goods will continue to be free zone goods, the rate of VAT to be applied; and
permitting free zone goods to be destroyed without payment of VAT in such circumstances and subject to such conditions as the Commissioners may determine.
The Commissioners, with respect to free zone goods or the movement of goods into any free zone, may by regulations make provision—
for relief from the whole or part of any VAT chargeable on the importation of goods ... in such circumstances as they may determine;
in place of, or in addition to, any provision made by section 6 or any other enactment, for determining the time when a supply of goods which are or have been free zone goods is to be treated as taking place for the purposes of the charge to VAT; and
as to the treatment, for the purposes of VAT, of goods which are manufactured or produced within a free zone from other goods or which have other goods incorporated in them while they are free zone goods.
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A supply of goods which are subject to a warehousing regime is to be treated, for the purposes of this Act, as taking place outside the United Kingdom where —
those goods have been brought into the United Kingdom,
the material time of that supply is while those goods are subject to that regime and before the duty point, and
those goods are not mixed with any dutiable goods which were produced or manufactured in the United Kingdom.
Subsection (3) below applies where—
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any person makes a supply of—
any dutiable goods which were produced or manufactured in the United Kingdom ...; or
any goods comprising a mixture of goods falling within sub-paragraph (i) above and other goods.
The Commissioners may by regulations prescribe circumstances in which subsection (1) above shall not apply.
Where this subsection applies and the material time for the ... supply mentioned in subsection (2) above is while the goods in question are subject to a warehousing regime and before the duty point, that ... supply shall be treated for the purposes of this Act as taking place outside the United Kingdom if the material time for any subsequent supply of those goods is also while the goods are subject to the warehousing regime and before the duty point.
Where the material time for any ... supply of any goods in relation to which subsection (3) above applies is while the goods are subject to a warehousing regime and before the duty point but the ... supply nevertheless falls, for the purposes of this Act, to be treated as taking place in the United Kingdom—
that ... supply shall be treated for the purposes of this Act as taking place at the earlier of the following times, that is to say, the time when the goods are removed from the warehousing regime and the duty point; and
... any VAT payable on the supply shall be paid (subject to any regulations under subsection (5) below)—
at the time when the supply is treated as taking place under paragraph (a) above; and
by the person by whom the goods are so removed or, as the case may be, together with the duty or agricultural levy, by the person who is required to pay the duty or levy.
The Commissioners may by regulations make provision for enabling a taxable person to pay the VAT he is required to pay by virtue of paragraph (b) of subsection (4) above at a time later than that provided for by that paragraph.
for enabling goods to be removed from a warehousing regime by a taxable person without payment of VAT chargeable in respect of those goods by virtue of subsection (4)(a) above; and
for that VAT to be accounted for together with the VAT chargeable on supplies of goods and services by that person.
In this section—
References in this section to goods being subject to a warehousing regime is a reference to goods being kept in a warehouse or being transported between warehouses ... without the payment ... of any duty, levy or VAT; and references to the removal of goods from a warehousing regime shall be construed accordingly.
Regulations under subsection (5) above may in particular make provision for either or both of the following— and they may make different provision for different descriptions of taxable person and for different descriptions of goods.
for the taxable person to pay the VAT together with the VAT chargeable on other supplies by him of goods and services;
for the taxable person to pay the VAT together with any duty of excise deferment of which has been granted to him under section 127A of the Customs and Excise Management Act 1979;
The Commissioners may, if it appears to them proper, upon application approve any registered person as a fiscal warehousekeeper; and such approval shall be subject to such conditions as they shall impose.
Subject to those conditions and to regulations made under section 18F such a person shall be entitled to keep a fiscal warehouse.
“Fiscal warehouse” means such place in the United Kingdom in the occupation or under the control of the fiscal warehousekeeper, not being retail premises, as he shall notify to the Commissioners in writing; and such a place shall become a fiscal warehouse on receipt by the Commissioners of that notification or on the date stated in it as the date from which it is to have effect, whichever is the later, and, subject to subsection (6) below, shall remain a fiscal warehouse so long as it is in the occupation or under the control of the fiscal warehousekeeper or until he shall notify the Commissioners in writing that it is to cease to be a fiscal warehouse.
The Commissioners may in considering an application by a person to be a fiscal warehousekeeper take into account any matter which they consider relevant, and may without prejudice to the generality of that provision take into account all or any one or more of the following— ....
his record of compliance and ability to comply with the requirements of this Act and regulations made hereunder;
his record of compliance and ability to comply with the requirements of the customs and excise Acts ... and regulations made thereunder;
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if the applicant is a company the records of compliance and ability to comply with the matters set out at (a) and (b) above of its directors, persons connected with its directors, its managing officers, any shadow directors or any of those persons, and, if it is a close company, the records of compliance and ability to comply with the matters set out at (a) and (b) above of the beneficial owners of the shares of the company or any of them; and
if the applicant is an individual the records of compliance and ability to comply with the matters set out at (a) and (b) above of any company of which he is or has been a director, managing officer or shadow director or, in the case of a close company, a shareholder or the beneficial owner of shares,
For the purposes of paragraphs (e) and (f) of subsection (4)—
a person is “connected” with a director if that person is the director's spouse or civil partner, or is a relative, or the spouse or civil partner of a relative, of the director or of the director's spouse or civil partner;
“managing officer” in relation to a body corporate, means any manager, secretary or other similar officer of the body corporate or any person purporting to act in any such capacity or as a director;
“shadow director” has the meaning given by section 251 of the Companies Act 2006;
“close company” has the meaning it has in the Corporation Tax Acts (see Chapter 2 of Part 10 of the Corporation Tax Act 2010).
Subject to subsection (6) below, a person approved under subsection (1) shall remain a fiscal warehousekeeper until he ceases to be a registered person or until he shall notify the Commissioners in writing that he is to cease to be a fiscal warehousekeeper.
The Commissioners may if they consider it appropriate from time to time—
impose conditions on a fiscal warehousekeeper in addition to those conditions, if any, which they imposed under subsection (1), and vary or revoke any conditions previously imposed;
withdraw approval of any person as a fiscal warehousekeeper, and
withdraw fiscal warehouse status from any premises.
Any application by or on behalf of a person to be a fiscal warehousekeeper shall be in writing in such form as the Commissioners may direct and shall be accompanied by such information as they shall require.
Any approval by the Commissioners under subsection (1) above, and any withdrawal of approval or other act by them under subsection (6) above, shall be notified by them to the fiscal warehousekeeper in writing and shall take effect on such notification being made or on any later date specified for the purpose in the notification.
Without prejudice to the provisions of section 43 concerning liability for VAT, in subsections (1) and (2) above “registered person” includes any person who under that section is for the time being treated as a member of a group.
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Subsections (3) and (4) below ... apply where—
there is a supply of goods;
those goods are eligible goods;
either—
that supply takes place while the goods are subject to a fiscal warehousing regime; or
after that supply but before the supply, if any, of those goods which next occurs, the person to whom the former supply is made causes the goods to be placed in a fiscal warehousing regime;
in a case falling within paragraph (c)(ii) above, the person to whom the supply is made gives the supplier, not later than the time of the supply, a certificate ... that he will cause paragraph (c)(ii) to be satisfied; and
the supply is not a retail transaction.
A certificate under subsection ... (2)(d) must be in such form as may be specified by regulations or by the Commissioners in accordance with regulations.
The ... supply in question shall be treated for the purposes of this Act as taking place outside the United Kingdom if any subsequent supply of those goods is while they are subject to the fiscal warehousing regime.
Where subsection (3) does not apply and the ... supply in question falls, for the purposes of this Act, to be treated as taking place in the United Kingdom, that ... supply shall be treated for the purposes of this Act as taking place when the goods are removed from the fiscal warehousing regime.
VAT is chargeable on a supply made by a person who is not a taxable person, but who would be were it not for paragraph 1(9) of Schedule 1, where—
subsection (4) applies to that supply, and
that supply is taxable and not zero-rated.
In this section “eligible goods” means goods—
of a description falling within Schedule 5A,
in the case of imported goods—
upon which any import duty has been paid or deferred (by virtue of the customs and excise Acts or any subordinate legislation made under those Acts), and
upon which any VAT chargeable under section 1(1)(c) has been paid, or deferred (by virtue of the customs and excise Acts or any subordinate legislation made under those Acts), and
in the case of goods subject to a duty of excise, upon which any excise duty has been paid or deferred under section 127A of the Management Act.
For the purposes of this section, apart from subsection (4), a supply shall be treated as taking place at the material time for the supply.
The Treasury may by order vary Schedule 5A by adding to or deleting from it any goods or varying any description of any goods.
Where— his supply shall be zero-rated.
a taxable person makes a supply of specified services;
those services are wholly performed on or in relation to goods while those goods are subject to a warehousing or fiscal warehousing regime;
(except where the services are the supply by an occupier of a warehouse or a fiscal warehousekeeper of warehousing or fiscally warehousing the goods) the person to whom the supply is made gives the supplier a certificate ... that the services are so performed;
the supply of services would (apart from this section) be taxable and not zero-rated; and
the supplier issues to the person to whom the supply is made an invoice of such a description as the Commissioners may by regulations prescribe,
A certificate under subsection (1)(c) must be in such form as may be specified by regulations or by the Commissioners in accordance with regulations.
If a supply of services is zero-rated under subsection (1) above (“the zero-rated supply of services”) then, unless there is a supply of the goods in question the material time for which is— subsection (3) below shall apply.
while the goods are subject to a warehousing or fiscal warehousing regime, and
after the material time for the zero-rated supply of services,
Where this subsection applies—
a supply of services identical to the zero-rated supply of services shall be treated for the purposes of this Act as being, at the time the goods are removed from the warehousing or fiscal warehousing regime or (if earlier) at the duty point, both made (for the purposes of his business) to the person to whom the zero-rated supply of services was actually made and made by him in the course or furtherance of his business,
that supply shall have the same value as the zero-rated supply of services,
that supply shall be a taxable (and not a zero-rated) supply, and
VAT shall be charged on that supply even if the person treated as making it is not a taxable person.
In this section “specified services” means—
services of an occupier of a warehouse or a fiscal warehousekeeper of keeping the goods in question in a warehousing or fiscal warehousing regime;
in relation to goods subject to a warehousing regime, services of carrying out on the goods operations which are permitted to be carried out under the customs and excise Acts or any subordinate legislation made under those Acts as the case may be; and
in relation to goods subject to a fiscal warehousing regime, services of carrying out on the goods any physical operations (other than any prohibited by regulations made under section 18F), for example, and without prejudice to the generality of the foregoing words, preservation and repacking operations.
This section applies to any supply to which section 18B(4) or section 18C(3) applies (supply treated as taking place on removal or duty point) ....
Any VAT payable on the supply ... shall (subject to any regulations under subsection (3) below) be paid—
at the time when the supply ... is treated as taking place under the section in question; and
by the person by whom the goods are removed or, as the case may be, together with the excise duty, by the person who is required to pay that duty.
The Commissioners may by regulations make provision for enabling a taxable person to pay the VAT he is required to pay by virtue of subsection (2) above at a time later than that provided by that subsection; and they may make different provisions for different descriptions of taxable persons and for different descriptions of goods and services.
This section applies where goods have been subject to a fiscal warehousing regime and, before being lawfully removed from the fiscal warehouse, they are found to be missing or deficient.
In any case where this section applies, unless it is shown to the satisfaction of the Commissioners that the absence of or deficiency in the goods can be accounted for by natural waste or other legitimate cause, the Commissioners may require the fiscal warehousekeeper to pay immediately in respect of the missing goods or of the whole or any part of the deficiency, as they see fit, the VAT that would have been chargeable.
In subsection (2) “VAT that would have been chargeable” means VAT that would have been chargeable on a supply of the missing goods, or the amount of goods by which the goods are deficient, taking place at the time immediately before the absence arose or the deficiency occurred, if the value of that supply were the open market value; but where that time cannot be ascertained to the Commissioners’ satisfaction, that VAT shall be the greater of the amounts of VAT which would have been chargeable on a supply of those goods—
if the value of that supply were the highest open market value during the period (the relevant period) commencing when the goods were placed in the fiscal warehousing regime and ending when the absence or deficiency came to the notice of the Commissioners, or
if the rate of VAT chargeable on that supply were the highest rate chargeable on a supply of such goods during the relevant period and the value of that supply were the highest open market value while that rate prevailed.
This section has effect without prejudice to any penalty incurred under any other provision of this Act or regulations made under it.
In sections 18A to 18E and this section—
Any reference in sections 18A to 18E or this section to goods being subject to a fiscal warehousing regime is, subject to any regulations made under subsection (8)(e) below, a reference to eligible goods being kept in a fiscal warehouse or being transferred between fiscal warehouses in accordance with such regulations; and any reference to the removal of goods from a fiscal warehousing regime shall be construed accordingly.
Subject to subsection (2) above, any reference in sections 18C and 18D to goods being subject to a warehousing regime or to the removal of goods from a warehousing regime shall have the same meaning as in section 18(7).
Where as a result of an operation on eligible goods subject to a fiscal warehousing regime they change their nature but the resulting goods are also eligible goods, the provisions of sections 18B to 18E and this section shall apply as if the resulting goods were the original goods.
Where as a result of an operation on eligible goods subject to a fiscal warehousing regime they cease to be eligible goods, on their ceasing to be so sections 18B to 18E shall apply as if they had at that time been removed from the fiscal warehousing regime; and for that purpose the proprietor of the goods shall be treated as if he were the person removing them.
Where— sections 18B to 18E and this section shall apply as if the goods of which he is the fiscal warehousekeeper, or the goods in the fiscal warehouse, as the case may be, had at that time been removed from the fiscal warehousing regime; and for that purpose the proprietor of the goods shall be treated as if he were the person removing them.
any person ceases to be a fiscal warehousekeeper; or
any premises cease to have fiscal warehouse status,
The Commissioners may make regulations governing the deposit, keeping, securing and treatment of goods in a fiscal warehouse, and the removal of goods from a fiscal warehouse.
Regulations may, without prejudice to the generality of subsection (7) above, include provisions— and may contain such incidental or supplementary provisions as the Commissioners think necessary or expedient.
in relation to— as to the keeping, preservation and production of records and the furnishing of returns and information by fiscal warehousekeepers and any other persons;
goods which are, have been or are to be subject to a fiscal warehousing regime,
other goods which are, have been or are to be kept in fiscal warehouses,
fiscal warehouse premises, and
fiscal warehousekeepers and their businesses,
requiring goods deposited in a fiscal warehouse to be produced to or made available for inspection by an authorised person on request by him;
prohibiting the carrying out on fiscally warehoused goods of such operations as they may prescribe;
regulating the transfer of goods from one fiscal warehouse to another;
concerning goods which, though kept in a fiscal warehouse, are not eligible goods or are not intended by a relevant person to be goods in respect of which reliefs are to be enjoyed under sections 18A to 18E and this section;
prohibiting the fiscal warehousekeeper from allowing goods to be removed from the fiscal warehousing regime without payment of any VAT payable under section 18D on or by reference to that removal and, if in breach of that prohibition he allows goods to be so removed, making him liable for the VAT jointly and severally with the remover,
Regulations may make different provision for different cases, including different provision for different fiscal warehousekeepers or descriptions of fiscal warehousekeeper, for fiscal warehouses of different descriptions or for goods of different classes or descriptions or of the same class or description in different circumstances.
For the purposes of this Act the value of any supply of goods or services shall, except as otherwise provided by or under this Act, be determined in accordance with this section and Schedule 6, and for those purposes subsections (2) to (4) below have effect subject to that Schedule.
If the supply is for a consideration in money its value shall be taken to be such amount as, with the addition of the VAT chargeable, is equal to the consideration.
If the supply is for a consideration not consisting or not wholly consisting of money, its value shall be taken to be such amount in money as, with the addition of the VAT chargeable, is equivalent to the consideration.
Where a supply of any goods or services is not the only matter to which a consideration in money relates, the supply shall be deemed to be for such part of the consideration as is properly attributable to it.
For the purposes of this Act the open market value of a supply of goods or services shall be taken to be the amount that would fall to be taken as its value under subsection (2) above if the supply were for such consideration in money as would be payable by a person standing in no such relationship with any person as would affect that consideration.
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For the purposes of this Act the value of any acquisition of goods from another member State shall be taken to be the value of the transaction in pursuance of which they are acquired.
Where goods are acquired from another member State otherwise than in pursuance of a taxable supply, the value of the transaction in pursuance of which they are acquired shall be determined for the purposes of subsection (1) above in accordance with this section and Schedule 7, and for those purposes—
subsections (3) to (5) below have effect subject to that Schedule; and
section 19 and Schedule 6 shall not apply in relation to the transaction.
If the transaction is for a consideration in money, its value shall be taken to be such amount as is equal to the consideration.
If the transaction is for a consideration not consisting or not wholly consisting of money, its value shall be taken to be such amount in money as is equivalent to the consideration.
Where a transaction in pursuance of which goods are acquired from another member State is not the only matter to which a consideration in money relates, the transaction shall be deemed to be for such part of the consideration as is properly attributable to it.
For the purposes of this Act, the value of imported goods is (subject to subsections (2) to (4)) their value as if determined under TCTA 2018 for the purposes of import duty (whether or not the goods are subject to import duty).
For the purposes of this Act the value of any goods imported ... shall (subject to subsection (2A) below) be taken to include the following so far as they are not already included in that value in accordance with the rules mentioned in subsection (1) above, that is to say— and in this subsection “the goods’ first destination” means the place mentioned on the consignment note or any other document by means of which the goods are imported into the United Kingdom, or in the absence of such documentation it means the place of the first transfer of cargo in the United Kingdom.
all taxes, duties and other charges levied either outside or, by reason of importation, within the United Kingdom (except VAT); ...
all incidental expenses, such as commission, packing, transport and insurance costs, up to the goods’ first destination in the United Kingdom; and
if at the time of the importation of the goods ... a further destination for the goods is known, and that destination is within the United Kingdom ..., all such incidental expenses in so far as they result from the transport of the goods to that other destination;
Subject to subsection (2) above, where— the value of the goods shall be taken for the purposes of this Act to be reduced by the amount of the discount.
goods are imported ... for a consideration which is or includes a price in money payable as on the transfer of property;
the terms on which those goods are so imported allow a discount for prompt payment of that price;
those terms do not include provision for payment of that price by instalments; and
payment of that price is made in accordance with those terms so that the discount falls to be allowed,
Where— the value of the goods shall not be taken for the purposes of this Act to include, in relation to that importation, any commission or premium payable to the auctioneer in connection with the sale of the goods.
any goods falling within subsection (5) below are sold by auction at a time when they are subject to the temporary admission procedure under Part 1 of TCTA 2018, and
arrangements made by or on behalf of the purchaser of the goods following the sale by auction result in the importation of the goods ...,
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Subject to subsection (6D) below, For the purposes of this Act, the value of any goods falling within subsection (5) below which are imported ... shall be taken to be an amount equal to 25 per cent of the amount which, apart from this subsection, would be their value for those purposes.
The goods that fall within this subsection are—
any work of art;
any antique, not falling within paragraph (a) above or (c) below, that is more than one hundred years old;
any collection or collector’s piece that is of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic, numismatic or philatelic interest.
In this section “work of art” means, subject to subsections (6A) and (6B) below—
any mounted or unmounted painting, drawing, collage, decorative plaque or similar picture that was executed by hand;
any original engraving, lithograph or other print which—
was produced from one or more plates executed by hand by an individual who executed them without using any mechanical or photomechanical process; and
either is the only one produced from the plate or plates or is comprised in a limited edition;
any original sculpture or statuary, in any material;
any sculpture cast which—
was produced by or under the supervision of the individual who made the mould or became entitled to it by succession on the death of that individual; and
either is the only cast produced from the mould or is comprised in a limited edition;
any tapestry or other hanging which—
was made by hand from an original design; and
either is the only one made from the design or is comprised in a limited edition;
any ceramic executed by an individual and signed by him;
any enamel on copper which—
was executed by hand;
is signed either by the person who executed it or by someone on behalf of the studio where it was executed;
either is the only one made from the design in question or is comprised in a limited edition; and
is not comprised in an article of jewellery or an article of a kind produced by goldsmiths or silversmiths;
any mounted or unmounted photograph which—
was printed by or under the supervision of the photographer;
is signed by him; and
either is the only print made from the exposure in question or is comprised in a limited edition;
The following do not fall within subsection (5) above by virtue of subsection (6)(a) above, that is to say—
any technical drawing, map or plan;
any picture comprised in a manufactured article that has been hand-decorated; or
anything in the nature of scenery, including a backcloth.
An item comprised in a limited edition shall be taken to be so comprised for the purposes of subsection (6)(d) to (h) above only if—
in the case of sculpture casts—
the edition is limited so that the number produced from the same mould does not exceed eight; or
the edition comprises a limited edition of nine or more casts made before 1st January 1989 which the Commissioners have directed should be treated, in the exceptional circumstances of the case, as a limited edition for the purposes of subsection (6)(d) above;
in the case of tapestries and hangings, the edition is limited so that the number produced from the same design does not exceed eight;
in the case of enamels on copper—
the edition is limited so that the number produced from the same design does not exceed eight; and
each of the enamels in the edition is numbered and is signed as mentioned in subsection (6)(g)(ii) above;
in the case of photographs—
the edition is limited so that the number produced from the same exposure does not exceed thirty; and
each of the prints in the edition is numbered and is signed as mentioned in subsection (6)(h)(ii) above.
For the purposes of this section a collector’s piece is of philatelic interest if—
it is a postage or revenue stamp, a postmark, a first-day cover or an item of pre-stamped stationery; and
it is franked or (if unfranked) it is not legal tender and is not intended for use as such.
Subsection (4) above does not apply in the case of imported goods if—
the whole of the VAT chargeable on their importation falls to be relieved by virtue of an order under section 37(1); or
they were exported from the United Kingdom during the period of twelve months ending with the date of their importation in circumstances where the exportation and subsequent importation were effected to obtain the benefit of that subsection.
An order under section 2(2) may contain provision making such alteration of the percentage for the time being specified in subsection (4) above as the Treasury consider appropriate in consequence of any increase or decrease by that order of the rate of VAT.
Where a person makes a supply on which VAT is chargeable by applying, or causing to be applied, any treatment or process to another person’s goods, then if the goods— the amount of the VAT chargeable shall, subject to the following provisions of this section, be determined as if the supply had been a sale for full consideration of the goods resulting from the treatment or process.
are not goods to which subsection (3) below applies, but
become as a result of the treatment or process goods to which that subsection applies,
Subsection (1) above does not apply where the person to whom the supply is made—
is registered under this Act; and
gives to the person making the supply a certificate, in such form and containing such particulars as the Commissioners may by regulations prescribe, that the supply is for the purpose of a business carried on or to be carried on by him.
This subsection applies to aircraft of a weight of 8,000 kilogrammes or more, and hovercraft, if (in each case) they have been adapted, but were not designed, for use for recreation or pleasure.
The Treasury may by order vary subsection (3) above by adding to or deleting from it any description of goods or by varying any description of goods for the time being specified in it.
The Treasury may by order make provision for securing a reduction of the VAT chargeable on supplies to which subsection (1) above applies in cases where—
VAT was previously chargeable on a supply or importation of the goods to which the treatment or process is applied; and
such other conditions are satisfied as may be specified in the order or as may be imposed by the Commissioners in pursuance of the order.
A person who applies or causes to be applied a treatment or process to another person’s goods shall, if the goods satisfy the conditions of paragraphs (a) and (b) of subsection (1) above be treated for the purposes of paragraph 2 of Schedule 4, as producing the resulting goods by applying the treatment or process, whether or not he would otherwise fall to be so treated.
If a person plays a relevant machine game, then for the purposes of VAT the amount paid by the person is to be treated as consideration for a supply of services to that person.
“Relevant machine game” is defined in section 23A.
The value to be taken as the value of supplies made by a person (“the supplier”) in the circumstances mentioned in subsection (1) in any period is to be determined as if the consideration for the supplies were reduced by an amount equal to X.
if the token is of a kind used to play the machine, as the receipt of an amount equal to that for which such a token can be obtained;
if the token is not of such a kind but can be exchanged for money, as the receipt of an amount equal to that for which it can be exchanged.
X is the amount (if any) paid out in that period by way of winnings in respect of relevant machine games made available by the supplier (whether the games were played in the same period or an earlier one).
X does not include any winnings paid out to the supplier or a person acting on the supplier's behalf.
Inserting a token into a machine on which a relevant machine game is played is to be treated for the purposes of subsection (1) as the payment of an amount equal to that for which the token can be obtained.
Providing a specified kind of token by way of winnings is to be treated for the purposes of subsection (4) as the payment out of an amount by way of winnings equal to the value of the token.
A specified kind of token is—
a token that can be inserted into the same machine to enable games to be played on the machine, or
a token that is not of such a kind but can be exchanged for money.
The value of a specified kind of token is—
for a token within subsection (8)(a), an amount equal to that for which the token can be obtained, and
for a token within subsection (8)(b), an amount equal to that for which the token can be exchanged.
If it is not reasonably practicable to attribute payments and winnings to relevant machine games or to apportion them between relevant machine games and other games or other activities, any attribution or apportionment is to be done on a just and reasonable basis.
For the purposes of this section, a person plays a game if the person participates in the game—
whether or not there are other participants in the game, and
whether or not a computer generates images or data taken to represent the actions of other participants in the game.
A “relevant machine game” is a game (whether of skill or chance or both) that—
is played on a machine for a prize, and
is not excluded by subsection (2).
A game is excluded by this subsection if—
takings and payouts in respect of it are taken into account in determining any charge to machine games duty,
it involves betting on future real events,
it is a game of bingo in the United Kingdom, other than a game of unlicensed bingo where every person playing the game participates by use of—
the internet,
telephone,
television,
radio, or
any other kind of electronic or other technology for facilitating communication,
lottery duty is charged on the taking of a ticket or chance in it or would be so charged but for an express exception,
it is a real game of chance and playing it amounts to dutiable gaming for the purposes of section 10 of the Finance Act 1997 or would do so but for subsection (3), (3B) or (4) of that section, or
playing it amounts to remote gaming within the meaning of section 154(1) of the Finance Act 2014 (meaning of remote gaming).
In this section—
In this section—
The Treasury may by order amend this section.
Subject to the following provisions of this section, “input tax”, in relation to a taxable person, means the following tax, that is to say— being (in each case) goods or services used or to be used for the purpose of any business carried on or to be carried on by him.
VAT on the supply to him of any goods or services;
...; and
VAT paid or payable by him on the importation of any goods ...,
Subject to the following provisions of this section, “output tax”, in relation to a taxable person, means VAT on supplies which he makes ....
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a director of the company, or
a person connected with a director of the company.
The Treasury may by order provide with respect to any description of goods or services that, where goods or services of that description are supplied to a person who is not a taxable person, they shall, in such circumstances as may be specified in the order, be treated for the purposes of subsections (1) and (2) above as supplied to such other person as may be determined in accordance with the order.
Where goods or services supplied to a taxable person... or goods imported by a taxable person ... are used or to be used partly for the purposes of a business carried on or to be carried on by him and partly for other purposes —
VAT on supplies... and importations shall be apportioned so that so much as is referable to the taxable person's business purposes is counted as that person's input tax, and
the remainder of that VAT (“the non-business VAT”) shall count as that person's input tax only to the extent (if any) provided for by regulations under subsection (6)(e).
Regulations may provide—
for VAT on the supply of goods or services to a taxable person... and VAT paid or payable by a taxable person on the importation of goods ... to be treated as his input tax only if and to the extent that the charge to VAT is evidenced and quantified by reference to such documents or other information as may be specified in the regulations or the Commissioners may direct either generally or in particular cases or classes of cases;
for a taxable person to count as his input tax, in such circumstances, to such extent and subject to such conditions as may be prescribed, VAT on the supply to him of goods or services ... or paid by him on the importation of goods ... notwithstanding that he was not a taxable person at the time of the supply... or payment;
for a taxable person that is a body corporate to count as its input tax, in such circumstances, to such extent and subject to such conditions as may be prescribed, VAT on the supply... or importation of goods before the company’s incorporation for appropriation to the company or its business or on the supply of services before that time for its benefit or in connection with its incorporation;
in the case of a person who has been, but is no longer, a taxable person, for him to be paid by the Commissioners the amount of any VAT on a supply of services made to him for the purposes of the business carried on by him when he was a taxable person.
in cases where an apportionment is made under subsection (5), for the non-business VAT to be counted as the taxable person's input tax for the purposes of any provision made by or under section 26 in such circumstances, to such extent and subject to such conditions as may be prescribed.
For the purposes of subsections (1) and (5), a relevant asset held for the purposes of a business carried on or to be carried on by a taxable person is not, in any circumstances, to be regarded as used or to be used for the purposes of the business if, and to the extent that, it is used or to be used for that person's private use or the private use of that person's staff.
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in relation to a company whose affairs are managed by a board of directors or similar body, a member of that board or similar body;
in relation to a company whose affairs are managed by a single director or similar person, that director or person;
in relation to a company whose affairs are managed by the members themselves, a member of the company,
In subsection (5A) “relevant asset” means—
any interest in land,
any building or part of a building,
any civil engineering work or part of such a work,
any goods incorporated or to be incorporated in a building or civil engineering work (whether by being installed as fixtures or fittings or otherwise),
any ship, boat or other vessel, or
any aircraft.
Regulations under subsection (6) may contain such supplementary, incidental, consequential and transitional provisions as appear to the Commissioners to be necessary or expedient.
A taxable person shall— account for and pay VAT by reference to such periods (in this Act referred to as “prescribed accounting periods”) at such time and in such manner as may be determined by or under regulations and regulations may make different provision for different circumstances.
in respect of supplies made by him, ...
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Subject to the provisions of this section, he is entitled at the end of each prescribed accounting period to credit for so much of his input tax as is allowable under section 26, and then to deduct that amount from any output tax that is due from him.
If either no output tax is due at the end of the period, or the amount of the credit exceeds that of the output tax then, subject to subsections (4) and (5) below, the amount of the credit or, as the case may be, the amount of the excess shall be paid to the taxable person by the Commissioners; and an amount which is due under this subsection is referred to in this Act as a “VAT credit”.
The whole or any part of the credit may, subject to and in accordance with regulations, be held over to be credited in and for a subsequent period; and the regulations may allow for it to be so held over either on the taxable person’s own application or in accordance with general or special directions given by the Commissioners from time to time.
Where at the end of any period a VAT credit is due to a taxable person who has failed to submit returns for any earlier period as required by this Act, the Commissioners may withhold payment of the credit until he has complied with that requirement.
A deduction under subsection (2) above and payment of a VAT credit shall not be made or paid except on a claim made in such manner and at such time as may be determined by or under regulations; and, in the case of a person who has made no taxable supplies in the period concerned or any previous period, payment of a VAT credit shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to repayment in specified circumstances.
The Treasury may by order provide, in relation to such supplies ... and importations as the order may specify, that VAT charged on them is to be excluded from any credit under this section; and—
any such provision may be framed by reference to the description of goods or services supplied or goods ... imported, the person by whom they are supplied ... or imported or to whom they are supplied, the purposes for which they are supplied ... or imported, or any circumstances whatsoever; and
such an order may contain provision for consequential relief from output tax.
The amount of input tax for which a taxable person is entitled to credit at the end of any period shall be so much of the input tax for the period (that is input tax on supplies ... and importations in the period) as is allowable by or under regulations as being attributable to supplies within subsection (2) below.
The supplies within this subsection are the following supplies made or to be made by the taxable person in the course or furtherance of his business—
taxable supplies;
supplies outside the United Kingdom which would be taxable supplies if made in the United Kingdom;
such other supplies outside the United Kingdom and such exempt supplies as the Treasury may by order specify for the purposes of this subsection.
The Commissioners shall make regulations for securing a fair and reasonable attribution of input tax to supplies within subsection (2) above, and any such regulations may provide for—
determining a proportion by reference to which input tax for any prescribed accounting period is to be provisionally attributed to those supplies;
adjusting, in accordance with a proportion determined in like manner for any longer period comprising two or more prescribed accounting periods or parts thereof, the provisional attribution for any of those periods;
the making of payments in respect of input tax, by the Commissioners to a taxable person (or a person who has been a taxable person) or by a taxable person (or a person who has been a taxable person) to the Commissioners, in cases where events prove inaccurate an estimate on the basis of which an attribution was made; and
preventing input tax on a supply which, under or by virtue of any provision of this Act, a person makes to himself from being allowable as attributable to that supply.
Regulations under subsection (3) above may make different provision for different circumstances and, in particular (but without prejudice to the generality of that subsection) for different descriptions of goods or services; and may contain such incidental, supplementary, consequential and transitional provisions as appear to the Commissioners necessary or expedient.
Where goods are imported by a taxable person ... and— VAT paid or payable by the taxable person on the importation of the goods shall not be regarded as input tax to be deducted or credited under section 25; but he may make a separate claim to the Commissioners for it to be repaid.
at the time of importation they belong wholly or partly to another person; and
the purposes for which they are to be used include private purposes either of himself or of the other,
The Commissioners shall allow the claim if they are satisfied that to disallow it would result, in effect, in a double charge to VAT; and where they allow it they shall do so only to the extent necessary to avoid the double charge.
In considering a claim under this section, the Commissioners shall have regard to the circumstances of the importation and, so far as appearing to them to be relevant, things done with, or occurring in relation to, the goods at any subsequent time.
Any amount allowed by the Commissioners on the claim shall be paid by them to the taxable person.
The reference above to a person’s private purposes is to purposes which are not those of any business carried on by him.
Where— he shall be taken, as from the end of that period, not to have been entitled to credit for input tax in respect of the VAT that is referable to the unpaid consideration or part.
a person has become entitled to credit for any input tax, and
the consideration for the supply to which that input tax relates, or any part of it, is unpaid at the end of the period of 6 months following the relevant date,
Subsection (1) is subject to section 26AA (disapplication of disallowance under section 26A in insolvency).
For the purposes of subsection (1) above “the relevant date”, in relation to any sum representing consideration for a supply, is—
the date of the supply, or
if later, the date on which the sum became payable.
Regulations may make such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient for the purposes of this section.
Regulations under this section may in particular—
make provision for restoring the whole or any part of an entitlement to credit for input tax where there is a payment after the end of the period mentioned in subsection (1) above;
make rules for ascertaining whether anything paid is to be taken as paid by way of consideration for a particular supply;
make rules dealing with particular cases, such as those involving payment of part of the consideration or mutual debts.
Regulations under this section may make different provision for different circumstances.
Section 6 shall apply for determining the time when a supply is to be treated as taking place for the purposes of construing this section.
The Treasury may make an order under this section if they consider it desirable to do so in the interests of the national economy.
An order under this section may provide that a taxable person of a description specified in the order shall be under a duty—
to pay, on account of any VAT he may become liable to pay in respect of a prescribed accounting period, amounts determined in accordance with the order, and
to do so at such times as are so determined.
Where an order is made under this section, the Commissioners may make regulations containing such supplementary, incidental or consequential provisions as appear to the Commissioners to be necessary or expedient.
An order under this section may provide for the matters with respect to which an appeal under section 83 lies to a tribunal to include such decisions of the Commissioners under that or any other order under this section as may be specified in the order.
A provision of an order or regulations under this section may be made in such way as the Treasury or, as the case may be, the Commissioners think fit (whether by amending provisions of or made under the enactments relating to VAT or otherwise).
The Commissioners may give directions, to persons who are or may become liable by virtue of any order under this section to make payments on account of VAT, about the manner in which they are to make such payments; and where such a direction has been given to any person and has not subsequently been withdrawn, any duty of that person by virtue of such an order to make such a payment shall have effect as if it included a requirement for the payment to be made in the manner directed.
An order or regulations under this section may make different provision for different circumstances.
Section 26A(1) does not apply to a person in relation to credit for input tax which relates to a supply where—
at the time of the supply, no insolvency procedure had effect in relation to the person,
at any time during the relevant period, an insolvency procedure had effect in relation to that person (“the insolvent person”), and
the Commissioners have been notified in writing of the matter mentioned in paragraph (b) by or on behalf of a person authorised to deal with the insolvent person’s affairs.
But where the insolvency procedure mentioned in subsection (1)(b) is a bankruptcy order, award of sequestration, protected trust deed or voluntary arrangement and that bankruptcy order is annulled, that award of sequestration is recalled or that protected trust deed or voluntary arrangement has come to an end prematurely—
the disapplication of section 26A(1) by subsection (1) above ceases to have effect, and
the person to which the bankruptcy order, award of sequestration, protected trust deed or voluntary arrangement relates is to be taken for the purposes of section 26A(1) as not being entitled to the credit for the input tax concerned as from whichever is the later of—
the end of the relevant period, and
the date on which the bankruptcy order was annulled, the award of sequestration recalled or the protected trust deed or voluntary arrangement has come to an end prematurely.
Where the person mentioned in section 26A(1) is entitled as a member of a partnership to credit for input tax this section has effect as if—
the references in subsections (1)(a) and (b) to “the person” and “that person” were references to the partnership,
the reference in subsection (1)(c) to “the insolvent person’s affairs” were a reference to the insolvent partnership’s affairs, and
the reference in subsection (2)(b) to “the person”, in connection with a bankruptcy order or a voluntary arrangement, were a reference to the person who is a member of the partnership to which the bankruptcy order or voluntary arrangement relates.
Subsection (1) does not apply where the insolvency procedure referred to in subsection (1)(b) has effect as part of, or as a consequence of, arrangements where the main purpose, or one of the main purposes, of those arrangements is to obtain a tax advantage by the operation of this section.
Regulations may make such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient for the purposes of this section.
For the purposes of this section “the relevant period”, in relation to a supply, is the period beginning immediately after the supply took place and ending six months after—
the date of that supply, or
if later, the date on which the relevant part of the consideration for the supply is payable.
For the purposes of subsection (6) the relevant part of the consideration is the part of the consideration referable to the credit for input tax which would (ignoring the effect of this section) be disallowed under section 26A(1).
For the purposes of this section an insolvency procedure has effect in relation to a person at a time when any of the following apply—
a bankruptcy order has been made under Chapter 1 of Part 9 of the Insolvency Act 1986 in relation to that person and has not been annulled,
a warrant has been granted for a petition for sequestration to be served on that person which has resulted in the sequestration of that person’s estate or an award of sequestration has been made on an application by that person, in both cases under section 22 of the Bankruptcy (Scotland) Act 2016, and in either case the award of sequestration has not been recalled,
a bankruptcy order has been made under Chapter 1 of Part 9 of the Insolvency (Northern Ireland) Order 1989 in relation to that person and has not been annulled,
where that person is a company registered under the Companies Act 2006 in England and Wales or Scotland or an unregistered company as defined in section 220 of the Insolvency Act 1986 which is deemed to be registered in England and Wales or Scotland under section 221 of that Act, a petition has been presented to the court which has resulted in a winding-up order being made under Chapter 6 of Part 4 or Part 5 of the Insolvency Act 1986 in relation to that person and that person has not been dissolved or that winding-up order has not been stayed or sisted,
where that person is a company registered under the Companies Act 2006 in Northern Ireland, or an unregistered company as defined in article 184 of the Insolvency (Northern Ireland) Order 1989 which is deemed to be registered in Northern Ireland under article 185 of that Order, a petition has been presented to the court which has resulted in a winding-up order being made under Part 5 or Part 6 of the Insolvency (Northern Ireland) Order 1989 and that person has not been dissolved or that winding-up order has not been stayed,
that person is in administration for the purposes of Schedule B1 to the Insolvency Act 1986 or Schedule B1 to the Insolvency (Northern Ireland) Order 1989,
an appointment of an administrative receiver is in force in relation to that person disregarding any temporary vacancy in the office of receiver,
an appointment of a liquidator is in force as a consequence of a creditors’ voluntary winding up under Chapter 4 of Part 4 of the Insolvency Act 1986 or Chapter 4 of Part 5 of the Insolvency (Northern Ireland) Order 1989 in relation to that person disregarding any temporary vacancy in the office of liquidator,
a voluntary arrangement has been approved in accordance with Part 1 or Part 8 of the Insolvency Act 1986 or Part 2 or Chapter 2 of Part 8 of the Insolvency (Northern Ireland) Order 1989 in relation to that person and that voluntary arrangement has not come to an end prematurely,
a county court administration order has been made under Part 6 of the County Courts Act 1984 or Part 6 of the Judgments Enforcement (Northern Ireland) Order 1981 in relation to that person and has not ceased to take effect,
a compromise or arrangement sanctioned by the court and delivered to the registrar in accordance with section 899 of the Companies Act 2006 is in place in relation to that person,
a compromise or arrangement sanctioned by the court and delivered to the registrar or (as the case may be) published in the Gazette in accordance with section 901F of the Companies Act 2006 is in place in relation to that person,
that person’s estate is vested in any other person as that person’s trustee under a trust deed and that trust deed has become a protected trust deed,
that person has died and an insolvency administration order has been made which has not been discharged in respect of that person’s estate in accordance with an order under section 421 of the Insolvency Act 1986 or article 365 of the Insolvency (Northern Ireland) Order 1989 or that person’s estate has been sequestrated under section 22 of the Bankruptcy (Scotland) Act 2016 and the award of sequestration has not been recalled,
a voluntary arrangement has been approved in accordance with Part 1 of the Insolvency Act 1986 as applied by Part 2 of the Insolvent Partnerships Order 1994 or Part 2 of the Insolvency (Northern Ireland) Order 1989 as applied by Part 2 of the Insolvent Partnerships Order (Northern Ireland) 1995 in relation to that person and that voluntary arrangement has not come to an end prematurely,
an appointment of a liquidator is in force as a consequence of a creditors’ voluntary winding up under Chapter 4 of Part 4 of the Insolvency Act 1986 as applied by Parts 4 and 5 of the Insolvent Partnerships Order 1994, or Chapter 4 of Part 5 of the Insolvency (Northern Ireland) Order 1989 as applied by Part 4 of the Insolvent Partnerships Order (Northern Ireland) 1995 in relation to that person disregarding any temporary vacancy in the office of liquidator,
that person is in administration for the purposes of Schedule B1 to the Insolvency Act 1986 as applied by Part 3 of the Insolvent Partnerships Order 1994 or Schedule B1 to the Insolvency (Northern Ireland) Order 1989 as applied by Part 3 of the Insolvent Partnerships Order (Northern Ireland) 1995,
a voluntary arrangement has been approved in accordance with Part 1 of the Insolvency Act 1986 as applied by Part 4 of the Limited Liability Partnerships Regulations 2001 or Part 2 of the Insolvency (Northern Ireland) Order 1989 as applied by Part 4 of the Limited Liability Partnerships Regulations (Northern Ireland) 2004 in relation to that person and that voluntary arrangement has not come to an end prematurely,
an appointment of a liquidator is in force as a consequence of a creditors’ voluntary winding up under Chapter 4 of Part 4 of the Insolvency Act 1986 as applied by Part 4 of the Limited Liability Partnerships Regulations 2001 or Chapter 4 of Part 5 of the Insolvency (Northern Ireland) Order 1989 as applied by Part 4 of the Limited Liability Partnerships Regulations (Northern Ireland) 2004 in relation to that person disregarding any temporary vacancy in the office of liquidator,
that person is in administration for the purposes of Schedule B1 to the Insolvency Act 1986 as applied by Part 4 of the Limited Liability Partnerships Regulations 2001 or Schedule B1 to the Insolvency (Northern Ireland) Order 1989 as applied by Part 4 of the Limited Liability Partnerships Regulations (Northern Ireland) 2004.
In this section— “administrative receiver” means an administrative receiver within the meaning of section 251 of the Insolvency Act 1986 or article 5(1) of the Insolvency (Northern Ireland) Order 1989; “protected trust deed” has the same meaning as in the Bankruptcy (Scotland) Act 2016; “tax advantage” has the same meaning as in Schedule 11A; and “trust deed” has the same meaning as in the Bankruptcy (Scotland) Act 2016.
In this section a voluntary arrangement comes to an end prematurely if it would be regarded as having come to an end prematurely under—
section 7B or section 262C of the Insolvency Act 1986; or
article 20B or article 236C of the Insolvency (Northern Ireland) Order 1989.
Section 6 applies for determining the time when a supply is to be treated as taking place for the purposes of construing this section.
Where— the Commissioners may, by notice served on the recipient and on the supplier, elect that the amount of VAT understated by the document shall be regarded for all purposes as VAT due from the recipient and not from the supplier.
a taxable person (“the recipient”) provides a document to himself which purports to be an invoice in respect of a taxable supply of goods or services to him by another taxable person; and
that document understates the VAT chargeable on the supply,
This section applies if—
a person is, as a result of section 26A, taken not to have been entitled to any credit for input tax in respect of any supply, and
the supply is one in respect of which the person is required under section 55A(6) to account for and pay VAT.
The person is entitled to make an adjustment to the amount of VAT which he is so required to account for and pay.
The amount of the adjustment is to be equal to the amount of the credit for the input tax to which the person is taken not to be entitled.
Regulations may make such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient for the purposes of this section.
Regulations under this section may in particular—
make provision for the manner in which, and the period for which, the adjustment is to be given effect,
require the adjustment to be evidenced and quantified by reference to such records and other documents as may be specified by or under the regulations,
require the person entitled to the adjustment to keep, for such period and in such form and manner as may be so specified, those records and documents,
make provision for readjustments if any credit for input tax is restored under section 26A.
Regulations under this section may make different provision for different circumstances.
The Commissioners may by regulations make provision under which, where a taxable person so elects, the amount of his liability to VAT in respect of his relevant supplies in any prescribed accounting period shall be the appropriate percentage of his relevant turnover for that period. A person whose liability to VAT is to any extent determined as mentioned above is referred to in this section as participating in the flat-rate scheme.
For the purposes of this section—
a person’s “relevant supplies” are all supplies made by him except supplies made at such times or of such descriptions as may be specified in the regulations;
the “appropriate percentage” is the percentage so specified for the category of business carried on by the person in question;
a person’s “relevant turnover” is the total of—
the value of those of his relevant supplies that are taxable supplies, together with the VAT chargeable on them, and
the value of those of his relevant supplies that are exempt supplies.
The regulations may designate certain categories of business as categories in relation to which the references in subsection (1) above to liability to VAT are to be read as references to entitlement to credit for VAT.
The regulations may provide for persons to be eligible to participate in the flat-rate scheme only in such cases and subject to such conditions and exceptions as may be specified in, or determined by or under, the regulations.
Subject to such exceptions as the regulations may provide for, a participant in the flat-rate scheme shall not be entitled to credit for input tax. This is without prejudice to subsection (3) above.
The regulations may—
provide for the appropriate percentage to be determined by reference to the category of business that a person is expected, on reasonable grounds, to carry on in a particular period;
provide, in such circumstances as may be prescribed, for different percentages to apply in relation to different parts of the same prescribed accounting period;
make provision for determining the category of business to be regarded as carried on by a person carrying on businesses in more than one category.
The regulations may provide for the following matters to be determined in accordance with notices published by the Commissioners—
when supplies are to be treated as taking place for the purposes of ascertaining a person’s relevant turnover for a particular period;
the method of calculating any adjustments that fall to be made in accordance with the regulations in a case where a person begins or ceases to participate in the flat-rate scheme.
The regulations may make provision enabling the Commissioners—
to authorise a person to participate in the flat-rate scheme with effect from—
a day before the date of his election to participate, or
a day that is not earlier than that date but is before the date of the authorisation;
to direct that a person shall cease to be a participant in the scheme with effect from a day before the date of the direction. The day mentioned in paragraph (a)(i) above may be a day before the date on which the regulations come into force.
Regulations under this section—
may make different provision for different circumstances;
may make such incidental, supplemental, consequential or transitional provision as the Commissioners think fit, including provision disapplying or applying with modifications any provision contained in or made under this Act.
Where a taxable person supplies goods or services and the supply is zero-rated, then, whether or not VAT would be chargeable on the supply apart from this section— and accordingly the rate at which VAT is treated as charged on the supply shall be nil.
no VAT shall be charged on the supply; but
it shall in all other respects be treated as a taxable supply;
A supply of goods or services is zero-rated by virtue of this subsection if the goods or services are of a description for the time being specified in Schedule 8 or the supply is of a description for the time being so specified.
Where goods of a description for the time being specified in that Schedule, or of a description forming part of a description of supply for the time being so specified, are imported, no VAT shall be chargeable on their importation except as otherwise provided in that Schedule.
A supply by a person of services which consist of applying a treatment or process to another person’s goods is zero-rated by virtue of this subsection if by doing so he produces goods, and either—
those goods are of a description for the time being specified in Schedule 8; or
a supply by him of those goods to the person to whom he supplies the services would be of a description so specified.
The Treasury may by order vary Schedule 8 by adding to or deleting from it any description or by varying any description for the time being specified in it.
The export of any goods by a charity ... shall for the purposes of this Act be treated as a supply made by the charity—
in the United Kingdom, and
in the course or furtherance of a business carried on by the charity.
A supply of goods is zero-rated by virtue of this subsection if the Commissioners are satisfied that the person supplying the goods— and in either case if such other conditions, if any, as may be specified in regulations or the Commissioners may impose are fulfilled.
has exported them ...; or
has shipped them for use as stores on a voyage or flight to an eventual destination outside the United Kingdom, or as merchandise for sale by retail to persons carried on such a voyage or flight in a ship or aircraft,
Subsection (6)(b) above shall not apply in the case of goods shipped for use as stores on a voyage or flight to be made by the person to whom the goods were supplied and to be made for a purpose which is private.
Regulations may provide for the zero-rating of supplies of goods, or of such goods as may be specified in the regulations, in cases where—
the Commissioners are satisfied that the goods have been or are to be exported to such places as may be specified in the regulations, and
the removal of the goods from the United Kingdom; and
their acquisition in another member State by a person who is liable for VAT on the acquisition in accordance with provisions of the law of that member State corresponding, in relation to that member State, to the provisions of section 10; and
such other conditions, if any, as may be specified in the regulations or the Commissioners may impose are fulfilled.
Subsection (6) does not apply in the case of goods exported from Great Britain if, in respect of the supply, the supplier exercises an option under an order made under section 50A.
Regulations may provide for the zero-rating of a supply of services which is made where goods are let on hire and the Commissioners are satisfied that the goods have been or are to be exported during the period of the letting, and such other conditions, if any, as may be specified in the regulations or the Commissioners may impose are fulfilled.
Where the supply of any goods has been zero-rated by virtue of subsection (6) above or in pursuance of regulations made under subsection (8) or (9) above and— and the presence of the goods in the United Kingdom after that date or the non-observance of the condition has not been authorised for the purposes of this subsection by the Commissioners, the goods shall be liable to forfeiture under the Management Act and the VAT that would have been chargeable on the supply but for the zero-rating shall become payable forthwith by the person to whom the goods were supplied or by any person in whose possession the goods are found in the United Kingdom; but the Commissioners may, if they think fit, waive payment of the whole or part of that VAT.
the goods are found in the United Kingdom after the date on which they were alleged to have been or were to be exported or shipped ...; or
any condition specified in the relevant regulations under subsection (6), (8) or (9) above or imposed by the Commissioners is not complied with,
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VAT charged on— shall be charged at the rate of 5 per cent.
any supply that is of a description for the time being specified in Schedule 7A, or
any equivalent ... importation,
The reference in subsection (1) to an equivalent importation, in relation to any supply that is of a description for the time being specified in Schedule 7A, is a reference to any importation of any goods the supply of which would be such a supply.
The Treasury may by order vary Schedule 7A by adding to or deleting from it any description of supply or by varying any description of supply for the time being specified in it.
The power to vary Schedule 7A conferred by subsection (3) above may be exercised so as to describe a supply of goods or services by reference to matters unrelated to the characteristics of the goods or services themselves. In the case of a supply of goods, those matters include, in particular, the use that has been made of the goods.
A supply of goods or services is an exempt supply if it is of a description for the time being specified in Part 2 of Schedule 9 and it is not of a description specified in Part 3 of that Schedule ....
The Treasury may by order vary that Schedule by adding to or deleting from it any description of supply or by varying any description of supply for the time being specified in it, and the Schedule may be varied so as to describe a supply of goods by reference to the use which has been made of them or to other matters unrelated to the characteristics of the goods themselves.
The Treasury may by regulations make an exemption of a group 16 supply of a description specified in the regulations subject to conditions.
Regulations under subsection (3) may—
make different provision for different cases, and
make consequential or transitional provision (including provision amending this Act).
In subsection (3) “group 16 supply” means a supply falling within Group 16 of Schedule 9.
The Treasury may by order make provision for securing a reduction of the VAT chargeable on the supply of goods of such descriptions as may be specified in the order in cases where no VAT was chargeable on a previous supply of the goods and such other conditions are satisfied as may be specified in the order or as may be imposed by the Commissioners in pursuance of the order.
The amount of the reduction that may be secured by an order under this section shall not exceed the amount of VAT that would have been chargeable on the previous supply had VAT been chargeable on it at the same rate as that at which the VAT to be reduced would be chargeable but for the reduction.
An order under this section making provision for reducing the VAT chargeable on the supply of goods of any description may include provision—
for giving relief from the VAT chargeable on the acquisition of goods of that description from another member State or the importation of goods of that description from a place outside the member States; and
for securing the like reduction where no VAT was chargeable on the acquisition of goods of that description from another member State or the importation of goods of that description from a place outside the member States as where no VAT was chargeable on a previous supply of the goods.
An order under this section may extend to cases where the previous supply or the acquisition or importation took place before VAT was chargeable on any supply, acquisition or importation.
The preceding provisions of this section shall, with the necessary modifications, apply in relation to cases where consequential relief from VAT was given on a previous supply by an order under section 25(7) but the relief did not extend to the whole amount of the VAT.
An order under this section may make different provision for goods of different descriptions and for different circumstances.
In this section references to a supply on which no VAT was chargeable include references to a transaction treated by virtue of an order under section 5(3) as neither a supply of goods nor a supply of services.
Subject to the following provisions of this section, where— the Commissioners shall, on a claim made by the body at such time and in such form and manner as the Commissioners may determine, refund to it the amount of the VAT so chargeable.
VAT is chargeable on the supply of goods or services to, or on the importation of goods by, a body to which this section applies, and
the supply... or importation is not for the purpose of any business carried on by the body,
Where goods or services so supplied to ... or imported by the body cannot be conveniently distinguished from goods or services supplied to ... or imported by it for the purpose of a business carried on by it, the amount to be refunded under this section shall be such amount as remains after deducting from the whole of the chargeable on any supply to ... or importation by the body such proportion thereof as appears to the Commissioners to be attributable to the carrying on of the business; but where— they may include it in the VAT refunded under this section.
the VAT so attributable is or includes VAT attributable, in accordance with regulations under section 26, to exempt supplies by the body, and
the VAT attributable to the exempt supplies is in the opinion of the Commissioners an insignificant proportion of the VAT so chargeable,
The bodies to which this section applies are—
a local authority , a combined authority established by an order made under section 103(1) of the Local Democracy, Economic Development and Construction Act 2009 and a combined county authority established by regulations made under section 9(1) of the Levelling-up and Regeneration Act 2023;
a river purification board established under section 135 of the Local Government (Scotland) Act 1973, and a water development board within the meaning of section 109 of the Water (Scotland) Act 1980;
a fire and rescue authority under the Fire and Rescue Services Act 2004, if the authority does not fall within paragraph (a);
an internal drainage board;
the Scottish Fire and Rescue Service;
a passenger transport authority or executive within the meaning of Part II of the Transport Act 1968; an Integrated Transport Authority, Passenger Transport Authority or Passenger Transport Executive for the purposes of Part 2 of the Transport Act 1968;
a port health authority within the meaning of the Public Health (Control of Disease) Act 1984, ...;
a police and crime commissioner, the Mayor's Office for Policing and Crime and ... the Receiver for the Metropolitan Police District;
a development corporation within the meaning of the New Towns Act 1981 or the New Towns (Scotland) Act 1968, a new town commission within the meaning of the New Towns Act (Northern Ireland) 1965 and the Commission for the New Towns;
a general lighthouse authority within the meaning of Part VIII of the Merchant Shipping Act 1995;
the British Broadcasting Corporation;
the Scottish Police Authority;
the appointed news provider referred to in section 280 of the Communications Act 2003; and
the Police Service of Northern Ireland and the Northern Ireland Policing Board;
any body specified for the purposes of this section by an order made by the Treasury.
S4C;
No VAT shall be refunded under this section to a general lighthouse authority which in the opinion of the Commissioners is attributable to activities other than those concerned with the provision, maintenance or management of lights or other navigational aids.
No VAT shall be refunded under this section to an appointed news provider which in the opinion of the Commissioners is attributable to activities other than the provision of news programmes for broadcasting by holders of regional Channel 3 licences (within the meaning of Part I of the Broadcasting Act 1990).
References in this section to VAT chargeable do not include any VAT which, by virtue of any order under section 25(7), is excluded from credit under that section.
The Treasury may by order make provision for the giving of relief, in such cases, to such extent and subject to such exceptions as may be specified in the order, from VAT paid on the supply... or importation for the purpose of a business carried on by any person of machinery or plant or any specified description of machinery or plant in cases where that VAT or part of that VAT cannot be credited under section 25 and such other conditions are satisfied as may be specified in the order.
Without prejudice to the generality of subsection (1) above, an order under this section may provide for relief to be given by deduction or refunding of VAT and for aggregating or excluding the aggregation of value where goods of the same description are supplied... or imported together.
Where— subject to subsections (2) to (2C), the Commissioners shall, on a claim made in that behalf, refund to that person the amount of VAT so chargeable.
a person carries out works to which this section applies,
his carrying out of the works is lawful and otherwise than in the course or furtherance of any business, and
VAT is chargeable on the supply... or importation of any goods used by him for the purposes of the works,
The Commissioners shall not be required to entertain a claim for a refund of VAT under this section unless the claim— as may be specified by regulations or by the Commissioners in accordance with regulations.
is made within such time and in such form and manner, and
contains such information, and
is accompanied by such documents, whether by way of evidence or otherwise,
The works to which this section applies are—
the construction of a building designed as a dwelling or number of dwellings;
the construction of a building for use solely for a relevant residential purpose or relevant charitable purpose; and
a residential conversion.
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as if the reference in subsection (1) above to the VAT chargeable on the supply of any goods included a reference to VAT chargeable on the supply in accordance with the law of another member State; and
in relation to VAT chargeable in accordance with the law of another member State, as if references to refunding VAT to any person were references to paying that person an amount equal to the VAT chargeable in accordance with the law of that member State;
For the purposes of this section goods shall be treated as used for the purposes of works to which this section applies by the person carrying out the works in so far only as they are building materials which, in the course of the works, are incorporated in the building in question or its site.
Where— subject to subsections (2) to (2C), the Commissioners shall, on a claim made in that behalf, refund to the relevant person the amount of VAT so chargeable.
a person (“the relevant person”) carries out a residential conversion by arranging for any of the work of the conversion to be done by another (“a contractor”),
the relevant person’s carrying out of the conversion is lawful and otherwise than in the course or furtherance of any business,
the contractor is not acting as an architect, surveyor or consultant or in a supervisory capacity, and
VAT is chargeable on services consisting in the work done by the contractor,
For the purposes of this section works constitute a residential conversion to the extent that they consist in the conversion of a non-residential building, or a non-residential part of a building, into—
a building designed as a dwelling or a number of dwellings;
a building intended for use solely for a relevant residential purpose; or
anything which would fall within paragraph (a) or (b) above if different parts of a building were treated as separate buildings.
Where a person has made a claim for a refund of VAT under this section, before determining the claim the Commissioners may by notice require the person to produce further documents, by way of evidence or otherwise, that the Commissioners reasonably require in connection with the claim.
A notice under subsection (2A) must specify the time within which, and the form and manner in which, the documents must be produced.
Where the person does not produce the documents required by a notice under subsection (2A), the Commissioners may refuse to refund the amount of VAT (or any part of it) in respect of which the claim was made.
The notes to Group 5 of Schedule 8 shall apply for construing this section as they apply for construing that Group but this is subject to subsection (4A) below.
The meaning of “non-residential” given by Note (7A) of Group 5 of Schedule 8 (and not that given by Note (7) of that Group) applies for the purposes of this section but as if—
references in that Note to item 3 of that Group were references to this section, and
paragraph (b)(iii) of that Note were omitted.
The power of the Treasury by order under section 30 to vary Schedule 8 shall include—
power to apply any variation made by the order for the purposes of this section; and
power to make such consequential modifications of this section as they may think fit.
Subsections (2) to (5) below apply where—
VAT is chargeable on the supply of goods or services to, or on the importation of goods by, a body to which this section applies,
the supply... or importation is attributable to the provision by the body of free rights of admission to a relevant museum or gallery, and
the supply is made, or the ... importation takes place, on or after 1st April 2001.
The Commissioners shall, on a claim made by the body in such form and manner as the Commissioners may determine, refund to the body the amount of VAT so chargeable.
The claim must be made before the end of the claim period.
Subject to subsection (5) below, “the claim period” is the period of 4 years beginning with the day on which the supply is made or the ... importation takes place.
If the Commissioners so determine, the claim period is such shorter period beginning with that day as the Commissioners may determine.
Subsection (7) below applies where goods or services supplied to, ... or imported by, a body to which this section applies that are attributable to free admissions cannot conveniently be distinguished from goods or services supplied to, ... or imported by, the body that are not attributable to free admissions.
The amount to be refunded on a claim by the body under this section shall be such amount as remains after deducting from the VAT related to the claim such proportion of that VAT as appears to the Commissioners to be attributable otherwise than to free admissions.
For the purposes of subsections (6) and (7) above—
goods or services are, and VAT is, attributable to free admissions if they are, or it is, attributable to the provision by the body of free rights of admission to a relevant museum or gallery;
the VAT related to a claim is the whole of the VAT chargeable on— to which the claim relates.
the supplies to the body, and
the ... importations by the body,
The Treasury may by order—
specify a body as being a body to which this section applies;
when specifying a body under paragraph (a), specify any museum or gallery that, for the purposes of this section, is a “relevant” museum or gallery in relation to the body;
specify an additional museum or gallery as being, for the purposes of this section, a “relevant” museum or gallery in relation to a body to which this section applies;
when specifying a museum or gallery under paragraph (b) or (c), provide that this section shall have effect in the case of the museum or gallery as if in subsection (1)(c) there were substituted for 1st April 2001 a later date specified in the order.
References in this section to VAT do not include any VAT which, by virtue of any order under section 25(7), is excluded from credit under that section.
Subsection (2) below applies where—
a person has supplied goods or services . . . and has accounted for and paid VAT on the supply,
the whole or any part of the consideration for the supply has been written off in his accounts as a bad debt, and
a period of 6 months (beginning with the date of the supply) has elapsed.
Subject to the following provisions of this section and to regulations under it the person shall be entitled, on making a claim to the Commissioners, to a refund of the amount of VAT chargeable by reference to the outstanding amount.
In subsection (2) above “the outstanding amount” means— and in this subsection “received” means received either by the claimant or by a person to whom has been assigned a right to receive the whole or any part of the consideration written off.
if at the time of the claim no part of the consideration written off in the claimant’s accounts as a bad debt has been received, an amount equal to the amount of the consideration so written off;
if at that time any part of the consideration so written off has been received, an amount by which that part is exceeded by the amount of the consideration written off;
A person shall not be entitled to a refund under subsection (2) above unless—
the value of the supply is equal to or less than its open market value, . . .
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For the purposes of this section, where the whole or any part of the consideration for the supply does not consist of money, the amount in money that shall be taken to represent any non-monetary part of the consideration shall be so much of the amount made up of— as is attributable to the non-monetary consideration in question.
the value of the supply, and
the VAT charged on the supply,
Regulations under this section may—
require a claim to be made at such time and in such form and manner as may be specified by or under the regulations;
require a claim to be evidenced and quantified by reference to such records and other documents as may be so specified;
require the claimant to keep, for such period and in such form and manner as may be so specified, those records and documents and a record of such information relating to the claim and to anything subsequently received by way of consideration as may be so specified;
require the repayment of a refund allowed under this section where any requirement of the regulations is not complied with;
require the repayment of the whole or, as the case may be, an appropriate part of a refund allowed under this section where any part (or further part) of the consideration written off in the claimant’s accounts as a bad debt is subsequently received either by the claimant or, except in such circumstances as may be prescribed, by a person to whom has been assigned a right to receive the whole or any part of that consideration;
include such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient for the purposes of this section;
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make different provision for different circumstances.
The provisions which may be included in regulations by virtue of subsection (5)(f) above may include rules for ascertaining—
whether, when and to what extent consideration is to be taken to have been written off in accounts as a bad debt;
whether anything received is to be taken as received by way of consideration for a particular supply;
whether, and to what extent, anything received is to be taken as received by way of consideration written off in accounts as a bad debt.
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The provisions which may be included in regulations by virtue of subsection (5)(f) above may include rules dealing with particular cases, such as those involving receipt of part of the consideration or mutual debts; and in particular such rules may vary the way in which the following amounts are to be calculated—
the outstanding amount mentioned in subsection (2) above, and
the amount of any repayment where a refund has been allowed under this section.
Section 6 shall apply for determining the time when a supply is to be treated as taking place for the purposes of construing this section.
This section applies where—
VAT is chargeable on the supply of goods or services to, or on the importation of goods by, the proprietor of an Academy, and
the supply... or importation is not for the purposes of any business carried on by the proprietor of the Academy.
The Commissioners shall, on a claim made by the proprietor of the Academy at such time and in such form and manner as the Commissioners may determine, refund to that proprietor the amount of VAT so chargeable.
Subject to subsection (4), the claim must be made before the end of the period of 4 years beginning with the day on which the supply is made or the ... importation takes place.
If the Commissioners so determine, the claim period is such shorter period beginning with that day as the Commissioners may determine.
Subsection (6) applies where goods or services supplied to, ... or imported by, the proprietor of the Academy cannot be conveniently distinguished from goods or services supplied to, ... or imported by, it for the purpose of a business carried on by that proprietor.
The amount to be refunded under this section is such amount as remains after deducting from the whole of the VAT chargeable on any supply to, ... or importation by, the proprietor of the Academy such proportion of that VAT as appears to the Commissioners to be attributable to the carrying on of the business.
References in this section to VAT do not include any VAT which, by virtue of an order under section 25(7), is excluded from credit under section 25.
In this section—
references to the proprietor of an Academy are to the proprietor of the Academy acting in that capacity, and
“Academy” and “proprietor” have the same meaning as in the Education Act 1996 (see section 579 of that Act).
This section applies to a charity that falls within any of the descriptions in section 33D. A charity to which this section applies is referred to in this section as a “qualifying charity”.
This section applies where—
VAT is chargeable on the supply of goods or services to, or on the importation of goods by, a qualifying charity, and
the supply... or importation is not for the purpose of any business carried on by the qualifying charity.
The Commissioners shall, on a claim made by the qualifying charity at such time and in such form and manner as the Commissioners may determine, refund to the qualifying charity the amount of the VAT so chargeable.
A claim under subsection (3) above in respect of a supply or importation must be made before the end of the period of 4 years beginning with the day on which the supply is made or the importation takes place.
Subsection (6) applies where goods or services supplied to, ... or imported by, a qualifying charity otherwise than for the purpose of any business carried on by the qualifying charity cannot be conveniently distinguished from goods or services supplied to, ... or imported by, the qualifying charity for the purpose of such a business.
The amount to be refunded under this section is such amount as remains after deducting from the whole of the VAT chargeable on any supply to, ... or importation by, the qualifying charity such proportion of that VAT as appears to the Commissioners to be attributable to the carrying on of the business.
References in this section to VAT do not include any VAT which, by virtue of an order under section 25(7), is excluded from credit under section 25.
This section applies where—
VAT is chargeable on the supply of goods or services to, or on the importation of goods by, a specified person, and
the supply... or importation is not for the purpose of—
any business carried on by the person, or
a supply by the person which, by virtue of section 41A, is treated as a supply in the course or furtherance of a business.
If and to the extent that the Treasury so direct, the Commissioners shall, on a claim made by the specified person at such time and in such form and manner as the Commissioners may determine, refund to the person the amount of the VAT so chargeable. This is subject to subsection (3) below.
A specified person may not make a claim under subsection (2) above unless it has been agreed with the Treasury that, in the circumstances specified in the agreement, the amount of the person's funding is to be reduced by all or part of the amount of the VAT so chargeable.
A claim under subsection (2) above in respect of a supply... or importation must be made on or before the relevant day.
The “relevant day” is—
in the case of a person who is registered, the last day on which the person may make a return under this Act for the prescribed accounting period containing the last day of the financial year in which the supply is made or the ... importation takes place;
in the case of a person who is not registered, the last day of the period of 3 months beginning immediately after the end of the financial year in which the supply is made or the ... importation takes place.
Subsection (7) applies where goods or services supplied to, ... or imported by, a specified person otherwise than for the purpose of— cannot be conveniently distinguished from goods or services supplied to, ... or imported by, the person for such a purpose.
any business carried on by the person, or
a supply falling within subsection (1)(b)(ii) above,
The amount to be refunded under this section is such amount as remains after deducting from the whole of the VAT chargeable on any supply to, ... or importation by, the specified person such proportion of that VAT as appears to the Commissioners to be attributable to the carrying on of the business or (as the case may be) the making of the supply.
In this section, “specified person” means a person specified in an order made by the Treasury.
An order under subsection (8) may make transitional provision or savings.
References in this section to VAT do not include any VAT which, by virtue of an order under section 25(7), is excluded from credit under section 25.
The Treasury may by order make provision for giving relief from the whole or part of the VAT chargeable on the importation of goods ..., subject to such conditions (including conditions prohibiting or restricting the disposal of or dealing with the goods) as may be imposed by or under the order....
No VAT is chargeable on the importation of goods to which section 7(5B) applies.
In any case where— this Act shall have effect as if, on the date of the transfer of the goods (and in place of the transfer), the goods were exported by the original importer and imported by the transferee and, accordingly, where appropriate, provision made under subsection (1) above shall have effect in relation to the VAT chargeable on the importation of the goods by the transferee.
it is proposed that goods which have been imported ... by any person (“the original importer”) with the benefit of relief under subsection (1) above shall be transferred to another person (“the transferee”), and
on an application made by the transferee, the Commissioners direct that this subsection shall apply,
The Commissioners may by regulations make provision for remitting or repaying, if they think fit, the whole or part of the VAT chargeable on the importation of any goods ... which are shown to their satisfaction to have been previously exported ....
The Commissioners may by regulations make provision for remitting or repaying the whole or part of the VAT chargeable on the importation of any goods ... if they are satisfied that the goods have been or are to be re-exported ... and they think fit to do so in all the circumstances and having regard—
to the VAT chargeable on the supply of like goods in the United Kingdom;
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The Commissioners may by regulations make provision for enabling goods imported ... by a taxable person in the course or furtherance of any business carried on by him to be delivered or removed, subject to such conditions or restrictions as the Commissioners may impose for the protection of the revenue, without payment of the VAT chargeable on the importation, and for that VAT to be accounted for together with the VAT chargeable on the supply of goods or services by him ....
The Commissioners may, by means of a scheme embodied in regulations, provide for the repayment, to persons carrying on business wholly outside the United Kingdom, of VAT which would be input tax of theirs if they were taxable persons in the United Kingdom.
The scheme may make different provision in relation to persons carrying on business in different places.
applies to persons carrying on business in another member State, and
shall apply also to persons carrying on business in other countries, if, pursuant to any Community Directive, rules are adopted by the Council of the Communities about refunds of VAT to persons established elsewhere than in the member States,
Repayment shall be made in such cases and to such extent only, and subject to such conditions, as the scheme may prescribe (being conditions specified in the regulations or imposed by the Commissioners either generally or in particular cases); and the scheme may provide—
for claims and repayments to be made only through agents in the United Kingdom;
for claims to be made in such form and manner as may be specified in the scheme or by the Commissioners in accordance with the scheme;
either generally or for specified purposes—
for the agents to be treated under this Act as if they were taxable persons; and
for treating claims as if they were returns under this Act in respect of such period as may be prescribed and repayments as if they were repayments of input tax; ...
for generally regulating—
the time by which claims must be made, and
the methods by which the amount of any repayment is to be determined and the repayment is to be made.
for and in connection with the payment of interest to or by the Commissioners (including in relation to the repayment of interest wrongly paid), and
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Subject to subsection (2) below, where a person who is not a taxable person makes such a supply of goods consisting in a new means of transport as involves the removal of the goods to another member State, the Commissioners shall, on a claim made in that behalf, refund to that person, as the case may be—
the amount of any VAT on the supply of that means of transport to that person, or
the amount of any VAT paid by that person on the acquisition of that means of transport from another member State or on its importation from a place outside the member States.
The amount of VAT refunded under this section shall not exceed the amount that would have been payable on the supply involving the removal if it had been a taxable supply by a taxable person and had not been zero-rated.
The Commissioners shall not be entitled to entertain a claim for refund of VAT under this section unless the claim— as the Commissioners may by regulations prescribe.
is made within such time and in such form and manner;
contains such information; and
is accompanied by such documents, whether by way of evidence or otherwise,
The Commissioners must make arrangements for dealing with applications made to the Commissioners by taxable persons, in accordance with Council Directive 2008/9/EC, for the forwarding to the tax authorities of another member State of claims for refunds of VAT on—
supplies to them in that member State, or
the importation of goods by them into that member State from places outside the member States.
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This Act shall apply in relation to taxable supplies by the Crown as it applies in relation to taxable supplies by taxable persons.
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Where VAT is chargeable on the supply of goods or services to a Government department ... or on the importation of any goods by a Government department ... and the supply ... or importation is not for the purpose— then, if and to the extent that the Treasury so direct and subject to subsection (4) below, the Commissioners shall, on a claim made by the department at such time and in such form and manner as the Commissioners may determine, refund to it the amount of the VAT so chargeable.
of any business carried on by the department, or
of a supply by the department which, by virtue of section 41A, is treated as a supply in the course or furtherance of a business,
The Commissioners may make the refunding of any amount due under subsection (3) above conditional upon compliance by the claimant with requirements with respect to the keeping, preservation and production of records relating to the supply... or importation in question.
For the purposes of this section goods or services obtained by one Government department from another Government department shall be treated, if and to the extent that the Treasury so direct, as supplied by that other department and similarly as regards goods or services obtained by or from the Crown Estate Commissioners.
In this section “Government department” includes the Scottish Administration , the Welsh Assembly Government, a Northern Ireland department, a Northern Ireland health and social services body, any body of persons exercising functions on behalf of a Minister of the Crown, including ... any part of a Government department (as defined in the foregoing) designated for the purposes of this subsection by a direction of the Treasury.
For the purposes of subsection (6) each of the following is to be regarded as a body of persons exercising functions on behalf of a Minister of the Crown —
a health service body as defined in section 60(7) of the National Health Service and Community Care Act 1990,
a National Health Service trust established under Part I of that Act or the National Health Service (Scotland) Act 1978 ,
an NHS foundation trust ,
a Primary Care Trust ,
a Local Health Board ,
an integrated care board,
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NHS England ,
the National Institute for Health and Care Excellence ,
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the Health Research Authority (also established by that Act),
a strategic highways company appointed under section 1 of the Infrastructure Act 2015.
In subsection (6) “a Northern Ireland health and social services body” means—
a health and social services body as defined in Article 7(6) of the Health and Personal Social Services (Northern Ireland) Order 1991; and
a Health and Social Services trust established under that Order.
Schedule 9ZA—
makes provision about a charge to VAT on acquisitions of goods in Northern Ireland from a member State, and
contains modifications of the other provisions of this Act in connection with the movement of goods between Northern Ireland and member States.
Schedule 9ZB—
makes provision about VAT charged on goods imported into the United Kingdom as a result of their entry into Northern Ireland,
makes provision about the treatment, for the purposes of VAT, of goods that are removed from Northern Ireland to Great Britain and goods that are removed from Great Britain to Northern Ireland, and
contains other provision relevant to the application of this Act in Northern Ireland.
Schedule 9ZC makes provision, as a result of the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement, about the application of this Act in cases involving—
supplies of goods by persons established outside the United Kingdom that are facilitated by online marketplaces, and
the importation of goods of a low value.
Schedule 9ZD—
establishes a special accounting scheme (“the OSS scheme”) for use by persons making intra-Community distance sales of goods from Northern Ireland to member States, and
makes provision about corresponding schemes in member States.
Schedule 9ZE—
establishes a special accounting scheme (“the IOSS scheme”) for use by persons supplying imported goods to Northern Ireland or into the European Union, and
makes provision about corresponding schemes in member States.
Schedule 9ZF makes provision modifying other provisions of this Act and other enactments in connection with the provision made in Schedules 9ZD and 9ZE.
The Treasury may by regulations— (including by inserting provision modifying any provision of an Act whenever passed or made).
amend Schedules 9ZD and 9ZE, and
amend Parts 1 and 2 of Schedule 9ZF,
The Commissioners may by regulations—
amend Part 3 of Schedule 9ZF (including by inserting provision modifying any provision of an Act whenever passed or made), and
make such further provision as they consider appropriate about the administration, collection or enforcement of value added tax due under Schedules 9ZD and 9ZE.
Regulations under subsections (7) and (8) may—
confer on a person specified in the regulations a discretion to do anything under, or for the purposes of, the regulations;
make provision by reference to things specified in a notice published in accordance with the regulations;
make consequential, transitional, transitory, saving, supplementary or incidental provision.
A local authority which makes taxable supplies is liable to be registered under this Act, whatever the value of the supplies; and accordingly Schedule 1 shall apply, in a case where the value of the taxable supplies made by a local authority in any period of one year does not exceed the sum for the time being specified in paragraph 1(1)(a) of that Schedule, as if that value exceeded that sum.
Where under sections 43A to 43D any persons are treated as members of a group, any business carried on by a member of the group shall be treated as carried on by the representative member, and— and all members of the group shall be liable jointly and severally for any VAT due from the representative member.
any supply of goods or services by a member of the group to another member of the group shall be disregarded; and
any supply which is a supply to which paragraph (a) above does not apply and is a supply of goods or services by or to a member of the group shall be treated as a supply by or to the representative member; and
any VAT paid or payable by a member of the group on the importation of goods shall be treated as paid or payable by the representative member and the goods shall be treated, for the purposes of sections 38 and 73(7), as imported by the representative member;
in the case of goods acquired from another member State, for the purposes of section 73(7); and
in the case of goods imported from a place outside the member States, for those purposes and the purposes of section 38,
An order under section 5(5) or (6) may make provision for securing that any goods or services which, if all the members of the group were one person, would fall to be treated under that section as supplied to and by that person, are treated as supplied to and by the representative member and may provide for that purpose that the representative member is to be treated as a person of such description as may be determined under the order..
Where—
it is material, for the purposes of any provision made by or under this Act (“the relevant provision”), whether the person by or to whom a supply is made, or the person by whom goods are ... imported, is a person of a particular description,
paragraph (b) or (c) of subsection (1) above applies to any supply... or importation, and
there is a difference that would be material for the purposes of the relevant provision between— the relevant provision shall have effect in relation to that supply... or importation as if the only description applicable to the representative member were the description in fact applicable to that person.
the description applicable to the representative member, and
the description applicable to the person who (apart from this section) would be regarded for the purposes of this Act as making the supply... or importation or, as the case may be, as being the person to whom the supply is made,
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one of them controls each of the others; or
one person (whether a body corporate or an individual) controls all of them; or
two or more individuals carrying on a business in partnership control all of them.
Subsection (1AA) above does not apply to the extent that what is material for the purposes of the relevant provision is whether a person is a taxable person.
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a further body eligible to be so treated shall be included among the bodies so treated; or
a body corporate shall be excluded from the bodies so treated; or
another member of the group shall be substituted as the representative member; or
the bodies corporate shall no longer be treated as members of a group,
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A supply made by a member of a group (“ the supplier ”) to another member of the group (“ the UK member ”) shall not be disregarded under subsection (1)(a) above if—
it would (if there were no group) be a supply of services to which section 7A(2)(a) applies made to a person belonging in the United Kingdom;
those services are not within any of the descriptions specified in Part 2 of Schedule 9 or are within any of the descriptions specified in Part 3 of that Schedule;
the supplier has been supplied (whether or not by a person belonging in the United Kingdom) with any services ... which do not fall within any of the descriptions specified in Part 2 of Schedule 9 or which do fall within any of the descriptions specified in Part 3 of that Schedule and section 7A(2)(a) applied to the supply;
the supplier belonged outside the United Kingdom when it was supplied with the services mentioned in paragraph (c) above; and
the services so mentioned have been used by the supplier for making the supply to the UK member.
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Subject to subsection (2C) below, where a supply is excluded by virtue of subsection (2A) above from the supplies that are disregarded in pursuance of subsection (1)(a) above, all the same consequences shall follow under this Act as if that supply—
were a taxable supply in the United Kingdom by the representative member to itself, and
without prejudice to that, were made by the representative member in the course or furtherance of its business.
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Except in so far as the Commissioners may by regulations otherwise provide, a supply which is deemed by virtue of subsection (2B) above to be a supply by the representative member to itself—
shall not be taken into account as a supply made by the representative member when determining any allowance of input tax under section 26(1) in the case of the representative member;
shall be deemed for the purposes of paragraph 1 of Schedule 6 to be a supply in the case of which the person making the supply and the person supplied are connected within the meaning of section 1122 of the Corporation Tax Act 2010 (connected persons); and
subject to paragraph (b) above and paragraph 8A of Schedule 6, shall be taken to be a supply the value and time of which are determined as if it were a supply of services which is treated by virtue of section 8 as made by the person by whom the services are received.
For the purposes of subsection (2A) above where— those services, so far as they are used by the transferee for making any supply to which section 7A(2)(a) applies, shall be deemed to have been supplied to the transferee at a time when the transferee belonged outside the United Kingdom.
there has been a supply of the assets of a business of a person (“ the transferor ”) to a person to whom the whole or any part of that business was transferred as a going concern (“ the transferee ”),
that supply is either— and
a supply falling to be treated, in accordance with an order under section 5(3), as being neither a supply of goods nor a supply of services, or
a supply that would have fallen to be so treated if it had taken place in the United Kingdom,
the transferor was supplied with services ... at a time before the transfer when the transferor belonged outside the United Kingdom and section 7A(2)(a) applied to the supply,
Where, in the case of a supply of assets falling within paragraphs (a) and (b) of subsection (2D) above— that subsection shall have effect, notwithstanding that the services have not been so used by the transferor, as if the transferor were a person to whom those services were supplied and as if he were a person belonging outside the United Kingdom at the time of their deemed supply to him; and this subsection shall apply accordingly through any number of successive supplies of assets falling within paragraphs (a) and (b) of that subsection.
the transferor himself acquired any of the assets in question by way of a previous supply of assets falling within those paragraphs, and
there is a supply to which section 7A(2)(a) applies of services which, if used by the transferor for making such a supply, would be deemed by virtue of that subsection to have been supplied to the transferor at a time when he belonged outside the United Kingdom,
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Schedule 9A (which makes provision for ensuring that this section is not used for tax avoidance) shall have effect.
This section applies where goods or services are supplied by a public authority in the course of activities or transactions in which it is engaged as a public authority.
Unless the supply is on such a small scale as to be negligible, it is to be treated for the purposes of this Act as a supply in the course or furtherance of a business if it is in respect of any of the following activities—
telecommunications services,
supply of water, gas, electricity or thermal energy,
transport of goods,
port or airport services,
passenger transport,
supply of new goods manufactured for sale,
engaging in transactions in respect of agricultural products in the exercise of regulatory functions,
organisation of trade fairs or exhibitions,
warehousing,
activities of commercial publicity bodies,
activities of travel agents,
running of staff shops, cooperatives, industrial canteens, or similar institutions, or
activities carried out by radio and television bodies which are of a commercial nature.
If the supply is not in respect of such an activity, it is to be treated for the purposes of this Act as a supply in the course or furtherance of a business if (and only if) not charging VAT on the supply would lead to a significant distortion of competition.
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Subject to subsections (2) to (4) below, subsection (5) below applies where—
a business, or part of a business, carried on by a taxable person is transferred as a going concern to a person treated as a member of a group under section 43;
on the transfer of the business or part, chargeable assets of the business are transferred to the person; and
the transfer of the assets is treated by virtue of section 5(3)(c) as neither a supply of goods nor a supply of services.
Subsection (5) below shall not apply if the representative member of the group is entitled to credit for the whole of the input tax on supplies to it and ... importations by it—
during the prescribed accounting period in which the assets are transferred, and
during any longer period to which regulations under section 26(3)(b) relate and in which the assets are transferred.
Subsection (5) below shall not apply if the Commissioners are satisfied that the assets were assets of the taxable person transferring them more than 3 years before the day on which they are transferred.
Subsection (5) below shall not apply to the extent that the chargeable assets consist of capital items in respect of which regulations made under section 26(3) and (4), and in force when the assets are transferred, provide for adjustment to the deduction of input tax.
The chargeable assets shall be treated for the purposes of this Act as being, on the day on which they are transferred, both supplied to the representative member of the group for the purpose of its business and supplied by that member in the course or furtherance of its business.
A supply treated under subsection (5) above as made by a representative member shall not be taken into account as a supply made by him when determining the allowance of input tax in his case under section 26.
The value of a supply treated under subsection (5) above as made to or by a representative member shall be taken to be the open market value of the chargeable assets.
For the purposes of this section, the open market value of any chargeable assets shall be taken to be the price that would be paid on a sale (on which no VAT is payable) between a buyer and a seller who are not in such a relationship as to affect the price.
The Commissioners may reduce the VAT chargeable by virtue of subsection (5) above in a case where they are satisfied that the person by whom the chargeable assets are transferred has not received credit for the full amount of input tax arising on the supply to or ... importation by him of the chargeable assets.
For the purposes of this section, assets are chargeable assets if their supply in the United Kingdom by a taxable person in the course or furtherance of his business would be a taxable supply (and not a zero-rated supply).
The registration under this Act of persons— may be in the name of the firm; and no account shall be taken, in determining for any purpose of this Act whether goods or services are supplied to or by such persons ..., of any change in the partnership.
carrying on a business in partnership, ...
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Without prejudice to section 36 of the Partnership Act 1890 (rights of persons dealing with firm against apparent members of firm), until the date on which a change in the partnership is notified to the Commissioners a person who has ceased to be a member of a partnership shall be regarded as continuing to be a partner for the purposes of this Act and, in particular, for the purpose of any liability for VAT on the supply of goods or services by the partnership ....
Where a person ceases to be a member of a partnership during a prescribed accounting period (or is treated as so doing by virtue of subsection (2) above) any notice, whether of assessment or otherwise, which is served on the partnership and relates to, or to any matter arising in, that period or any earlier period during the whole or part of which he was a member of the partnership shall be treated as served also on him.
Without prejudice to section 16 of the Partnership Act 1890 (notice to acting partner to be notice to the firm) any notice, whether of assessment or otherwise, which is addressed to a partnership by the name in which it is registered by virtue of subsection (1) above and is served in accordance with this Act shall be treated for the purposes of this Act as served on the partnership and, accordingly, where subsection (3) above applies, as served also on the former partner.
Subsections (1) and (3) above shall not affect the extent to which, under section 9 of the Partnership Act 1890, a partner is liable for VAT owed by the firm; but where a person is a partner in a firm during part only of a prescribed accounting period, his liability for VAT on the supply by the firm of goods or services during that accounting period ... shall be such proportion of the firm’s liability as may be just.
The registration under this Act of a body corporate carrying on a business in several divisions may, if the body corporate so requests and the Commissioners see fit, be in the names of those divisions.
The Commissioners may by regulations make provision for determining by what persons anything required by or under this Act to be done by a person carrying on a business is to be done where a business is carried on in partnership or by a club, association or organisation the affairs of which are managed by its members or a committee or committees of its members.
The registration under this Act of any such club, association or organisation may be in the name of the club, association or organisation; and in determining whether goods or services are supplied to or by such a club, association or organisation ..., no account shall be taken of any change in its members.
The Commissioners may by regulations make provision for persons who carry on a business of a taxable person who has died or become bankrupt or has had his estate sequestrated or has become incapacitated to be treated for a limited time as taxable persons, and for securing continuity in the application of this Act in cases where persons are so treated.
In relation to a company which is a taxable person, the reference in subsection (4) above to the taxable person having become bankrupt or having had his estate sequestrated or having become incapacitated shall be construed as a reference to its being in liquidation or receivership or administration.
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Two or more UK bodies corporate are eligible to be treated as members of a group if ...—
one of them controls each of the others,
one person (whether a body corporate or an individual) controls all of them, or
two or more individuals carrying on a business in partnership control all of them.
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An individual carrying on a business and one or more UK bodies corporate are eligible to be treated as members of a group if the individual—
controls the UK body corporate or all of the UK bodies corporate, and
is established, or has a fixed establishment, in the United Kingdom in relation to the business.
Two or more relevant persons carrying on a business in partnership (“the partnership”) and one or more UK bodies corporate are eligible to be treated as members of a group if the partnership—
controls the UK body corporate or all of the UK bodies corporate, and
is established, or has a fixed establishment, in the United Kingdom in relation to the business.
In this section—
“UK body corporate” means a body corporate which is established or has a fixed establishment in the United Kingdom;
“relevant person” means an individual, a body corporate or a Scottish partnership.
Section 43AZA contains provision for determining for the purposes of this section whether a body corporate, individual or partnership controls a UK body corporate.
Where goods are imported by a taxable person (“T”) who supplies them as agent for a person who is not a taxable person, then, if T acts in relation to the supply in T's own name, the goods are to be treated for the purposes of this Act as imported and supplied by T as principal.
goods are acquired from another member State by a person who is not a taxable person and a taxable person acts in relation to the acquisition, and then supplies the goods as agent for the person by whom they are so acquired; or
goods are imported from a place outside the member States by a taxable person who supplies them as agent for a person who is not a taxable person,
For the purposes of subsection (1) above a person who is not resident in the United Kingdom and whose place or principal place of business is outside the United Kingdom may be treated as not being a taxable person if as a result he will not be required to be registered under this Act.
Where . . . services, other than electronically supplied services and telecommunication services, are supplied through an agent who acts in his own name the Commissioners may, if they think fit, treat the supply both as a supply to the agent and as a supply by the agent.
Where, in the case of any supply of goods to which subsection (1) above does not apply, goods are supplied through an agent who acts in his own name, the supply shall be treated both as a supply to the agent and as a supply by the agent.
Where electronically supplied services or telecommunication services are supplied through an agent, acting in the agent's own name, the supply is to be treated both as a supply to the agent and as a supply by the agent.
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In this section “electronically supplied services” and “telecommunication services” have the same meaning as in Schedule 4A (see paragraph 9(3) and (4) and paragraph 9E(2) of that Schedule).
This section applies for the purposes of section 43A (and expressions used in this section have the same meaning as in that section).
A body corporate (“X”) controls a UK body corporate if—
X is empowered by statute to control the UK body corporate's activities, or
X is the UK body corporate's holding company.
An individual (“Y”) controls a UK body corporate if Y would, were Y a company, be the UK body corporate's holding company.
Two or more relevant persons carrying on a business in partnership (“the partnership”) control a UK body corporate if the partnership would, were it a company, be the UK body corporate's holding company.
In this section “holding company” has the meaning given by section 1159 of, and Schedule 6 to, the Companies Act 2006.
Subsection (1ZA) applies where any person— ...
is a taxable person for the purposes of this Act or, without being a taxable person, is a person who makes taxable supplies ...;
is not established, and does not have any fixed establishment, in the United Kingdom;
in the case of an individual, does not have his usual place of residence or permanent address in the United Kingdom,
is established in a country or territory in respect of which it appears to the Commissioners that the condition specified in subsection (1A) below is satisfied; and
With the agreement of the Commissioners, a person— may appoint a UK-established person to act on his behalf in relation to VAT.
who has not been given a direction under subsection (1ZA) , and
in relation to whom the conditions specified in paragraphs (a), (b) and (c) of subsection (1) are satisfied,
The Commissioners may direct the person to secure that there is a UK-established person who is—
appointed to act on the person's behalf in relation to VAT, and
registered against the name of the person in accordance with any regulations under subsection (4).
Where any person is appointed by virtue of this section to be the VAT representative of another (“his principal”), then, subject to subsections (4) to (6) below, the VAT representative—
shall be entitled to act on his principal’s behalf for any of the purposes of this Act, of any other enactment (whenever passed) relating to VAT or of any subordinate legislation made under this Act or any such enactment;
shall, subject to such provisions as may be made by the Commissioners by regulations, secure (where appropriate by acting on his principal’s behalf) his principal’s compliance with and discharge of the obligations and liabilities to which his principal is subject by virtue of this Act, any such other enactment or any such subordinate legislation; and
shall be personally liable in respect of— as if the obligations and liabilities imposed on his principal were imposed jointly and severally on the VAT representative and his principal.
any failure to secure his principal’s compliance with or discharge of any such obligation or liability; and
anything done for purposes connected with acting on his principal’s behalf,
The condition mentioned in subsection (1)(ba) is that there are no arrangements in relation to the country or territory relating to VAT which—
have effect by virtue of an Order in Council under section 173 of the Finance Act 2006, and
contain provision of a kind mentioned in subsection (2)(a) and (b) of that section.
A VAT representative shall not be liable by virtue of subsection (3) above himself to be registered under this Act, but regulations made by the Commissioners may—
require the registration of the names of VAT representatives against the names of their principals in any register kept for the purposes of this Act; ...
make it the duty of a VAT representative, for the purposes of registration, to notify the Commissioners, within such period as may be prescribed, that his appointment has taken effect or has ceased to have effect.
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A VAT representative shall not by virtue of subsection (3) above be guilty of any offence except in so far as—
the VAT representative has consented to, or connived in, the commission of the offence by his principal;
the commission of the offence by his principal is attributable to any neglect on the part of the VAT representative; or
the offence consists in a contravention by the VAT representative of an obligation which, by virtue of that subsection, is imposed both on the VAT representative and on his principal.
The Commissioners may by regulations make provision as to the manner and circumstances in which a person is to be appointed, or is to be treated as having ceased to be, another’s VAT representative; and regulations under this subsection may include such provision as the Commissioners think fit for the purposes of subsection (4) above with respect to the making or deletion of entries in any register.
In this Act “VAT representative” means a person appointed under subsection (1ZA) or (2) above.
The Commissioners may require a person in relation to whom the conditions specified in paragraphs (a), (b) and (c) of subsection (1) are satisfied to provide such security, or further security, as they may think appropriate for the payment of any VAT which is or may become due from him.
For the purposes of this Act a person shall not be treated as having been directed to appoint a VAT representative, or as having been required to provide security under subsection (7) above, unless the Commissioners have either—
served notice of the direction or requirement on him; or
taken all such other steps as appear to them to be reasonable for bringing the direction or requirement to his attention.
give the Commissioners power to refuse to register a person as a VAT representative, or to cancel a person's registration as a VAT representative, in such circumstances as may be specified in the regulations.
Regulations under subsection (4) may require a notification under that subsection to be made in such form and manner, and to contain such particulars, as may be specified in the regulations or by the Commissioners in accordance with the regulations.
A sum required by way of security under subsection (7) above shall be deemed for the purposes of— to be recoverable as if it were VAT due from the person who is required to provide it.
section 51 of the Finance Act 1997 (enforcement by taking control of goods or, in Northern Ireland, by distress) and any regulations under that section, and
section 52 of that Act (enforcement by diligence),
A direction under subsection (1ZA)—
may specify a time by which it (or any part of it) must be complied with;
may be varied;
continues to have effect (subject to any variation) until it is withdrawn or the conditions specified in subsection (1) are no longer satisfied.
A requirement under subsection (7)—
may specify a time by which it (or any part of it) must be complied with;
may be varied;
continues to have effect (subject to any variation) until it is withdrawn.
For the purposes of subsections (1ZA) and (2)—
a person is UK-established if the person is established, or has a fixed establishment, in the United Kingdom, and
an individual is also UK-established if the person's usual place of residence or permanent address is in the United Kingdom.
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The Treasury may by order provide for sections 43A and 43AZA to have effect with specified modifications in relation to a specified class of person.
An order under subsection (1) may, in particular—
make provision by reference to generally accepted accounting practice;
define generally accepted accounting practice for that purpose by reference to a specified document or instrument (and may provide for the reference to be read as including a reference to any later document or instrument that amends or replaces the first);
adopt any statutory or other definition of generally accepted accounting practice (with or without modification);
make provision by reference to what would be required or permitted by generally accepted accounting practice if accounts, or accounts of a specified kind, were prepared for a person.
An order under subsection (1) may also, in particular, make provision by reference to—
the nature of a person;
past or intended future activities of a person;
the relationship between a number of persons;
the effect of including a person within a group or of excluding a person from a group.
An order under subsection (1) may—
make provision which applies generally or only in specified circumstances;
make different provision for different circumstances;
include supplementary, incidental, consequential or transitional provision.
Where a business , or part of a business, carried on by a taxable person is transferred to another person as a going concern, then—
for the purpose of determining whether the transferee is liable to be registered under this Act he shall be treated as having carried on the business or part of the business before as well as after the transfer and supplies by the transferor shall be treated accordingly; ...
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Without prejudice to subsection (1) above, the Commissioners may by regulations make provision for securing continuity in the application of this Act in cases where a business , or part of a business, carried on by a taxable person is transferred to another person as a going concern and the transferee is registered under this Act in substitution for the transferor.
Regulations under subsection (2) above may, in particular, provide— but no such provision as is mentioned in paragraph (a) or (b) of this subsection shall have effect in relation to any transferor and transferee unless an application in that behalf has been made by them under the regulations.
for liabilities and duties under this Act (excluding sections 59 to 70) of the transferor (other than the duties mentioned in subsection (2A) above) to become, to such extent as may be provided by the regulations, liabilities and duties of the transferee; and
for any right of either of them to repayment or credit in respect of VAT to be satisfied by making a repayment or allowing a credit to the other;
Regulations under subsection (2) above may, in particular, provide for the duties under this Act of the transferor to preserve records relating to the business or part of the business for any period after the transfer to become duties of the transferee unless the Commissioners, at the request of the transferor, otherwise direct.
Subsection (5) below applies where—
a business, or part of a business, carried on by a taxable person is transferred to another person as a going concern, and
the transferor continues to be required under this Act to preserve for any period after the transfer any records relating to the business or part of the business.
So far as is necessary for the purpose of complying with the transferee's duties under this Act, the transferee (“E”) may require the transferor—
to give to E, within such time and in such form as E may reasonably require, such information contained in the records as E may reasonably specify,
to give to E, within such time and in such form as E may reasonably require, such copies of documents forming part of the records as E may reasonably specify, and
to make the records available for E's inspection at such time and place as E may reasonably require (and permit E to take copies of, or make extracts from, them).
Where a business, or part of a business, carried on by a taxable person is transferred to another person as a going concern, the Commissioners may disclose to the transferee any information relating to the business when it was carried on by the transferor for the purpose of enabling the transferee to comply with the transferee's duties under this Act.
This section applies where an application is made to the Commissioners for two or more persons, who are eligible by virtue of section 43A, to be treated as members of a group.
This section also applies where two or more persons are treated as members of a group and an application is made to the Commissioners—
for another person, who is eligible by virtue of section 43A to be treated as a member of the group, to be treated as a member of the group,
for a person to cease to be treated as a member of the group,
for a member to be substituted as the group’s representative member, or
for the persons no longer to be treated as members of a group.
An application with respect to any persons—
must be made by one of them or by the person controlling them, and
in the case of an application for the persons to be treated as a group, must appoint one of them as the representative member.
Where this section applies in relation to an application it shall, subject to subsection (6) below, be taken to be granted with effect from—
the day on which the application is received by the Commissioners, or
such earlier or later time as the Commissioners may allow.
The Commissioners may refuse an application, within the period of 90 days starting with the day on which it was received by them, if it appears to them—
in the case of an application such as is mentioned in subsection (1) above, that the persons are not eligible by virtue of section 43A to be treated as members of a group,
in the case of an application such as is mentioned in subsection (2)(a) above, that the person is not eligible by virtue of section 43A to be treated as a member of the group, or
in any case, that refusal of the application is necessary for the protection of the revenue.
If the Commissioners refuse an application it shall be taken never to have been granted.
The Treasury may by order make provision for modifying the provisions of this Act in their application to dealings on terminal markets and such persons involved in such dealings as may be specified in the order, subject to such conditions as may be so specified.
Without prejudice to the generality of subsection (1) above, an order under this section may include provision— and may contain such incidental and supplementary provisions as appear to the Treasury to be necessary or expedient.
for zero-rating the supply of any goods or services or for treating the supply of any goods or services as exempt;
for the registration under this Act of any body of persons representing persons involved in dealing on a terminal market and for disregarding such dealings by persons so represented in determining liability to be registered under this Act, and for disregarding such dealings between persons so represented for all the purposes of this Act;
for refunding, to such persons as may be specified by or under the order, input tax attributable to such dealings on a terminal market as may be so specified,
An order under this section may make different provision for different purposes, including different provision in relation to—
different terminal markets;
different persons;
different commodities, goods or services.
The Commissioners may, by notice given to a person, terminate its treatment as a member of a group from a date—
which is specified in the notice, and
which is, or falls after, the date on which the notice is given.
The Commissioners may give a notice under subsection (1) above only if it appears to them to be necessary for the protection of the revenue.
Where— the Commissioners shall, by notice given to the person, terminate its treatment as a member of the group from a date specified in the notice.
a person is treated as a member of a group, and
it appears to the Commissioners that the person is not, or is no longer, eligible by virtue of section 43A to be treated as a member of the group,
The date specified in a notice under subsection (3) above may be earlier than the date on which the notice is given but shall not be earlier than—
the first date on which, in the opinion of the Commissioners, the person was not eligible to be treated as a member of the group, or
the date on which, in the opinion of the Commissioners, the person ceased to be eligible to be treated as a member of the group.
Schedule 10 shall have effect with respect to buildings and land.
The Treasury may by order amend Schedule 10.
A person may not be treated as a member of more than one group at a time.
A person who is a member of one group is not eligible by virtue of section 43A to be treated as a member of another group.
If— the application shall have effect from that time, but with the exclusion of the person or persons mentioned in paragraph (b).
an application under section 43B(1) would have effect from a time in accordance with section 43B(4), but
at that time one or more of the persons specified in the application is a member of a group (other than that to which the application relates),
If— the application shall have no effect.
an application under section 43B(2)(a) would have effect from a time in accordance with section 43B(4), but
at that time the person specified in the application is a member of a group (other than that to which the application relates),
Where a person is a subject of two or more applications under section 43B(1) or (2)(a) that have not been granted or refused, the applications shall have no effect.
The Commissioners may by regulations modify section 19 and Schedule 6 for the purpose of providing (in place of the provision for the time being contained in that section and Schedule) for the manner of determining for the purposes of this Act the value of— in a case where the goods are supplied ... under a trading stamp scheme (within the meaning of the Trading Stamps Act 1964 or the Trading Stamps Act (Northern Ireland) 1965) ....
a supply of goods, ...
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The Treasury may by order modify the application of this Act in relation to supplies of goods or services by tour operators or in relation to such of those supplies as may be determined by or under the order.
Without prejudice to the generality of subsection (1) above, an order under this section may make provision—
for two or more supplies of goods or services by a tour operator to be treated as a single supply of services;
for the value of that supply to be ascertained, in such manner as may be determined by or under the order, by reference to the difference between sums paid or payable to and sums paid or payable by the tour operator;
for account to be taken, in determining the VAT chargeable on that supply, of the different rates of VAT that would have been applicable apart from this section;
excluding any person from the application of section 43;
as to the time when a supply is to be treated as taking place.
In this section “tour operator” includes a travel agent acting as principal and any other person providing for the benefit of travellers services of any kind commonly provided by tour operators or travel agents.
Section 97(3) shall not apply to an order under this section, notwithstanding that it makes provision for excluding any VAT from credit under section 25.
But a person is not a tour operator if and so far as their business consists of making supplies of services consisting of the transport of passengers by private hire vehicle or taxi, unless those supplies are made in conjunction with, and are ancillary to, the making of supplies by the person consisting of—
the provision of accommodation, or
the transport of passengers by bus, coach, train, ship or aircraft.
The Commissioners may, in accordance with such provision as may be contained in regulations made by them, certify for the purposes of this section any person who satisfies them—
that he is carrying on a business involving one or more designated activities;
that he is of such a description and has complied with such requirements as may be prescribed; and
where an earlier certification of that person has been cancelled, that more than the prescribed period has elapsed since the cancellation or that such other conditions as may be prescribed are satisfied.
Where a person is for the time being certified under this section, then (whether or not that person is a taxable person) so much of any supply by him of any goods or services as, in accordance with provision contained in regulations, is allocated to the relevant part of his business shall be disregarded for the purpose of determining whether he is, has become or has ceased to be liable or entitled to be registered under Schedule 1 or is, has become or has ceased to be liable to be registered under Schedule 1A.
The Commissioners may by regulations provide for an amount included in the consideration for any taxable supply which is made— to be treated, for the purpose of determining the entitlement of the person supplied to credit under sections 25 and 26, as VAT on a supply to that person.
in the course or furtherance of the relevant part of his business by a person who is for the time being certified under this section;
at a time when that person is not a taxable person; and
to a taxable person,
The amount which, for the purposes of any provision made under subsection (3) above, may be included in the consideration for any supply shall be an amount equal to such percentage as the Treasury may by order specify of the sum which, with the addition of that amount, is equal to the consideration for the supply.
The Commissioners’ power by regulations under section 39 to provide for the repayment to persons to whom that section applies of VAT which would be input tax of theirs if they were taxable persons in the United Kingdom includes power to provide for the payment to persons to whom that section applies of sums equal to the amounts which, if they were taxable persons in the United Kingdom, would be input tax of theirs by virtue of regulations under this section; and references in that section, or in any other enactment, to a repayment of VAT shall be construed accordingly.
Regulations under this section may provide— and regulations made by virtue of paragraph (b) above may confer on the Commissioners power, if they think fit, to refuse to cancel a person’s certification, and to refuse to give effect to any entitlement of that person to be registered, until the end of such period after the grant of certification as may be prescribed.
for ... an application for certification under this section, or for the cancellation of any such certification, to be made in the form and manner specified in the regulations or by the Commissioners in accordance with the regulations;
for the cases and manner in which the Commissioners may cancel a person’s certification;
for entitlement to a credit such as is mentioned in subsection (3) above to depend on the issue of an invoice containing such particulars as may be prescribed, or as may be notified by the Commissioners in accordance with provision contained in regulations; and
for the imposition on certified persons of obligations with respect to the keeping, preservation and production of such records as may be prescribed and of obligations to comply with such requirements with respect to any of those matters as may be so notified;
In this section references, in relation to any person, to the relevant part of his business are references—
where the whole of his business relates to the carrying on of one or more designated activities, to that business; and
in any other case, to so much of his business as does so relate.
In this section “designated activities” means activities relating to farming, fisheries or forestry which are designated in an order made by the Treasury.
Where any person makes a supply of gold to another person and that supply is a taxable supply but not a zero rated supply, the supply shall be treated for purposes of Schedules 1 and 1A — but nothing in paragraph (b) above shall require any supply to be disregarded for the purposes of Schedule 1 on the grounds that it is a supply of capital assets of that other person’s business.
as a taxable supply of that other person (as well as a taxable supply of the person who makes it); and
in so far as that other person is supplied in connection with the carrying on by him of any business, as a supply made by him in the course or furtherance of that business;
Where a taxable person makes a supply of gold to a person who— it shall be for the person supplied, on the supplier’s behalf, to account for and pay tax on the supply, and not for the supplier.
is himself a taxable person at the time when the supply is made; and
is supplied in connection with the carrying on by him of any business,
So much of this Act and of any other enactment or any subordinate legislation as has effect for the purposes of, or in connection with, the enforcement of any obligation to account for and pay VAT shall apply for the purposes of this section in relation to any person who is required under subsection (2) above to account for and pay any VAT as if that VAT were VAT on a supply made by him.
Section 6(4) to (10) shall not apply for determining when any supply of gold is to be treated as taking place.
References in this section to a supply of gold are references to—
any supply of goods consisting in fine gold, in gold grain of any purity or in gold coins of any purity; or. . .
any supply of goods containing gold where the consideration for the supply (apart from any VAT) is, or is equivalent to, an amount which does not exceed, or exceeds by no more than a negligible amount, the open market value of the gold contained in the goods ; or.
any supply of services consisting in the application to another person’s goods of a treatment or process which produces goods a supply of which would fall within paragraph (a) above.
The Treasury may by order provide for this section to apply, as it applies to the supplies specified in subsection (5) above, to such other supplies of— as may be specified or described in the order.
goods consisting in or containing any precious or semi-precious metal or stones; or
services relating to, or to anything containing, any precious or semi-precious metal or stones,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The provisions of this section apply where, in any prescribed accounting period, fuel which is or has previously been supplied to or imported or manufactured by a taxable person in the course of his business—
is provided or to be provided by the taxable person to an individual for private use in his own vehicle or a vehicle allocated to him and is so provided by reason of that individual’s employment; or
where the taxable person is an individual, is appropriated or to be appropriated by him for private use in his own vehicle; or
where the taxable person is a partnership, is provided or to be provided to any of the individual partners for private use in his own vehicle.
For the purposes of this section fuel shall not be regarded as provided to any person for his private use if it is supplied at a price which—
in the case of fuel supplied to or imported by the taxable person, is not less than the price at which it was so supplied or imported; and
in the case of fuel manufactured by the taxable person, is not less than the aggregate of the cost of the raw material and of manufacturing together with any excise duty thereon.
For the purposes of this section and section 57—
“fuel for private use” means fuel which, having been supplied to or imported or manufactured by a taxable person in the course of his business, is or is to be provided or appropriated for private use as mentioned in subsection (1) above;
any reference to fuel supplied to a taxable person shall include a reference to fuel acquired by a taxable person from another member State and any reference to fuel imported by a taxable person shall be confined to a reference to fuel imported by that person from a place outside the member States;
any reference to an individual’s own vehicle shall be construed as including any vehicle of which for the time being he has the use, other than a vehicle allocated to him;
subject to subsection (9) below, a vehicle shall at any time be taken to be allocated to an individual if at that time it is made available (without any transfer of the property in it) either to the individual himself or to any other person, and is so made available by reason of the individual’s employment and for private use; and
fuel provided by an employer to an employee and fuel provided to any person for private use in a vehicle which, by virtue of paragraph (d) above, is for the time being taken to be allocated to the employee shall be taken to be provided to the employee by reason of his employment.
Where under section 43 any bodies corporate are treated as members of a group, any provision of fuel by a member of the group to an individual shall be treated for the purposes of this section as provision by the representative member.
In relation to the taxable person, tax on the supply, acquisition or importation of fuel for private use shall be treated for the purposes of this Act as input tax, notwithstanding that the fuel is not used or to be used for the purposes of a business carried on by the taxable person (and, accordingly, no apportionment of VAT shall fall to be made under section 24(5) by reference to fuel for private use).
At the time at which fuel for private use is put into the fuel tank of an individual’s own vehicle or of a vehicle allocated to him, the fuel shall be treated for the purposes of this Act as supplied to him by the taxable person in the course or furtherance of his business for a consideration determined in accordance with subsection (7) below (and, accordingly, where the fuel is appropriated by the taxable person to his own private use, he shall be treated as supplying it to himself in his private capacity).
In any prescribed accounting period of the taxable person in which, by virtue of subsection (6) above, he is treated as supplying fuel for private use to an individual, the consideration for all the supplies made to that individual in that period in respect of any one vehicle shall be that which, by virtue of section 57, is appropriate to a vehicle of that description, and that consideration shall be taken to be inclusive of VAT.
In any case where— subsection (7) above shall have effect as if the supplies made to the individual during those parts of the period were in respect of only one vehicle.
in any prescribed accounting period, fuel for private use is, by virtue of subsection (6) above, treated as supplied to an individual in respect of one vehicle for a part of the period and in respect of another vehicle for another part of the period; and
at the end of that period one of those vehicles neither belongs to him nor is allocated to him,
In any prescribed accounting period a vehicle shall not be regarded as allocated to an individual by reason of his employment if—
in that period it was made available to, and actually used by, more than one of the employees of one or more employers and, in the case of each of them, it was made available to him by reason of his employment but was not in that period ordinarily used by any one of them to the exclusion of the others; and
in the case of each of the employees, any private use of the vehicle made by him in that period was merely incidental to his other use of it in that period; and
it was in that period not normally kept overnight on or in the vicinity of any residential premises where any of the employees was residing, except while being kept overnight on premises occupied by the person making the vehicle available to them.
In this section and section 57—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This section has effect to determine the consideration referred to in section 56(7) in respect of any one vehicle; and in this section—
“warehouse” means any warehouse where goods may be stored in the United Kingdom without payment of any one or more of the following, that is to say— but does not include a warehouse so far as it is used for the storage of goods declared for a free zone procedure.
Where the prescribed accounting period is a period of 3 months, the consideration appropriate to any vehicle is that specified in relation to a vehicle of the appropriate description in the second column of Table A below.
Where the prescribed accounting period is a period of one month, the consideration appropriate to any vehicle is that specified in relation to a vehicle of the appropriate description in the third column of Table A below. Description of vehicle (Type of engine and cylinder capacity in cubic centimetres) 3 month period 1 month period £ £ Diesel engine 2000 or less 145 48 More than 2000 187 62 Any other type of engine 1400 or less 160 53 More than 1400 but not more than 2000 202 67 More than 2000 300 100
The Treasury may by order taking effect from the beginning of any prescribed accounting period beginning after the order is made substitute a different Table for Table A for the time being set out above.
Where, by virtue of section 56(8), subsection (7) of that section has effect as if, in the prescribed accounting period, supplies of fuel for private use made in respect of 2 or more vehicles were made in respect of only one vehicle, the consideration appropriate shall be determined as follows—
if each of the 2 or more vehicles falls within the same description of vehicle specified in Table A above, that Table shall apply as if only one of the vehicles were to be considered throughout the whole period, and
if one of those vehicles falls within a description of vehicle specified in that Table which is different from the other or others, the consideration shall be the aggregate of the relevant fractions of the consideration appropriate for each description of vehicle under that Table.
For the purposes of subsection (5)(b) above, the relevant fraction in relation to any vehicle is that which the part of the prescribed accounting period in which fuel for private use was supplied in respect of that vehicle bears to the whole of that period.
In the case of a vehicle having an internal combustion engine with one or more reciprocating pistons, its cubic capacity for the purposes of Table A above is the capacity of its engine as calculated for the purposes of the Vehicle Excise and Registration Act 1994.
In the case of a vehicle not falling within subsection (7) above, its cubic capacity shall be such as may be determined for the purposes of Table A above by order by the Treasury.
The Treasury may by order provide, in relation to any such description of supplies to which this section applies as may be specified in the order, for a taxable person to be entitled to opt that, where he makes supplies of that description, VAT is to be charged by reference to the profit margin on the supplies, instead of by reference to their value.
This section applies to the following supplies, that is to say—
supplies of works of art, antiques or collectors’ items;
supplies of motor vehicles;
supplies of second-hand goods; and
any supply of goods through a person who acts as an agent, but in his own name, in relation to the supply.
An option for the purposes of an order under this section shall be exercisable, and may be withdrawn, in such manner as may be required by such an order.
Subject to subsection (7) below, the profit margin on a supply to which this section applies shall be taken, for the purposes of an order under this section, to be equal to the amount (if any) by which the price at which the person making the supply obtained the goods in question is exceeded by the price at which he supplies them.
For the purposes of this section the price at which a person has obtained any goods and the price at which he supplies them shall each be calculated in accordance with the provisions contained in an order under this section; and such an order may, in particular, make provision stipulating the extent to which any VAT charged on a supply... or importation of any goods is to be treated as included in the price at which those goods have been obtained or are supplied.
An order under this section may provide that the consideration for any services supplied in connection with a supply of goods by a person who acts as an agent, but in his own name, in relation to the supply of the goods is to be treated for the purposes of any such order as an amount to be taken into account in computing the profit margin on the supply of the goods, instead of being separately chargeable to VAT as comprised in the value of the services supplied.
An order under this section may provide for the total profit margin on all the goods of a particular description supplied by a person in any prescribed accounting period to be calculated by—
aggregating all the prices at which that person obtained goods of that description in that period together with any amount carried forward to that period in pursuance of paragraph (d) below;
aggregating all the prices at which he supplies goods of that description in that period;
treating the total profit margin on goods supplied in that period as being equal to the amount (if any) by which, for that period, the aggregate calculated in pursuance of paragraph (a) above is exceeded by the aggregate calculated in pursuance of paragraph (b) above; and
treating any amount by which, for that period, the aggregate calculated in pursuance of paragraph (b) above is exceeded by the aggregate calculated in pursuance of paragraph (a) above as an amount to be carried forward to the following prescribed accounting period so as to be included, for the period to which it is carried forward, in any aggregate falling to be calculated in pursuance of paragraph (a) above.
An order under this section may—
make different provision for different cases; and
make provisions of the order subject to such general or special directions as may, in accordance with the order, be given by the Commissioners with respect to any matter to which the order relates.
The Treasury may by order provide that, on making a claim, a person is entitled to a VAT-related payment in respect of relevant supplies or of a description of relevant supply specified in the order.
“Relevant supply”, in relation to a person making a claim, means a supply of goods to the person where—
the person took possession of the goods in Great Britain or the Isle of Man in the course of carrying on a business,
the goods were then removed to Northern Ireland or exported,
at the time of the removal or export (“the relevant time”), the person intended to resell the goods outside Great Britain and the Isle of Man in the course of carrying on the business, and
if the circumstances of, and following, the supply to the person had been altered as described in subsection (3), the person would have been entitled to exercise an option under an order made under section 50A in respect of the resale of the goods.
The alterations mentioned in subsection (2)(d) are—
that (if it was not in fact so) the person was a taxable person,
that the goods were not removed to Northern Ireland or exported (and VAT was charged on the supply of the goods to the person on that basis), and
that the person resold the goods in Great Britain at the relevant time in the course of carrying on the business.
“VAT-related payment”, in respect of a supply of goods, means a payment of an amount equal to so much of the consideration for the supply as would have constituted VAT if— subject to any provision made in reliance on subsection (5).
the supply had taken place at the relevant time, and
VAT had been chargeable on the value of the supply,
An order under this section may make provision for the amount of a VAT-related payment to be less than the amount described in subsection (4).
An order under this section may, among other things—
make entitlement to a VAT-related payment subject to conditions;
make provision about the making of claims under the order;
make provision for claims to be treated as if they were returns under this Act in respect of a particular period;
make provision about the calculation of VAT-related payments, including provision about the calculation of the consideration for, or value of, a supply;
make provision about how VAT-related payments are to be paid;
make provision for VAT-related payments to be treated as if they were repayments of input tax;
make provision requiring claims and payments to be made through agents in the United Kingdom;
make provision for agents dealing with claims and payments under the order to be treated under this Act as if they were taxable persons;
make provision for and in connection with the payment of interest to or by the Commissioners, including provision about interest wrongly paid.
An order under this section may, among other things—
confer power on the Commissioners to make provision in a direction or notice;
make provision, or enable the Commissioners to make provision, generally or for particular purposes;
make provision applying a provision of or made under this Act or another enactment, with or without modifications, including provision relating to penalties and offences;
make different provision for different purposes, including different provision in relation to persons carrying on business in different places or in relation to the removal or export of goods to different places;
make consequential, incidental, supplementary, transitional, transitory or saving provision.
The provision that may be made under subsection (7)(e) includes provision amending an enactment or subordinate legislation.
References in this section to carrying on a business are to doing so in the United Kingdom or elsewhere.
Schedule 10A shall have effect with respect to face-value vouchers.
Schedule 10A does not have effect with respect to a face value voucher (within the meaning of that Schedule) issued on or after 1 January 2019.
Schedule 10B makes provision about the VAT treatment of vouchers.
Schedule 10B has effect with respect to a voucher (within the meaning of that Schedule) issued on or after 1 January 2019.
The issue of a postage stamp, and any subsequent transfer of it, is a supply of services for the purposes of this Act.
The consideration for the issue or subsequent transfer of a postage stamp is to be disregarded for the purposes of this Act, except to the extent (if any) that it exceeds the face value of the stamp.
The “face value” of the stamp is the amount stated on or recorded in the stamp or the terms and conditions governing its use.
This section has effect with respect to postage stamps issued on or after 1 January 2019.
Subsection (3) applies if—
a taxable (but not a zero-rated) supply of goods or services (“the relevant supply”) is made to a person (“the recipient”),
the relevant supply is of goods or services to which this section applies (see subsection (9)),
the relevant supply is not an excepted supply (see subsection (10)), and
the total value of the relevant supply, and of corresponding supplies made to the recipient in the month in which the relevant supply is made, exceeds £1,000 (“the disregarded amount”).
For this purpose a “corresponding supply” means a taxable (but not a zero-rated) supply of goods or services which—
is a supply of goods or services to which this section applies, and
is not an excepted supply.
The relevant supply, and the corresponding supplies made to the recipient in the month in which the relevant supply is made, are to be treated for the purposes of Schedules 1 and 1A— but the relevant supply, and those corresponding supplies, are to be so treated only in so far as their total value exceeds the disregarded amount.
as taxable supplies of the recipient (as well as taxable supplies of the person making them), and
in so far as the recipient is supplied in connection with the carrying on by him of any business, as supplies made by him in the course or furtherance of that business,
Nothing in subsection (3)(b) requires any supply to be disregarded for the purposes of Schedule 1 on the grounds that it is a supply of capital assets of the recipient's business.
For the purposes of subsections (1) and (3), the value of a supply is determined on the basis that no VAT is chargeable on the supply.
If— it is for the recipient, on the supplier's behalf, to account for and pay tax on the supply and not for the supplier.
a taxable person makes a supply of goods or services to a person (“the recipient”) at any time,
the supply is of goods or services to which this section applies and is not an excepted supply, and
the recipient is a taxable person at that time and is supplied in connection with the carrying on by him of any business,
The relevant enforcement provisions apply for the purposes of this section, in relation to any person required under subsection (6) to account for and pay any VAT, as if that VAT were VAT on a supply made by him.
For this purpose “the relevant enforcement provisions” means so much of— as has effect for the purposes of, or in connection with the enforcement of, any obligation to account for and pay VAT.
this Act and any other enactment, and
any subordinate legislation,
For the purposes of this section, goodsor services are goods or servicesto which this section applies if they are of a description specified in an order made by the Treasury.
An order made under subsection (9) may modify the application of subsection (3) in relation to any description of goods or services specified in the order.
For the purposes of this section, an “excepted supply” means a supply which is of a description specified in, or determined in accordance with, provision contained in an order made by the Treasury.
Any order made under subsection (10) may describe a supply of goods or services by reference to—
the use which has been made of the goods or services, or
other matters unrelated to the characteristics of the goods or services themselves.
The Treasury may by order substitute for the sum for the time being specified in subsection (1)(d) such greater sum as they think fit.
The Treasury may by order make such amendments of any provision of this Act as they consider necessary or expedient for the purposes of this section or in connection with this section. An order under this subsection may confer power on the Commissioners to make regulations or exercise any other function, but no order may be made under this subsection on or after 22nd March 2009.
Any order made under this section (other than one under subsection (12)) may—
make different provision for different cases, and
contain supplementary, incidental, consequential or transitional provisions.
In sections 55C and 55D “a designated deposit scheme” means a deposit scheme which is designated, for the purposes of this section, by regulations made by the Commissioners.
A “deposit scheme” means a scheme which is established—
by regulations under Schedule 8 to the Environment Act 2021, or
by or under any other enactment that makes similar provision for a returnable deposit to be paid in relation to goods.
In subsection (2)(b), the reference to an “enactment” includes a reference to an enactment comprised in, or in an instrument made under—
an Act of the Scottish Parliament,
a Measure or Act of Senedd Cymru, or
Northern Ireland legislation.
Section 97(5) (statutory instruments: procedure) does not apply to a statutory instrument containing only regulations under subsection (1).
This section applies if—
a taxable person makes a taxable (but not a zero-rated) supply of goods, and
a deposit amount is payable in relation to the goods supplied.
For the purposes of this section and section 55D, a “deposit amount” in relation to goods is an amount that, in accordance with the provisions of a designated deposit scheme—
is added to the price payable for the goods, and
must be repaid by a person, if the conditions for repayment under the scheme are met.
The deposit amount is to be disregarded in determining the amount of the consideration for the purposes of calculating the value of the supply under this Act.
For the purposes of this section, a person makes a “relevant deposit scheme supply” if—
the person makes the first supply of goods in relation to which a deposit amount is payable (whether or not another person makes a subsequent supply of those goods in relation to which a deposit amount is payable), and
that supply is a taxable (but not a zero-rated) supply.
A person who makes relevant deposit scheme supplies is liable to account for and pay the VAT in respect of the deposit amount that, on the applicable assumption, would have been charged in relation to the proportion of the supplies that is determined, in accordance with provision made by or under regulations under subsection (4), as being attributable to goods in respect of which no deposit amount is repaid.
The applicable assumption is that, in the case of those goods, section 55C(3) is ignored and the deposit amount and the price payable for the goods are regarded instead as indistinguishable parts of the consideration for the supply of the goods.
The Commissioners may by regulations make provision about accounting for VAT in relation to designated deposit schemes including, in particular, provision—
for the making of financial adjustments in connection with the liability to account for and pay VAT under subsection (2);
specifying the methods for calculating those adjustments;
specifying the methods for determining or estimating the proportion of supplies in respect of which deposit amounts are not repaid;
about the manner in which, and the period within which, adjustments are to be made (including adjustments for the correction of errors);
specifying the conditions subject to which adjustments are to be made;
conferring power on the Commissioners to make provision for the purposes of paragraphs (a) to (e) by means of a notice published in accordance with the regulations.
The power to make regulations under subsection (4) includes power to make (or to enable the Commissioners to make)—
different provision for different purposes;
different provision for different areas;
consequential, supplementary, incidental, transitional, transitory or saving provision.
This section applies where—
a person (“P”) receives—
a zero-rated free zone supply of goods, or
a zero-rated free zone supply of services, and
Condition A or B is met.
Condition A is met where, after the supply mentioned in subsection (1)(a), there is, in respect of the goods supplied or the goods on or in relation to which the service is performed (as the case may be), a breach of a requirement relating to the free zone procedure without there having been a zero-rated free zone supply by P of the goods after receiving the supply mentioned in that subsection.
Condition B is met where, after the supply mentioned in subsection (1)(a)—
the goods supplied or the goods on or in relation to which the service is performed (as the case may be) are imported (other than by virtue of Condition A being met) without there having been a zero-rated free zone supply by P of those goods after receiving the supply mentioned in that subsection, and
within the period of three months beginning with the day on which the goods are imported, P does not make a taxable supply of the goods to another person in the course or furtherance of P’s business.
For the purposes of this Act—
a supply of goods identical to the zero-rated free zone supply of goods or a supply of services identical to the zero-rated free zone supply of services (as the case may be) is to be treated as having been made—
by P in the course or furtherance of a business carried on by P, and
to P for the purposes of that business, and
that supply is to be treated—
as taking place on the relevant day,
as being made in the United Kingdom,
as having the same value as the zero-rated free zone supply of goods or the zero-rated free zone supply of services (as the case may be), and
as a taxable (and not a zero-rated) supply.
For the purposes of Condition A, the reference to a breach of a requirement relating to a free zone procedure is to—
a breach, occurring while the procedure has effect, of the terms of the declaration for the procedure or of any other requirement imposed in relation to the procedure by or under Schedule 2 to TCTA 2018, or
a breach, occurring at any time after the declaration was made, of any other requirement imposed by an officer of Revenue and Customs in relation to the goods for which the declaration was made.
The Commissioners may by regulations make provision— in relation to cases set out in the regulations.
modifying the application or effect of this section, or
applying this section, with or without modification,
In this section—
Schedule 11 shall have effect, subject to section 58ZA(5)(a), with respect to the administration, collection and enforcement of VAT.
The Commissioners may make regulations imposing obligations on taxable persons for the purpose of giving effect to international VAT arrangements.
The regulations may require the submission to the Commissioners by taxable persons of statements containing such particulars of— as may be specified in the regulations.
relevant transactions in which the taxable persons are concerned, and
the persons concerned in those transactions,
The regulations may provide for statements about relevant transactions to be submitted at such times and intervals, in such cases and in such form and manner as may be specified—
in the regulations, or
by the Commissioners in accordance with the regulations.
A transaction is a “relevant transaction” for the purposes of this section if information about it could be relevant to any international VAT arrangements.
If any international VAT arrangements have effect—
any Schedule 11 information power is exercisable with respect to matters that are relevant to those arrangements as it is exercisable with respect to matters that are relevant for any of the purposes of this Act, and
any power of an officer of Revenue and Customs to obtain information or documents under any enactment or subordinate legislation relating to VAT is exercisable in relation to matters which are relevant to those arrangements.
The Commissioners may disclose information which is obtained as a result of subsection (5) (and no obligation of secrecy, whether imposed by statute or otherwise, prevents such disclosure) if—
the disclosure is required in accordance with the international VAT arrangements, and
the Commissioners are satisfied that the recipient is bound, or has undertaken, both to observe rules of confidentiality which are no less strict than those applying to the information in the United Kingdom and to use the information only for the purposes contemplated by the arrangements.
Powers are exercisable as a result of subsection (5) only if the Commissioners have given (and not withdrawn) a direction in writing authorising their use (either generally or in relation to specified cases).
The Commissioners may not make regulations under this section, or give a direction under subsection (7), unless they consider that making the regulations or giving the direction would facilitate the administration, collection or enforcement of VAT.
In this section—
Subject to subsction (1A) below if, by the last day on which a taxable person is required in accordance with regulations under this Act to furnish a return for a prescribed accounting period— then that person shall be regarded for the purposes of this section as being in default in respect of that period.
the Commissioners have not received that return, or
the Commissioners have received that return but have not received the amount of VAT shown on the return as payable by him in respect of that period,
Subject to subsections (9) and (10) below, subsection (4) below applies in any case where—
a taxable person is in default in respect of a prescribed accounting period; and
the Commissioners serve notice on the taxable person (a “surcharge liability notice”) specifying as a surcharge period for the purposes of this section a period ending on the first anniversary of the last day of the period referred to in paragraph (a) above and beginning, subject to subsection (3) below, on the date of the notice.
A person shall not be regarded for the purposes of this section as being in default in respect of any prescribed accounting period if that period is one in respect of which he is required by virtue of any order under section 28 to make any payment on account of VAT.
If a surcharge liability notice is served by reason of a default in respect of a prescribed accounting period and that period ends at or before the expiry of an existing surcharge period already notified to the taxable person concerned, the surcharge period specified in that notice shall be expressed as a continuation of the existing surcharge period and, accordingly, for the purposes of this section, that existing period and its extension shall be regarded as a single surcharge period.
Subject to subsections (7) to (10) below, if a taxable person on whom a surcharge liability notice has been served— he shall be liable to a surcharge equal to whichever is the greater of the following, namely, the specified percentage of his outstanding VAT for that prescribed accounting period and £30.
is in default in respect of a prescribed accounting period ending within the surcharge period specified in (or extended by) that notice, and
has outstanding VAT for that prescribed accounting period,
Subject to subsections (7) to (10) below, the specified percentage referred to in subsection (4) above shall be determined in relation to a prescribed accounting period by reference to the number of such periods in respect of which the taxable person is in default during the surcharge period and for which he has outstanding VAT, so that—
in relation to the first such prescribed accounting period, the specified percentage is 2 per cent;
in relation to the second such period, the specified percentage is 5 per cent;
in relation to the third such period, the specified percentage is 10 per cent; and
in relation to each such period after the third, the specified percentage is 15 per cent.
For the purposes of subsections (4) and (5) above a person has outstanding VAT for a prescribed accounting period if some or all of the VAT for which he is liable in respect of that period has not been paid by the last day on which he is required (as mentioned in subsection (1) above) to make a return for that period; and the reference in subsection (4) above to a person’s outstanding VAT for a prescribed accounting period is to so much of the VAT for which he is so liable as has not been paid by that day.
If a person who, apart from this subsection, would be liable to a surcharge under subsection (4) above satisfies the Commissioners or, on appeal, a tribunal that, in the case of a default which is material to the surcharge— he shall not be liable to the surcharge and for the purposes of the preceding provisions of this section he shall be treated as not having been in default in respect of the prescribed accounting period in question (and, accordingly, any surcharge liability notice the service of which depended upon that default shall be deemed not to have been served).
the return or, as the case may be, the VAT shown on the return was despatched at such a time and in such a manner that it was reasonable to expect that it would be received by the Commissioners within the appropriate time limit, or
there is a reasonable excuse for the return or VAT not having been so despatched,
For the purposes of subsection (7) above, a default is material to a surcharge if—
it is the default which, by virtue of subsection (4) above, gives rise to the surcharge; or
it is a default which was taken into account in the service of the surcharge liability notice upon which the surcharge depends and the person concerned has not previously been liable to a surcharge in respect of a prescribed accounting period ending within the surcharge period specified in or extended by that notice.
In any case where— the default shall be left out of account for the purposes of subsections (2) to (5) above.
the conduct by virtue of which a person is in default in respect of a prescribed accounting period is also conduct falling within section 69(1), and
by reason of that conduct, the person concerned is assessed to a penalty under that section,
If the Commissioners, after consultation with the Treasury, so direct, a default in respect of a prescribed accounting period specified in the direction shall be left out of account for the purposes of subsections (2) to (5) above.
For the purposes of this section references to a thing’s being done by any day include references to its being done on that day.
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In any case where— he shall be liable, subject to subsection (6) below, to a penalty equal to the amount of VAT evaded or, as the case may be, sought to be evaded, by his conduct.
for the purpose of evading VAT, a person does any act or omits to take any action, and
his conduct involves dishonesty (whether or not it is such as to give rise to criminal liability),
The reference in subsection (1)(a) above to evading VAT includes a reference to obtaining any of the following sums— in circumstances where the person concerned is not entitled to that sum.
a refund under any regulations made by virtue of section 13(5);
a VAT credit;
a refund under section 35, 36 or 40 of this Act or section 22 of the 1983 Act; and
a repayment under section 39,
The reference in subsection (1) above to the amount of the VAT evaded or sought to be evaded by a person’s conduct shall be construed—
in relation to VAT itself or a VAT credit as a reference to the aggregate of the amount (if any) falsely claimed by way of credit for input tax and the amount (if any) by which output tax was falsely understated; and
in relation to the sums referred to in subsection (2)(a), (c) and (e) above, as a reference to the amount falsely claimed by way of refund or repayment.
Statements made or documents produced by or on behalf of a person shall not be inadmissible in any such proceedings as are mentioned in subsection (5) below by reason only that it has been drawn to his attention— and that he was or may have been induced thereby to make the statements or produce the documents.
that, in relation to VAT, the Commissioners may assess an amount due by way of a civil penalty instead of instituting criminal proceedings and, though no undertaking can be given as to whether the Commissioners will make such an assessment in the case of any person, it is their practice to be influenced by the fact that a person has made a full confession of any dishonest conduct to which he has been a party and has given full facilities for investigation, and
that the Commissioners or, on appeal, a tribunal have power under section 70 to reduce a penalty under this section,
The proceedings mentioned in subsection (4) above are—
any criminal proceedings against the person concerned in respect of any offence in connection with or in relation to VAT, and
any proceedings against him for the recovery of any sum due from him in connection with or in relation to VAT.
Where, by reason of conduct falling within subsection (1) above, a person is convicted of an offence (whether under this Act or otherwise), that conduct shall not also give rise to liability to a penalty under this section.
On an appeal against an assessment to a penalty under this section, the burden of proof as to the matters specified in subsection (1)(a) and (b) above shall lie upon the Commissioners.
For the purposes of this section a taxable person shall be regarded as in default in respect of any prescribed accounting period if the period is one in respect of which he is required, by virtue of an order under section 28, to make any payment on account of VAT and either—
a payment which he is so required to make in respect of that period has not been received in full by the Commissioners by the day on which it became due; or
he would, but for section 59(1A), be in default in respect of that period for the purposes of section 59.
Subject to subsections (10) and (11) below, subsection (4) below applies in any case where—
a taxable person is in default in respect of a prescribed accounting period; and
the Commissioners serve notice on the taxable person (a “surcharge liability notice”) specifying as a surcharge period for the purposes of this section a period which—
begins, subject to subsection (3) below, on the date of the notice; and
ends on the first anniversary of the last day of the period referred to in paragraph (a) above.
If— the surcharge period specified in that notice shall be expressed as a continuation of the existing surcharge period; and, accordingly, the existing period and its extension shall be regarded as a single surcharge period.
a surcharge liability notice is served by reason of a default in respect of a prescribed accounting period, and
that period ends at or before the expiry of an existing surcharge period already notified to the taxable person concerned,
Subject to subsections (7) to (11) below, if— that person shall be liable to a surcharge equal to whichever is the greater of £30 and the specified percentage of the aggregate value of his defaults in respect of that prescribed accounting period.
a taxable person on whom a surcharge liability notice has been served is in default in respect of a prescribed accounting period,
that prescribed accounting period is one ending within the surcharge period specified in (or extended by) that notice, and
the aggregate value of his defaults in respect of that prescribed accounting period is more than nil,
Subject to subsections (7) to (11) below, the specified percentage referred to in subsection (4) above shall be determined in relation to a prescribed accounting period by reference to the number of such periods during the surcharge period which are periods in respect of which the taxable person is in default and in respect of which the value of his defaults is more than nil, so that—
in relation to the first such prescribed accounting period, the specified percentage is 2 per cent.;
in relation to the second such period, the specified percentage is 5 per cent.;
in relation to the third such period, the specified percentage is 10 per cent.; and
in relation to each such period after the third, the specified percentage is 15 per cent.
For the purposes of this section the aggregate value of a person’s defaults in respect of a prescribed accounting period shall be calculated as follows—
where the whole or any part of a payment in respect of that period on account of VAT was not received by the Commissioners by the day on which it became due, an amount equal to that payment or, as the case may be, to that part of it shall be taken to be the value of the default relating to that payment;
if there is more than one default with a value given by paragraph (a) above, those values shall be aggregated;
the total given by paragraph (b) above, or (where there is only one default) the value of the default under paragraph (a) above, shall be taken to be the value for that period of that person’s defaults on payments on account;
the value of any default by that person which is a default falling within subsection (1)(b) above shall be taken to be equal to the amount of any outstanding VAT less the amount of unpaid payments on account; and
the aggregate value of a person’s defaults in respect of that period shall be taken to be the aggregate of—
the value for that period of that person’s defaults (if any) on payments on account; and
the value of any default of his in respect of that period that falls within subsection (1)(b) above.
In the application of subsection (6) above for the calculation of the aggregate value of a person’s defaults in respect of a prescribed accounting period—
the amount of outstanding VAT referred to in paragraph (d) of that subsection is the amount (if any) which would be the amount of that person’s outstanding VAT for that period for the purposes of section 59(4); and
the amount of unpaid payments on account referred to in that paragraph is the amount (if any) equal to so much of any payments on account of VAT (being payments in respect of that period) as has not been received by the Commissioners by the last day on which that person is required (as mentioned in section 59(1)) to make a return for that period.
If a person who, apart from this subsection, would be liable to a surcharge under subsection (4) above satisfies the Commissioners or, on appeal, a tribunal— he shall not be liable to the surcharge and for the purposes of the preceding provisions of this section he shall be treated as not having been in default in respect of the prescribed accounting period in question (and, accordingly, any surcharge liability notice the service of which depended upon that default shall be deemed not to have been served).
in the case of a default that is material for the purposes of the surcharge and falls within subsection (1)(a) above— or
that the payment on account of VAT was despatched at such a time and in such a manner that it was reasonable to expect that it would be received by the Commissioners by the day on which it became due, or
that there is a reasonable excuse for the payment not having been so despatched,
in the case of a default that is material for the purposes of the surcharge and falls within subsection (1)(b) above, that the condition specified in section 59(7)(a) or (b) is satisfied as respects the default,
For the purposes of subsection (8) above, a default is material to a surcharge if—
it is the default which, by virtue of subsection (4) above, gives rise to the surcharge; or
it is a default which was taken into account in the service of the surcharge liability notice upon which the surcharge depends and the person concerned has not previously been liable to a surcharge in respect of a prescribed accounting period ending within the surcharge period specified in or extended by that notice.
In any case where— the default shall be left out of account for the purposes of subsections (2) to (5) above.
the conduct by virtue of which a person is in default in respect of a prescribed accounting period is also conduct falling within section 69(1), and
by reason of that conduct, the person concerned is assessed to a penalty under section 69,
If the Commissioners, after consultation with the Treasury, so direct, a default in respect of a prescribed accounting period specified in the direction shall be left out of account for the purposes of subsections (2) to (5) above.
For the purposes of this section the Commissioners shall be taken not to receive a payment by the day on which it becomes due unless it is made in such a manner as secures (in a case where the payment is made otherwise than in cash) that, by the last day for the payment of that amount, all the transactions can be completed that need to be completed before the whole amount of the payment becomes available to the Commissioners.
In determining for the purposes of this section whether any person would, but for section 59(1A), be in default in respect of any period for the purposes of section 59, subsection (12) above shall be deemed to apply for the purposes of section 59 as it applies for the purposes of this section.
For the purposes of this section references to a thing’s being done by any day include references to its being done on that day.
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Where it appears to the Commissioners— the Commissioners may serve a notice under this section on the body corporate and on the named officer.
that a body corporate is liable to a penalty under section 60, and
that the conduct giving rise to that penalty is, in whole or in part, attributable to the dishonesty of a person who is, or at the material time was, a director or managing officer of the body corporate (a “named officer”),
A notice under this section shall state—
the amount of the penalty referred to in subsection (1)(a) above (“the basic penalty”), and
that the Commissioners propose, in accordance with this section, to recover from the named officer such portion (which may be the whole) of the basic penalty as is specified in the notice.
Where a notice is served under this section, the portion of the basic penalty specified in the notice shall be recoverable from the named officer as if he were personally liable under section 60 to a penalty which corresponds to that portion; and the amount of that penalty may be assessed and notified to him accordingly under section 76.
Where a notice is served under this section—
the amount which, under section 76, may be assessed as the amount due by way of penalty from the body corporate shall be only so much (if any) of the basic penalty as is not assessed on and notified to a named officer by virtue of subsection (3) above; and
the body corporate shall be treated as discharged from liability for so much of the basic penalty as is so assessed and notified.
No appeal shall lie against a notice under this section as such but—
where a body corporate is assessed as mentioned in subsection (4)(a) above, the body corporate may appeal against the Commissioners' decision as to its liability to a penalty and against the amount of the basic penalty as if it were specified in the assessment; and
where an assessment is made on a named officer by virtue of subsection (3) above, the named officer may appeal against the Commissioners' decision that the conduct of the body corporate referred to in subsection (1)(b) above is, in whole or part, attributable to his dishonesty and against their decision as to the portion of the penalty which the Commissioners propose to recover from him.
In this section a“managing officer”, in relation to a body corporate, means any manager, secretary or other similar officer of the body corporate or any person purporting to act in any such capacity or as a director; and where the affairs of a body corporate are managed by its members, this section shall apply in relation to the conduct of a member in connection with his functions of management as if he were a director of the body corporate.
This section applies in each of the following cases, namely—
where a section 28 accounting period ends within a surcharge period begun or extended by the service on a taxable person (whether before or after the coming into force of section 59A) of a surcharge liability notice under section 59; and
where a prescribed accounting period which is not a section 28 accounting period ends within a surcharge period begun or extended by the service on a taxable person of a surcharge liability notice under section 59A.
In a case falling within subsection (1)(a) above section 59A shall have effect as if—
subject to paragraph (b) below, the section 28 accounting period were deemed to be a period ending within a surcharge period begun or, as the case may be, extended by a notice served under section 59A; but
any question— were to be determined as it would be determined for the purposes of section 59.
whether a surcharge period was begun or extended by the notice, or
whether the taxable person was in default in respect of any prescribed accounting period which was not a section 28 accounting period but ended within the surcharge period begun or extended by that notice,
In a case falling within subsection (1)(b) above section 59 shall have effect as if—
subject to paragraph (b) below, the prescribed accounting period that is not a section 28 accounting period were deemed to be a period ending within a surcharge period begun or, as the case may be, extended by a notice served under section 59;
any question— were to be determined as it would be determined for the purposes of section 59A; and
whether a surcharge period was begun or extended by the notice, or
whether the taxable person was in default in respect of any prescribed accounting period which was a section 28 accounting period but ended within the surcharge period begun or extended by that notice,
that person were to be treated as having had outstanding VAT for a section 28 accounting period in any case where the aggregate value of his defaults in respect of that period was, for the purposes of section 59A, more than nil.
In this section “ a section 28 accounting period ”, in relation to a taxable person, means any prescribed accounting period ending on or after the day on which the Finance Act 1996 was passed in respect of which that person is liable by virtue of an order under section 28 to make any payment on account of VAT.
Subject to subsections (3) and (4) below, where— the person giving the certificate shall be liable to a penalty.
a person to whom one or more supplies are, or are to be, made— and
gives to the supplier a certificate that the supply or supplies fall, or will fall, wholly or partly within any of the Groups of Schedule 7A, Group 5 or 6 of Schedule 8 or Group 1 of Schedule 9, or
gives to the supplier a certificate for the purposes of section 18B(2)(d) or 18C(1)(c),
the certificate is incorrect,
The amount of the penalty shall be equal to the difference between the amount of the VAT which would have been chargeable on the supply or supplies if the certificate had been correct and the amount of VAT actually so chargeable.
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The giving or preparing of a certificate shall not give rise to a penalty under this section if the person who gave or prepared it satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for his having given or prepared it.
Where— the person giving the certificate is to be liable to a penalty.
a person gives a certificate for the purposes of Note (5R) to Group 12 of Schedule 8 with respect to a supply of a motor vehicle, and
the certificate is incorrect,
Where by reason of giving or preparing a certificate a person is convicted of an offence (whether under this Act or otherwise), the giving of the certificate shall not also give rise to a penalty under this section.
The amount of the penalty shall be equal to—
in a case where the penalty is imposed by virtue of subsection (1) above, the difference between—
the amount of the VAT which would have been chargeable on the supply or supplies if the certificate had been correct; and
the amount of VAT actually chargeable;
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in a case where it is imposed by virtue of subsection (1B), the difference between—
the amount of the VAT which would have been chargeable on the supply if the certificate had been correct, and
the amount of VAT actually chargeable.
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In any case where, for a prescribed accounting period— and the circumstances are as set out in subsection (2) below, the person concerned shall be liable, subject to subsections (10) and (11) below, to a penalty equal to 15 per cent. of the VAT which would have been lost if the inaccuracy had not been discovered.
a return is made which understates a person’s liability to VAT or overstates his entitlement to a VAT credit, or
an assessment is made which understates a person’s liability to VAT and, at the end of the period of 30 days beginning on the date of the assessment, he has not taken all such steps as are reasonable to draw the understatement to the attention of the Commissioners,
The circumstances referred to in subsection (1) above are that the VAT for the period concerned which would have been lost if the inaccuracy had not been discovered equals or exceeds whichever is the lesser of £1,000,000 and 30 per cent. of the relevant amount for that period.
Any reference in this section to the VAT for a prescribed accounting period which would have been lost if an inaccuracy had not been discovered is a reference to the amount of the understatement of liability or, as the case may be, overstatement of entitlement referred to, in relation to that period, in subsection (1) above.
In this section“the relevant amount”, in relation to a prescribed accounting period, means—
for the purposes of a case falling within subsection (1)(a) above, the gross amount of VAT for that period; and
for the purposes of a case falling within subsection (1)(b) above, the true amount of VAT for that period.
In this section“the gross amount of tax”, in relation to a prescribed accounting period, means the aggregate of the following amounts, that is to say—
the amount of credit for input tax which (subject to subsection (8) below) should have been stated on the return for that period, and
the amount of output tax which (subject to that subsection) should have been so stated.
In relation to any return which, in accordance with prescribed requirements, includes a single amount as the aggregate for the prescribed accounting period to which the return relates of— references in this section to the amount of credit for input tax shall have effect (so far as they would not so have effect by virtue of subsection (9) below) as references to the amount of that aggregate.
the amount representing credit for input tax, and
any other amounts representing refunds or repayments of VAT to which there is an entitlement,
In this section“the true amount of VAT”, in relation to a prescribed accounting period, means the amount of VAT which was due from the person concerned for that period or, as the case may be, the amount of the VAT credit (if any) to which he was entitled for that period.
Where— it shall be assumed for the purposes of this section that the statements made by each of those returns (so far as they are not inaccurate in any other respect) are correct statements for the accounting period to which it relates.
a return for any prescribed accounting period overstates or understates to any extent a person’s liability to VAT or his entitlement to a VAT credit, and
that return is corrected, in such circumstances and in accordance with such conditions as may be prescribed, by a return for a later such period which understates or overstates, to the corresponding extent, that liability or entitlement,
This section shall have effect in relation to a body which is registered and to which section 33 applies as if—
any reference to a VAT credit included a reference to a refund under that section, and
any reference to credit for input tax included a reference to VAT chargeable on supplies, acquisitions or importations which were not for the purposes of any business carried on by the body.
Conduct falling within subsection (1) above shall not give rise to liability to a penalty under this section if—
the person concerned satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for the conduct, or
at a time when he had no reason to believe that enquiries were being made by the Commissioners into his affairs, so far as they relate to VAT, the person concerned furnished to the Commissioners full information with respect to the inaccuracy concerned.
Where, by reason of conduct falling within subsection (1) above— that conduct shall not also give rise to liability to a penalty under this section.
a person is convicted of an offence (whether under this Act or otherwise), or
a person is assessed to a penalty under section 60,
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In any case where— the inaccuracy shall be regarded, subject to subsections (5) and (6) below, as material for the purposes of this section.
for a prescribed accounting period (including one beginning before the commencement of this section), a return has been made which understates a person’s liability to VAT or overstates his entitlement to a VAT credit; and
the VAT for that period which would have been lost if the inaccuracy had not been discovered equals or exceeds whichever is the lesser of £500,000 and 10 per cent. of the gross amount of tax for that period,
Subsection (3) below applies in any case where—
there is a material inaccuracy in respect of any prescribed accounting period;
the Commissioners serve notice on the person concerned (a “penalty liability notice”) specifying a penalty period for the purposes of this section;
that notice is served before the end of 5 consecutive prescribed accounting periods beginning with the period in respect of which there was the material inaccuracy; and
the period specified in the penalty liability notice as the penalty period is the period of 8 consecutive prescribed accounting periods beginning with that in which the date of the notice falls.
If, where a penalty liability notice has been served on any person, there is a material inaccuracy in respect of any of the prescribed accounting periods falling within the penalty period specified in the notice, that person shall be liable, except in relation to the first of those periods in respect of which there is a material inaccuracy, to a penalty equal to 15 per cent. of the VAT for the prescribed accounting period in question which would have been lost if the inaccuracy had not been discovered.
Subsections (3), (5), (8) and (9) of section 63 shall apply for the purposes of this section as they apply for the purposes of that section.
An inaccuracy shall not be regarded as material for the purposes of this section if—
the person concerned satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for the inaccuracy; or
at a time when he had no reason to believe that enquiries were being made by the Commissioners into his affairs, so far as they relate to VAT, the person concerned furnished to the Commissioners full information with respect to the inaccuracy.
Where by reason of conduct falling within subsection (1) above— the inaccuracy concerned shall not be regarded as material for the purposes of this section except, in the case of an inaccuracy by reason of which a person is assessed to a penalty under section 63, for the purposes of subsection (2)(a) above.
a person is convicted of an offence (whether under this Act or otherwise); or
a person is assessed to a penalty under section 60 or 63,
In any case where subsection (5) or (6) above applies, any penalty liability notice the service of which depended upon the inaccuracy concerned shall be deemed not to have been served.
Where— that person shall be liable to a penalty of £100 in respect of the statement so falling.
a section 55A statement containing a material inaccuracy has been submitted by any person to the Commissioners;
the Commissioners have, within 6 months of discovering the inaccuracy, issued that person with a written warning identifying that statement and stating that future inaccuracies might result in the service of a notice for the purposes of this section;
another section 55A statement containing a material inaccuracy (“the second inaccurate statement”) has been submitted by that person to the Commissioners;
the submission date for the second inaccurate statement fell within the period of 2 years beginning with the day after the warning was issued;
the Commissioners have, within 6 months of discovering the inaccuracy in the second inaccurate statement, served that person with a notice identifying that statement and stating that future inaccuracies will attract a penalty under this section;
yet another section 55A statement containing a material inaccuracy is submitted by that person to the Commissioners; and
the submission date for the statement falling within paragraph (f) above is not more than 2 years after the service of the notice or the date on which any previous statement attracting a penalty was submitted by that person to the Commissioners,
Subject to subsections (3) and (4) below, a section 55A statement shall be regarded for the purposes of this section as containing a material inaccuracy if, having regard to the matters required to be included in the statement, the inclusion or omission of any information from the statement is misleading in any material respect.
An inaccuracy contained in a section 55A statement shall not be regarded as material for the purposes of this section if—
the person who submitted the statement satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for the inaccuracy; or
at a time when he had no reason to believe that enquiries were being made by the Commissioners into his affairs, that person furnished the Commissioners with full information with respect to the inaccuracy.
Where, by reason of the submission of a statement containing a material inaccuracy by any person, that person is convicted of an offence (whether under this Act or otherwise), the inaccuracy to which the conviction relates shall be regarded for the purposes of this section as not being material.
Where the only statement identified in a warning or notice served for the purposes of subsection (1)(b) or (e) above is one which (whether by virtue of either or both of subsections (3) and (4) above or otherwise) is regarded as containing no material inaccuracies, that warning or notice shall be deemed not to have been issued or served for those purposes.
In this section—
“EC sales statement” means any statement which is required to be submitted to the Commissioners in accordance with regulations under paragraph 2(3) of Schedule 11; and
in relation to VAT itself or a VAT credit, as a reference to the aggregate of the amount (if any) falsely claimed by way of credit for input tax and the amount (if any) by which output tax was falsely understated, and
in relation to a refund or repayment falling within paragraph (b) or (d) above, as a reference to the amount falsely claimed by way of refund or repayment.
“credit voucher” has the meaning given by paragraph 3(1) above;
a museum, gallery, art exhibition or zoo; or
a theatrical, musical or choreographic performance of a cultural nature.
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If, by the last day on which a person is required in accordance with regulations under this Act to submit a section 55A statement for any prescribed period to the Commissioners, the Commissioners have not received that statement, that person shall be regarded for the purposes of this section as being in default in relation to that statement until it is submitted.
Where any person is in default in respect of any section 55A statement the Commissioners may serve notice on him stating—
that he is in default in relation to the statement specified in the notice;
that (subject to the liability mentioned in paragraph (d) below) no action will be taken if he remedies the default before the end of the period of 14 days beginning with the day after the service of the notice;
that if the default is not so remedied, that person will become liable in respect of his default to penalties calculated on a daily basis from the end of that period in accordance with the following provisions of this section; and
that that person will become liable, without any further notices being served under this section, to penalties under this section if he commits any more defaults before a period of 12 months has elapsed without his being in default.
Where a person has been served with a notice under subsection (2) above, he shall become liable under this section—
if the statement to which the notice relates is not submitted before the end of the period of 14 days beginning with the day after the service of the notice, to a penalty in respect of that statement; and
whether or not that statement is so submitted, to a penalty in respect of any section 55A statement the last day for the submission of which is after the service and before the expiry of the notice and in relation to which he is in default.
For the purposes of this section a notice served on any person under subsection (2) above shall continue in force—
except in a case falling within paragraph (b) below, until the end of the period of 12 months beginning with the day after the service of the notice; and
where at any time in that period of 12 months that person is in default in relation to any section 55A statement other than one in relation to which he was in default when the notice was served, until a period of 12 months has elapsed without that person becoming liable to a penalty under this section in respect of any section 55A statement .
The amount of any penalty to which a person who has been served with a notice under subsection (2) above is liable under this section shall be whichever is the greater of £50 and—
in the case of a liability in respect of the statement to which the notice relates, a penalty of £5 for every day for which the default continues after the end of the period of 14 days mentioned in subsection (3)(a) above, up to a maximum of 100 days; and
in the case of a liability in respect of any other statement, a penalty of the relevant amount for every day for which the default continues, up to a maximum of 100 days.
In subsection (5)(b) above “the relevant amount”, in relation to a person served with a notice under subsection (2) above, means—
£5, where (that person not having been liable to a penalty under this section in respect of the statement to which the notice relates) the statement in question is the first statement in respect of which that person has become liable to a penalty while the notice has been in force;
£10 where the statement in question is the second statement in respect of which he has become so liable while the notice has been in force (counting the statement to which the notice relates where he has become liable in respect of that statement); and
£15 in any other case.
If a person who, apart from this subsection, would be liable to a penalty under this section satisfies the Commissioners or, on appeal a tribunal, that— he shall be treated for the purposes of this section and sections 59 to 65 and 67 to 71, 73... and 76 and Schedule 24 to the Finance Act 2007 as not having been in default in relation to that statement and, accordingly, he shall not be liable to any penalty under this section or that Schedule in respect of that statement and any notice served under subsection (2) above exclusively in relation to the failure to submit that statement shall have no effect for the purposes of this section.
a section 55A statement has been submitted at such a time and in such a manner that it was reasonable to expect that it would be received by the Commissioners within the appropriate time limit; or
there is a reasonable excuse for such a statement not having been dispatched,
If it appears to the Treasury that there has been a change in the value of money since 1st January 1993 or, as the case may be, the last occasion when the sums specified in subsections (5) and (6) above were varied, they may by order substitute for the sums for the time being specified in those subsections such other sums as appear to them to be justified by the change; but an order under this section shall not apply to any default in relation to a statement the last day for the submission of which was before the order comes into force.
In this section, “section 55A statement” means a statement which is required to be submitted to the Commissioners in accordance with regulations under paragraph 2(3A) of Schedule 11.
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In any case where— he shall be liable, subject to subsections (8) and (9) below, to a penalty equal to the specified percentage of the relevant VAT or, if it is greater or the circumstances are such that there is no relevant VAT, to a penalty of £50.
a person fails to comply with any of paragraphs 5, 6 and 14(2) and (3) of Schedule 1 with paragraph 3 of Schedule 2 or with paragraph 3 or 8(2) of Schedule 3, or
a person fails to comply with a requirement of regulations under paragraph 2(4) of Schedule 11, or
an unauthorised person issues one or more invoices showing an amount as being VAT or as including an amount attributable to VAT,
In subsection (1)(c) above,“an unauthorised person” means anyone other than—
a person registered under this Act; or
a body corporate treated for the purposes of section 43 as a member of a group; or
a person treated as a taxable person under regulations made under section 46(4); or
a person authorised to issue an invoice under regulations made under paragraph 2(12) of Schedule 11; or
a person acting on behalf of the Crown.
In subsection (1) above“relevant VAT” means (subject to subsections (5) and (6) below)—
in relation to a person’s failure to comply with paragraph 5 or 6 of Schedule 1, paragraph 3 of Schedule 2 or paragraph 3 of Schedule 3, the VAT (if any) for which he is liable for the period beginning on the date with effect from which he is, in accordance with that paragraph, required to be registered and ending on the date on which the Commissioners received notification of, or otherwise became fully aware of, his liability to be registered; and
in relation to a person’s failure to comply with sub-paragraph (2) or (3) of paragraph 14 of Schedule 1 or with sub-paragraph (2) of paragraph 8 of Schedule 3, the VAT (if any) for which, but for any exemption from registration, he would be liable for the period beginning on the date of the change or alteration referred to in that sub-paragraph and ending on the date on which the Commissioners received notification of, or otherwise became fully aware of, that change or alteration; and
in relation to a person’s failure to comply with a requirement of regulations under paragraph 2(4) of Schedule 11, the VAT on the acquisition to which the failure relates; and
in relation to the issue of one or more invoices as are referred to in subsection (1)(c) above, the amount which is, or the aggregate of the amounts which are—
shown on the invoice or invoices as VAT, or
to be taken as representing VAT.
For the purposes of subsection (1) above the specified percentage is—
10 per cent. where the relevant VAT is given by subsection (3)(a) or (b) above and the period referred to in that paragraph does not exceed 9 months or where the relevant VAT is given by subsection (3)(c) above and the failure in question did not continue for more than 3 months;
20 per cent. where that VAT is given by subsection (3)(a) or (b) above and the period so referred to exceeds 9 months but does not exceed 18 months or where that VAT is given by subsection (3)(c) and the failure in question continued for more than 3 months but did not continue for more than 6 months; and
30 per cent. in any other case.
Where— then, in the determination of the amount of the relevant VAT in relation to that failure, an allowance shall be made for the VAT paid under the law of that member State; and the amount of the allowance shall not exceed the amount of VAT due on the acquisition but shall otherwise be equal to the amount of VAT which the Commissioners are satisfied has been paid on that supply under the law of that member State.
the amount of VAT which (apart from this subsection) would be treated for the purposes of subsection (1) above as the relevant VAT in relation to a failure mentioned in subsection (3)(a) above includes VAT on an acquisition of goods from another member State; and
the Commissioners are satisfied that VAT has been paid under the law of another member State on the supply in pursuance of which those goods were acquired,
Where— then, in the determination of the amount of the relevant VAT in relation to that failure, an allowance shall be made for the VAT paid under the law of the other member State; and the amount of the allowance shall not exceed the amount of VAT chargeable by virtue of section 7(4) on that supply but shall otherwise be equal to the amount of VAT which the Commissioners are satisfied has been paid on that supply under the law of that other member State.
the amount of VAT which (apart from this subsection) would be treated for the purposes of subsection (1) above as the relevant VAT in relation to a failure mentioned in subsection (3)(a) above includes VAT chargeable by virtue of section 7(4) on any supply; and
the Commissioners are satisfied that VAT has been paid under the law of another member State on that supply,
This section shall have effect in relation to any invoice which— as if the person issuing the invoice were an unauthorised person and that amount were shown on the invoice as an amount attributable to VAT.
for the purposes of any provision made under section 54(3) shows an amount as included in the consideration for any supply, and
either—
fails to comply with the requirements of any regulations under that section; or
is issued by a person who is not for the time being authorised to do so for the purposes of that section,
Conduct falling within subsection (1) above shall not give rise to liability to a penalty under this section if the person concerned satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for his conduct.
Where, by reason of conduct falling within subsection (1) above— that conduct shall not also give rise to liability to a penalty under this section.
a person is convicted of an offence (whether under this Act or otherwise), or
a person is assessed to a penalty under section 60,
If it appears to the Treasury that there has been a change in the value of money since 25th July 1985 or, as the case may be, the last occasion when the power conferred by this subsection was exercised, they may by order substitute for the sum for the time being specified in subsection (1) above such other sum as appears to them to be justified by the change.
An order under subsection (10) above shall not apply in relation to a failure to comply which ended on or before the date on which the order comes into force.
This section applies where—
in accordance with regulations under section 51 of the Finance Act 1997 (enforcement by distress), a distress is authorised to be levied on the goods and chattels of a person (a “person in default”) who has refused or neglected to pay any VAT due or any amount recoverable as if it were VAT due, and
the person levying the distress and the person in default have entered into a walking possession agreement, as defined in subsection (2) below.
In this section a “walking possession agreement” means an agreement under which, in consideration of the property distrained upon being allowed to remain in the custody of the person in default and of the delaying of its sale, the person in default—
acknowledges that the property specified in the agreement is under distraint and held in walking possession; and
undertakes that, except with the consent of the Commissioners and subject to such conditions as they may impose, he will not remove or allow the removal of any of the specified property from the premises named in the agreement.
Subject to subsection (4) below, if the person in default is in breach of the undertaking contained in a walking possession agreement, he shall be liable to a penalty equal to half of the VAT or other amount referred to in subsection (1)(a) above.
The person in default shall not be liable to a penalty under subsection (3) above if he satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for the breach in question.
This section extends only to Northern Ireland.
If any person fails to comply with a regulatory requirement, that is to say, a requirement imposed under— he shall be liable, subject to subsections (8) and (9) below and section 76(6), to a penalty equal to the prescribed rate multiplied by the number of days on which the failure continues (up to a maximum of 100) or, if it is greater, to a penalty of £50.
paragraph 11 or 12 of Schedule 1, paragraph 7 of Schedule 1A ... , paragraph 5 of Schedule 3A or paragraph 9(1) or (2)(a) of Schedule 4B or paragraph 5 of Schedule 3A ; or
any regulations made under section 48 requiring a VAT representative, for the purposes of registration, to notify the Commissioners that his appointment has taken effect or has ceased to have effect; or
paragraph 6(1) or 7 of Schedule 11; or
paragraph 2(3B) of Schedule 11; or
any regulations or rules made under this Act, other than rules made under paragraph 9 of Schedule 12; or
any order made by the Treasury under this Act; or
any regulations made under the European Communities Act 1972 and relating to VAT, ; or
section 18A in the form of a condition imposed by the Commissioners under subsection (1) or (6) of that section,or—
section 77E (display of VAT registration numbers on online marketplaces),
If any person fails to comply with a requirement to preserve records imposed under ... paragraph 6(3) of Schedule 11, he shall be liable, subject to the following provisions of this section, to a penalty of £500.
Subject to subsection (4) below, in relation to a failure to comply with any regulatory requirement, the prescribed rate shall be determined by reference to the number of occasions in the period of 2 years preceding the beginning of the failure in question on which the person concerned has previously failed to comply with that requirement and, subject to the following provisions of this section, the prescribed rate shall be—
if there has been no such previous occasion in that period, £5;
if there has been only one such occasion in that period, £10; and
in any other case, £15.
For the purposes of subsection (3) above—
a failure to comply with any regulatory requirement shall be disregarded if, as a result of the failure, the person concerned became liable for a surcharge under section 59 or 59A to a penalty point or a penalty under Schedule 24 to the Finance Act 2021;
a continuing failure to comply with any such requirement shall be regarded as one occasion of failure occurring on the date on which the failure began;
if the same omission gives rise to a failure to comply with more than one such requirement, it shall nevertheless be regarded as the occasion of only one failure; and
in relation to a failure to comply with a requirement imposed by regulations as to the furnishing of a return or as to the payment of VAT, a previous failure to comply with such a requirement as to either of those matters shall be regarded as a previous failure to comply with the requirement in question.
Where the failure referred to in subsection (1) above consists— the prescribed rate shall be whichever is the greater of that which is appropriate under subsection (3)(a) to (c) above and an amount equal to one-sixth, one-third or one-half of 1 per cent. of the VAT due in respect of that period, the appropriate fraction being determined according to whether subsection (3)(a), (b) or (c) above is applicable.
in not paying the VAT due in respect of any period within the time required by regulations under section 25(1), or
in not furnishing a return in respect of any period within the time required by regulations under paragraph 2(1) of Schedule 11,
For the purposes of subsection (5) above, the VAT due—
if the person concerned has furnished a return, shall be taken to be the VAT shown in the return as that for which he is accountable in respect of the period in question, and
in any other case, shall be taken to be such VAT as has been assessed for that period and notified to him under section 73(1).
If it appears to the Treasury that there has been a change in the value of money since 25th July 1985 or, as the case may be, the last occasion when the power conferred by this subsection was exercised, they may by order substitute for the sums for the time being specified in subsections (2) and (3)(a) to (c) above such other sums as appear to them to be justified by the change; but an order under this subsection shall not apply to a failure which began before the date on which the order comes into force.
A failure by any person to comply with any regulatory requirement or the requirement referred to in subsection (2) above shall not give rise to liability to a penalty under this section if the person concerned satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for the failure; and a failure in respect of which the Commissioners or tribunal have been so satisfied shall be disregarded for the purposes of subsection (3) above.
Where, by reason of conduct falling within subsection (1) or (2) above— that conduct shall not also give rise to liability to a penalty under this section.
a person is convicted of an offence (whether under this Act or otherwise), or
a person is assessed to a surcharge under section 59 or 59A, or
a person is assessed to a penalty under section 60 or 63 or a penalty under Schedule 24 to the Finance Act 2007, or
a person is awarded a penalty point or assessed to a penalty under Schedule 24 to the Finance Act 2021,
This section applies in relation to failures occurring before as well as after the commencement of this Act, and for that purpose any reference to any provision of this Act includes a reference to the corresponding provision of the enactments repealed by this Act.
Where a person is liable to a penalty under section 60, 63, 64 , 67 , 69A or 69Cor under paragraph 10 of Schedule 11A, the Commissioners or, on appeal, a tribunal may reduce the penalty to such amount (including nil) as they think proper.
In the case of a penalty reduced by the Commissioners under subsection (1) above, a tribunal, on an appeal relating to the penalty, may cancel the whole or any part of the reduction made by the Commissioners.
None of the matters specified in subsection (4) below shall be matters which the Commissioners or any tribunal shall be entitled to take into account in exercising their powers under this section.
Those matters are—
the insufficiency of the funds available to any person for paying any VAT due or for paying the amount of the penalty;
the fact that there has, in the case in question or in that case taken with any other cases, been no or no significant loss of VAT;
the fact that the person liable to the penalty or a person acting on his behalf has acted in good faith.
In the application of subsections (3) and (4) in relation to a penalty under section 69C, subsection (4) has effect with the omission of paragraphs (b) and (c).
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For the purpose of any provision of sections 59 60 to 70 which refers to a reasonable excuse for any conduct—
an insufficiency of funds to pay any VAT due is not a reasonable excuse; and
where reliance is placed on any other person to perform any task, neither the fact of that reliance nor any dilatoriness or inaccuracy on the part of the person relied upon is a reasonable excuse.
In relation to a prescribed accounting period, any reference in sections 59 60 to 69 to credit for input tax includes a reference to any sum which, in a return for that period, is claimed as a deduction from VAT due.
If any person is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of VAT by him or any other person, he shall be liable—
on summary conviction, to a penalty of the statutory maximum £20,000 or of three times the amount of the VAT, whichever is the greater, or to imprisonment for a term not exceeding 6 months or to both; or
on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 14 years or to both.
the Police Service of Northern Ireland;
on summary conviction, to a penalty of the statutory maximum £20,000 or, where subsection (4) or (5) below applies, to the alternative penalty specified in that subsection if it is greater, or to imprisonment for a term not exceeding 6 months or to both; or
on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 14 years or to both.
In any case where— the alternative penalty referred to in subsection (3)(i) above is a penalty equal to three times the aggregate of the amount (if any) falsely claimed by way of credit for input tax and the amount (if any) by which output tax was falsely understated.
the document referred to in subsection (3)(a) above is a return required under this Act, or
the information referred to in subsection (3)(b) above is contained in or otherwise relevant to such a return,
In any case where— the alternative penalty referred to in subsection (3)(i) above is a penalty equal to 3 times the amount falsely claimed.
the document referred to in subsection (3)(a) above is a claim for a refund under section 35 or 36 of this Act or section 22 of the 1983 Act, ... or for a repayment under section 39, or
the information referred to in subsection (3)(b) above is contained in or otherwise relevant to such a claim,
The reference in subsection (3)(a) above to furnishing, sending or otherwise making use of a document which is false in a material particular, with intent to deceive, includes a reference to furnishing, sending or otherwise making use of such a document, with intent to secure that a machine will respond to the document as if it were a true document.
Any reference in subsection (3)(a) or (6) above to producing, furnishing or sending a document includes a reference to causing a document to be produced, furnished or sent.
Where a person’s conduct during any specified period must have involved the commission by him of one or more offences under the preceding provisions of this section, then, whether or not the particulars of that offence or those offences are known, he shall, by virtue of this subsection, be guilty of an offence and liable—
on summary conviction, to a penalty of the statutory maximum £20,000 or, if greater, 3 times the amount of any VAT that was or was intended to be evaded by his conduct, or to imprisonment for a term not exceeding 6 months or to both, or
on conviction on indictment to a penalty of any amount or to imprisonment for a term not exceeding 14 years or to both.
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If any person acquires possession of or deals with any goods, or accepts the supply of any services, having reason to believe that VAT on the supply of the goods or services... or on the importation of the goods ... has been or will be evaded, he shall be liable on summary conviction to a penalty of level 5 on the standard scale £20,000 or three times the amount of the VAT, whichever is the greater.
If any person supplies or is supplied with goods or services in contravention of paragraph 4(2) of Schedule 11, he shall be liable on summary conviction to a penalty of level 5 on the standard scale £20,000.
Subject to subsection (13) below, sections 145 to 155 of the Management Act (proceedings for offences, mitigation of penalties and certain other matters) shall apply in relation to offences under this Act (which include any act or omission in respect of which a penalty is imposed) and penalties imposed under this Act as they apply in relation to offences and penalties under the customs and excise Acts as defined in that Act; and accordingly in section 154(2) as it applies by virtue of this subsection the reference to duty shall be construed as a reference to VAT.
In subsection (12) above the references to penalties do not include references to penalties under sections 60 to 70.
This section applies where a person fails to comply with a requirement of regulations under section 13(5)(a) or (b) of the Finance Act 1999 (gold: duties to keep records or provide information). Where this section applies, the provisions of section 69 do not apply.
A person who fails to comply with any such requirement is liable to a penalty not exceeding 17.5% of the value of the transactions to which the failure relates.
For the purposes of assessing the amount of any such penalty, the value of the transactions to which the failure relates shall be determined by the Commissioners to the best of their judgement and notified by them to the person liable.
No assessment of a penalty under this section shall be made more than 2 years after evidence of facts sufficient in the opinion of the Commissioners to justify the making of the assessment comes to their knowledge.
The reference in subsection (4) above to facts sufficient to justify the making of the assessment is to facts sufficient—
to indicate that there had been a failure to comply with any such requirement as is referred to in subsection (1) above, and
to determine the value of the transactions to which the failure relates.
A failure by any person to comply with any such requirement as is mentioned in subsection (1) above shall not give rise to a liability to a penalty under this section if the person concerned satisfies the Commissioners or, on appeal, a tribunal, that there is a reasonable excuse for the failure.
Where by reason of conduct falling within subsection (1) above a person— that conduct shall not also give rise to a penalty under this section.
is assessed to a penalty under section 60 or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007, or
is convicted of an offence (whether under this Act or otherwise),
If any person fails to comply with a requirement imposed under paragraph 6A(1) of Schedule 11, the person is liable to a penalty.
The amount of the penalty is equal to £200 multiplied by the number of days on which the failure continues (up to a maximum of 30 days).
If any person fails to comply with a requirement to preserve records imposed under paragraph 6A(6) of Schedule 11, the person is liable to a penalty of £500.
If it appears to the Treasury that there has been a change in the value of money since— they may by order substitute for the sums for the time being specified in subsections (2) and (3) such other sums as appear to them to be justified by the change.
the day on which the Finance Act 2006 is passed, or
(if later) the last occasion when the power conferred by this subsection was exercised,
But any such order does not apply to a failure which began before the date on which the order comes into force.
A failure by any person to comply with any requirement mentioned in subsection (1) or (3) does not give rise to a liability to a penalty under this section if the person concerned satisfies— that there is a reasonable excuse for the failure.
the Commissioners, or
on appeal, a tribunal,
If by reason of conduct falling within subsection (1) or (3) a person— that conduct does not also give rise to a penalty under this section.
is assessed to a penalty under section 60 or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007, or
is convicted of an offence (whether under this Act or otherwise),
A person (T) is liable to a penalty where—
T has entered into a transaction involving the making of a supply by or to T (“the transaction”), and
conditions A to C are satisfied.
Condition A is that the transaction was connected with the fraudulent evasion of VAT by another person (whether occurring before or after T entered into the transaction).
Condition B is that T knew or should have known that the transaction was connected with the fraudulent evasion of VAT by another person.
Condition C is that HMRC have issued a decision (“the denial decision”) in relation to the supply which—
prevents T from exercising or relying on a VAT right in relation to the supply,
is based on the facts which satisfy conditions A and B in relation to the transaction, and
applies a relevant principle of EU case law (whether or not in circumstances that are the same as the circumstances in which any relevant case was decided by the European Court of Justice).
In this section “VAT right” includes the right to deduct input tax, the right to apply a zero rate to international supplies and any other right connected with VAT in relation to a supply.
The relevant principles of EU case law for the purposes of this section are the principles established by the European Court of Justice in the following cases— as developed or extended by that Court in any other cases relating to the denial or refusal of a VAT right in order to prevent abuses of the VAT system which were decided before the coming into force of section 42 of TCTA 2018.
joined Cases C-439/04 and C-440/04 Axel Kittel v. Belgian State; Belgium v. Recolta Recycling (denial of right to deduct input tax), and
Case C-273/11 (b)Mecsek-Gabona Kft v Nemzeti Adó- és Vámhivatal Dél-dunántúli Regionális Adó Főigazgatósága (denial of right to zero rate),
The penalty payable under this section is 30% of the potential lost VAT.
The potential lost VAT is—
the additional VAT which becomes payable by T as a result of the denial decision,
the VAT which is not repaid to T as a result of that decision, or
in a case where as a result of that decision VAT is not repaid to T and additional VAT becomes payable by T, the aggregate of the VAT that is not repaid and the additional VAT.
Where T is liable to a penalty under this section the Commissioners may assess the amount of the penalty and notify it to T accordingly.
No assessment of a penalty under this section may be made more than two years after the denial decision is issued.
The assessment of a penalty under this section may be made immediately after the denial decision is made (and notice of the assessment may be given to T in the same document as the notice of the decision).
Where by reason of actions involved in making a claim to exercise or rely on a VAT right in relation to a supply T— those actions do not give rise to liability to a penalty under this section.
is liable to a penalty for an inaccuracy under paragraph 1 of Schedule 24 to the Finance Act 2007 for which T has been assessed (and the assessment has not been successfully appealed against by T or withdrawn), or
is convicted of an offence (whether under this Act or otherwise),
Where— the officer is liable to pay such portion of the penalty (which may be equal to or less than 100%) as HMRC may specify in a notice given to the officer (a “decision notice”).
a company is liable to a penalty under section 69C, and
the actions of the company which give rise to that liability were attributable to an officer of the company (“the officer”),
Before giving the officer a decision notice HMRC must—
inform the officer that they are considering doing so, and
afford the officer the opportunity to make representations about whether a decision notice should be given or the portion that should be specified.
A decision notice—
may not be given before the amount of the penalty due from the company has been assessed (but it may be given immediately after that has happened), and
may not be given more than two years after the denial decision relevant to that penalty was issued.
Where the Commissioners have specified a portion of the penalty in a decision notice given to the officer—
section 70 applies to the specified portion as to a penalty under section 69C,
the officer must pay the specified portion before the end of the period of 30 days beginning with the day on which the notice is given,
section 76(9) applies as if the decision notice were an assessment notified under section 76, and
a further decision notice may be given in respect of a portion of any additional amount assessed in an additional assessment.
HMRC may not recover more than 100% of the penalty through issuing decision notices in relation to two or more persons.
A person is not liable to pay an amount by virtue of this section if the actions of the company concerned are attributable to the person by reference to conduct for which the person has been convicted of an offence. In this subsection “conduct” includes omissions.
In this section “company” means a body corporate or unincorporated association but does not include a partnership, a local authority or a local authority association.
In its application to a body corporate other than a limited liability partnership “officer” means—
a director (including a shadow director within the meaning of section 251 of the Companies Act 2006),
a manager, or
a secretary.
In in its application to a limited liability partnership “officer” means a member.
In its application in any other case, “officer” means—
a director,
a manager,
a secretary, or
any other person managing or purporting to manage any of the company's affairs.
The Commissioners may publish information about a person if—
in consequence of an investigation the person has been found liable to one or more penalties under section 69C (the amount of which has been assessed), and
the potential lost VAT in relation to the penalty (or the aggregate of the potential lost VAT in relation to each of the penalties) exceeds £50,000.
The information that may be published under subsection (1) is—
the person's name (including any trading name, previous name or pseudonym),
the person's address (or registered office),
the nature of any business carried on by the person,
the amount of the penalty or penalties in question,
the periods or times to which the actions giving rise to the penalty or penalties relate,
any other information that the Commissioners consider it appropriate to publish in order to make clear the person's identity.
In a case where— the Commissioners may publish information about the officer.
the requirements in subsection (1)(a) and (b) are met in relation to a penalty or penalties for which a company is liable,
information about the company is published by virtue of this section,
a person (“the officer”) has been given a decision notice under section 69D specifying a portion of the penalty (or, if there is more than one penalty, of any of the penalties) payable by the company as a portion which the officer is liable to pay, and
the amount (or, if the decision notice specifies portions of more than one penalty, the aggregate amount) which the officer is liable to pay under the decision notice exceeds £25, 000,
The information that may be published under subsection (3) is—
the officer's name,
the officer's address,
the officer's position (or former position) in the company,
the amount of any penalty imposed on the company of which a portion is payable by the officer under the decision notice and the portion so payable,
the periods or times to which the actions giving rise to any such penalty relate,
any other information that the Commissioners consider it appropriate to publish in order to make clear the officer's identity.
Information published under this section may be published in any manner that the Commissioners consider appropriate.
Before publishing any information under this section the Commissioners must—
inform the person or officer to which it relates that they are considering doing so (in the case of an officer, on the assumption that they publish information about the company), and
afford the person or officer the opportunity to make representations about whether it should be published.
No information may be published under subsection (1) before the day on which the penalty becomes final or, where more than one penalty is involved, the latest day on which any of the penalties becomes final.
No information may be published under subsection (1) for the first time after the end of the period of one year beginning with that day.
No information may be published under subsection (3) before whichever is the later of—
the day mentioned in subsection (7), and
the day on which the decision notice given to the officer becomes final.
No information may be published under subsection (3) for the first time after the end of the period of one year beginning with the later of the two days mentioned in subsection (9).
No information may be published (or continue to be published) under subsection (1) or (3) after the end of the period of three years beginning with the day mentioned in subsection (7).
For the purposes of this section a penalty or a decision notice becomes final when the time for any appeal or further appeal relating to it expires or, if later, any appeal or final appeal relating to it is finally determined.
The Treasury may by regulations made by statutory instrument—
amend subsection (1) to vary the amount for the time being specified in paragraph (b), or
amend subsection (3) to vary the amount for the time being specified in paragraph (d).
A statutory instrument containing regulations under subsection (13) is subject to annulment in pursuance of a resolution of the House of Commons.
Schedule 11A (which imposes disclosure requirements relating to the use of schemes for avoiding VAT) shall have effect.
Regulations under section 95(1) of the Finance Act 2007 (payment by cheque) may, in particular, provide for a payment which is made by cheque in contravention of regulations under section 25(1) above to be treated as made when the cheque clears, as defined in the regulations under section 95(1) of that Act.
Where a person has failed to make any returns required under this Act (or under any provision repealed by this Act) or to keep any documents and afford the facilities necessary to verify such returns or where it appears to the Commissioners that such returns are incomplete or incorrect, they may assess the amount of VAT due from him to the best of their judgment and notify it to him.
In any case where, for any prescribed accounting period, there has been paid or credited to any person— an amount which ought not to have been so paid or credited, or which would not have been so paid or credited had the facts been known or been as they later turn out to be, the Commissioners may assess that amount as being VAT due from him for that period and notify it to him accordingly.
as being a repayment or refund of VAT, or
as being due to him as a VAT credit,
An amount— may be assessed under subsection (2) above notwithstanding that cancellation.
which has been paid to any person as being due to him as a VAT credit, and
which, by reason of the cancellation of that person’s registration under paragraph 13(2) to (6) of Schedule 1, paragraph 9 or 11 of Schedule 1A... or paragraph 6(1) or (2) of Schedule 3A ought not to have been so paid,
Where a person is assessed under subsections (1) and (2) above in respect of the same prescribed accounting period the assessments may be combined and notified to him as one assessment.
Where the person failing to make a return, or making a return which appears to the Commissioners to be incomplete or incorrect, was required to make the return as a personal representative, trustee in bankruptcy, trustee in sequestration, receiver, liquidator or person otherwise acting in a representative capacity in relation to another person, subsection (1) above shall apply as if the reference to VAT due from him included a reference to VAT due from that other person.
An assessment under subsection (1), (2) or (3) above of an amount of VAT due for any prescribed accounting period must be made within the time limits provided for in section 77 and shall not be made after the later of the following— but (subject to that section) where further such evidence comes to the Commissioners’ knowledge after the making of an assessment under subsection (1), (2) or (3) above, another assessment may be made under that subsection, in addition to any earlier assessment.
2 years after the end of the prescribed accounting period; or
one year after evidence of facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, comes to their knowledge,
Where a taxable person— the Commissioners may require him from time to time to account for the goods; and if he fails to prove that the goods have been or are available to be supplied by him or have been exported or otherwise removed from the United Kingdom without being exported or so removed by way of supply or have been lost or destroyed, they may assess to the best of their judgment and notify to him the amount of VAT that would have been chargeable in respect of the supply of the goods if they had been supplied by him.
has in the course or furtherance of a business carried on by him, been supplied with any goods... or otherwise obtained possession or control of any goods, or
has, in the course or furtherance of such a business, imported any goods ...,
In the case of an assessment under subsection (2), the prescribed accounting period referred to in subsection (6)(a) and in section 77(1)(a) is the prescribed accounting period in which the repayment or refund of VAT, or the VAT credit, was paid or credited.
In any case where— then, if the Commissioners think fit, having regard to the failure referred to in paragraph (a) above, they may specify in the assessment referred to in paragraph (c) above an amount of VAT greater than that which they would otherwise have considered to be appropriate.
as a result of a person’s failure to make a return for a prescribed accounting period, the Commissioners have made an assessment under subsection (1) above for that period,
the VAT assessed has been paid but no proper return has been made for the period to which the assessment related, and
as a result of a failure to make a return for a later prescribed accounting period, being a failure by a person referred to in paragraph (a) above or a person acting in a representative capacity in relation to him, as mentioned in subsection (5) above, the Commissioners find it necessary to make another assessment under subsection (1) above,
Where an amount has been assessed and notified to any person under subsection (1), (2), (3) , (7), (7A) or (7B) above it shall, subject to the provisions of this Act as to appeals, be deemed to be an amount of VAT due from him and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.
Where a fiscal warehousekeeper has failed to pay VAT required by the Commissioners under section 18E(2), the Commissioners may assess to the best of their judgment the amount of that VAT due from him and notify it to him.
For the purposes of this section notification to a personal representative, trustee in bankruptcy, trustee in sequestration, receiver, liquidator or person otherwise acting as aforesaid shall be treated as notification to the person in relation to whom he so acts.
Where it appears to the Commissioners that goods have been removed from a warehouse or fiscal warehouse without payment of the VAT payable under section 18(4) or section 18D on that removal, they may assess to the best of their judgment the amount of VAT due from the person removing the goods or other person liable and notify it to him.
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Subject to section 76(8), where an assessment is made under any provision of section 73 and, in the case of an assessment under section 73(1) at least one of the following conditions is fulfilled, namely— the whole of the amount assessed shall, subject to subsection (3) below, carry interest at the prescribed rate from the reckonable date until payment.
the assessment relates to a prescribed accounting period in respect of which either—
a return has previously been made, or
an earlier assessment has already been notified to the person concerned,
the assessment relates to a prescribed accounting period which exceeds 3 months and begins on the date with effect from which the person concerned was, or was required to be, registered,
the assessment relates to a prescribed accounting period at the beginning of which the person concerned was, but should no longer have been, exempted from registration under paragraph 14(1) of Schedule 1 or under paragraph 8 of Schedule 3,
In any case where— the whole of the amount paid shall, subject to subsection (3) below, carry interest at the prescribed rate from the reckonable date until the date on which it was paid.
the circumstances are such that an assessment falling within subsection (1) above could have been made, but
before such an assessment was made the VAT due or other amount concerned was paid (so that no such assessment was necessary),
Where (apart from this subsection)— would exceed 3 years, the part of that period for which that amount shall carry interest under that subsection shall be confined to the last 3 years of that period.
the period before the assessment in question for which any amount would carry interest under subsection (1) above; or
the period for which any amount would carry interest under subsection (2) above,
Where an unauthorised person, as defined in section 67(2), issues an invoice showing an amount as being VAT or as including an amount attributable to VAT, the amount which is shown as VAT or, as the case may be, is to be taken as representing VAT shall carry interest at the prescribed rate from the date of the invoice until payment.
The references in subsections (1) and (2) above to the reckonable date shall be construed as follows— and interest under this section shall run from the reckonable date even if that date is a non-business day, within the meaning of section 92 of the Bills of Exchange Act 1882.
where the amount assessed or paid is such an amount as is referred to in section 73(2)(a) or (b), the reckonable date is the seventh day after the day on which a written instruction was issued by the Commissioners directing the making of the payment of the amount which ought not to have been repaid or paid to the person concerned; and
in all other cases the reckonable date is the latest date on which (in accordance with regulations under this Act) a return is required to be made for the prescribed accounting period to which the amount assessed or paid relates; and
in the case of an amount assessed under section 73(7) the sum assessed shall be taken for the purposes of paragraph (b) above to relate to the period for which the assessment was made;
In this section“the prescribed rate” means such rate as may be prescribed by order made by the Treasury; and such an order—
may prescribe different rates for different purposes; and
shall apply to interest for periods beginning on or after the date when the order is expressed to come into force, whether or not interest runs from before that date.
Interest under this section shall be paid without any deduction of income tax.
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Where a person who has, at a time when he was not a taxable person, acquired in the United Kingdom from another member State any goods subject to a duty of excise or consisting in a new means of transport and— they may assess the amount of VAT due on the acquisition to the best of their judgment and notify their assessment to that person.
notification of that acquisition has not been given to the Commissioners by the person who is required to give one by regulations under paragraph 2(4) of Schedule 11 (whether before or after the commencement of this Act);
the Commissioners are not satisfied that the particulars relating to the acquisition in any notification given to them are accurate and complete; or
there has been a failure to supply the Commissioners with the information necessary to verify the particulars contained in any such notification,
An assessment under this section must be made within the time limits provided for in section 77 and shall not be made after whichever is the later of the following— but (subject to section 77) where further such evidence comes to the Commissioners' knowledge after the making of an assessment under this section, another assessment may be made under this section, in addition to any earlier assessment.
2 years after the time when a notification of the acquisition of the goods in question is given to the Commissioners by the person who is required to give one by regulations under paragraph 2(4) of Schedule 11;
one year after evidence of the facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, comes to their knowledge,
Where an amount has been assessed and notified to any person under this section, it shall, subject to the provisions of this Act as to appeals, be deemed to be an amount of VAT due from him and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.
For the purposes of this section, notification to a personal representative, trustee in bankruptcy, interim or permanent trustee, receiver, liquidator or person otherwise acting in a representative capacity in relation to the person who made the acquisition in question shall be treated as notification to the person in relation to whom he so acts.
Where any person is liable— the Commissioners may, subject to subsection (2) below, assess the amount due by way of penalty, interest or surcharge penalty ..., as the case may be, and notify it to him accordingly; and the fact that any conduct giving rise to a penalty under any of sections 60 to 69B or the regulations may have ceased before an assessment is made under this section shall not affect the power of the Commissioners to make such an assessment.
to a surcharge under section 59 or 59A or
to a penalty under any of sections 60 to 69C, or
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a penalty under regulations made under section 135 of the Finance Act 2002 (mandatory electronic filing of returns) in connection with VAT,
Where a person is liable to a penalty under section 69 for any failure to comply with such a requirement as is referred to in subsection (1)(c) to (f) of that section, no assessment shall be made under this section of the amount due from him by way of such penalty unless, within the period of 2 years preceding the assessment, the Commissioners have issued him with a written warning of the consequences of a continuing failure to comply with that requirement.
In the case of the penalties, interest and surcharge penalties ... referred to in the following paragraphs, the assessment under this section shall be of an amount due in respect of the prescribed accounting period which in the paragraph concerned is referred to as “the relevant period”—
in the case of a surcharge under section 59 or 59A, the relevant period is the prescribed accounting period in respect of which the taxable person is in default and in respect of which the surcharge arises;
in the case of a penalty under section 60 relating to the evasion of VAT, the relevant period is the prescribed accounting period for which the VAT evaded was due;
in the case of a penalty under section 60 relating to the obtaining of the payment of a VAT credit, the relevant period is the prescribed accounting period in respect of which the payment was obtained;
in the case of a penalty under section 63, the relevant period is the prescribed accounting period for which liability to VAT was understated or, as the case may be, for which entitlement to a VAT credit was overstated; ...
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in the case of a penalty under regulations made under section 135 of the Finance Act 2002, the relevant period is the prescribed accounting period in respect of which the contravention of, or failure to comply with, the regulations occurred.
In any case where the amount of any penalty, interest or surcharge penalty ... falls to be calculated by reference to VAT which was not paid at the time it should have been and that VAT (or the supply which gives rise to it) cannot be readily attributed to any one or more prescribed accounting periods, it shall be treated for the purposes of this Act as VAT due for such period or periods as the Commissioners may determine to the best of their judgment and notify to the person liable for the VAT and penalty, interest or surcharge penalty ....
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Where a person is assessed under this section to an amount due by way of any penalty, interest or surcharge penalty ... falling within subsection (3) ... above and is also assessed under section 73(1), (2) ,(7), (7A) or (7B) for the prescribed accounting period which is the relevant period under subsection (3) ... above, the assessments may be combined and notified to him as one assessment, but the amount of the penalty, interest or surcharge penalty ... shall be separately identified in the notice.
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In the case of an amount due by way of penalty under section 66 or 69 ...—
a notice of assessment under this section shall specify a date, being not later than the date of the notice, to which the aggregate amount of the penalty which is assessed ... is calculated; and
if the penalty ... continues to accrue after that date, a further assessment or assessments may be made under this section in respect of amounts which so accrue.
If, within such period as may be notified by the Commissioners to the person liable to a penalty under section 66 or 69 ...— it shall be treated for the purposes of section 66 or 69 ... as paid or remedied on the date specified as mentioned in subsection (7)(a) above.
a failure or default falling within section 66(1) or 69(1) is remedied, ...
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If an amount is assessed and notified to any person under this section, then unless, or except to the extent that, the assessment is withdrawn or reduced, that amount shall be recoverable as if it were VAT due from him.
For the purposes of this section, notification to a personal representative, trustee in bankruptcy, trustee in sequestration, receiver, liquidator or person otherwise acting in a representative capacity in relation to the person who made the acquisition in question shall be treated as notification to the person in relation to whom he so acts.
Subject to the following provisions of this section, an assessment under section 73 ... or 76, shall not be made—
more than 4 years after the end of the prescribed accounting period or importation ... concerned, or
in the case of an assessment under section 76 of an amount due by way of a penalty which is not among those referred to in subsection (3) of that section, 4 years after the event giving rise to the penalty.
Subject to subsection (5) below, an assessment under section 76 of an amount due by way of any penalty, interest or surcharge penalty ... referred to in subsection (3) ... of that section may be made at any time before the expiry of the period of 2 years beginning with the time when the amount of VAT due for the prescribed accounting period concerned has been finally determined.
in the case of a penalty under section 65 or 66, with the time when facts sufficient in the opinion of the Commissioners to indicate, as the case may be— came to the Commissioners' knowledge; and
that the statement in question contained a material inaccuracy; or
that there had been a default within the meaning of section 66(1),
in any other case, with the time when the amount of VAT due for the prescribed accounting period concerned has been finally determined.
In relation to an assessment under section 76, any reference in subsection (1) or (2) above to the prescribed accounting period concerned is a reference to that period which, in the case of the penalty, interest or surcharge penalty ... concerned, is the relevant period referred to in subsection (3) ... of that section.
Subject to subsection (5) below, an assessment under section 76 of a penalty under section 65 or 66 may be made at any time before the expiry of the period of 2 years beginning with the time when facts sufficient in the opinion of the Commissioners to indicate, as the case may be— came to the Commissioners’ knowledge.
that the statement in question contained a material inaccuracy, or
that there had been a default within the meaning of section 66(1),
In any case falling within subsection (4A), an assessment of a person (“P”), or of an amount payable by P, may be made at any time not more than 20 years after the end of the prescribed accounting period or the importation ... or event giving rise to the penalty, as appropriate (subject to subsection (5)).
as a result of conduct falling within section 60(1) or for which a person has been convicted of fraud, or
in circumstances giving rise to liability to a penalty under section 67,
Where, after a person’s death, the Commissioners propose to assess a sum as due by reason of some conduct (howsoever described) of the deceased, including a sum due by way of penalty, interest or surcharge penalty ...—
the assessment shall not be made more than 4 years after the death; ...
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If, otherwise than in circumstances falling within section 73(6)(b) ..., it appears to the Commissioners that the amount which ought to have been assessed in an assessment under that section or under section 76 exceeds the amount which was so assessed, then— the Commissioners may make a supplementary assessment of the amount of the excess and shall notify the person concerned accordingly.
under the like provision as that assessment was made, and
on or before the last day on which that assessment could have been made,
Those cases are—
a case involving a loss of VAT brought about deliberately by P (or by another person acting on P's behalf),
a case in which P has participated in a transaction knowing that it was part of arrangements of any kind (whether or not legally enforceable) intended to bring about a loss of VAT,
a case involving a loss of VAT attributable to a failure by P to comply with a notification obligation, and
a case involving a loss of VAT attributable to a scheme in respect of which P has failed to comply with an obligation under paragraph 6 of Schedule 11A or an obligation under paragraph 17(2) or 18(2) of Schedule 17 to FA 2017.
In subsection (4A) the references to a loss of tax brought about deliberately by P or another person include a loss that arises as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by that person.
In subsection (4A)(c) “notification obligation” means an obligation under—
paragraph 5, 6, 7 or 14(2) or (3) of Schedule 1,
paragraph 5, 6 or 13(3) of Schedule 1A, or
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paragraph 3, 4 or 7(2) or (3) of Schedule 3A, ...
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Interest charged under section 101 of the Finance Act 2009 on an amount of VAT (or an amount enforceable as if it were VAT) may be enforced as if it were an amount of VAT due from the person liable for the amount on which the interest is charged.
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Where, due to an error on the part of the Commissioners, a person has— then, if and to the extent that they would not be liable to do so apart from this section, they shall pay interest to him on that amount for the applicable period, but subject to the following provisions of this section.
accounted to them for an amount by way of output tax which was not output tax due from him and which they are in consequence liable to repay to him, or
failed to claim credit under section 25 for an amount for which he was entitled so to claim credit and which they are in consequence liable to pay to him, or
(otherwise than in a case falling within paragraph (a) or (b) above) paid to them by way of VAT an amount that was not VAT due and which they are in consequence liable to repay to him, or
suffered delay in receiving payment of an amount due to him from them in connection with VAT,
Nothing in subsection (1) above requires the Commissioners to pay interest—
on any amount which falls to be increased by a supplement under section 79; or
where an amount is increased under that section, on so much of the increased amount as represents the supplement.
Interest under this section shall be payable at such rates as may from time to time be prescribed by order made by the Treasury; and any such order— and the first such order may prescribe, for cases where interest runs from before the date on which that order is expressed to come into force, rates for periods ending before that date.
may prescribe different rates for different purposes; and
shall apply to interest for periods beginning on or after the date on which the order is expressed to come into force, whether or not interest runs from before that date;
The “applicable period” in a case falling within subsection (1)(a) or (b) above is the period—
beginning with the appropriate commencement date, and
ending with the date on which the Commissioners authorise payment of the amount on which the interest is payable.
In subsection (4) above, the“appropriate commencement date”— and in this subsection“the relevant return” means the return in which the person accounted for, or (as the case may be) ought to have claimed credit for, the amount on which the interest is payable.
in a case where an amount would have been due from the person by way of VAT in connection with the relevant return, had his input tax and output tax been as stated in that return, means the date on which the Commissioners received payment of that amount; and
in a case where no such payment would have been due from him in connection with that return, means the date on which the Commissioners would, apart from the error, have authorised payment of the amount on which the interest is payable;
The “applicable period” in a case falling within subsection (1)(c) above is the period—
beginning with the date on which the payment is received by the Commissioners, and
ending with the date on which they authorise payment of the amount on which the interest is payable.
The “applicable period” in a case falling within subsection (1)(d) above is the period—
beginning with the date on which, apart from the error, the Commissioners might reasonably have been expected to authorise payment of the amount on which the interest is payable, and
ending with the date on which they in fact authorise payment of that amount.
In determining in accordance with subsection (4), (6) or (7) above the applicable period for the purposes of subsection (1) above, there shall be left out of account any period referable to the raising and answering of any reasonable inquiry relating to any matter giving rise to, or otherwise connected with, the person’s entitlement to interest under this section.
In determining for the purposes of subsection (8) above whether any period is referable to the raising and answering of such an inquiry as is there mentioned, there shall be taken to be so referable any period which— but excluding so much of that period as may be prescribed; and it is immaterial whether any inquiry is in fact made or whether it is or might have been made of the person referred to in subsection (1) above or of an authorised person or of some other person.
begins with the date on which the Commissioners first consider it necessary to make such an inquiry, and
ends with the date on which the Commissioners—
satisfy themselves that they have received a complete answer to the inquiry, or
determine not to make the inquiry or, if they have made it, not to pursue it further,
The Commissioners shall only be liable to pay interest under this section on a claim made in writing for that purpose.
No claim shall be made under this section after the expiry of 6 years from the date on which the claimant discovered the error or could with reasonable diligence have discovered it.
In this section—
any reference to receiving a payment from the Commissioners includes a reference to the discharge, by way of set-off, of their liability to make it; and
any reference to a return is a reference to a return required to be made in accordance with paragraph 2 of Schedule 11.
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In any case where— and the conditions mentioned in subsection (2) below are satisfied, the amount which, apart from this section, would be due by way of that payment or refund shall be increased by the addition of a supplement equal to 5 per cent. of that amount or £50, whichever is the greater.
a person is entitled to a VAT credit, or
a body which is registered and to which section 33 applies is entitled to a refund under that section,
The said conditions are—
that the requisite return or claim is received by the Commissioners not later than the last day on which it is required to be furnished or made, and
that a written instruction directing the making of the payment or refund is not issued by the Commissioners within the period of 30 days beginning on the date of the receipt by the Commissioners of that return or claim, and
that the amount shown on that return or claim as due by way of payment or refund does not exceed the payment or refund which was in fact due by more than 5 per cent. of that payment or refund or £250, whichever is the greater.
Regulations may provide that, in computing the period of 30 days referred to in subsection (2)(b) above, there shall be left out of account periods determined in accordance with the regulations and referable to—
the raising and answering of any reasonable inquiry relating to the requisite return or claim,
the correction by the Commissioners of any errors or omissions in that return or claim, and
in the case of a payment, the following matters, namely—
any such continuing failure to submit returns as is referred to in section 25(5), and
compliance with any such condition as is referred to in paragraph 4(1) of Schedule 11.
In determining for the purposes of regulations under subsection (3) above whether any period is referable to the raising and answering of such an inquiry as is mentioned in that subsection, there shall be taken to be so referable any period which— but excluding so much of that period as may be prescribed; and it is immaterial whether any inquiry is in fact made or whether it is or might have been made of the person or body making the requisite return or claim or of an authorised person or of some other person.
begins with the date on which the Commissioners first consider it necessary to make such an inquiry, and
ends with the date on which the Commissioners—
satisfy themselves that they have received a complete answer to the inquiry, or
determine not to make the inquiry or, if they have made it, not to pursue it further,
Except for the purpose of determining the amount of the supplement—
a supplement paid to any person under subsection (1)(a) above shall be treated as an amount due to him by way of credit under section 25(3), and
a supplement paid to any body under subsection (1)(b) above shall be treated as an amount due to it by way of refund under section 33.
In this section“requisite return or claim” means—
in relation to a payment, the return for the prescribed accounting period concerned which is required to be furnished in accordance with regulations under this Act, and
in relation to a refund, the claim for that refund which is required to be made in accordance with the Commissioners' determination under section 33.
If the Treasury by order so direct, any period specified in the order shall be disregarded for the purpose of calculating the period of 30 days referred to in subsection (2)(b) above.
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Where a person— the Commissioners shall be liable to credit the person with that amount.
has accounted to the Commissioners for VAT for a prescribed accounting period (whenever ended), and
in doing so, has brought into account as output tax an amount that was not output tax due,
The Commissioners shall only be liable to credit or repay an amount under this section on a claim being made for the purpose.
Where the Commissioners— they shall be liable to credit the person with that amount.
have assessed a person to VAT for a prescribed accounting period (whenever ended), and
in doing so, have brought into account as output tax an amount that was not output tax due,
It shall be a defence, in relation to a claim under this section by virtue of subsection (1) or (1A) above, that the crediting of an amount would unjustly enrich the claimant.
Where a person has for a prescribed accounting period (whenever ended) paid to the Commissioners an amount by way of VAT that was not VAT due to them, otherwise than as a result of— the Commissioners shall be liable to repay to that person the amount so paid.
an amount that was not output tax due being brought into account as output tax, or
an amount of input tax allowable under section 26 not being brought into account,
The Commissioners shall not be liable on a claim under this section— if the claim is made more than 4 years after the relevant date.
to credit an amount to a person under subsection (1) or (1A) above, or
to repay an amount to a person under subsection (1B) above,
Where an amount has been paid to the Commissioners by reason of a mistake, a claim for the repayment of the amount under this section may be made at any time before the expiry of 6 years from the date on which the claimant discovered the mistake or could with reasonable diligence have discovered it.
Where— the Commissioners shall be liable to pay (or repay) to him so much of that amount as so remains.
as a result of a claim under this section by virtue of subsection (1) or (1A) above an amount falls to be credited to a person, and
after setting any sums against it under or by virtue of this Act, some or all of that amount remains to his credit,
A claim under this section shall be made in such form and manner and shall be supported by such documentary evidence as the Commissioners prescribe by regulations; and regulations under this subsection may make different provision for different cases.
Except as provided by this section ..., the Commissioners shall not be liable to credit or repay any amount accounted for or paid to them by way of VAT that was not VAT due to them.
Subsection (3B) below applies for the purposes of subsection (3) above where—
an amount would (apart from subsection (3) above) fall to be credited under subsection (1) or (1A) above to any person (“the taxpayer”), and
the whole or a part of the amount brought into account as mentioned in paragraph (b) of that subsection has, for practical purposes, been borne by a person other than the taxpayer.
Where, in a case to which this subsection applies, loss or damage has been or may be incurred by the taxpayer as a result of mistaken assumptions made in his case about the operation of any VAT provisions, that loss or damage shall be disregarded, except to the extent of the quantified amount, in the making of any determination—
of whether or to what extent the crediting of an amount to the taxpayer would enrich him; or
of whether or to what extent any enrichment of the taxpayer would be unjust.
In subsection (3B) above—
The relevant date is— In the case of a person who has ceased to be registered under this Act, any reference in paragraphs (b) to (d) above to a prescribed accounting period includes a reference to a period that would have been a prescribed accounting period had the person continued to be registered under this Act.
in the case of a claim by virtue of subsection (1) above, the end of the prescribed accounting period mentioned in that subsection, unless paragraph (b) below applies;
in the case of a claim by virtue of subsection (1) above in respect of an erroneous voluntary disclosure, the end of the prescribed accounting period in which the disclosure was made;
in the case of a claim by virtue of subsection (1A) above in respect of an assessment issued on the basis of an erroneous voluntary disclosure, the end of the prescribed accounting period in which the disclosure was made;
in the case of a claim by virtue of subsection (1A) above in any other case, the end of the prescribed accounting period in which the assessment was made;
in the case of a claim by virtue of subsection (1B) above, the date on which the payment was made.
For the purposes of this section the cases where there is an erroneous voluntary disclosure are those cases where—
a person discloses to the Commissioners that he has not brought into account for a prescribed accounting period (whenever ended) an amount of output tax due for the period;
the disclosure is made in a later prescribed accounting period (whenever ended); and
some or all of the amount is not output tax due.
Where— the Commissioners may, to the best of their judgement, assess the excess credited to that person and notify it to him.
an amount has been credited under subsection (1) or (1A) above to any person at any time on or after 26th May 2005, and
the amount so credited exceeded the amount which the Commissioners were liable at that time to credit to that person,
An assessment under subsection (4A) shall not be made more than 2 years after the later of—
the end of the prescribed accounting period in which the amount was credited to the person, and
the time when evidence of facts sufficient in the opinion of the Commissioners to justify the making of the assessment comes to the knowledge of the Commissioners.
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Any interest payable by the Commissioners (whether under an enactment or instrument or otherwise) to a person on a sum due to him under or by virtue of any provision of this Act shall be treated as an amount due by way of credit under section 25(3).
Subsection (1) above shall be disregarded for the purpose of determining a person’s entitlement to interest or the amount of interest to which he is entitled.
Subject to subsection (1) above, in any case where— the amount referred to in paragraph (a) above shall be set against the sum referred to in paragraph (b) above and, accordingly, to the extent of the set-off, the obligations of the Commissioners and the person concerned shall be discharged.
an amount is due from the Commissioners to any person under any provision of this Act, and
that person is liable to pay a sum by way of VAT, penalty, interest or surcharge penalty or interest,
Subsection (3) above shall not apply in the case of any such amount as is mentioned in paragraph (a) of that subsection where that amount became due to the person in question—
at a time when that person’s estate was vested in any other person as that person’s trustee in bankruptcy;
at a time when that person’s estate was vested in any other person as that person’s interim trustee or permanent trustee;
at a time, other than a time before the appointment of a liquidator, when that person was being wound up, either voluntarily or by the court;
at a time when an administration order was in force in relation to that person;
at a time when there was an administrative receiver of that person;
at a time when— was in force in relation to that person; or
a voluntary arrangement approved in accordance with Part I or VIII of the Insolvency Act 1986, or Part II or Chapter II of Part VIII of the Insolvency (Northern Ireland) Order 1989, or
a deed of arrangement registered in accordance with the Deeds of Arrangement Act 1914 or Chapter I of Part VIII of that Order of 1989,
at a time when that person’s estate was vested in any other person as that person’s trustee under a trust deed.
Where— any limitation on the time within which the Commissioners are entitled to take steps for recovering that sum shall be disregarded in determining whether that sum is required by subsection (3) above to be set against the amount mentioned in paragraph (a) above.
the Commissioners are liable to pay or repay any amount to any person under this Act,
that amount falls to be paid or repaid in consequence of a mistake previously made about whether or to what extent amounts were payable under this Act to or by that person, and
by reason of that mistake a liability of that person to pay a sum by way of VAT, penalty, interest or surcharge penalty or interest was not assessed, was not enforced or was not satisfied,
In this section—
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“administrative receiver” means an administrative receiver within the meaning of section 251 of the Insolvency Act 1986 or Article 5(1) of the Insolvency (Northern Ireland) Order 1989;
“trust deed” has the same meaning as in the Bankruptcy (Scotland) Act 2016.
“administrator” means a person appointed to manage the affairs, business and property of another person under Schedule B1 to that Act or to that Order; and
Subsection (3) above shall not require any such amount as is mentioned in paragraph (a) of that subsection (“the credit”) to be set against any such sum as is mentioned in paragraph (b) of that subsection (“the debit”) in any case where—
an insolvency procedure has been applied to the person entitled to the credit;
the credit became due after that procedure was so applied; and
the liability to pay the debit either arose before that procedure was so applied or (having arisen afterwards) relates to, or to matters occurring in the course of, the carrying on of any business at times before the procedure was so applied.
Subject to subsection (4C) below, the following are the times when an insolvency procedure is to be taken, for the purposes of this section, to be applied to any person, that is to say—
when a bankruptcy order or winding-up order or award of sequestration is made or an administrator is appointed in relation to that person;
when that person is put into administrative receivership;
when that person, being a corporation, passes a resolution for voluntary winding up;
when any voluntary arrangement approved in accordance with Part I or VIII of the Insolvency Act 1986, or Part II or Chapter II of Part VIII of the Insolvency (Northern Ireland) Order 1989, comes into force in relation to that person;
when a deed of arrangement registered in accordance with ... Chapter I of Part VIII of that Order of 1989 takes effect in relation to that person;
when that person’s estate becomes vested in any other person as that person’s trustee under a trust deed.
In this section, references to the application of an insolvency procedure to a person do not include—
the application of an insolvency procedure to a person at a time when another insolvency procedure applies to the person, or
the application of an insolvency procedure to a person immediately upon another insolvency procedure ceasing to have effect.
For the purposes of this section a person shall be regarded as being in administrative receivership throughout any continuous period for which (disregarding any temporary vacancy in the office of receiver) there is an administrative receiver of that person, and the reference in subsection (4B) above to a person being put into administrative receivership shall be construed accordingly.
The Commissioners may by regulations make provision for reimbursement arrangements made by any person to be disregarded for the purposes of section 80(3) except where the arrangements—
contain such provision as may be required by the regulations; and
are supported by such undertakings to comply with the provisions of the arrangements as may be required by the regulations to be given to the Commissioners.
In this section “ reimbursement arrangements ” means any arrangements for the purposes of a claim under section 80 which—
are made by any person for the purpose of securing that he is not unjustly enriched by the crediting of any amount in pursuance of the claim; and
provide for the reimbursement of persons who have for practical purposes borne the whole or any part of the amount brought into account as mentioned in paragraph (b) of subsection (1) or (1A) of that section .
Without prejudice to the generality of subsection (1) above, the provision that may be required by regulations under this section to be contained in reimbursement arrangements includes—
provision requiring a reimbursement for which the arrangements provide to be made within such period after the crediting of the amount to which it relates as may be specified in the regulations;
provision for cases where an amount is credited but an equal amount is not reimbursed in accordance with the arrangements;
provision requiring interest paid by the Commissioners on any amount paid (or repaid) by them to be treated in the same way as that amount for the purposes of any requirement under the arrangements to make reimbursement or to repay the Commissioners;
provision requiring such records relating to the carrying out of the arrangements as may be described in the regulations to be kept and produced to the Commissioners, or to an officer of theirs.
Regulations under this section may impose obligations on such persons as may be specified in the regulations—
to make the repayments, or give the notifications, to the Commissioners that they are required to make or give in pursuance of any provisions contained in any reimbursement arrangements by virtue of subsection (3)(b) or (c) above;
to comply with any requirements contained in any such arrangements by virtue of subsection (3)(d) above.
Regulations under this section may make provision for the form and manner in which, and the times at which, undertakings are to be given to the Commissioners in accordance with the regulations; and any such provision may allow for those matters to be determined by the Commissioners in accordance with the regulations.
Regulations under this section may—
contain any such incidental, supplementary, consequential or transitional provision as appears to the Commissioners to be necessary or expedient; and
make different provision for different circumstances.
Regulations under this section may have effect (irrespective of when the claim for credit was made) for the purposes of the crediting of any amount by the Commissioners after the time when the regulations are made; and, accordingly, such regulations may apply to arrangements made before that time.
Where any person is liable to pay any amount to the Commissioners in pursuance of an obligation imposed by virtue of section 80A(4)(a), the Commissioners may, to the best of their judgement, assess the amount due from that person and notify it to him.
Where— subsection (1B) below applies.
an amount (“the gross credit”) has been credited to any person under subsection (1) or (1A) of section 80,
any sums were set against that amount, in accordance with subsection (2A) of that section, and
the amount reimbursed in accordance with the reimbursement arrangements was less than the gross credit,
In any such case— but an amount shall not be assessed under this subsection to the extent that the person is liable to pay it to the Commissioners as mentioned in subsection (1) above.
the person shall cease to be entitled to so much of the gross credit as exceeds the amount so reimbursed, and
the Commissioners may, to the best of their judgement, assess the amount due from that person and notify it to him,
In determining the amount that a person is liable to pay as mentioned in subsection (1) above, any amount reimbursed in accordance with the reimbursement arrangements shall be regarded as first reducing so far as possible the amount that he would have been liable so to pay, but for the reimbursement of that amount.
For the purposes of this section, nil is an amount.
Any reference in any other provision of this Act to an assessment under subsection (1) above includes, if the context so admits, a reference to an assessment under subsection (1B) above.
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An assessment made under subsection (1) above may not be made more than two years after the time when evidence of facts sufficient in the opinion of the Commissioners to justify the making of the assessment comes to the knowledge of the Commissioners.
Where an amount has been assessed and notified to a person under section 80(4A) or 80B(1), that amount is deemed (subject to the provisions of this Act as to appeals) to be an amount of VAT due from that person and may be recovered accordingly.
Subsection (1) does not have effect if or to the extent that the assessment in question has been withdrawn or reduced.
An assessment under section 80(4A) or 80B(1) is a recovery assessment for the purposes of section 84(3A).
Section 77(6) applies in relation to an assessment under section 80(4A) or 80B(1) as it applies in relation to an assessment under section 73 or 76.
For the purposes of an assessment under section 80(4A) or 80B(1), notification to a person mentioned in subsection (6) (a “relevant person”) is treated as notification to the person in relation to whom the relevant person acts.
The persons mentioned in this subsection are—
a personal representative;
a trustee in bankruptcy;
a trustee in sequestration;
a receiver;
a liquidator;
a person otherwise acting in a representative capacity in relation to another.
This section applies to goods which fall within any one or more of the following descriptions—
any equipment made or adapted for use as a telephone and any other equipment made or adapted for use in connection with telephones or telecommunication;
any equipment made or adapted for use as a computer and any other equipment made or adapted for use in connection with computers or computer systems (including, in particular, positional determination devices for use with satellite navigation systems);
any other electronic equipment made or adapted for use by individuals for the purposes of leisure, amusement or entertainment and any other equipment made or adapted for use in connection with any such electronic equipment; and in this subsection “other equipment” includes parts, accessories and software.
Where— the Commissioners may serve on him a notice specifying the amount of the VAT so payable that is unpaid, and stating the effect of the notice.
a taxable supply of goods to which this section applies has been made to a taxable person, and
at the time of the supply the person knew or had reasonable grounds to suspect that some or all of the VAT payable in respect of that supply, or on any previous or subsequent supply of those goods, would go unpaid,
The effect of a notice under this section is that— are jointly and severally liable to the Commissioners for that amount.
the person served with the notice, and
the person liable, apart from this section, for the amount specified in the notice,
For the purposes of subsection (2) above the amount of VAT that is payable in respect of a supply is the lesser of—
the amount chargeable on the supply, and
the amount shown as due on the supplier’s return for the prescribed accounting period in question (if he has made one) together with any amount assessed as due from him for that period (subject to any appeal by him).
The reference in subsection (4)(b) above to assessing an amount as due from a person includes a reference to the case where, because it is impracticable to do so, the amount is not notified to him.
For the purposes of subsection (2) above, a person shall be presumed to have reasonable grounds for suspecting matters to be as mentioned in paragraph (b) of that subsection if the price payable by him for the goods in question—
was less than the lowest price that might reasonably be expected to be payable for them on the open market, or
was less than the price payable on any previous supply of those goods.
The presumption provided for by subsection (6) above is rebuttable on proof that the low price payable for the goods was due to circumstances unconnected with failure to pay VAT.
Subsection (6) above is without prejudice to any other way of establishing reasonable grounds for suspicion.
The Treasury may by order amend subsection (1) above.
The Treasury may by order amend this section in order to extend or otherwise alter the circumstances in which a person shall be presumed to have reasonable grounds for suspecting matters to be as mentioned in subsection (2)(b) above.
Any order under this section may make such incidental, supplemental, consequential or transitional provision as the Treasury think fit.
For the purposes of this section—
“goods” includes services;
an amount of VAT counts as unpaid only to the extent that it exceeds the amount of any refund due.
This section applies where a person (“P”)...—
makes taxable supplies of goods through an online marketplace, and
fails to comply with any requirement imposed on P by or under this Act (whether or not it relates to those supplies).
The Commissioners may give the person who is the operator of the online marketplace (“the operator”) a notice—
stating that, unless the operator secures the result mentioned in subsection (3), subsection (5) will apply, and
explaining the effect of subsection (5).
The result referred to in subsection (2)(a) is that P does not offer goods for sale through the online marketplace at any time between—
the end of such period as may be specified in the notice, and
the notice ceasing to have effect.
If the operator does not secure the result mentioned in subsection (3), subsection (5) applies.
The operator is jointly and severally liable to the Commissioners for the amount of VAT payable by P in respect of all taxable supplies of goods made by P through the online marketplace in the period for which the notice has effect.
A notice under subsection (2) (“the liability notice”) has effect for the period beginning with the day after the day on which it is given, and ending—
with the day specified in a notice given by the Commissioners under subsection (7), or
in accordance with subsection (8).
The Commissioners may at any time give the operator a notice stating that the period for which the liability notice has effect ends with the day specified in the notice.
If the person to whom the liability notice is given ceases to be the operator of the online marketplace, the liability notice ceases to have effect at the end of—
the day on which the person ceases to be the operator, or
(if later) the day on which the person notifies the Commissioners that the person is no longer the operator.
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The Treasury may by regulations provide that supplies made or goods offered for sale in circumstances specified in the regulations are, or are not, to be treated for the purposes of this section as having been made or offered through an online marketplace.
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This section applies where—
a person (“P”) who makes taxable supplies of goods through an online marketplace is in breach of a Schedule 1A registration requirement, and
the operator of the online marketplace knows, or should know, that P is in breach of a Schedule 1A registration requirement.
If the operator of the online marketplace does not secure the result in subsection (3), subsection (4) applies.
The result referred to in subsection (2) is that P does not offer goods for sale through the online marketplace in any period between—
the end of the period of 60 days beginning with the day on which the operator first knew, or should have known, that P was in breach of a Schedule 1A registration requirement, and
P ceasing to be in breach of a Schedule 1A registration requirement.
The operator is jointly and severally liable to the Commissioners for the amount of VAT payable by P in respect of all taxable supplies of goods made by P through the online marketplace in the relevant period.
The relevant period is the period—
beginning with the day on which the operator first knew, or should have known, that P was in breach of a Schedule 1A registration requirement, and
ending with P ceasing to be in breach of a Schedule 1A registration requirement.
But if the operator has been given a notice under section 77B in respect of P, the relevant period does not include—
any period for which the operator is jointly and severally liable for the amount mentioned in subsection (4) by virtue of section 77B, or
if the operator secures the result mentioned in section 77B(3), the period beginning with the day on which the operator is given the notice and ending with the day on which the operator secures that result.
P is in breach of a Schedule 1A registration requirement if P is liable to be registered under Schedule 1A to this Act, but is not so registered.
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The Commissioners may assess the amount of VAT due from the operator of an online marketplace by virtue of section 77B or 77BA to the best of their judgment and notify it to the operator.
Subject to subsections (3) to (6), an assessment may be made for such period or periods as the Commissioners consider appropriate.
An assessment for any month may not be made after the end of—
2 years after the end of that month, or
(if later) one year after evidence of facts, sufficient in the opinion of the Commissioners to justify the making of an assessment for that month, comes to their knowledge.
Subsection (5) applies if, after the Commissioners have made an assessment for a period, evidence of facts sufficient in the opinion of the Commissioners to justify the making of a further assessment for that period comes to their knowledge.
The Commissioners may, no later than one year after that evidence comes to their knowledge, make a further assessment for that period (subject to subsection (6)).
An assessment or further assessment for a month may not be made more than 4 years after the end of the month.
An amount which has been assessed and notified to a person under this section is deemed to be an amount of VAT due from the person and may be recovered accordingly (unless, or except to the extent that, the assessment is subsequently withdrawn or reduced).
Subsection (7) is subject to the provisions of this Act as to appeals.
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This section applies where a person (“P”) offers, or proposes to offer, goods for sale through an online marketplace.
The operator of the online marketplace must take reasonable steps to check that—
any number provided to the operator (by P or another person) as P's VAT registration number is valid, and
any number displayed on the online marketplace as P's VAT registration number (under subsection (3) or otherwise) is valid.
If a number is provided to the operator (by P or another person) as P's VAT registration number and the number is valid, the operator must secure that it is displayed on the online marketplace as P's VAT registration number no later than the time mentioned in subsection (4).
The time is—
the end of the period of 10 days beginning with the day on which the operator is provided with the number, or
if the number is provided before P offers goods for sale through the online marketplace, the later of—
the end of the period in paragraph (a), and
the end of the day on which P first offers goods for sale through the online marketplace.
If the operator becomes aware that a number displayed on the online marketplace as P's VAT registration number (under subsection (3) or otherwise) is not valid, the operator must secure that it is removed from the online marketplace before the end of the relevant period.
The relevant period is the period of 10 days beginning with the day on which the operator first became aware that the number was not valid.
A number is provided or displayed as P's VAT registration number only if it is provided or displayed in connection with P offering, or proposing to offer, goods for sale through the online marketplace.
A number provided or displayed as P's VAT registration number is valid only if—
P is registered under this Act, and
the number is P's VAT registration number.
In this section—
“VAT registration number” means the number allocated by the Commissioners to a person registered under this Act.
This section applies where an amount of VAT is due from the operator of an online marketplace by virtue of section 5A.
The operator is not liable for any amount of VAT in excess of the amount paid by R (as defined in section 5A) provided that the operator took—
all reasonable steps to ascertain the matters set out in subsection (3), and
all other reasonable steps to satisfy itself that the amount charged was correct.
The matters are—
the place of establishment of the person making taxable supplies facilitated by the online marketplace;
the location of the goods at the time of their supply.
In this Act “tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.
Any reference in this Act to a tribunal is a reference to a tribunal constituted in accordance with Schedule 12, and that Schedule shall have effect generally with respect to appointments to and the procedure and administration of the tribunals.
The tribunals shall continue to have jurisdiction in relation to matters relating to VAT conferred upon them by this Part of this Act and jurisdiction in relation to matters relating to customs and excise conferred by Chapter II of Part I of the Finance Act 1994.
Officers and staff may be appointed under section 27 of the Courts Act 1971 (court staff) for carrying out the administrative work of the tribunals in England and Wales.
The Secretary of State may make available such officers and staff as he may consider necessary for carrying out the administrative work of the tribunals in Scotland.
the registration or cancellation of registration of any person under this Act;
Subject to sections 83G and 84, an appeal shall lie to the tribunal with respect to any of the following matters—
a decision of the Commissioners under section 18A—
as to whether or not a person is to be approved as a fiscal warehousekeeper or the conditions from time to time subject to which he is so approved;
for the withdrawal of any such approval; or
for the withdrawal of fiscal warehouse status from any premises;
a decision of the Commissioners—
refusing or withdrawing authorisation for a person’s liability to pay VAT (or entitlement to credit for VAT ) to be determined as mentioned in subsection (1) of section 26B;
as to the appropriate percentage or percentages (within the meaning of that section) applicable in a person’s case.
a decision contained in a notification under paragraph (4) of article 12A of the Value Added Tax (Payments on Account) Order 1993 that an election under paragraph (1) of that article shall cease to have effect;
any decision of the Commissioners to refuse to make a repayment under a scheme under section 39;
the giving of a notice under section 43C(1) or (3);
any liability to a penalty under section 69C, any assessment of a penalty under that section or the amount of such an assessment;
the giving of a decision notice under section 69D or the portion of a penalty assessed under section 69C which is specified in such a notice;
any liability arising by virtue of section 77A;
an assessment under section 77C or the amount of such an assessment;
an assessment under section 78A(1) or the amount of such an assessment
an assessment under section 80B(1) or (1B) or the amount of such an assessment
any direction or assessment under Schedule 9A;
any refusal of the Commissioners to grant any permission under, or otherwise to exercise in favour of a particular person any power conferred by, any provision of Part 1 of Schedule 10;
a direction under paragraph 6A of Schedule 11;
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a direction under paragraph 8 of Schedule 11A,
any liability to a penalty under paragraph 10(1) of Schedule 11A, any assessment under paragraph 12(1) of that Schedule or the amount of such an assessment;
a decision of the Commissioners about the application of any provision of regulations under paragraph 2 or 6 of Schedule 11, or of regulations under section 135 or 136 of the Finance Act 2002 relating to VAT, which— (including in particular a decision as to whether such a requirement applies and a decision to impose a penalty).
requires returns to be made or information to be submitted by electronic communications, or
requires records to be kept or preserved in electronic form,
the VAT chargeable on the supply of any goods or services ... or, subject to section 84(9), on the importation of goods ... ;
In the following provisions of this Part, a reference to a decision with respect to which an appeal under this section lies, or has been made, includes any matter listed in subsection (1) whether or not described there as a decision.
the amount of any input tax which may be credited to a person;
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the proportion of input tax allowable under section 26;
a claim by a taxable person under section 27;
the amount of any refunds under section 35;
a claim for a refund under section 36 or section 22 of the 1983 Act;
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the refusal of an application such as is mentioned in section 43B(1) or (2);
the requirement of any security under section 48(7) or paragraph 4(1A) or (2) of Schedule 11;
any refusal or cancellation of certification under section 54 or any refusal to cancel such certification;
any liability to a penalty or surcharge by virtue of any of sections 59 60 to 69B;
a decision of the Commissioners under section 61 (in accordance with section 61(5));
an assessment— or the amount of such an assessment;
under section 73(1) or (2) in respect of a period for which the appellant has made a return under this Act; or
under subsections (7), (7A) or (7B) of that section; ...
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the amount of any penalty, interest or surcharge penalty ... specified in an assessment under section 76;
the making of an assessment on the basis set out in section 77(4);
any liability of the Commissioners to pay interest under section 78 or the amount of interest so payable;
a claim for the crediting or repayment of an amount under section 80 an assessment under subsection (4A) of that section or the amount of such an assessment;
any direction or supplementary direction made under paragraph 2 of Schedule 1;
any direction under paragraph 1 , 1A, 2 or 8A of Schedule 6 or under paragraph 2 of Schedule 4 to the 1983 Act;
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any refusal to permit the value of supplies to be determined by a method described in a notice published under paragraph 2(6) of Schedule 11;
any refusal of authorisation or termination of authorisation in connection with the scheme made under paragraph 2(7) of Schedule 11;
any conditions imposed by the Commissioners in a particular case by virtue of paragraph 2B(2)(c) or 3(1) of Schedule 11.
References in this section to an appeal are references to an appeal under section 83.
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Subject to subsections (3B) and (3C), where the appeal is against a decision with respect to any of the matters mentioned in section 83(1)(b), (n), (p), (q), (ra) , (rb) or (zb), it shall not be entertained unless the amount which HMRC have determined to be payable as VAT has been paid or deposited with them.
the amount which the Commissioners have determined to be payable as VAT has been paid or deposited with them; or
on being satisfied that the appellant would otherwise suffer hardship the Commissioners agree or the tribunal decides that it should be entertained notwithstanding that that amount has not been so paid or deposited.
Subject to subsection (11) below, where— the tribunal shall not allow the appeal or, as the case may be, so much of it as relates to that determination unless it considers that the determination is one which it was unreasonable to make or which it would have been unreasonable to make if information brought to the attention of the tribunal that could not have been brought to the attention of HMRC had been available to be taken into account when the determination was made.
there is an appeal against a decision of HMRC with respect to, or to so much of any assessment as concerns, the amount of input tax that may be credited to any person or the proportion of input tax allowable under section 26, and
that appeal relates, in whole or in part, to any determination by HMRC—
as to the purposes for which any goods or services were or were to be used by any person, or
as to whether or to what extent the matters to which any input tax was attributable were or included matters other than the making of supplies within section 26(2), and
VAT for which, in pursuance of that determination, there is no entitlement to a credit is VAT on the supply ... or importation of something in the nature of a luxury, amusement or entertainment,
Subject to subsections (3B) and (3C), where the appeal is against an assessment which is a recovery assessment for the purposes of this subsection, or against the amount of such an assessment, it shall not be entertained unless the amount notified by the assessment has been paid or deposited with HMRC.
Where, on an appeal against a decision with respect to any of the matters mentioned in section 83(1)(p) or (rb) — the assessment shall have effect as an assessment of the amount specified in the direction, and that amount shall be deemed to have been notified to the appellant.
it is found that the amount specified in the assessment is less than it ought to have been, and
the tribunal gives a direction specifying the correct amount,
In a case where the amount determined to be payable as VAT or the amount notified by the recovery assessment has not been paid or deposited an appeal shall be entertained if—
HMRC are satisfied (on the application of the appellant), or
the tribunal decides (HMRC not being so satisfied and on the application of the appellant),
Without prejudice to section 70, ... nothing in section 83(1)(q) shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty, interest or surcharge penalty or interest except in so far as it is necessary to reduce it to the amount which is appropriate under sections 59 60 to 70; and in this subsection “penalty” includes an amount assessed by virtue of section 61(3) or (4)(a).
Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007, the decision of the tribunal as to the issue of hardship is final.
Where there is an appeal against a decision to make such a direction as is mentioned in section 83(1)(u), the tribunal shall not allow the appeal unless it considers that HMRC could not reasonably have been satisfied as to the matters in sub-paragraph (2)(a) to (d) of paragraph 2 of Schedule 1 or, as the case may be, that there were grounds for making the direction.
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that the whole or part of any amount paid or deposited in pursuance of subsection (3) above is not due; or
that the whole or part of any VAT credit due to the appellant has not been paid,
Where an appeal is brought— the tribunal shall not allow the appeal unless it considers that HMRC could not reasonably have been satisfied that there were grounds for the decision.
against such a decision as is mentioned in section 83(1)(fza), or
to the extent that it is based on such a decision, against an assessment,
No appeal shall lie under this section with respect to the subject-matter of any decision which by virtue of section 16 is a decision to which section 14 or 15A of the Finance Act 1994 (decisions subject to review) applies unless the decision—
relates exclusively to one or both of the following matters, namely whether or not section 30(3) applies in relation to the importation of the goods in question and (if it does not) the rate of tax charged on those goods; and
is not one in respect of which notice has been given to HMRC under section 14 of that Act requiring them to review it and
a review is not being undertaken following a request under section 14A of that Act; and
a review is not being undertaken under section 15 of that Act as a consequence of section 15B(3), 15C(3) or 15E(3) of that Act.
Where an appeal is brought against the refusal of an application such as is mentioned in section 43B(1) or (2) on the grounds stated in section 43B(5)(c)—
the tribunal shall not allow the appeal unless it considers that HMRC could not reasonably have been satisfied that there were grounds for refusing the application,
the refusal shall have effect pending the determination of the appeal, and
if the appeal is allowed, the refusal shall be deemed not to have occurred.
Where an appeal is against an HMRC decision which depended upon a prior decision taken ... in relation to the appellant, the fact that the prior decision is not within section 83 shall not prevent the tribunal from allowing the appeal on the ground that it would have allowed an appeal against the prior decision.
Where an appeal is brought against the giving of a notice under section 43C(1) or (3)—
the notice shall have effect pending the determination of the appeal, and
if the appeal is allowed, the notice shall be deemed never to have had effect.
Subsection (4) above shall not apply in relation to any appeal relating to the input tax that may be credited to any person at the end of a prescribed accounting period beginning before 27th July 1993.
Where an appeal is brought against the giving of a notice under section 43C(1), the tribunal shall not allow the appeal unless it considers that HMRC could not reasonably have been satisfied that there were grounds for giving the notice.
Where— the tribunal shall not allow the appeal in respect of the date unless it considers that HMRC could not reasonably have been satisfied that it was appropriate.
an appeal is brought against the giving of a notice under section 43C(3), and
the grounds of appeal relate wholly or partly to the date specified in the notice,
Where an appeal is brought against a requirement imposed under paragraph 4(2)(b) of Schedule 11 that a person give security, the tribunal shall allow the appeal unless HMRC satisfies the tribunal that—
there has been an evasion of, or an attempt to evade, VAT in relation to goods or services supplied to or by that person, or
it is likely, or without the requirement for security it is likely, that VAT in relation to such goods or services will be evaded.
A reference in subsection (4E) above to evading VAT includes a reference to obtaining a VAT credit that is not due or a VAT credit in excess of what is due.
Without prejudice to section 70, nothing in section 83(1)(zb) shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty except in so far as it is necessary to reduce it to the amount which is appropriate under paragraph 11 of Schedule 11A.
Nothing in section 83(1)(zc) shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty except in so far as it is necessary to reduce it to the amount which is appropriate under regulations made under section 135 of the Finance Act 2002.
Where there is an appeal against a decision to make such a direction as is mentioned in section 83(1)(wa), the cases in which the tribunal shall allow the appeal shall include (in addition to the case where the conditions for the making of the direction were not fulfilled) the case where the tribunal are satisfied, in relation to the relevant event by reference to which the direction was given, that— had as its main purpose or, as the case may be, as each of its main purposes a genuine commercial purpose unconnected with the fulfilment of the condition specified in paragraph 1(3) of Schedule 9A.
the change in the treatment of the body corporate, or
the transaction in question,
Where there is an appeal against such a refusal as is mentioned in section 83(1)(wb)—
the tribunal shall not allow the appeal unless it considers that HMRC could not reasonably have been satisfied that there were grounds for the refusal, and
the refusal shall have effect pending the determination of the appeal.
Where there is an appeal against a decision to make such a direction as is mentioned in section 83(1)(zza)—
the tribunal shall not allow the appeal unless it considers that HMRC could not reasonably have been satisfied that there were grounds for making the direction;
the direction shall have effect pending the determination of the appeal.
HMRC must offer a person (P) a review of a decision that has been notified to P if an appeal lies under section 83 in respect of the decision.
The offer of the review must be made by notice given to P at the same time as the decision is notified to P.
This section does not apply to the notification of the conclusions of a review.
Subject to the provisions of this section, where a person gives notice of appeal under section 83 and, before the appeal is determined by a tribunal, HMRC and the appellant come to an agreement (whether in writing or otherwise) under the terms of which the decision under appeal is to be treated— the like consequences shall ensue for all purposes as would have ensued if, at the time when the agreement was come to, a tribunal had determined the appeal in accordance with the terms of the agreement ....
as upheld without variation, or
as varied in a particular manner, or
as discharged or cancelled,
Subsection (1) above shall not apply where, within 30 days from the date when the agreement was come to, the appellant gives notice in writing to HMRC that he desires to repudiate or resile for the agreement.
Where an agreement is not in writing—
the preceding provisions of this section shall not apply unless the fact that an agreement was come to, and the terms agreed, are confirmed by notice in writing given by HMRC to the appellant or by the appellant to HMRC, and
references in those provisions to the time when the agreement was come to shall be construed as references to the time of the giving of that notice of confirmation.
Where— the preceding provisions of this section shall have effect as if, at the date of the appellant’s notification, the appellant and HMRC had come to an agreement, orally or in writing, as the case may be, that the decision under appeal should be upheld without variation.
a person who has given a notice of appeal notifies HMRC, whether orally or in writing, that he desires not to proceed with the appeal; and
30 days have elapsed since the giving of the notification without HMRC giving to the appellant notice in writing indicating that they are unwilling that the appeal should be treated as withdrawn,
References in this section to an agreement being come to with an appellant and the giving of notice or notification to or by an appellant include references to an agreement being come to with, and the giving of notice or notification to or by, a person acting on behalf of the appellant in relation to the appeal.
Any person (other than P) who has the right of appeal under section 83 against a decision may require HMRC to review that decision if that person has not appealed to the tribunal under section 83G.
A notification that such a person requires a review must be made within 30 days of that person becoming aware of the decision.
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The Lord Chancellor may by order provide that— an appeal from a tribunal shall lie to the Court of Appeal.
in such classes of appeal as may be prescribed by the order, and
subject to the consent of the parties and to such other conditions as may be so prescribed,
An order under this section may provide that section 11 of the Tribunals and Inquiries Act 1992 (which provides for appeals to the High Court from a tribunal) shall have effect, in relation to any appeal to which the order applies, with such modifications as may be specified in the order.
This section does not extend to Scotland.
HMRC must review a decision if—
they have offered a review of the decision under section 83A, and
P notifies HMRC accepting the offer within 30 days from the date of the document containing the notification of the offer.
But P may not notify acceptance of the offer if P has already appealed to the tribunal under section 83G.
HMRC must review a decision if a person other than P notifies them under section 83B.
HMRC shall not review a decision if P, or another person, has appealed to the tribunal under section 83G in respect of the decision.
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If the decision of a tribunal in England and Wales on an appeal under section 83 is registered by the Commissioners in accordance with rules of court, payment of— may be enforced by the High Court as if that amount or, as the case may be, the amount of those costs were an amount due to the Commissioners in pursuance of a judgment or order of the High Court.
any amount which, as a result of the decision, is, or is recoverable as, VAT due from any person, and
any costs awarded to the Commissioners by the decision,
If the decision of a tribunal in Scotland on an appeal under section 83— the decision may be recorded for execution in the Books of Council and Session and shall be enforceable accordingly.
confirms or varies an amount which is, or is recoverable as, VAT due from any person, or
awards costs to the Commissioners,
Subsection (4) below shall apply in relation to the decision of a tribunal in Northern Ireland on an appeal under section 83 where—
any amount is, or is recoverable as, VAT due from any person, as a result of the decision, whether with or without an award of costs to the Commissioners; or
any costs are awarded to the Commissioners by the decision.
Where this subsection applies—
payment of the amount mentioned in paragraph (a) of subsection (3) above or, as the case may be, the amount of the costs mentioned in paragraph (b) of that subsection may be enforced by the Enforcement of Judgments Office; and
a sum equal to any such amount shall be deemed to be payable under a money judgment within the meaning of Article 2(2) of the Judgments Enforcement (Northern Ireland) Order 1981, and the provisions of that Order shall apply accordingly.
Any reference in this section to a decision of a tribunal includes a reference to an order (however described) made by a tribunal for giving effect to a decision.
If under section 83A HMRC have offered P a review of a decision, HMRC may within the relevant period notify P that the relevant period is extended.
If under section 83B another person may require HMRC to review a matter, HMRC may within the relevant period notify the other person that the relevant period is extended.
If notice is given the relevant period is extended to the end of 30 days from—
the date of the notice, or
any other date set out in the notice or a further notice.
In this section “relevant period” means—
the period of 30 days referred to in—
section 83C(1)(b) (in a case falling within subsection (1)), or
section 83B(2) (in a case falling within subsection (2)), or
if notice has been given under subsection (1) or (2), that period as extended (or as most recently extended) in accordance with subsection (3).
This section applies if—
HMRC have offered a review of a decision under section 83A and P does not accept the offer within the time allowed under section 83C(1)(b) or 83D(3); or
a person who requires a review under section 83B does not notify HMRC within the time allowed under that section or section 83D(3).
HMRC must review the decision under section 83C if—
after the time allowed, P, or the other person, notifies HMRC in writing requesting a review out of time,
HMRC are satisfied that P, or the other person, had a reasonable excuse for not accepting the offer or requiring review within the time allowed, and
HMRC are satisfied that P, or the other person, made the request without unreasonable delay after the excuse had ceased to apply.
HMRC shall not review a decision if P, or another person, has appealed to the tribunal under section 83G in respect of the decision.
This section applies if HMRC are required to undertake a review under section 83C or 83E.
The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.
For the purpose of subsection (2), HMRC must, in particular, have regard to steps taken before the beginning of the review—
by HMRC in reaching the decision, and
by any person in seeking to resolve disagreement about the decision.
The review must take account of any representations made by P, or the other person, at a stage which gives HMRC a reasonable opportunity to consider them.
The review may conclude that the decision is to be—
upheld,
varied, or
cancelled.
See section 83FA concerning additional conclusions a review can reach in the case of penalties under Schedule 24 to the Finance Act 2021.
HMRC must give P, or the other person, notice of the conclusions of the review and their reasoning within—
a period of 45 days beginning with the relevant date, or
such other period as HMRC and P, or the other person, may agree.
In subsection (6) “relevant date” means—
the date HMRC received P’s notification accepting the offer of a review (in a case falling within section 83A), or
the date HMRC received notification from another person requiring review (in a case falling within section 83B), or
the date on which HMRC decided to undertake the review (in a case falling within section 83E).
Where HMRC are required to undertake a review but do not give notice of the conclusions within the time period specified in subsection (6), the review is to be treated as having concluded that the decision is upheld.
If subsection (8) applies, HMRC must notify P or the other person of the conclusion which the review is treated as having reached.
This section applies if HMRC are required, by virtue of paragraph 23(1) of Schedule 24 to the Finance Act 2021, to undertake a review under section 83C or 83E of a penalty decision in respect of which an appeal lies under paragraph 22(b) of that Schedule.
The review may also conclude that HMRC's decision that P was liable to any of the penalty points by virtue of which P was liable to the penalty in respect of which the appeal lies is to be—
upheld, or
cancelled.
Subsection (2) applies in relation to a penalty point even if the time limit for appealing against it expired before the relevant date.
Subsection (2) does not apply in relation to a penalty point if—
it was concluded on an earlier review required to be undertaken under section 83C or 83E that HMRC's decision that P was liable to the penalty point was to be upheld, or
HMRC's decision that P was liable to the penalty point has been affirmed on appeal.
In subsection (3) “relevant date” has the same meaning as in section 83F(6) (see section 83F(7)).
If the conclusions of a review include conclusions reached by virtue of section 83FA and the conclusions of the review are final, sub-paragraphs (4) and (5) of paragraph 24 of Schedule 24 to the Finance Act 2021 apply but with the following modifications—
references to the appeal under paragraph 22(b) of that Schedule are to be read as references to the review required to be undertaken under section 83C or 83E (as the case may be),
references to the tribunal are to be read as references to HMRC, and
references to cancelling a decision are to be read as references to concluding that HMRC's decision is to be cancelled.
For the purposes of subsection (1) the conclusions of a review are to be treated as final only if the period specified in subsection (3)(b), (4)(b) or (5) of section 83G for appealing the reviewed decision has ended and no appeal has been made within that period.
An appeal under section 83 is to be made to the tribunal before—
the end of the period of 30 days beginning with—
in a case where P is the appellant, the date of the document notifying the decision to which the appeal relates, or
in a case where a person other than P is the appellant, the date that person becomes aware of the decision, or
if later, the end of the relevant period (within the meaning of section 83D).
But that is subject to subsections (3) to (5).
In a case where HMRC are required to undertake a review under section 83C—
an appeal may not be made until the conclusion date, and
any appeal is to be made within the period of 30 days beginning with the conclusion date.
In a case where HMRC are requested to undertake a review in accordance with section 83E—
an appeal may not be made—
unless HMRC have notified P, or the other person, as to whether or not a review will be undertaken, and
if HMRC have notified P, or the other person, that a review will be undertaken, until the conclusion date;
any appeal where paragraph (a)(ii) applies is to be made within the period of 30 days beginning with the conclusion date;
if HMRC have notified P, or the other person, that a review will not be undertaken, an appeal may be made only if the tribunal gives permission to do so.
In a case where section 83F(8) applies, an appeal may be made at any time from the end of the period specified in section 83F(6) to the date 30 days after the conclusion date.
An appeal may be made after the end of the period specified in subsection (1), (3)(b), (4)(b) or (5) if the tribunal gives permission to do so.
In this section “conclusion date” means the date of the document notifying the conclusions of the review.
This section applies where the tribunal has determined an appeal under section 83.
Where on the appeal the tribunal has determined that— so much of that amount, or of that credit, as the tribunal determines not to be due or not to have been paid shall be paid or repaid ....
the whole or part of any disputed amount paid or deposited is not due, or
the whole or part of any VAT credit due to the appellant has not been paid,
Where on the appeal the tribunal has determined that— so much of that amount, or of that credit, as the tribunal determines to be due or not payable shall be paid or repaid to HMRC ....
the whole or part of any disputed amount not paid or deposited is due, or
the whole or part of any VAT credit paid was not payable,
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Where a party makes a further appeal, notwithstanding that the further appeal is pending, value added tax or VAT credits, or a credit of overstated or overpaid value added tax shall be payable or repayable in accordance with the determination of the tribunal or court against which the further appeal is made.
But if the amount payable or repayable is altered by the order or judgment of the tribunal or court on the further appeal—
if too much value added tax has been paid or the whole or part of any VAT credit due to the appellant has not been paid the amount overpaid or not paid shall be refunded with such interest, if any, as the tribunal or court may allow; and
if too little value added tax has been charged or the whole or part of any VAT credit paid was not payable so much of the amount as the tribunal or court determines to be due or not payable shall be due or repayable, as appropriate, at the expiration of a period of thirty days beginning with the date on which HMRC issue to the other party a notice of the total amount payable in accordance with the order or judgment of that tribunal or court.
If, on the application of HMRC, the relevant tribunal or court considers it necessary for the protection of the revenue, subsection (1) shall not apply and the relevant tribunal or court may—
give permission to withhold any payment or repayment; or
require the provision of adequate security before payment or repayment is made.
If, on the application of the original appellant, HMRC are satisfied that financial extremity might be reasonably expected to result if payment or repayment is required or withheld as appropriate, HMRC may do one or more of the things listed in subsection (6).
If on the application of the original appellant, the relevant tribunal or court decides that—
the original appellant has applied to HMRC under subsection (4),
HMRC have decided that application,
financial extremity might be reasonably expected to result from that decision by HMRC,
These are the things which HMRC or the relevant tribunal or court may do under subsection (4) or (5)—
decide how much, if any, of the amount under appeal should be paid or repaid as appropriate,
require the provision of adequate security from the original appellant,
stay the requirement to pay or repay under subsection (1).
Subsections (3) to (6) cease to have effect when the further appeal has been determined.
In this section—
This section applies where there is a change in the rate of VAT in force under section 2 or 29A or in the descriptions of exempt, zero-rated or reduced-rate supplies ....
Where— the rate at which VAT is chargeable on the supply, or any question whether it is zero-rated or exempt or a reduced-rate supply, shall if the person making it so elects be determined without regard to section 6(4), (5), (6) or (10).
a supply affected by the change would, apart from section 6(4), (5), (6) or (10), be treated under section 6(2) or (3) as made wholly or partly at a time when it would not have been affected by the change; or
a supply not so affected would apart from section 6(4), (5), (6) or (10) be treated under section 6(2) or (3) as made wholly or partly at a time when it would have been so affected,
Any power to make regulations under this Act with respect to the time when a supply is to be treated as taking place shall include power to provide for this section to apply as if the references in subsection (2) above to section 6(4), (5), (6) or (10) included references to specified provisions of the regulations.
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any acquisition of goods from another member State which is affected by the change would not have been affected (in whole or in part) if it had been treated as taking place at the time of the event which, in relation to that acquisition, is the first relevant event for the purposes of taxing the acquisition; or
any acquisition of goods from another member State which is not so affected would have been affected (in whole or in part) if it had been treated as taking place at the time of that event,
Regulations under paragraph 2A of Schedule 11 may make provision for the replacement or correction of any VAT invoice which—
relates to a supply in respect of which an election is made under this section, but
was issued before the election was made.
No election may be made under this section in respect of a supply to which paragraph 7 of Schedule 4 or paragraph 2B(4) of Schedule 11 applies.
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References in this section to a supply being a reduced-rate supply are references to a supply being one on which VAT is charged at the rate in force under section 29A.
Where, after the making of a contract for the supply of goods or services and before the goods or services are supplied, there is a change in the VAT charged on the supply, then, unless the contract otherwise provided, there shall be added to or deducted from the consideration for the supply an amount equal to the change.
Subsection (1) above shall apply in relation to a tenancy or lease as it applies in relation to a contract except that a term of a tenancy or lease shall not be taken to provide that the rule contained in that subsection is not to apply in the case of the tenancy or lease if the term does not specifically to VAT or this section.
References in this section to a change in the VAT charged on a supply include references to a change to or from no VAT being charged on the supply (including a change attributable to the making of an option to tax any land under Part 1 of Schedule 10).
Where— the amount repayable shall be the difference between the VAT paid by reference to that value at the rate specified in the resolution and the VAT that would have been payable by reference to that value at the lower rate.
by virtue of a resolution having effect under the Provisional Collection of Taxes Act 1968 VAT has been paid at a rate specified in the resolution on the supply of any goods or services by reference to a value determined under section 19(2) ..., and
by virtue of section 1(6) or (7) or 5(3) of that Act any of that VAT is repayable in consequence of the restoration in relation to that supply ... of a lower rate,
Where— the VAT chargeable at the lower rate shall be charged by reference to the same value as that by reference to which VAT would have been chargeable at the rate specified in the resolution.
by virtue of such a resolution VAT is chargeable at a rate specified in the resolution on the supply of any goods or services by reference to a value determined under section 19(2) ..., but
before the VAT is paid it ceases to be chargeable at that rate in consequence of the restoration in relation to that supply ... of a lower rate,
The VAT that may be credited as input tax under section 25 or refunded under section 33, 33A, 33B, 33C or 35 does not include VAT that has been repaid by virtue of any of the provisions mentioned in subsection (1)(b) above or that would be repayable by virtue of any of those provisions if it had been paid.
For the purpose of the compilation or maintenance by the Department of Trade and Industry or the Statistics Board of a central register of businesses, or for the purpose of any statistical survey conducted or to be conducted by that Department or Board, the Commissioners or an authorised officer of the Commissioners may disclose to an authorised officer of that Department or Board particulars of the following descriptions obtained or recorded by them in pursuance of this Act—
numbers allocated by the Commissioners on the registration of persons under this Act and reference numbers for members of a group;
names, trading styles and addresses of persons so registered or of members of groups and status and trade classifications of businesses; and
actual or estimated value of supplies.
Subject to subsection (3) below, no information obtained by virtue of this section by an officer of the Department of Trade and Industry or the Statistics Board may be disclosed except to an officer of a Government department (including a Northern Ireland department) or to a member of the staff of the Scottish Administration for the purpose for which the information was obtained, or for a like purpose.
Subsection (2) above does not prevent the disclosure—
of any information in the form of a summary so framed as not to enable particulars to be identified as particulars relating to a particular person or to the business carried on by a particular person; or
with the consent of any person, of any information enabling particulars to be identified as particulars relating only to him or to a business carried on by him.
If any person who has obtained any information by virtue of this section discloses it in contravention of this section he shall be liable—
on summary conviction to a fine not exceeding the statutory maximum; and
on conviction on indictment to imprisonment for a term not exceeding 2 years or to a fine of any amount or to both.
In this section, references to the Department of Trade and Industry or the Statistics Board include references to any Northern Ireland department or to any part of the Scottish Administration carrying out similar functions.
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Subject to the following provisions of this section, references in this Act, in relation to another member State, to the law of that member State shall be construed as confined to so much of the law of that member State as for the time being has effect for the purposes of any Community instrument relating to VAT.
Subject to the following provisions of this section—
references in this Act to a person being taxable in another member State are references to that person being taxable under so much of the law of that member State as makes provision for purposes corresponding, in relation to that member State, to the purposes of so much of this Act as makes provision as to whether a person is a taxable person; and
references in this Act to goods being acquired by a person in another member State are references to goods being treated as so acquired in accordance with provisions of the law of that member State corresponding, in relation to that member State, to so much of this Act as makes provision for treating goods as acquired in the United Kingdom from another member State.
Without prejudice to subsection (5) below, the Commissioners may by regulations make provision for the manner in which any of the following are to be or may be proved for any of the purposes of this Act, that is to say—
the effect of any provisions of the law of any other member State;
that provisions of any such law correspond or have a purpose corresponding, in relation to any member State, to or to the purpose of any provision of this Act.
The Commissioners may by regulations provide—
for a person to be treated for prescribed purposes of this Act as taxable in another member State only where he has given such notification, and furnished such other information, to the Commissioners as may be prescribed;
for the form and manner in which any notification or information is to be given or furnished under the regulations and the particulars which it is to contain;
for the proportion of any consideration for any transaction which is to be taken for the purposes of this Act as representing a liability, under the law of another member State, for VAT to be conclusively determined by reference to such invoices or in such other manner as may be prescribed.
In any proceedings (whether civil or criminal), a certificate of the Commissioners— shall be sufficient evidence of that fact until the contrary is proved, and any document purporting to be a certificate under this subsection shall be deemed to be such a certificate until the contrary is proved.
that a person was or was not, at any date, taxable in another member State; or
that any VAT payable under the law of another member State has or has not been paid,
Without prejudice to the generality of any of the powers of the Commissioners under the relevant information provisions, those powers shall, for the purpose of facilitating compliance with any Community obligations, be exercisable with respect to matters that are relevant to a charge to VAT under the law of another member State, as they are exercisable with respect to matters that are relevant for any of the purposes of this Act.
The reference in subsection (6) above to the relevant information provisions is a reference to the provisions of section 73(7) and Schedule 11 relating to—
the keeping of accounts;
the making of returns and the submission of other documents to the Commissioners;
the production, use and contents of invoices;
the keeping and preservation of records; and
the furnishing of information and the production of documents.
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The Commissioners may by regulations provide for the territory of the Community, or for the member States, to be treated for any of the purposes of this Act as including or excluding such territories as may be prescribed.
Without prejudice to the generality of the powers conferred by subsection (1) and section 16, the Commissioners may, for any of the purposes of this Act, by regulations provide for prescribed provisions of any customs and excise legislation to apply in relation to cases where any territory is treated under subsection (1) above as excluded from the territory of the Community, with such exceptions and adaptations as may be prescribed.
In subsection (2) above the reference to customs and excise legislation is a reference to any enactment or subordinate or Community legislation (whenever passed, made or adopted) which has effect in relation to, or to any assigned matter connected with, the importation or exportation of goods.
In subsection (3) above“assigned matter” has the same meaning as in the Management Act.
In this Act “business” includes any trade, profession or vocation.
Without prejudice to the generality of anything else in this Act, the following are deemed to be the carrying on of a business—
the provision by a club, association or organisation (for a subscription or other consideration) of the facilities or advantages available to its members; and
the admission, for a consideration, of persons to any premises.
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Where a person, in the course or furtherance of a trade, profession or vocation, accepts any office, services supplied by him as the holder of that office are treated as supplied in the course or furtherance of the trade, profession or vocation.
Anything done in connection with the termination or intended termination of a business is treated as being done in the course or furtherance of that business.
The disposition of a business , or part of a business, as a going concern, or of the assets or liabilities of the business or part of the business (whether or not in connection with its reorganisation or winding up), is a supply made in the course or furtherance of the business.
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In this Act “means of transport” in the expression“new means of transport” means, subject to subsection (2) below, any of the following, that is to say—
any ship exceeding 7.5 metres in length;
any aircraft the take-off weight of which exceeds 1550 kilograms;
any motorized land vehicle which—
has an engine with a displacement or cylinder capacity exceeding 48 cubic centimetres; or
is constructed or adapted to be electrically propelled using more than 7.2 kilowatts.
A ship, aircraft or motorized land vehicle does not fall within subsection (1) above unless it is intended for the transport of persons or goods.
For the purposes of this Act a means of transport shall be treated as new at any time unless at that time—
a period of more than 3 months has elapsed since its first entry into service; and
it has, since its first entry into service, travelled under its own power—
in the case of a ship, for more than 100 hours;
in the case of an aircraft, for more than 40 hours; and
in the case of a land vehicle, for more than 3000 kilometres.
The Treasury may by order vary this section—
by adding or deleting any ship, aircraft or vehicle of a description specified in the order to or from those which are for the time being specified in subsection (1) above; and
by altering, omitting or adding to the provisions of subsection (3) above for determining whether a means of transport is new.
The Commissioners may by regulations make provision specifying the circumstances in which a means of transport is to be treated for the purposes of this section as having first entered into service.
In this Act— and any reference to a particular section, Part or Schedule is a reference to that section or Part of, or Schedule to, this Act.
“quarter” means a period of 3 months ending at the end of March, June, September or December;
“the relevant time”, in relation to any such acquisition, means—
Food of a kind used for human consumption.
“Search and rescue charity” means a charity that meets condition A or B.
Animal feeding stuffs.
Condition A is that—
the main purpose of the charity is to carry out search and rescue activities in the United Kingdom or the UK marine area, and
the search and rescue activities carried out by the charity are co-ordinated by a relevant authority.
Seeds or other means of propagation of plants comprised in item 1 or 2.
Condition B is that the main purpose of the charity is to support, develop and promote the activities of a charity which meets condition A.
Live animals of a kind generally used as, or yielding or producing, food for human consumption.
For the purposes of subsection (6)—
“VAT representative” has the meaning given by section 48;
“tax” means VAT;
Any reference in this Act to being registered shall be construed in accordance with section 3(3).
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the question whether or not goods have entered the territory of the Community;
the time when any Community customs debt in respect of duty on the entry of any goods into the territory of the Community would be incurred; and
the person by whom any such debt would fall to be discharged,
In this Act “local authority” means the council of a county, county borough, district, London borough, parish or group of parishes (or, in Wales, community or group of communities), the Common Council of the City of London, the Council of the Isles of Scilly, and any joint committee or joint board established by two or more of the foregoing and, in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994, any two or more such councils and any joint committee or joint board within the meaning of section 235(1) of the Local Government (Scotland) Act 1973.
Any reference in this Act to the amount of any duty of excise on any goods shall be taken to be a reference to the amount of duty charged on those goods with any addition or deduction falling to be made under section 1 of the Excise Duties (Surcharges or Rebates) Act 1979.
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in relation to England and Wales, as by virtue of section 10 of the Civil Evidence Act 1968 they have in Part I of that Act; and
in relation to Northern Ireland, as by virtue of section 6 of the Civil Evidence Act (Northern Ireland) 1971 they have in Part I of that Act.
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The question whether, in relation to any supply of services, the supplier or the recipient of the supply belongs in one country or another shall be determined ... in accordance with section 9.
Schedules 7A, 8 and 9 shall be interpreted in accordance with the notes contained in those Schedules; and accordingly the powers conferred by this Act to vary those Schedules include a power to add to, delete or vary those notes.
The descriptions of Groups in those Schedules are for ease of reference only and shall not affect the interpretation of the descriptions of items in those Groups.
References in this Act to the United Kingdom include the territorial sea of the United Kingdom.
Where— that question shall be determined according to whether the description is applicable as at the time of supply, rather than by reference to the time of the grant.
the grant of any interest, right, licence or facilities gives rise for the purposes of this Act to supplies made at different times after the making of the grant, and
a question whether any of those supplies is zero-rated or exempt falls to be determined according to whether or not the grant is a grant of a description specified in Schedule 8 or 9 or any of paragraphs 5 to 11 of Schedule 10,
Notwithstanding subsection (10A) above—
item 1 of Group 1 of Schedule 9 does not make exempt any supply that arises for the purposes of this Act from the prior grant of a fee simple falling within paragraph (a) of that item; and
that paragraph does not prevent the exemption of a supply that arises for the purposes of this Act from the prior grant of a fee simple not falling within that paragraph.
In this Act—
Item 3 does not include the supply of any services by an eligible body of residential accommodation, catering or transport. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subject to Notes (2C) and (3), in this Group “eligible body” means an eligible body which– For the purposes of Note (2A)(b) the application of profits made by any body from supplies of a description within Item 2 or 3 is in accordance with this Note only if those profits are applied for one or more of the following purposes, namely– In determining whether the requirements of Note (2A) for being an eligible body are satisfied in the case of any body, there shall be disregarded any distribution of amounts representing unapplied or undistributed profits that falls to be made to the body’s members on its winding-up or dissolution. In Item 3 a “non-profit making body” does not include— For the purposes of this Group a body shall be taken, in relation to a sports supply, to be subject to commercial influence if, and only if, there is a time in the relevant period when– In this Group “the relevant period”, in relation to a sports supply, means– Subject to Note (7), in this Group “relevant supply”, in relation to any body, means a supply falling within any of the following paragraphs– A supply which has been, or is to be or may be, made by any person shall not be taken, in relation to a sports supply made by any body, to be a relevant supply for the purposes of this Group if– Subject to Note (10), a person shall be taken, for the purposes of this Group, to have been associated with a body at any of the following times, that is to say– if, at that time, or at another time (whether before or after that time) in the relevant period, that person was an officer or shadow officer of that body or an intermediary for supplies to that body. Subject to Note (10), a person shall also be taken, for the purposes of this Group, to have been associated with a body at a time mentioned in paragraph (a), (b) or (c) of Note (8) if, at that time, he was connected with another person who in accordance with that Note– Subject to Note (11), a person shall not be taken for the purposes of this Group to have been associated with a body at a time mentioned in paragraph (a), (b) or (c) of Note (8) if the only times in the relevant period when that person or the person connected with him was an officer or shadow officer of the body are times before 1st January 2000. Note (10) does not apply where (but for that Note) the body would be treated as subject to commercial influence at any time in the relevant period by virtue of– For the purposes of this Group a person shall be taken, in relation to a sports supply, to have been at all times in the relevant period an intermediary for supplies to the body making that supply if– In determining for the purposes of Note (12) or this Note whether there are such circumstances as are mentioned in paragraph (b) of that Note in the case of any supply, that Note and this Note shall be applied first for determining whether the person by whom the supply was made, or was to be or might be made, was himself an intermediary for supplies to the body in question, and so on through any number of other supplies or agreements. In determining for the purposes of this Group whether a supply made by any person was made by an intermediary for supplies to a body, it shall be immaterial that the supply by that person was made before the making of the supply or agreement by reference to which that person falls to be regarded as such an intermediary. Without prejudice to the generality of subsection (1AA) of section 43, for the purpose of determining– references in the preceding Notes to a supply shall be deemed to include references to a supply falling for other purposes to be disregarded in accordance with section 43(1)(a). In this Group–
For the purposes of subsection (1), an online marketplace facilitates the sale of goods if it allows a person to—
offer goods for sale, and
enter into a contract for the sale of those goods.
The Treasury may by regulations amend this section so as to alter the meaning of— “online marketplace”, and “operator”.
Any order made by the Treasury ... under this Act and any regulations or rules under this Act shall be made by statutory instrument.
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An order to which this subsection applies shall be laid before the House of Commons; and unless it is approved by that House before the expiration of a period of 28 days beginning with the date on which it was made, it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done thereunder or to the making of a new order. In reckoning any such period no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than 4 days.
Subject to section 53(4), subsection (3) above applies to—
an order under section 5(4) , 7A(6) or 28 , 28 or 40A;
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an order under this Act making provision—
for increasing the rate of VAT in force under section 2 at the time of the making of the order;
for excluding any VAT from credit under section 25;
for varying Schedule 8 or 9 so as to abolish the zero-rating of a supply or to abolish the exemption of a supply without zero-rating it;
for varying Schedule 7A so as to cause VAT to be charged on a supply at the rate in force under section 2 instead of that in force under section 29A;
an order under paragraph 5(7) of Schedule 4 substituting a lesser sum for the sum for the time being specified in paragraph 5(2)(a) of that Schedule;
an order under section 51, except one making only such amendments as are necessary or expedient in consequence of provisions of an order under this Act which—
vary Schedule [7A,] 8 or 9; but
are not within paragraph (c) above;
an order under section 54(4) or (8).
an order under section 43AA(1) if as a result of the order any persons would cease to be eligible to be treated as members of a group;
an order under section 55A(13);
an order under section 77A(9) or (9A);
an order under paragraph B1, C1(4), 1A(7), 2A(4) or 8A(7) of Schedule 6;
an order under paragraph 3(4) of Schedule 10A;
an order under paragraph 3 or 4 of Schedule 11A.
A statutory instrument made under any provision of this Act except— shall be subject to annulment in pursuance of a resolution of the House of Commons.
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an instrument as respects which any other Parliamentary procedure is expressly provided, or
an instrument containing an order appointing a day for the purposes of any provision of this Act, being a day as from which the provision will have effect, with or without amendments, or will cease to have effect,
Where an order under section 2(2) is in force, the reference in subsection (4)(c)(i) of this section to the rate of VAT in force under section 2 at the time of the making of an order is a reference to the rate which would be in force at that time if no such order had been made.
Any notice, notification, requirement or demand to be served on, given to or made of any person for the purposes of this Act may be served, given or made by sending it by post in a letter addressed to that person or his VAT representative at the last or usual residence or place of business of that person or representative.
This section shall have effect for the purpose of giving effect to any order made under section 7A(6), if—
the order provides for services of a description specified in the order to be treated as supplied in the United Kingdom;
the services would not have fallen to be so treated apart from the order;
the services are not services that would have fallen to be so treated under any provision re-enacted in the order; and
the order is expressed to come into force in relation to services supplied on or after a date specified in the order (“the commencement date”).
Invoices and other documents provided to any person before the commencement date shall be disregarded in determining the time of the supply of any services which, if their time of supply were on or after the commencement date, would be treated by virtue of the order as supplied in the United Kingdom.
If there is a payment in respect of any services of the specified description that was received by the supplier before the commencement date, so much (if any) of that payment as relates to times on or after that date shall be treated as if it were a payment received on the commencement date.
If there is a payment in respect of services of the specified description that is or has been received by the supplier on or after the commencement date, so much (if any) of that payment as relates to times before that date shall be treated as if it were a payment received before that date.
Subject to subsection (6) below, a payment in respect of any services shall be taken for the purposes of this section to relate to the time of the performance of those services.
Where a payment is received in respect of any services the performance of which takes place over a period a part of which falls before the commencement date and a part of which does not—
an apportionment shall be made, on a just and reasonable basis, of the extent to which the payment is attributable to so much of the performance of those services as took place before that date;
the payment shall, to that extent, be taken for the purposes of this section to relate to a time before that date; and
the remainder, if any, of the payment shall be taken for those purposes to relate to times on or after that date.
The Commissioners shall refund to the Government of Northern Ireland the amount of the VAT charged on the supply of goods or services to that Government ... or on the importation of any goods by that Government ..., after deducting therefrom so much of that amount as may be agreed between them and the Department of Finance and Personnel for Northern Ireland as attributable to supplies ... and importations for the purpose of a business carried on by the Government of Northern Ireland.
Schedule 13 (savings and transitional provisions) and Schedule 14 (consequential amendments) shall have effect.
The enactments and Orders specified in Schedule 15 are hereby repealed to the extent mentioned in the third column of that Schedule.
This section is without prejudice to the operation of sections 15 to 17 of the Interpretation Act 1978 (which relate to the effect of repeals).
This Act shall come into force on 1st September 1994 and Part I shall have effect in relation to the charge to VAT on supplies, acquisitions and importations in prescribed accounting periods ending on or after that date.
Without prejudice to section 16 of the Interpretation Act 1978 (continuation of proceedings under repealed enactments) except in so far as it enables proceedings to be continued under repealed enactments, section 72 shall have effect on the commencement of this Act to the exclusion of section 39 of the 1983 Act.
This Act extends to Northern Ireland.
Paragraph 23 of Schedule 13 and paragraph 7 of Schedule 14 shall extend to the Isle of Man but no other provision of this Act shall extend there.
This Act may be cited as the Value Added Tax Act 1994.
Section 3(2).
Subject to sub-paragraphs (3) to (7) below, a person who makes taxable supplies but is not registered under this Act becomes liable to be registered under this Schedule— Where a business , or part of a business, carried on by a taxable person is transferred to another person as a going concern, the transferee is UK-established at the time of the transfer and the transferee is not registered under this Act at that time, then, subject to sub-paragraphs (3) to (7) below, the transferee becomes liable to be registered under this Schedule at that time if— In determining the value of a person's supplies for the purposes of sub-paragraph (1)(a) or (2)(a), supplies are to be taken into account (subject to sub-paragraphs (3) to (7)) whether or not the person was UK-established when they were made. A person does not become liable to be registered by virtue of sub-paragraph (1)(a) or (2)(a) above if the Commissioners are satisfied that the value of his taxable supplies in the period of one year beginning at the time at which, apart from this sub-paragraph, he would become liable to be registered will not exceed £88,000. In determining the value of a person’s supplies for the purposes of sub-paragraph (1)(a) or (2)(a) above, supplies made at a time when he was previously registered under this Act shall be disregarded if— A person shall be treated as having become liable to be registered under this Schedule at any time when he would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 13(3) below, paragraph 11 of Schedule 1A... or paragraph 6(2) of Schedule 3A. A person shall not cease to be liable to be registered under this Schedule except in accordance with paragraph 2(5), 3 or 4 below. In determining the value of a person’s supplies for the purposes of sub-paragraph (1) or (2) above, supplies of goods or services that are capital assets of the business in the course or furtherance of which they are supplied ... shall be disregarded. Where, apart from this sub-paragraph, an interest in, right over or licence to occupy any land would under sub-paragraph (7) above be disregarded for the purposes of sub-paragraph (1) or (2) above, it shall not be if it is supplied on a taxable supply which is not zero-rated. In determining the value of a person’s supplies for the purposes of sub-paragraph (1) or (2) above, supplies to which section 18B(4) (last ... supply of goods before removal from fiscal warehousing) applies and supplies treated as made by him under section 18C(3) (self-supply of services on removal of goods from warehousing) shall be disregarded. A person is “UK-established” if the person has a business establishment, or some other fixed establishment, in the United Kingdom in relation to a business carried on by the person.
Without prejudice to paragraph 1 above, if the Commissioners make a direction under this paragraph, the persons named in the direction shall be treated as a single taxable person carrying on the activities of a business described in the direction and that taxable person shall be liable to be registered under this Schedule with effect from the date of the direction or, if the direction so provides, from such later date as may be specified therein. The Commissioners shall not make a direction under this paragraph naming any person unless they are satisfied— A direction made under this paragraph shall be served on each of the persons named in it. Where, after a direction has been given under this paragraph specifying a description of business, it appears to the Commissioners that a person who was not named in that direction is making taxable supplies in the course of activities which should . . . be regarded as part of the activities of that business, the Commissioners may make and serve on him a supplementary direction referring to the earlier direction and the description of business specified in it and adding that person’s name to those of the persons named in the earlier direction with effect from— If, immediately before a direction (including a supplementary direction) is made under this paragraph, any person named in the direction is registered in respect of the taxable supplies made by him as mentioned in sub-paragraph (2) or (4) above, he shall cease to be liable to be so registered with effect from whichever is the later of— In relation to a business specified in a direction under this paragraph, the persons named in the direction, together with any person named in a supplementary direction relating to that business (being the persons who together are to be treated as the taxable person), are in sub-paragraphs (7) and (8) below referred to as “the constituent members”. Where a direction is made under this paragraph then, for the purposes of this Act— If it appears to the Commissioners that any person who is one of the constituent members should no longer be regarded as such for the purposes of paragraphs (d) and (e) of sub-paragraph (7) above and they give notice to that effect, he shall not have any liability by virtue of those paragraphs for anything done after the date specified in that notice and, accordingly, on that date he shall be treated as having ceased to be a member of the partnership referred to in paragraph (f) of that sub-paragraph.
Paragraph 2 below is for the purpose of preventing the maintenance or creation of any artificial separation of business activities carried on by two or more persons from resulting in an avoidance of VAT. In determining for the purposes of sub-paragraph (1) above whether any separation of business activities is artificial, regard shall be had to the extent to which the different persons carrying on those activities are closely bound to one another by financial, economic and organisational links.
A person who has become liable to be registered under this Schedule shall cease to be so liable at any time if the Commissioners are satisfied in relation to that time that he—
has ceased to make taxable supplies; or
is not at that time a person in relation to whom any of the conditions specified in paragraphs 1(1)(a) and (b) and (2)(a) and (b) above is satisfied; or
is not at that time UK-established (see paragraph 1(10)).
Subject to sub-paragraph (2) below, a person who has become liable to be registered under this Schedule shall cease to be so liable at any time after being registered if the Commissioners are satisfied that the value of his taxable supplies in the period of one year then beginning will not exceed £88,000. A person shall not cease to be liable to be registered under this Schedule by virtue of sub-paragraph (1) above if the Commissioners are satisfied that the reason the value of his taxable supplies will not exceed £88,000 is that in the period in question he will cease making taxable supplies, or will suspend making them for a period of 30 days or more. In determining the value of a person’s supplies for the purposes of sub-paragraph (1) above, supplies of goods or services that are capital assets of the business in the course or furtherance of which they are supplied ... shall be disregarded. Where, apart from this sub-paragraph, an interest in, right over or licence to occupy any land would under sub-paragraph (3) above be disregarded for the purposes of sub-paragraph (1) above, it shall not be if it is supplied on a taxable supply which is not zero-rated.
A person who becomes liable to be registered by virtue of paragraph 1(1)(a) above shall notify the Commissioners of the liability within 30 days of the end of the relevant month. The Commissioners shall register any such person (whether or not he so notifies them) with effect from the end of the month following the relevant month or from such earlier date as may be agreed between them and him. In this paragraph “the relevant month”, in relation to a person who becomes liable to be registered by virtue of paragraph 1(1)(a) above, means the month at the end of which he becomes liable to be so registered.
A person who becomes liable to be registered by virtue of paragraph 1(1)(b) above shall notify the Commissioners of the liability before the end of the period by reference to which the liability arises. The Commissioners shall register any such person (whether or not he so notifies them) with effect from the beginning of the period by reference to which the liability arises.
A person who becomes liable to be registered by virtue of paragraph 1(2) above shall notify the Commissioners of the liability within 30 days of the time when the business is transferred. The Commissioners shall register any such person (whether or not he so notifies them) with effect from the time when the business is transferred.
Where a person becomes liable to be registered by virtue of paragraph 1(1)(a) above and by virtue of paragraph 1(1)(b) or 1(2) above at the same time, the Commissioners shall register him in accordance with paragraph 6(2) or 7(2) above, as the case may be, rather than paragraph 5(2) above.
Where a person who is not liable to be registered under this Act and is not already so registered satisfies the Commissioners that he— they shall, if he so requests, register him with effect from the day on which the request is made or from such earlier date as may be agreed between them and him.
makes taxable supplies; or
is carrying on a business and intends to make such supplies in the course or furtherance of that business,
Where a person who is not liable to be registered under this Act and is not already so registered satisfies the Commissioners that he— and (in either case) is within sub-paragraph (3) below, they shall, if he so requests, register him with effect from the day on which the request is made or from such earlier date as may be agreed between them and him. A supply is within this sub-paragraph if— A person is within this sub-paragraph if— For the purposes of this paragraph—
A person registered under paragraph 5, 6 or 9 above who ceases to make or have the intention of making taxable supplies shall notify the Commissioners of that fact within 30 days of the day on which he does so unless he would, when he so ceases, be otherwise liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded.
A person registered under paragraph 10 above who— shall notify the Commissioners of that fact within 30 days of the day on which he does so unless, in the case of a person ceasing as mentioned in sub-paragraph (a) above, he would, when he so ceases, be otherwise liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded.
ceases to make or have the intention of making supplies within sub-paragraph (2) of that paragraph; or
makes or forms the intention of making taxable supplies,
Subject to sub-paragraph (4) below, where a registered person satisfies the Commissioners that he is not liable to be registered under this Schedule, they shall, if he so requests, cancel his registration with effect from the day on which the request is made or from such later date as may be agreed between them and him. Subject to sub-paragraph (5) below, where the Commissioners are satisfied that a registered person has ceased to be registrable, they may cancel his registration with effect from the day on which he so ceased or from such later date as may be agreed between them and him. Where the Commissioners are satisfied that on the day on which a registered person was registered he was not registrable, they may cancel his registration with effect from that day. The Commissioners shall not under sub-paragraph (1) above cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement to be registered under this Act. The Commissioners shall not under sub-paragraph (2) above cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement, or entitled, to be registered under this Act. In determining for the purposes of sub-paragraph (4) or (5) above whether a person would be subject to a requirement, or entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when he is already registered or when he is so liable under any other provision shall be disregarded. In this paragraph, any reference to a registered person is a reference to a person who is registered under this Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notwithstanding the preceding provisions of this Schedule, where a person who makes or intends to make taxable supplies satisfies the Commissioners that any such supply is zero-rated or would be zero-rated if he were a taxable person, they may, if he so requests and they think fit, exempt him from registration under this Schedule until it appears to them that the request should no longer be acted upon or is withdrawn. Where there is a material change in the nature of the supplies made by a person exempted under this paragraph from registration under this Schedule, he shall notify the Commissioners of the change— Where there is a material alteration in any quarter in the proportion of taxable supplies of such a person that are zero-rated, he shall notify the Commissioners of the alteration within 30 days of the end of the quarter.
The Treasury may by order substitute for any of the sums for the time being specified in this Schedule such greater sums as they think fit.
The value of a supply of goods or services shall be determined for the purposes of this Schedule on the basis that no VAT is chargeable on the supply.
Any notification required under this Schedule shall be made in such form and manner and shall contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.
In this Schedule “registrable” means liable or entitled to be registered under this Schedule.
References in this Schedule to supplies are references to supplies made in the course or furtherance of a business.
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the supply involves the removal of the goods to the United Kingdom by or under the directions of the person making the supply;
the supply does not involve the installation or assembly of the goods at a place in the United Kingdom;
the supply is a transaction in pursuance of which goods are acquired in the United Kingdom from another member State by a person who is not a taxable person;
the supply is made on or after 1st January 1993 and in the course or furtherance of a business carried on by the supplier; and
the supply is neither an exempt supply nor a supply of goods which are subject to a duty of excise or consist in a new means of transport and is not anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) or 6 of Schedule 4.
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it is a taxable acquisition of goods other than goods which are subject to a duty of excise or consist in a new means of transport;
it is an acquisition otherwise than in pursuance of a taxable supply and is treated, for the purposes of this Act, as taking place in the United Kingdom; and
the event which, in relation to that acquisition, is the first relevant event for the purposes of taxing that acquisition occurs on or after 1st January 1993.
Section 5.
Any transfer of the whole property in goods is a supply of goods; but, subject to sub-paragraph (2) below, the transfer— is a supply of services. If the possession of goods is transferred— it is then in either case a supply of the goods.
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The supply of any form of power, heat, refrigeration or other cooling, or ventilation is a supply of goods.
The grant, assignment or surrender of a major interest in land is a supply of goods.
Subject to sub-paragraph (2) below, where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, that is a supply by him of goods. Sub-paragraph (1) above does not apply where the transfer or disposal is— In sub-paragraph (2) above— For the purposes of determining the cost to the donor of acquiring or producing goods of which he has made a gift, where— the donor and his predecessor or, as the case may be, all of his predecessors shall be treated as if they were the same person. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Where by or under the directions of a person carrying on a business goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, that is a supply of services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sub-paragraph (4) does not apply (despite paragraph 9(1)) to— Neither sub-paragraph (1) nor sub-paragraph (4) above shall require anything which a person carrying on a business does otherwise than for a consideration in relation to any goods to be treated as a supply except in a case where that person or any of his predecessors is a person who (disregarding this paragraph) has or will become entitled— In relation to any goods or anything comprised in any goods, a person is the predecessor of another for the purposes of this paragraph if— and references in this paragraph to a person’s predecessors include references to the predecessors of his predecessors through any number of transfers. Anything which is a supply of goods or services by virtue of sub-paragraph (1) or (4) above is to be treated as made in the course or furtherance of the business (if it would not otherwise be so treated); and in the case of a business carried on by an individual— The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (2)(a) above such sum, not being less than £10, as they think fit.
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In paragraph 5 “qualifying charitable donation” means (subject to sub-paragraphs (6) and (7)) a donation of an item to a charity where— In sub-paragraph (1)(a) “the applicable limit” means— For the purposes of sub-paragraph (1)(a) an item’s value is taken to be the lower of— but where the amount described in paragraph (a) is not known, the item’s value is taken to be the amount described in paragraph (b). Paragraph 5(2A) and (5A) (goods acquired by predecessor businesses) applies for the purposes of sub-paragraph (3). For the purposes of sub-paragraph (3) the amount of consideration in money that would be payable by the donor if they were to purchase any goods is taken to be the amount that would be so payable by the donor after the deduction of any amount included in the purchase price in respect of VAT on the supply of the goods to the donor. A donation is not a qualifying charitable donation if the item donated is any of the following— A donation is not a qualifying charitable donation if (disregarding this paragraph) it is a zero-rated supply. The Treasury may by order amend this paragraph for the purpose of varying the definition of “the applicable limit” in sub-paragraph (2).
Where in the case of a business carried on by a taxable person goods forming part of the assets of the business are, under any power exercisable by another person, sold by the other in or towards satisfaction of a debt owed by the taxable person, they shall be deemed to be supplied by the taxable person in the course or furtherance of his business.
Where a person ceases to be a taxable person, any goods then forming part of the assets of a business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless— This paragraph does not apply to any goods in the case of which the taxable person can show to the satisfaction of the Commissioners— This paragraph does not apply where a person ceases to be a taxable person in consequence of having been certified under section 54. The Treasury may by order increase or further increase the sum specified in sub-paragraph (1)(c) above.
Subject to sub-paragraphs (2) and (3) below, paragraphs 5 to 8 above have effect in relation to land forming part of the assets of, or held or used for the purposes of, a business as if it were goods forming part of the assets of, or held or used for the purposes of, a business. In the application of those paragraphs by virtue of sub-paragraph (1) above, references to transfer, disposition or sale shall have effect as references to the grant or assignment of any interest in, right over or licence to occupy the land concerned. Except in relation to— in the application of paragraph 5(1) above by virtue of sub-paragraph (1) above the reference to a supply of goods shall have effect as a reference to a supply of services. In this paragraph “grant” includes surrender.
Section 8.
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which are of a description specified in paragraph 9 above; and
whose place of supply is determined by an order under section 7(11) to be in the United Kingdom,
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Section 19.
Where— the Commissioners may direct that the value of the supply shall be taken to be its open market value. A direction under this paragraph shall be given by notice in writing to the person making the supply, but no direction may be given more than 3 years after the time of the supply. A direction given to a person under this paragraph in respect of a supply made by him may include a direction that the value of any supply— shall be taken to be its open market value. For the purposes of this paragraph any question whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010. This paragraph does not apply to a supply to which paragraph 8A or 10 below applies.
This paragraph applies if, in a prescribed accounting period, supplies of goods by a taxable person (“P”) arise by virtue of paragraph 5(1) of Schedule 4 (but otherwise than for a consideration) where road fuel which is or has previously been supplied to or imported or manufactured by P in the course of P's business is provided for, or appropriated to, private use. For this purpose “road fuel is provided for, or appropriated to, private use” if— P may opt for all supplies of goods within sub-paragraph (1) made by P in the prescribed accounting period to be valued on the flat-rate basis. On the flat-rate basis, the value of all supplies made to any one individual in respect of any one car is that determined in accordance with an order under paragraph B1.
The Treasury must, by order, make provision about the valuation of supplies on the flat-rate basis. In particular, an order under this paragraph must— An order under this paragraph may provide for the base valuation table and any updated valuation table to be implemented or supplemented by either or both of the following— Rules or notes may make different provision for different circumstances or cases.
For the purposes of this Part of this Schedule— For the purposes of this Part of this Schedule, in any prescribed accounting period a car is not regarded as allocated to an individual by reason of the individual's employment if— In this Part of this Schedule— The Treasury may, by order, amend the definition of “road fuel” in sub-paragraph (3).
Where— the Commissioners may by notice in writing to the taxable person direct that the value of any such supply by him after the giving of the notice or after such later date as may be specified in the notice shall be taken to be its open market value on a sale by retail.
the whole or part of a business carried on by a taxable person consists in supplying to a number of persons goods to be sold, whether by them or others, by retail, and
those persons are not taxable persons,
Where— the Commissioners may direct that the value of the supply shall be taken to be its open market value. A direction under this paragraph shall be given by notice in writing to the person making the supply, but no direction may be given more than 3 years after the time of the supply. A direction given to a person under this paragraph in respect of a supply made by him may include a direction that the value of any supply— shall be taken to be its open market value. In this paragraph— The vehicles excluded by this sub-paragraph are— For the purposes of this paragraph a motor car is a “qualifying motor car”if— The Treasury may by order amend any of the definitions in this paragraph.
This paragraph applies if— The value of the supply is to be taken to be an amount equal to its open market value. For the purposes of this paragraph— The Treasury may, by order, amend the definition of “road fuel” in sub-paragraph (3)(a).
This paragraph applies where— “Bought-in supply”, in relation to the intra-group supply, means a supply of services to the supplier to which section 43(2A)(c) to (e) refers, so far as that supply is used by the supplier for making the intra-group supply. The value of the intra-group supply shall be taken to be the total of the relevant amounts in relation to the bought-in supplies. The relevant amount in relation to a bought-in supply is the value of the bought-in supply, unless a direction is made under sub-paragraph (5). If the value of a bought-in supply is less than its open market value, the Commissioners may direct that the relevant amount in relation to that supply is its open market value. A direction under this paragraph must be given by notice in writing to the representative member, but no direction may be given more than 3 years after the time of the intra-group supply. The Treasury may by order vary the provision made by this Schedule about the value of supplies of the kind mentioned in sub-paragraph (1)(a). An order under sub-paragraph (7) may include incidental, supplemental, consequential or transitional provision (including provision amending section 43 or 83).
Sub-paragraph (2) applies to goods that— The value of a supply of goods to which this sub-paragraph applies is to be taken to be an amount equal to 25% of the amount that, apart from this sub-paragraph, would be its value for the purposes of this Act. An order under section 2(2) may contain provision making such alteration of the percentage for the time being specified in sub-paragraph (2) as the Treasury consider appropriate in consequence of any increase or decrease by that order of the rate of VAT.
This paragraph applies for the purposes of determining the value of a supply consisting of the letting on hire of a motor vehicle on relevant benefit terms. But this paragraph is to be ignored for the purposes of Schedule 1 (VAT registration). “Relevant benefit terms” is to be construed in accordance with paragraph (2) of item 15 in Group 12 in Schedule 8 (zero-rating). Any amount of consideration for the letting that falls within sub-paragraph (d) of that paragraph (payments of relevant benefits) is to be disregarded in determining the amount of the consideration for the purposes of calculating the value of the supply under this Act.
Where— then the value of the supply shall be taken for the purposes of this Act to be the sum of its value apart from this paragraph and the amount, so far as not already included in that value, of the duty or, as the case may be, agricultural levy which has been or is to be paid in respect of the goods. In this paragraph “dutiable goods” and “duty point” have the same meanings as in section 18.
Sub-paragraph (2) applies where— For the purposes of section 19 (value of supply of goods or services) the consideration is the discounted price paid.
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Where there is a supply of goods by virtue of— then, except where the person making the supply opts under paragraph A1(3) above for valuation on the flat-rate basis or paragraph 10 below applies, the value of the supply shall be determined as follows. The value of the supply shall be taken to be— For the purposes of sub-paragraph (2) above the amount of consideration in money that would be payable by any person if he were to purchase any goods shall be taken to be the amount that would be so payable after the deduction of any amount included in the purchase price in respect of VAT on the supply of the goods to that person.
Where there is a supply of services by virtue of— the value of the supply shall be taken to be the full cost to the taxable person of providing the services except where paragraph 10 below applies. Regulations may, in relation to a supply of services by virtue of paragraph 5(4) of Schedule 4 (but otherwise than for a consideration), make provision for determining how the full cost to the taxable person of providing the services is to be calculated. The regulations may, in particular, make provision for the calculation to be made by reference to any prescribed period. The regulations may make—
a Treasury order under section 5(4); or
paragraph 5(3) of Schedule 4 (but otherwise than for a consideration),
Where any supply of services is treated by virtue of section 8 , or any supply of goods is treated by virtue of section 9A, as made by the person by whom they are received, the value of the supply shall be taken—
in a case where the consideration for which the services or goods were in fact supplied to him was a consideration in money, to be such amount as is equal to that consideration; and
in a case where that consideration did not consist or not wholly consist of money, to be such amount in money as is equivalent to that consideration.
This paragraph applies where a supply of services consists in the provision of accommodation falling within paragraph (d) of Item 1 of Group 1 in Schedule 9 and— Where this paragraph applies—
This paragraph applies to a supply of goods or services, whether or not for a consideration, which is made by an employer and consists of— The value of a supply to which this paragraph applies shall be taken to be nil unless the supply is for a consideration consisting wholly or partly of money, and in that case its value shall be determined without regard to any consideration other than money.
Subject to the following provisions of this paragraph, where— then, for the purpose of valuing the supply, that sum is to be converted into sterling at the market rate which, on the relevant day, would apply in the United Kingdom to a purchase with sterling by the person to whom they are supplied of that sum in the currency in question. Where the Commissioners have published a notice which, for the purposes of this paragraph, specifies— a rate specified in or determined in accordance with the notice, as for the time being in force, shall apply (instead of the rate for which sub-paragraph (1) above provides) in the case of any supply by a person who opts, in such manner as may be allowed by the Commissioners, for the use of that rate in relation to that supply. An option for the purposes of sub-paragraph (2) above for the use of a particular rate or method of determining a rate— In specifying a method of determining a rate of exchange a notice published by the Commissioners under sub-paragraph (2) above may allow a person to apply to the Commissioners for the use, for the purpose of valuing some or all of his supplies, of a rate of exchange which is different from any which would otherwise apply. On an application made in accordance with provision contained in a notice under sub-paragraph (4) above, the Commissioners may authorise the use with respect to the applicant of such a rate of exchange, in such circumstances, in relation to such supplies and subject to such conditions as they think fit. A notice published by the Commissioners for the purposes of this paragraph may be withdrawn or varied by a subsequent notice published by the Commissioners. The time by reference to which the appropriate rate of exchange is to be determined for the purpose of valuing any supply is the time when the supply takes place; and, accordingly, the day on which it takes place is the relevant day for the purposes of sub-paragraph (1) above.
Regulations may require that in prescribed circumstances there is to be taken into account, as constituting part of the consideration for the purposes of section 19(2) (where it would not otherwise be so taken into account), money paid in respect of the supply by persons other than those to whom the supply is made.
A direction under paragraph 1 or 2 above may be varied or withdrawn by the Commissioners by a further direction given by notice in writing.
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Section 30.
Subject matter Group Number 1983 Group Number Bank notes Group 11 Group 13 Books etc. Group 3 Group 3 Caravans and houseboats Group 9 Group 11 Charities etc. Group 15 Group 16 Clothing and footwear Group 16 Group 17 Construction of buildings etc. Group 5 Group 8 Drugs, medicines, aids for the disabledetc. Group 12 Group 14 Energy-saving materials: installation in England and Wales and Scotland from 1 April 2022 to 31 March 2027 , and in Northern Ireland from 1st May 2023 to 31st March 2027 Group 23 . . . . . . . . . . . . Food Group 1 Group 1 Free zones Group 22 Gold Group 10 Group 12 Imports, exports etc. Group 13 Group 15 International services Group 7 Group 9 Online marketplaces (deemed supply) Group 21 Personal protective equipment (coronavirus) Group 20 Protected buildings Group 6 Group 8A Sewerage services and water Group 2 Group 2 Talking books for the blind and disabled and wireless sets for the blind Group 4 Group 4 . . . . . . . . . Transport Group 8 Group 10 Women's sanitary products Group 19
The supply of anything comprised in the general items set out below, except— (a) a supply in the course of catering; and (b) a supply of anything comprised in any of the excepted items set out below, unless it is also comprised in any of the items overriding the exceptions set out below which relates to that excepted item.
the furnishing of information and the production of documents.
Ice cream, ice lollies, frozen yogurt, water ices and similar frozen products, and prepared mixes and powders for making such products.
Confectionery, not including cakes or biscuits other than biscuits wholly or partly covered with chocolate or some product similar in taste and appearance.
Beverages chargeable with alcohol duty under Part 2 of the Finance (No. 2) Act 2023 and preparations thereof.
Other beverages (including fruit juices and bottled waters) and syrups, concentrates, essences, powders, crystals or other products for the preparation of beverages.
Any of the following when packaged for human consumption without further preparation, namely, potato crisps, potato sticks, potato puffs, and similar products made from the potato, or from potato flour, or from potato starch, and savoury food products obtained by the swelling of cereals or cereal products; and salted or roasted nuts other than nuts in shell.
Pet foods, canned, packaged or prepared; packaged foods (not being pet foods) for birds other than poultry or game; and biscuits and meal for cats and dogs.
Goods described in items 1, 2 and 3 of the general items which are canned, bottled, packaged or prepared for use—
in the domestic brewing of any beer;
in the domestic making of any cider or perry;
in the domestic production of any wine or other fermented products (as defined in Part 2 of the Finance (No. 2) Act 2023).
Sports drinks that are advertised or marketed as products designed to enhance physical performance, accelerate recovery after exercise or build bulk, and other similar drinks, including (in either case) syrups, concentrates, essences, powders, crystals or other products for the preparation of such drinks.
Yoghurt unsuitable for immediate consumption when frozen.
“Food” includes drink. “Animal” includes bird, fish, crustacean and mollusc. A supply of anything in the course of catering includes— ... For the purposes of Note (3), in the case of any supplier, the premises on which food is supplied include any area set aside for the consumption of food by that supplier's customers, whether or not the area may also be used by the customers of other suppliers. “Hot food” means food which (or any part of which) is hot at the time it is provided to the customer and— For the purposes of Note (3B)— In Notes (3B) and (3C), references to food being heated include references to it being cooked or reheated. Item 1 of the items overriding the exceptions relates to item 1 of the excepted items. Items 2 and 3 of the items overriding the exceptions relate to item 2 of the excepted items; and for the purposes of item 2 of the excepted items “confectionery” includes chocolates, sweets and biscuits; drained, glacé or crystallised fruits; and any item of sweetened prepared food which is normally eaten with the fingers. Items 4 to 7 of the items overriding the exceptions relate to item 4 of the excepted items. Any supply described in this Group shall include a supply of services described in paragraph 1(1) of Schedule 4.
Books, booklets, brochures, pamphlets and leaflets.
“warehouse”, except in the expression “fiscal warehouse”, has the meaning given by section 18(6); ...
do not include plans or drawings for industrial, architectural, engineering, commercial or similar purposes; but
The grant by a person constructing a building— of a major interest in, or in any part of, the building or its site.
constructing a building—
designed as a dwelling or number of dwellings; or
intended for use solely for a relevant residential or a relevant charitable purpose; or
converting a non-residential building or a non-residential part of a building into a building designed as a dwelling or number of dwellings or a building intended for use solely for a relevant residential purpose,
The supply, by a Central Bank to another Central Bank or a member of the London Gold Market, of gold held in the United Kingdom.
The supply by a charity of any goods which have been donated for sale or the supply of such goods by a taxable person who has covenanted by deed to give all the profits of that supply to a charity.
The provision of any facilities for the placing of bets or the playing of any games of chance.
include the supply of the services described in paragraph 1(1) of Schedule 4 in respect of goods comprised in the items.
The supply in the course of the construction of— of any services related to the construction other than the services of an architect, surveyor or any person acting as a consultant or in a supervisory capacity.
a building designed as a dwelling or number of dwellings or intended for use solely for a relevant residential purpose or a relevant charitable purpose; or
any civil engineering work necessary for the development of a permanent park for residential caravans,
The supply, by a member of the London Gold Market to a Central Bank, of gold held in the United Kingdom.
The donation of any goods for any one or more of the following purposes—
sale by a charity or a taxable person who is a profits-to-charity person in respect of the goods;
export by a charity or such a taxable person;
letting by a charity or such a taxable person.
The granting of a right to take part in a lottery.
The supply to a relevant housing association in the course of conversion of a non-residential building or a non-residential part of a building into— of any services related to the conversion other than the services of an architect, surveyor or any person acting as a consultant or in a supervisory capacity.
a building or part of a building designed as a dwelling or number of dwellings; or
a building or part of a building intended for use solely for a relevant residential purpose,
The export of any goods by a charity ....
The supply of any relevant goods for donation to a nominated eligible body where the goods are purchased with funds provided by a charity or from voluntary contributions.
The supply of any relevant goods to an eligible body which pays for them with funds provided by a charity or from voluntary contributions or to an eligible body which is a charitable institution providing care or medical or surgical treatment for disabled persons.
Repair and maintenance of relevant goods owned by an eligible body.
The supply of goods in connection with the supply described in item 6.
The supply to a charity of a right to promulgate an advertisement by means of a medium of communication with the public.
the broadcast on television or radio or screening in a cinema of an advertisement; or
the publication of an advertisement in any newspaper, journal, poster, programme, annual, leaflet, brochure, pamphlet, periodical or similar publication; or
any goods or services in connection with the preparation of an advertisement within (b) above.
The supply to a charity, providing care or medical or surgical treatment for human beings or animals, or engaging in medical or veterinary research, of a medicinal product or veterinary medicinal product where the supply is solely for use by the charity in such care, treatment or research.
The supply to a charity of a substance directly used for synthesis or testing in the course of medical or veterinary research.
The publications listed in Items 1 to 3 when supplied electronically, but excluding publications which—
are wholly or predominantly devoted to advertising, or
consist wholly or predominantly of audio or video content.
Items 1 to 7 do not include plans or drawings for industrial, architectural, engineering, commercial or similar purposes. Items 1 to 6 include the supply of the services described in paragraph 1(1) of Schedule 4 in respect of goods comprised in the items. Items 1 to 6 do not include goods in circumstances where— Item 7 does not include services in circumstances where— For the purposes of Notes (2) and (2A) two supplies are connected with each other if, had those two supplies been made by a single supplier—
The first grant by a person— of a major interest in, or in any part of, the building, dwelling or its site.
“agreement” includes any arrangement or understanding (whether or not legally enforceable); “emolument” means any emolument (within the meaning of the Income Tax Acts) the amount of which falls or may fall, in accordance with the agreement under which it is payable, to be determined or varied wholly or partly by reference– to the profits from some or all of the activities of the body paying the emolument; or to the level of that body’s gross income from some or all of its activities; “employees”, in relation to a person, includes retired employees of that person; “grant” includes an assignment or surrender; “officer”, in relation to a body, includes– a director of a body corporate; and any committee member or trustee concerned in the general control and management of the administration of the body; “shadow officer”, in relation to a body, means a person in accordance with whose directions or instructions the members or officers of the body are accustomed to act; “sports land”, in relation to any body, means any land used or held for use for or in connection with the provision by that body of facilities for use for or in connection with sport or physical recreation, or both; “sports supply” means a supply which, if made by an eligible body, would fall within Item 2 or 3. For the purposes of this Group any question whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010 (connected persons).
The supply of services of work carried out on goods which, for that purpose, have been obtained ... in, or imported into, the United Kingdom and which are intended to be, and in fact are, subsequently exported ...—
by or on behalf of the supplier; or
where the recipient of the services belongs in a place outside the United Kingdom, by or on behalf of the recipient.
The issue by a bank of a note payable to bearer on demand.
The supply of services consisting of the making of arrangements for—
the export of any goods ...;
a supply of services of the description specified in item 1 of this Group; or
any supply of services which is made outside the United Kingdom. Note: This Group does not include any services of a description specified in Group 2 or Group 5 of Schedule 9.
The supply of building materials to a person to whom the supplier is supplying services within item 2 or 3 of this Group which include the incorporation of the materials into the building (or its site) in question.
“Grant” includes an assignment or surrender. A building is designed as a dwelling or a number of dwellings where in relation to each dwelling the following conditions are satisfied— The construction of, or conversion of a non-residential building to, a building designed as a dwelling or a number of dwellings includes the construction of, or conversion of a non-residential building to, a garage provided that— Use for a relevant residential purpose means use as— except use as a hospital, prison or similar institution or an hotel, inn or similar establishment. Where a number of buildings are— then each of those buildings, to the extent that they would not be so regarded but for this Note, are to be treated as intended for use solely for a relevant residential purpose. Use for a relevant charitable purpose means use by a charity in either or both the following ways, namely— For the purposes of item 1(b), and for the purposes of these Notes so far as having effect for the purposes of item 1(b), a building or part of a building is “non-residential” if— For the purposes of item 3, and for the purposes of these Notes so far as having effect for the purposes of item 3, a building or part of a building is “non-residential” if— References to a non-residential building or a non-residential part of a building do not include a reference to a garage occupied together with a dwelling. The conversion, other than to a building designed for a relevant residential purpose, of a non-residential part of a building which already contains a residential part is not included within items 1(b) or 3 unless the result of that conversion is to create an additional dwelling or dwellings. Where, a service falling within the description in items 2 or 3 is supplied in part in relation to the construction or conversion of a building and in part for other purposes, an apportionment may be made to determine the extent to which the supply is to be treated as falling within items 2 or 3. Where all or part of a building is intended for use solely for a relevant residential purpose or a relevant charitable purpose— Where the major interest referred to in item 1 is a tenancy or lease— The reference in item 2(b) of this Group to the construction of a civil engineering work does not include a reference to the conversion, reconstruction, alteration or enlargement of a work. For the purpose of this Group, the construction of a building does not include— Note 16(c) above shall not apply where the whole or a part of an annexe is intended for use solely for a relevant charitable purpose and— A building only ceases to be an existing building when: A caravan is not a residential caravan if residence in it throughout the year is prevented by the terms of a covenant, statutory planning consent or similar permission. Item 2 and Item 3 do not include the supply of services described in paragraph 1(1) or 5(4) of Schedule 4. In item 3 “relevant housing association” means– “Building materials”, in relation to any description of building, means goods of a description ordinarily incorporated by builders in a building of that description, (or its site), but does not include— For the purposes of Note (22) above the incorporation of goods in a building includes their installation as fittings. Section 30(3) does not apply to goods forming part of a description of supply in this Group.
The first grant by a person substantially reconstructing a protected building, of a major interest in, or in any part of, the building or its site.
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“Protected building” means a building which is designed to remain as or become a dwelling or number of dwellings (as defined in Note (2) below) or is intended for use solely for a relevant residential purpose or a relevant charitable purpose after the reconstruction or alteration and which, in either case, is— A building is designed to remain as or become a dwelling or number of dwellings where in relation to each dwelling the following conditions are satisfied— and includes a garage (occupied together with a dwelling) either constructed at the same time as the building or where the building has been sustantially reconstructed at the same time as that reconstruction. Notes (1), (4), (6) and (12) to (14) of Group 5 apply in relation to this Group as they apply in relation to that Group but subject to any appropriate modifications. For the purposes of item 1, a protected building is not to be regarded as substantially reconstructed unless, when the reconstruction is completed, the reconstructed building incorporates no more of the original building (that is to say, the building as it was before the reconstruction began) than the external walls, together with other external features of architectural or historic interest. Where part of a protected building that is substantially reconstructed is designed to remain as or become a dwelling or a number of dwellings or is intended for use solely for a relevant residential or relevant charitable purpose (and part is not)— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The supply, repair or maintenance of a qualifying ship or the modification or conversion of any such ship provided that when so modified or converted it will remain a qualifying ship.
The supply of parts and equipment, of a kind ordinarily installed or incorporated in, and to be installed, or incorporated in,— of a qualifying ship or, as the case may be, aircraft.
the propulsion, navigation or communication systems; or
the general structure,
The supply of life jackets, life rafts, smoke hoods and similar safety equipment for use in a qualifying ship or, as the case may be, aircraft.
Any services provided in an airport that is not a customs and excise airport for— provided that the aircraft is of a type mentioned in paragraph (b)(i) of Note (A1).
the handling of an aircraft, or
the handling or storage of goods carried in an aircraft,
Any services provided in the United Kingdom for the handling of a railway vehicle on, or being prepared for, an international journey or for the handling or storage of goods carried on such a railway vehicle.
Air navigation services.
In this Group— The condition is that the aircraft— In Note (A1)(b)— In items 1 and 2 the supply of a qualifying ship or, as the case may be, aircraft includes the supply of services under a charter of that ship or aircraft except where the services supplied under such a charter consist wholly of any one or more of the following— being services wholly performed in the United Kingdom. Items 1, 2 , 2A, 2B and 3 include the letting on hire of the goods specified in the items. Items 2A and 2B do not include the supply of parts and equipment to a Government department or any part of the Scottish Administration unless— Item 3 shall not apply unless, before the supply is made, the recipient of the supply gives to the person making the supply a certificate stating— “Lifeboat” means any vessel used or to be used solely for rescue or assistance at sea. “Vehicle” has the same meaning as in the Management Act. Item 4 does not include the transport of passengers-— For the purposes of Note (4A) any question whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010. In Note (4A)(b) “motor vehicle” means a mechanically propelled vehicle intended or adapted for use on the roads. Item 4(a) includes the transport of passengers in a vehicle— “Universal service provider” means a person who provides a universal postal service (within the meaning of Part 3 of the Postal Services Act 2011), or part of such a service, in the United Kingdom. Item 6 does not include the letting on hire of goods. In Item 6— “Customs and excise airport” has the same meaning as in the Management Act. An international journey is a journey starting in the United Kingdom and ending outside the United Kingdom or vice versa. In Item 6ZB “railway vehicle” has the same meaning as in Item 6. “Air navigation services” has the same meaning as in the Civil Aviation Act 1982 . Except for the purposes of item 11, paragraph (a) of item 6, item 6A,. item 9 and paragraph (a) of item 10 only include supplies of services where the ships or aircraft referred to in those paragraphs are qualifying ships or, as the case may be, aircraft.. “Designated travel service” has the same meaning as in the Value Added Tax (Tour Operators) Order 1987. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Caravans which exceed the limits of size of a trailer for the time being permitted to be towed on roads by a motor vehicle having a maximum gross weight of 3,500 kilogrammes and which—
were manufactured to a version of standard BS 3632 issued by the British Standards Institution which came into effect on or after 17th June 2005, or
are second-hand, were occupied before 6th April 2013 and were manufactured to a version of standard BS 3632 issued by that Institution which came into effect before 17th June 2005.
This Group does not include—
The supply, by a Central Bank to another Central Bank or a member of the London Gold Market, of gold held in the United Kingdom.
“VAT provisions” means the provisions of—
The supply of any goods dispensed, by a person registered in the register of pharmaceutical chemists kept under the Pharmacy Act 1954 or the Pharmacy (Northern Ireland) Order 1976, on the prescription of a person registered in the register of medical practitioners, the register of medical practitioners with limited registration or the dentists' register.
Articles designed as clothing or footwear for young children and not suitable for older persons.
The conveyance of postal packets by the Post Office.
The disposal of the remains of the dead.
The supply to a disabled person for domestic or his personal use, or to a charity for making available to disabled persons by sale or otherwise, for domestic or their personal use, of—
medical or surgical appliances designed solely for the relief of a severe abnormality or severe injury;
electrically or mechanically adjustable beds designed for invalids;
commode chairs, commode stools, devices incorporating a bidet jet and warm air drier and frames or other devices for sitting over or rising from a sanitary appliance;
chair lifts or stair lifts designed for use in connection with invalid wheelchairs;
hoists and lifters designed for use by invalids;
motor vehicles designed or substantially and permanently adapted for the carriage of a person in a wheelchair or on a stretcher and of no more than 11 other persons;
equipment and appliances not included in paragraphs (a) to (f) above designed solely for use by a disabled person;
parts and accessories designed solely for use in or with goods described in paragraphs (a) to (g) above;
boats designed or substantially and permanently adapted for use by disabled persons.
The supply to a person for use otherwise than by employees of his of protective boots and helmets for industrial use.
The supply of goods by a universal service provider which is incidental to the supply of public postal services by that provider.
The making of arrangements for or in connection with the disposal of the remains of the dead.
The supply to a disabled person of services of adapting goods to suit his condition.
Protective helmets for wear by a person driving or riding a motor bicycle or riding a pedal cycle.
The supply to a charity of services of adapting goods to suit the condition of a disabled person to whom the goods are to be made available, by sale or otherwise, by the charity.
The supply to a disabled person or to a charity of a service of repair or maintenance of any goods specified in item 2, 2A, 6, 18 or 19 and supplied as described in that item.
The supply of goods in connection with a supply described in item 3, 4 or 5.
The supply to a disabled person or to a charity of services necessarily performed in the installation of equipment or appliances (including parts and accessories therefor) specified in item 2 and supplied as described in that item.
The supply to a disabled person of a service of constructing ramps or widening doorways or passages for the purpose of facilitating his entry to or movement within his private residence.
The supply to a charity of a service described in item 8 for the purpose of facilitating a disabled person’s entry to or movement within any building.
The supply to a disabled person of a service of providing, extending or adapting a bathroom, washroom or lavatory in his private residence where such provision, extension or adaptation is necessary by reason of his condition.
The supply to a charity of a service of providing, extending or adapting a bathroom, washroom or lavatory for use by disabled persons— where such provision, extension or adaptation is necessary by reason of the condition of the disabled persons.
in residential accommodation, or
in a day-centre where at least 20 per cent. of the individuals using the centre are disabled persons,
The supply to a charity of a service of providing, extending or adapting a washroom or lavatory for use by disabled persons in a building, or any part of a building, used principally by a charity for charitable purposes where such provision, extension or adaptation is necessary to facilitate the use of the washroom or lavatory by disabled persons.
The supply of goods in connection with a supply described in items 8, 9, 10 or 11.
The letting on hire of a motor vehicle for a period of not less than 3 years to a handicapped person in receipt of a disability living allowance by virtue of entitlement to the mobility component or of mobility supplement where the lessor’s business consists predominantly of the provision of motor vehicles to such persons.
The sale of a motor vehicle which had been let on hire in the circumstances described in item 14, where such sale constitutes the first supply of the vehicle after the end of the period of such letting.
The supply to a handicapped person of services necessarily performed in the installation of a lift for the purpose of facilitating his movement between floors within his private residence.
The supply to a charity providing a permanent or temporary residence or day-centre for handicapped persons of services necessarily performed in the installation of a lift for the purpose of facilitating the movement of handicapped persons between floors within that building.
The supply of goods in connection with a supply described in item 16 or 17.
The supply to a handicapped person for domestic or his personal use, or to a charity for making available to handicapped persons by sale or otherwise for domestic or their personal use, of an alarm system designed to be capable of operation by a handicapped person, and to enable him to alert directly a specified person or a control centre.
The supply of services necessarily performed by a control centre in receiving and responding to calls from an alarm system specified in item 19.
“Gold” includes gold coins. Section 30(3) does not apply to goods forming part of a description of supply in this Group. Items 1 and 2 include—
The supply of any qualifying goods dispensed to an individual for that individual’s personal use on the prescription of an appropriate practitioner where the dispensing is—
by a registered pharmacist, or
in accordance with a requirement or authorisation under a relevant provision.
“retailer voucher” has the meaning given by paragraph 4(1) above.
The supply, by a person in the course of carrying on business in a tax-free shop, to a traveller making a relevant journey, of goods which are of either of the following descriptions—
goods not included in the first column of the following Table which do not exceed a value of £71 in aggregate and which are to be carried in the traveller’s personal luggage; or
goods included in the first column of the following Table which do not exceed the quantities set out in the second column of that Table and which are to be carried in the traveller’s personal luggage. Goods Quantity Alcoholic beverages: (a) with an alcoholic strength of more than 22% by volume 1 litre or with an alcoholic strength of not more than 22% by volume, fortified wines and sparkling wines (including made-wines) 2 litres (b) still wines (including made-wines) 2 litres Perfume and Toilet Water Perfume 60 ml Toilet Water 250 ml Tobacco products: Cigarettes 200 or Cigarillos 100 or Cigars 50 or Smoking tobacco 250 grammes
water which has been heated so that it is supplied at a temperature higher than that at which it was before it was heated.
The supply, of any goods within Item 1(a) or (b) above, to a traveller on board an aircraft or ship making a relevant journey by a person who supplies the traveller’s air or sea transport or any other person authorised by that person.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The supply of a motor vehicle (other than a motor vehicle capable of carrying more than 12 persons including the driver) to a person (“P”) if— A motor vehicle is a “qualifying motor vehicle” by virtue of this paragraph if it is designed to enable a person to whom paragraph (4) applies to travel in it. A motor vehicle is a “qualifying motor vehicle” by virtue of this paragraph if— This paragraph applies to a disabled person—
The supply of a qualifying motor vehicle (other than a motor vehicle capable of carrying more than 12 persons including the driver) to a charity for making available, by sale or otherwise to a person to whom paragraph (3) applies, for domestic or the person's personal use. A motor vehicle is a “qualifying motor vehicle” for the purposes of this item if it is designed or substantially and permanently adapted to enable a disabled person to whom paragraph (3) applies to travel in it. This paragraph applies to a disabled person—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The sale of a motor vehicle that had been let on hire on relevant benefit terms, where such sale constitutes the first supply of the vehicle after the end of the period of such letting. A vehicle has been let on hire on relevant benefit terms if— For the purposes of paragraph (2)—
The supply to a disabled person of services necessarily performed in the installation of a lift for the purpose of facilitating his movement between floors within his private residence.
The supply to a charity providing a permanent or temporary residence or day-centre for disabled persons of services necessarily performed in the installation of a lift for the purpose of facilitating the movement of disabled persons between floors within that building.
The supply of goods in connection with a supply described in item 16 or 17.
The supply to a disabled person for domestic or his personal use, or to a charity for making available to disabled persons by sale or otherwise for domestic or their personal use, of an alarm system designed to be capable of operation by a disabled person, and to enable him to alert directly a specified person or a control centre.
The supply of services necessarily performed by a control centre in receiving and responding to calls from an alarm system specified in item 19.
Section 30(3) does not apply to goods forming part of a description of supply in item 1 ..., nor to other goods forming part of a description of supply in this Group, except where those other goods are ... imported ... by a disabled person for domestic or his personal use, or by a charity for making available to disabled persons, by sale or otherwise, for domestic or their personal use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In item 1, “qualifying goods” means any goods designed or adapted for use in connection with any medical or surgical treatment except— In item 1 “appropriate practitioner” means— In item 1 “registered pharmacist” means a person who is— In item 1 “relevant provision” means— Any person who is chronically sick or disabled is “disabled” for the purposes of this Group. Item 2 shall not include hearing aids (except hearing aids designed for the auditory training of deaf children), dentures, spectacles and contact lenses but shall be deemed to include— The supplies described in items 1 ... and , 2 and 2A include supplies of services of letting on hire of the goods respectively comprised in those items. In item 1 the reference to personal use does not include any use which is, or involves, a use by or in relation to an individual while that individual, for the purposes of being provided (whether or not by the person making the supply) with medical or surgical treatment, or with any form of care— Subject to Notes (5C) and (5D), in item 2 the reference to domestic or personal use does not include any use which is, or involves, a use by or in relation to a disabled person while that person, for the purposes of being provided (whether or not by the person making the supply) with medical or surgical treatment, or with any form of care— Note (5B) does not apply for the purpose of determining whether any of the following supplies falls within item 2, that is to say— Note (5B) applies for the purpose of determining whether a supply of goods by a person not mentioned in any of paragraphs (a) to (g) of Note (5H) falls within item 2 only if those goods are— Subject to Note (5F), item 2 does not include— A supply to a disabled person of an invalid wheelchair or invalid carriage is excluded from item 2 by Note (5E) only if— In Notes (4), (5C) and (5F), the references to an invalid wheelchair and to an invalid carriage do not include references to any mechanically propelled vehicle which is intended or adapted for use on roads. The persons referred to in Notes (5C) to (5F) are— In Notes (5A), (5B) and (5H), “relevant institution” means any institution (whether a hospital, nursing home or other institution) which provides care or medical or surgical treatment and is either— and in this Note the references to the provisions of any enactment or Northern Ireland legislation include references only to provisions which, so far as relating to England, Wales, Scotland or Northern Ireland, have the same effect in every locality within that part of the United Kingdom. For the purposes of item 11 “residential accommodation” means— provided as a residence (whether on a permanent or temporary basis or both) for disabled persons, but does not include an inn, hotel, boarding house or similar establishment or accommodation in any such type of establishment. In this Group “washroom” means a room that contains a lavatory or washbasin (or both) but does not contain a bath or a shower or cooking, sleeping or laundry facilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For the purposes of Notes (5N) to (5S), the supply of a motor vehicle is a “relevant supply” if it is a supply of goods (which is made in the United Kingdom). In the case of a relevant supply of a motor vehicle to a disabled person (“the new supply”), items 2(f) and 2A do not apply if, in the period of 3 years ending with the day on which the motor vehicle is made available to the disabled person— If a relevant supply of a motor vehicle is made to a disabled person and— the reckonable zero-rated supply or (as the case may be) reckonable zero-rated importation ... is treated for the purposes of Note (5N) as not having been made if either of the conditions in Note (5P) is met. The conditions mentioned in Note (5O) are that— In the case of a relevant supply of a motor vehicle to a disabled person, items 2(f) and 2A cannot apply unless the supplier— In the case of a relevant supply of a motor vehicle to a disabled person, items 2(f) and 2A cannot apply unless, before the supply is made, the person making the supply has been given a certificate in the required form which— The information that may be required under Note (5Q)(a) includes— (and the matters that may be required under Note (5R)(b) include any information that may be required for the purposes of Note (5Q)). In Notes (5N) to (5S)— In items 2A and 2B references to design, or adaptation, of a motor vehicle to enable a person (or a person of any description) to travel in it are to be read as including a reference to design or, as the case may be, adaptation of the motor vehicle to enable the person (or persons of that description) to drive it. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In item 15— Where in item 3 or 4 the goods are adapted in accordance with that item prior to their supply to the disabled person or the charity, an apportionment shall be made to determine the supply of services which falls within item 3 or 4. In item 19 or 20, a specified person or control centre is a person or centre who or which—
The supply of imported goods before a Customs declaration has been made under Part 1 of TCTA 2018 in respect of those goods where the supplier and the purchaser of the goods have agreed that the purchaser will make the Customs declaration.
An “international collaboration arrangement” means any arrangement which— “Overseas authority” means any country other than the United Kingdom or any part of or place in such a country or the government of any such country, part or place. “Overseas body” means a body established outside the United Kingdom. “Overseas trader” means a person who carries on a business and has his principal place of business outside the United Kingdom. Item 3 does not apply where the overseas authority, overseas body or overseas trader is a taxable person....
For the purpose of determining the aggregate value of any goods referred to in Item 1(a) only the whole of the value of any item, or group of items which are normally sold as a set or collection, may be included in the aggregate value of £75. “Tax free shop” means any shop which is situated within an airport, port or Channel Tunnel terminal and which is approved by the Commissioners for the supply of goods for the purposes of this Group, and in this note “Channel Tunnel terminal” means the area situated in the vicinity of Cheriton, Folkestone referred to in section 1(7)(b) of the Channel Tunnel Act 1987. “Relevant journey” means a journey by air or sea from the United Kingdom to a place in another member State where the traveller is to disembark and includes, for the purposes of Item 1, a journey by a Channel Tunnel shuttle train. “Traveller” means any passenger travelling under a transport document for air or sea travel stating that the immediate destination is a place in another member State (including such a transport document stating that the final destination is a place outside the member States) or for shuttle train travel. Items 1 and 2 do not apply where the supply is to a traveller under 17 years of age of goods falling within Item 1(b), other than perfumes and toilet waters. In these Notes “shuttle train” has the meaning given by section 1(9) of the Channel Tunnel Act 1987.
The sale, or letting on hire, by a charity of any goods donated to it for—
sale,
letting,
sale or letting,
sale or export,
letting or export, or
sale, letting or export.
any enactment or subordinate legislation (whether or not still in force) which relates to VAT or to any matter connected with VAT; or
The sale, or letting on hire, by a taxable person of any goods donated to him for— if he is a profits-to-charity person in respect of the goods.
sale,
letting,
sale or letting,
sale or export,
letting or export, or
sale, letting or export,
A supply to a charity that consists in the promulgation of an advertisement by means of such a medium.
The supply to a charity of services of design or production of an advertisement that is, or was intended to be, promulgated by means of such a medium.
The supply to a charity of goods closely related to a supply within item 8B.
Articles designed as clothing or footwear for young children and not suitable for older persons.
“import duty” means import duty charged in accordance with Part 1 of TCTA 2018;
The provision of insurance and reinsurance by—
a person permitted in accordance with section 2 of the Insurance Companies Act 1982 to carry on insurance business; or
an insurer who belongs outside the United Kingdom against any risks or other things described in Schedules 1 and 2 to the Insurance Companies Act 1982.
The grant of a right to enter a competition in sport or physical recreation where the consideration for the grant consists in money which is to be allocated wholly towards the provision of a prize or prizes awarded in that competition.
free zone procedure goods, if—
the supply of the goods would (apart from this provision) be taxable but not zero-rated, and
A was authorised to make the supply;
The provision of insurance and reinsurance by the Export Credits Guarantee Department.
The grant, by an eligible body established for the purposes of sport or physical recreation, of a right to enter a competition in such an activity.
a service wholly performed in the free zone on or in relation to free zone procedure goods by a person authorised to do so, if—
the supply of the service would (apart from this provision) be taxable but not zero-rated, and
before a VAT invoice is issued in respect of the supply, B notifies A in writing that this provision applies to the supply.
The making of arrangements for the provision of any insurance or reinsurance in items 1 and 2.
The supply by an eligible body to an individual ... of services closely linked with and essential to sport or physical education in which the individual is taking part.
The provision by an insurance broker or insurance agent of any of the services of an insurance intermediary in a case in which those services—
are related (whether or not a contract of insurance or reinsurance is finally concluded) to an insurance transaction or a reinsurance transaction; and
are provided by that broker or agent in the course of his acting in an intermediary capacity.
“Clothing” includes hats and other headgear. Item 1 does not include articles of clothing made wholly or partly of fur skin, except— “Fur skin” means any skin with fur, hair or wool attached except— Item 2 applies only where the goods to which it refers are— Item 3 does not apply to a protective helmet unless— Items 1, 2 and 3 include the supply of the services described in paragraphs 1(1) and 5(4) of Schedule 4 in respect of goods comprised in the items, but, in the case of goods comprised in item 2, only if the goods are for use otherwise than by employees of the person to whom the services are supplied.
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Item No.
The supply of goods or services to an ERIC. NOTES “ERIC” means a body set up as a European Research Infrastructure Consortium by a decision under Article 6(1)(a) of Council Regulation (EC) No 723/2009 on the Community legal framework for a European Research Infrastructure Consortium. Item 1 applies only where the following requirements are met— Item 1 is subject to the limitations and conditions laid down in the agreement between the members of the ERIC referred to in Article 5(1)(d) of Council Regulation (EC) No 723/2009.
The supply of women's sanitary products. NOTES In this Group “women's sanitary products” means women's sanitary products of any of the following descriptions— Note (1)(a) does not include protective briefs or any other form of clothing.
The supply of equipment to provide protection from infection where the supply is made in the period beginning with 1st May 2020 and ending with 31st October 2020. NOTES In this Group “equipment to provide protection from infection” means personal protective equipment recommended for use in connection with protection from infection with coronavirus in guidance published by Public Health England on 24th April 2020 titled “Guidance, COVID-19 personal protective equipment (PPE)” namely— Item 1 does not include— In this Group “coronavirus” means severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2).
A supply by a person established outside the United Kingdom that is deemed to be a supply to an operator of an online marketplace by virtue of section 5A, provided that the supply does not involve the goods being imported for the purposes of that section.
Relevant supplies of services of installing energy-saving materials in —
Relevant supplies of energy-saving materials by a person who installs those materials in —
residential accommodation, or
a building intended for use solely for a relevant charitable purpose.....
For the purposes of this Group “energy saving materials” means any of the following— An electrical storage battery is within this sub-paragraph if it is intended for use solely for storing energy converted from electricity that was— In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act). In sub-paragraph (1)(m), “smart diverter” means a device capable of automatically diverting electricity generated by a microgeneration system to one or more appliances, in particular circumstances. In sub-paragraphs (2) and (4), “microgeneration system” means equipment—
For the purposes of this Group “residential accommodation” means — For the purposes of this Group “use for a relevant residential purpose” has the same meaning as it has for the purposes of Group 1 in Schedule 7A (see paragraph 7(1) of the Notes to that Group). In sub-paragraph (1)(d) “houseboat” has the meaning given by paragraph 7(3) of the Notes to Group 1 in Schedule 7A.
For the purposes of this Group “relevant supplies” means supplies made —
where the residential accommodation is in England, Wales or Scotland, on or after 1st April 2022 and before 1st April 2027; and
where the residential accommodation is in Northern Ireland, on or after 1st May 2023 and before 1st April 2027.
For the purposes of item 1, “installing energy-saving materials” includes carrying out groundworks, or dredging a body of water, in order to install pipework or other equipment necessary for the operation of a ground source heat pump or a water source heat pump.
For the purposes of this Group a building is used “for a relevant charitable purpose” if it is used by a charity—
Sections 8 and 31.
Betting, gaming, dutiable machine games and lotteries Group 4 Burial and cremation Group 8 Cultural services etc Group 13 Education Group 6 Finance Group 5 Fund raising events by charities and other qualifying bodies Group 12 Health and welfare Group 7 Insurance Group 2 Investment gold Group 15 Land Group 1 Postal services Group 3 Sport, sports competitions and physical education Group 10 Supplies of goods where input tax cannot be recovered Group 14 Supplies of services by groups involving cost sharing Group 16 Subscriptions to trade unions, professional and other public interest bodies Group 9 Works of art etc Group 11
The grant of any interest in or right over land or of any licence to occupy land, or, in relation to land in Scotland, any personal right to call for or be granted any such interest or right, other than—
the grant of facilities for the self storage of goods;
the grant of facilities to a person who uses the facilities wholly or mainly to supply hairdressing services; and
“Grant” includes an assignment or surrender and the supply made by the person to whom an interest is surrendered when there is a reverse surrender. A “reverse surrender” is one in which the person to whom the interest is surrendered is paid by the person by whom the interest is being surrendered to accept the surrender. A building shall be taken to be completed when an architect issues a certificate of practical completion in relation to it or it is first fully occupied, whichever happens first; and a civil engineering work shall be taken to be completed when an engineer issues a certificate of completion in relation to it or it is first fully used, whichever happens first. Notes (2) to (10) and (12) to Group 5 of Schedule 8 apply in relation to this Group as they apply in relation to that Group. A building or civil engineering work is new if it was completed less than three years before the grant. Subject to Note (6), the grant of the fee simple in a building or work completed before 1st April 1989 is not excluded from this Group by paragraph (a)(ii) or (iv). Note (5) does not apply where the grant is the first grant of the fee simple made on or after 1st April 1989 and the building was not fully occupied, or the work not fully used, before that date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Where a grant of an interest in, right over or licence to occupy land includes a valuable right to take game or fish, an apportionment shall be made to determine the supply falling outside this Group by virtue of paragraph (c). “Similar establishment” includes premises in which there is provided furnished sleeping accommodation, whether with or without the provision of board or facilities for the preparation of food, which are used by or held out as being suitable for use by visitors or travellers. “Houseboat” includes a houseboat within the meaning of Group 9 of Schedule 8. Paragraph (e) includes— Paragraph (e) does not include a grant in respect of a building or part which is not a new building of— “Holiday accommodation” includes any accommodation in a building, hut (including a beach hut or chalet), caravan, houseboat or tent which is advertised or held out as holiday accommodation or as suitable for holiday or leisure use, but excludes any accommodation within paragraph (d). A seasonal pitch for a caravan is— In this Note and in Note (14)— “Mooring” includes anchoring or berthing. In paragraph (ka)— For the purposes of Note (15A), use by a person with the permission of the person (or any of the persons) to whom the grant of facilities is made counts as use by the person (or persons) to whom that grant is made. A grant of facilities for the self storage of goods does not fall within paragraph (ka) if— In Notes (15A) and (15C) “relevant structure” means the whole or part of— In Note (15C)(a)(i) “relevant capital item” means a capital item which— Paragraph (m) shall not apply where the grant of the facilities is for— Paragraph (ma) does not apply to a grant of facilities which provides for the exclusive use, by the person to whom the grant is made, of a whole building, a whole floor, a separate room or a clearly defined area, unless the person making the grant or a person connected with that person provides or makes available (directly or indirectly) services related to hairdressing for use by the person to whom the grant is made. For the purposes of Note (17)— For the purposes of Notes (15C) and (17) any question whether a person is connected with any other person is to be determined in accordance with section 1122 of the Corporation Tax Act 2010 (connected person).
Insurance transactions and reinsurance transactions.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For the purposes of item 4 services are services of an insurance intermediary if they fall within any of the following paragraphs— For the purposes of item 4 an insurance broker or insurance agent is acting “in an intermediary capacity” wherever he is acting as an intermediary, or one of the intermediaries, between— Where— those related services do not fall within item 4 unless the relevant requirements are fulfilled. For the purposes of Note (3) the relevant requirements are— The statements referred to in Note (4) are— For the purposes of Note (3) any question whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010. Item 4 does not include— Item 4 does not include the supply of any valuation or inspection services. Item 4 does not include the supply of any services by loss adjusters, average adjusters, motor assessors, surveyors or other experts except where— Item 4 does not include the supply of any services which—
The supply of public postal services by a universal service provider.
any other person or body specified for the purposes of subsection (6) by an order made by the Treasury;
The issue, transfer or receipt of, or any dealing with, money, any security for money or any note or order for the payment of money.
any notice published by the Commissioners under or for the purposes of any such enactment or subordinate legislation.
The making of any advance or the granting of any credit.
The supply, for use otherwise than in connection with the carrying on in the course of a business of a relevant industrial activity, of water other than—
The provision of the facility of instalment credit finance in a hire-purchase, conditional sale or credit sale agreement for which facility a separate charge is made and disclosed to the recipient of the supply of goods.
The provision of administrative arrangements and documentation and the transfer of title to the goods in connection with the supply described in item 3 if the total consideration therefor is specified in the agreement and does not exceed £10.
The provision of intermediary services in relation to any transaction comprised in item 1, 2, 3, 4 or 6 (whether or not any such transaction is finally concluded) by a person acting in an intermediary capacity.
The issue, transfer or receipt of, or any dealing with, any security or secondary security being—
shares, stocks, bonds, notes (other than promissory notes), debentures, debenture stock or shares in an oil royalty; or
any document relating to money, in any currency, which has been deposited with the issuer or some other person, being a document which recognises an obligation to pay a stated amount to bearer or to order, with or without interest, and being a document by the delivery of which, with or without endorsement, the right to receive that stated amount, with or without interest, is transferable; or
any bill, note or other obligation of the Treasury or of a Government in any part of the world, being a document by the delivery of which, with or without endorsement, title is transferable, and not being an obligation which is or has been legal tender in any part of the world; or
any letter of allotment or rights, any warrant conferring an option to acquire a security included in this item, any renounceable or scrip certificates, rights coupons, coupons representing dividends or interest on such a security, bond mandates or other documents conferring or containing evidence of title to or rights in respect of such a security; or
units or other documents conferring rights under any trust established for the purpose, or having the effect of providing, for persons having funds available for investment, facilities for the participation by them as beneficiaries under the trust, in any profits or income arising from the acquisition, holding, management or disposal of any property whatsoever.
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The operation of any current, deposit or savings account.
The management of—
an authorised open-ended investment company; or
an authorised contractual scheme; or
an authorised unit trust scheme; or
a Gibraltar collective investment scheme that is not an umbrella scheme; or
a sub-fund of any other Gibraltar collective investment scheme; or
an individually recognised overseas scheme that is not an umbrella scheme; or
a sub-fund of any other individually recognised overseas scheme; or
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a qualifying pension fund.
Any expression which is used in this Group and in Part 3 of the Postal Services Act 2011 has the same meaning in this Group as in that Part.
The provision of any facilities for the placing of bets or for the playing of any games of chance for a prize.
The provision of any facilities for the playing of dutiable machine games (as defined in Part 1 of Schedule 24 to the Finance Act 2012) but only to the extent that—
the facilities are used to play such games, and
the takings and payouts in respect of those games are taken into account in determining the charge to machine games duty.
Items 1 and 1A do not include— Item 1 does not apply to the provision of facilities to the extent that the facilities are used to play a relevant machine game (as defined in section 23A). ”Game of chance”— A person plays a game of chance if he participates in a game of chance— ”Prize” does not include the opportunity to play the game again. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The issue, transfer or receipt of, or any dealing with, money, any security for money or any note or order for the payment of money.
The management of credit by the person granting it.
The underwriting of an issue within item 1 or any transaction within item 6.
The management of a closed-ended collective investment undertaking.
Item 1 does not include anything included in item 6. Item 1 does not include a supply of services which is preparatory to the carrying out of a transaction falling within that item. This Group does not include the supply of a coin or a banknote as a collectors’ piece or as an investment article. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Item 2 includes the supply of credit by a person, in connection with a supply of goods or services by him, for which a separate charge is made and disclosed to the recipient of the supply of goods or services. This Group includes any supply by a person carrying on a credit card, charge card or similar payment card operation made in connection with that operation to a person who accepts the card used in the operation when presented to him in payment for goods or services. For the purposes of item 5 “intermediary services” consist of bringing together, with a view to the provision of financial services— together with (in the case of financial services falling within item 1, 2, 3 or 4) the performance of work preparatory to the conclusion of contracts for the provision of those financial services, but do not include the supply of any market research, product design, advertising, promotional or similar services or the collection, collation and provision of information in connection with such activities. For the purposes of item 5 a person is “acting in an intermediary capacity” wherever he is acting as an intermediary, or one of the intermediaries, between— ... For the purposes of notes 5 and 5A “financial services” means the carrying out of any transaction falling within item 1, 2, 3, 4 or 6. For the purposes of this Group— A collective investment scheme, or sub-fund, that is not for the time being marketed in the United Kingdom is to be treated as not falling within item 9(c) to (f) if— For the purposes of Note (6), a pension fund is funded indirectly where contributions are made by a third party on behalf of a pension member. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The provision by an eligible body of—
The provision of education or vocational training and the supply, by the person providing that education or training, of any goods or services essential to that provision, to the extent that the consideration payable is ultimately a charge to funds provided by
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the Welsh Ministers under section 92, 97, or 103(1) of the Tertiary Education and Research (Wales) Act 2022, or
the Commission for Tertiary Education and Research under section 97, 101, 103(1) or (2), or 104(1)(a) of that Act.
The provision of education or vocational training and the supply, by the person providing that education or training, of any goods or services essential to that provision, to persons who are— to the extent that the consideration payable is ultimately a charge to funds provided by the Secretary of State.
aged under 19,
aged 19 or over, in respect of education or training begun by them when they were aged under 19,
aged 19 or over and for whom an EHC plan is maintained,
aged 19 or over but under 25 and subject to learning difficulty assessment, or
aged 25 or over, in respect of education or training begun by them when they were within paragraph (ba) or (c),
The provision of education or vocational training and the supply, by the person providing that education or training, of any goods or services essential to that provision, to persons who are aged 19 or over, to the extent that the consideration payable is ultimately a charge to funds provided by the Secretary of State in exercise of functions under Part 4 of the Apprenticeships, Skills, Children and Learning Act 2009.
For the purposes of this Group an “eligible body” is— A supply by a body, which is an eligible body only by virtue of falling within Note 1(f), shall not fall within this Group insofar as it consists of the provision of anything other than the teaching of English as a foreign language. “Vocational training” means— training, re-training or the provision of work experience for— “Examination services” include the setting and marking of examinations, the setting of educational or training standards, the making of assessments and other services provided with a view to ensuring educational and training standards are maintained. For the purposes of item 5 a supply of any goods or services shall not be taken to be essential to the provision of vocational training unless the goods or services in question are provided directly to the trainee. For the purposes of items 5A to 5Ca supply of any goods or services shall not be taken to be essential to the provision of education or vocational training unless— In item 5B, “EHC plan” and “subject to learning difficulty assessment” have the same meanings as in the Education Act 1996. For the purposes of item 6 a club is a “youth club” if—
The supply of services consisting in the provision of medical care by a person registered or enrolled in any of the following—
the register of osteopaths maintained in accordance with the provisions of the Osteopaths Act 1993 ;
the register of chiropractors maintained in accordance with the provisions of the Chiropractors Act 1994 ;
The supply of any services or dental prostheses by a dental technician.
The supply, otherwise than for profit, of goods and services incidental to the provision of spiritual welfare by a religious community to a resident member of that community in return for a subscription or other consideration paid as a condition of membership.
The supply of transport services for sick or injured persons in vehicles specially designed for that purpose.
Item 1 does not include the letting on hire of goods except where the letting is in connection with a supply of other services comprised in the item. Paragraphs (a) to (d) of item 1 and paragraphs (a) and (b) of item 2 include supplies of services made by a person who is not registered or enrolled in any of the registers or rolls specified in those paragraphs where the services are wholly performed or directly supervised by a person who is so registered or enrolled. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Item 3 includes supplies of services made by a person who is not registered in either of the registers specified in that item where the services are wholly performed or directly supervised by a person who is so registered. Item 3 does not include the letting on hire of goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In item 9 “public body” means— In item 9 “welfare services” means services which are directly connected with— and, in the case of services supplied by a state-regulated private welfare institution, includes only those services in respect of which the institution is so regulated. Item 9 does not include the supply of accommodation or catering except where it is ancillary to the provision of care, treatment or instruction. In this Group “state-regulated” means approved, licensed, registered or exempted from registration by any Minister or other authority pursuant to a provision of a public general Act, other than a provision that is capable of being brought into effect at different times in relation to different local authority areas. Here “Act” means— an Act of Parliament; an Act of the Scottish Parliament; an Act of the Northern Ireland Assembly; an Order in Council under Schedule 1 to the Northern Ireland Act 1974 ; a Measure of the Northern Ireland Assembly established under section 1 of the Northern Ireland Assembly Act 1973 ; an Order in Council under section 1(3) of the Northern Ireland (Temporary Provisions) Act 1972 ; an Act of the Parliament of Northern Ireland.
The supply to its members of such services and, in connection with those services, of such goods as are both referable only to its aims and available without payment other than a membership subscription by any of the following non-profit-making organisations—
a body which has objects which are in the public domain and are of a political, religious, patriotic, philosophical, philanthropic or civic nature.
Item 1 does not include any right of admission to any premises, event or performance, to which non-members are admitted for a consideration. “Trade union” has the meaning assigned to it by section 1 of the Trade Union and Labour Relations (Consolidation) Act 1992. Item 1 shall include organisations and associations the membership of which consists wholly or mainly of constituent or affiliated associations which as individual associations would be comprised in the item; and “member” shall be construed as including such an association and “membership subscription” shall include an affiliation fee or similar levy. Paragraph (c) does not apply unless the association restricts its membership wholly or mainly to individuals whose present or previous professions or employments are directly connected with the purposes of the association. Paragraph (d) does not apply unless the association restricts its membership wholly or mainly to individuals or corporate bodies whose business or professional interests are directly connected with the purposes of the association.
The grant of a right to enter a competition in sport or physical recreation where the consideration for the grant consists in money which is to be allocated wholly towards the provision of a prize or prizes awarded in that competition.
The supply of goods and services by a charity in connection with an event—
that is organised for charitable purposes by a charity or jointly by more than one charity,
whose primary purpose is the raising of money, and
that is promoted as being primarily for the raising of money.
The supply of goods and services by a charity or a qualifying body in connection with an event—
that is organised jointly by a charity, or two or more charities, and the qualifying body,
that is so organised exclusively for charitable purposes or exclusively for the body’s own benefit or exclusively for a combination of those purposes and that benefit,
whose primary purpose is the raising of money, and
that is promoted as being primarily for the raising of money.
For the purposes of items 1 and 2 “fund-raising event” means a fête, ball, bazaar, gala show, performance or similar event, which is separate from and not forming any part of a series or regular run of like or similar events. For the purposes of item 1 “charity” includes a body corporate which is wholly owned by a charity and whose profits (from whatever source) are payable to a charity by virtue of a deed of covenant or trust or otherwise. For the purposes of item 2 “qualifying body” means—
The supply by a public body of a right of admission to—
a museum, gallery, art exhibition or zoo; or
a theatrical, musical or choreographic performance of a cultural nature.
A supply of goods in relation to which each of the following conditions is satisfied, that is to say—
there is input tax of the person making the supply (“the relevant supplier”), or of any predecessor of his, that has arisen or will arise on the supply to, ... or importation by, the relevant supplier or any such predecessor of goods used for the supply made by the relevant supplier;
the only such input tax is non-deductible input tax; and
the supply made by the relevant supplier is not a supply which would be exempt under Item 1 of Group 1 of Schedule 9 but for an option to tax any land under Part 1 of Schedule 10.
Subject to Note (2) below, in relation to any supply of goods by the relevant supplier, the goods used for that supply are— In relation to a supply by any person consisting in or arising from the grant of a major interest in land (“the relevant supply”)— Subject to Notes (7) to (10) below, non-deductible input tax is input tax to which Note (4) or (5) below applies. This Note applies to input tax which (disregarding this Group and regulation 106 of the Value Added Tax Regulations 1995 (de minimis rule)) is not, and will not become, attributable to supplies to which section 26(2) applies. This Note applies to input tax if— The provisions mentioned in Note (5) above are— For the purposes of this Group the input tax of a person shall be deemed to include any VAT which— Subject to Note (9) below, the input tax that is taken to be non-deductible input tax shall include any VAT which— Non-deductible input tax does not include any VAT that has arisen or will arise on a supply to, ... or importation by, any person of any goods used for a supply of goods (“the relevant supply”) if— has been or will be refunded under section 33, 33A, 33B, 33C, 39 or 41. Input tax arising on a supply... or importation of goods shall be disregarded for the purposes of determining whether the conditions in Item No. 1(a) and (b) are satisfied if, at a time after that supply... or importation but before the supply by the relevant supplier, a supply of the goods or of anything in which they are comprised is treated under or by virtue of any provision of this Act as having been made by the relevant supplier or any predecessor of his to himself. In relation to any goods or anything comprised in any goods, a person is a predecessor of another (“the putative successor”) only if Note (12) or (13) below applies to him in relation to those goods or that thing; and references in this Group to a person’s predecessors include references to the predecessors of his predecessors through any number of transfers and events such as are mentioned in Notes (12) and (13). This Note applies to a person in relation to any goods or thing if— This Note applies to a person in relation to any goods or thing if— References in Note (13) above to a person's being or becoming or ceasing to be a member of a group or the representative member of a group are references to its falling to be so treated for the purposes of section 43. In Notes (11) to (13) above the references to anything comprised in other goods shall be taken, in relation to any supply consisting in or arising from the grant of a major interest in land, to include anything the supply... or importation of which is, by virtue of Note (2) above, taken to be a supply... or importation of goods used for making the supply so consisting or arising. Notes (1) and (1A) to Group 1 shall apply for the purposes of this Group as they apply for the purposes of that Group.
The supply of investment gold.
The grant, assignment or surrender of any right, interest, or claim in, over or to investment gold if the right, interest or claim is or confers a right to the transfer of the possession of investment gold.
The supply, by a person acting as agent for a disclosed principal, of services consisting of—
the effecting of a supply falling within item 1 or 2 that is made by or to his principal, or
attempting to effect a supply falling within item 1 or 2 that is intended to be made by or to his principal but is not in fact made.
For the purposes of this Group “investment gold” means— A notice under Note (1)(c) may provide that a description specified in the notice has effect only for the purposes of supplies made at times falling within a period specified in the notice. Item 2 does not include— This Group does not include a supply—
The supply of services by an independent group of persons where each of the following conditions is satisfied—
each of those persons is a person who is carrying on an activity (“the relevant activity”) which is exempt from VAT or is not carried on in the course or furtherance of carrying on a business,
the supply of services is made for the purpose of rendering the members of the group the services directly necessary for the exercise of the relevant activity,
the group merely claims from its members exact reimbursement of their share of the joint expenses, and
the exemption of the supply is not likely to cause distortion of competition.
Item No. 1 The provision of education by a private school, other than— the provision of the teaching of English as a foreign language, the provision of education in a nursery class, or the provision of a higher education course. 2 The provision of vocational training by a private school. 3 The provision of board and lodging which is closely related to a supply of a description falling within item 1 or 2. Notes: A “private school” means an institution which is either— a school— at which full-time education is provided for pupils of compulsory school age or, in Scotland, school age (whether or not such education is also provided for pupils under or over that age), where fees or other consideration are payable for that provision of full-time education, and which is not a nursery school, or an institution— which is wholly or mainly concerned with providing education suitable to the requirements of persons over compulsory school age (or, in Scotland, school age) but under 19, at which full-time education is provided for such persons, where the provision of full-time education falling within sub-paragraph (ii) is wholly or mainly provision in respect of which fees or other consideration are payable, and which is not an independent training or learning provider. In Note (1)(b) an “independent training or learning provider” means an institution— at which education or training is provided for persons over compulsory school age (or, in Scotland, school age) but under 19 under a contract with a relevant contracting authority, and where the consideration for the provision falling within paragraph (a) is payable by the relevant contracting authority under that contract. For the purposes of Note (2), a “relevant contracting authority” means the Secretary of State, Medr (Commission for Tertiary Education and Research), the Department for the Economy in Northern Ireland or Skills Development Scotland. For the purposes of items 1 and 2, the provision of education or vocational training at a private school by any eligible body other than a private school is to be treated as provision by a private school if— the eligible body and that private school are connected within the meaning of section 1122 of the Corporation Tax Act 2010 (connected persons), or the provision by the eligible body is a result of arrangements the main purpose, or one of the main purposes, of which is to secure that the provision is an exempt supply. For the purposes of Note (4)— “arrangements” include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and an “eligible body” has the meaning given by Note (1) to Group 6. For the purposes of item 1— a “nursery class” means a class that is composed wholly (or almost wholly) of children who— are under compulsory school age or, in Scotland, school age, and would not be expected to attain that age while in that class, and a “higher education course”— in relation to England and Wales, has the meaning given by section 83(1) of the Higher Education and Research Act 2017; in relation to Scotland, means a course of any description mentioned in section 5(3) of the Further and Higher Education (Scotland) Act 2005; in relation to Northern Ireland, means a course of any description mentioned in paragraph 1 of Schedule 1 to the Further Education (Northern Ireland) Order 1997 (S.I. 1997/1772 (N.I. 15)). For the purposes of item 2 “vocational training” has the meaning given by Note (3) to Group 6. In these Notes, “compulsory school age”, “pupil”, “school” and “school age” have the meanings given by the Education Act 1996, the Education (Scotland) Act 1980 and the Education and Libraries (Northern Ireland) Order 1986 (S.I. 1986/594 (N.I. 3)) in relation to England and Wales, Scotland and Northern Ireland respectively.
Section 51
This Part of the Schedule makes provision for a person to opt to tax any land. The effect of the option to tax is dealt with in paragraph 2 (exempt supplies become taxable), as read with paragraph 3. Grants are excluded from the effect of paragraph 2 by— Paragraphs 12 to 17 (anti-avoidance: developers of land etc) provide for certain supplies to which any grant gives rise to be excluded from the effect of paragraph 2. Paragraphs 18 to 30 deal with— Paragraphs 31 to 34 deal with definitions which apply for the purposes of this Part, as well as other supplemental matters.
An option to tax has no effect in relation to any grant made to a relevant housing association in relation to any land if the association certifies that the land is to be used (after any necessary demolition work) for the construction of a building or buildings intended for use— The association must give the certificate to the person making the grant (“the seller”)— In this paragraph “relevant housing association” means— For the purposes of this paragraph the reference to use solely for a relevant residential purpose is to be read without regard to Note (12) of Group 5 of Schedule 8 (which would otherwise apply as a result of paragraph 33 of this Schedule). The Commissioners may publish a notice for the purposes of this paragraph—
An option to tax has no effect in relation to any grant made to an individual if—
the land is to be used for the construction of a building intended for use by the individual as a dwelling, and
the construction is not carried out in the course or furtherance of a business carried on by the individual.
A supply is not, as a result of an option to tax, a taxable supply if— The exempt land test is met if, at the time when the grant was made (or treated for the purposes of this paragraph as made), the relevant person intended or expected that the land— “The relevant person” means— For the meaning of a development financier, see paragraph 14. For the meaning of “exempt land”, see paragraphs 15 and 16. If a supply is made by a person other than the person who made the grant giving rise to it— For a special rule in the case of a grant made on or after 19th March 1997 and before 10th March 1999, see paragraph 17. Nothing in this paragraph applies in relation to a supply arising from—
This paragraph applies for the purposes of paragraph 12. A grant made by any person (“the grantor”) in relation to any land is made by a developer of the land if— The land is a relevant capital item if— is a capital item in relation to the grantor. The land was intended or expected to be a relevant capital item if the grantor, or a development financier, intended or expected that— would become a capital item in relation to the grantor or any relevant transferee. A person is a relevant transferee if the person is someone to whom the land, building or part of a building was to be transferred— A grant is made at an eligible time as respects a capital item if it is made before the end of the period provided in the relevant regulations for the making of adjustments relating to the deduction of input tax as respects the capital item. But if— the grant is treated instead as if were not made at an ineligible time. In this paragraph a “capital item”, in relation to any person, means an asset falling, in relation to the person, to be treated as a capital item for the purposes of the relevant regulations. In this paragraph “the relevant regulations”, as respects any item, means regulations under section 26(3) and (4) providing for adjustments relating to the deduction of input tax to be made as respects that item.
This paragraph explains for the purposes of paragraphs 12 to 17 what is meant, in relation to the grantor of any land, by a development financier. A “development financier” means a person who— with the intention or in the expectation that the land will become exempt land or continue (for a period at least) to be exempt land. For the purposes of this paragraph references to finance being provided for the grantor’s development of the land are to doing (directly or indirectly) any one or more of the following— For the purposes of this paragraph references to providing funds for a particular purpose are to— For the purposes of this paragraph references to the grantor’s development of the land are to the acquisition by the grantor of the asset which— For this purpose the reference to the acquisition of the asset includes— In this paragraph “arrangement” means any agreement, arrangement or understanding (whether or not legally enforceable).
This paragraph explains for the purposes of paragraphs 12 to 17 what is meant by exempt land. Land is exempt land if, at any time before the end of the relevant adjustment period as respects that land— Each of the following is a relevant person— Where a person (“P”) is in occupation of the land at any time before the end of the relevant adjustment period as respects that land, P is treated for the purposes of sub-paragraph (2) as not in occupation of the land at that time if— The relevant adjustment period as respects any land is the period provided in the relevant regulations (within the meaning of paragraph 13) for the making of adjustments relating to the deduction of input tax as respects the land. For the purposes of this paragraph any question whether a person’s occupation of any land is “wholly, or substantially wholly,” for eligible purposes is to be decided by reference to criteria specified in a public notice.
For the purposes of paragraph 15(3A), the building occupation conditions are met at any time (“the time in question”) if— For the purposes of sub-paragraph (1)(b)(i) and (ii) occupation by a person connected with P is treated as occupation by P if that occupation is not wholly, or substantially wholly, for eligible purposes. For the purposes of sub-paragraph (1)(b)(i) occupation by a person of— is disregarded if the occupation is ancillary to the occupation by that person of a building. In sub-paragraph (1)(b)(ii)— The way in which occupation by a person of a building is measured for the purposes of sub-paragraph (1)(b)(ii) is to be determined in accordance with conditions specified in a public notice. In this paragraph “relevant interest”, in relation to a building or part of a building, means any interest in, right over or licence to occupy the building or part. Sub-paragraph (5) of paragraph 15 (determination of whether occupation “wholly, or substantially wholly” for eligible purposes to be by reference to criteria in public notice) applies for the purposes of this paragraph. Sub-paragraphs (4) to (7) of paragraph 18 (meaning of “building”) apply for the purposes of this paragraph.
This paragraph explains what is meant for the purposes of paragraph 15 by a person occupying land for eligible purposes. A person cannot occupy land at any time for eligible purposes unless the person is a taxable person at that time (but this rule is qualified by sub-paragraphs (5) and (6)). A taxable person occupies land for eligible purposes so far as the occupation is for the purpose of making creditable supplies (but this rule is qualified by sub-paragraphs (5) to (7)). “Creditable supplies” means supplies which— Any occupation of land by a body to which section 33 applies (local authorities etc) is occupation of the land for eligible purposes so far as the occupation is for purposes other than those of a business carried on by the body. Any occupation of land by a Government department (within the meaning of section 41) is occupation of the land for eligible purposes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If a person occupying land— the person is treated for the purposes of this paragraph, for so long as the conditions in paragraphs (a) and (b) continue to be met, as occupying the land for the purposes for which the person proposes to use it. If land is in the occupation of a person (“A”) who— the land is treated for the purposes of this paragraph as if A and B were a single taxable person. For the purposes of this paragraph a person occupies land—
A grant in relation to land which was made— is treated for the purposes of paragraph 12 as made on 10th March 1999 if, at the time of the grant, the capital item test was met. The capital item test was met if the person making the grant, or a development financier, intended or expected that— would become a capital item in relation to the grantor or any relevant transferee but it had not become such an item. For the purposes of that test “capital item” and “relevant transferee” have the meaning given by paragraph 13.
An option to tax has effect in relation to the particular land specified in the option. If an option to tax is exercised in relation to— the option has effect in relation to the whole of the building and all the land within its curtilage. If an option to tax— the option is nonetheless taken to have effect in relation to any building which is (or is to be) constructed on the land (as well as in relation to land on which no building is constructed). For the purposes of this paragraph— are treated as a single building. But for those purposes— In this paragraph a “building” includes— In this paragraph “covered walkway” does not include a covered walkway to which the general public has reasonable access.
An option to tax has effect from— But if, when an option to tax is exercised, the person exercising the option intends to revoke it in accordance with paragraph 23 (revocation of option: the “cooling off” period), the option is treated for the purposes of this Act as if it had never been exercised. An option to tax may be revoked in accordance with paragraph 22(2) or (3) and any of paragraphs 23 to 25, but not otherwise. This paragraph needs to be read with—
An option to tax has effect only if— Notification of an option is given within the allowed time if (and only if) it is given— The Commissioners may publish a notice for the purposes of this paragraph specifying— Notification of an option to tax does not need to be given under this paragraph if the option is treated as exercised in accordance with paragraph 29(3).
A person (E) may make an election (a “real estate election”) for this paragraph to have effect in relation to— If E makes a real estate election— but this sub-paragraph is subject to sub-paragraphs (3) to (5). A person (P) is not to be treated as a result of this paragraph as exercising an option to tax in relation to any building or land where at any time— A person (P) is not to be treated as a result of this paragraph as exercising an option to tax in relation to any building or land in which a relevant interest is acquired (“the later interest”) if— A person is not to be treated as a result of this paragraph as exercising an option to tax in relation to any building or land if— The relevant assumptions are that— A real estate election has effect only if— The Commissioners may at any time require a person who has made a real estate election to give to the Commissioners information specified in a public notice before the end of— If a person (P) does not comply with that requirement— A real estate election may not be revoked except in accordance with sub-paragraph (9). If a real estate election made by a person (P) is revoked in accordance with that sub-paragraph, another real estate election may be made at any subsequent time by— but only with the prior permission of the Commissioners. In this paragraph— For the purposes of this paragraph, the time at which a relevant interest in any building or land is acquired is— For the purposes of sub-paragraph (13)(a), any order under section 5(3)(c) that would otherwise have the effect that the acquisition in question is to be treated as neither a supply of goods nor a supply of services is to be disregarded.
This paragraph applies if, at any time (“the relevant time”), a person (E) makes a real estate election under paragraph 21. An option to tax exercised in relation to any building or part of any building before the relevant time by— is treated for the purposes of this Part of this Schedule as if it had been revoked from the relevant time if, at that time, neither E nor any relevant group member has a relevant interest in that building. An option to tax exercised in relation to any land (otherwise than by reference to any building or part of a building) before the relevant time by— is treated for the purposes of this Part of this Schedule as if it had been revoked in accordance with sub-paragraph (4) from the relevant time if, at that time, neither E nor any relevant group member has a relevant interest in that land, or E or any relevant group member has a relevant interest in only some of it. The option is treated for the purposes of this Part of this Schedule as if it had been revoked in relation to— as the case may be. Sub-paragraphs (2) and (3) are subject to paragraph 26 (anti-avoidance). An option to tax (“the original option”) exercised in relation to any land (otherwise than by reference to any building or part of a building) before the relevant time by— may, in circumstances specified in a public notice, be converted by E into separate options to tax if, at the relevant time, E or any relevant group member has a relevant interest in the land or any part of it. The original option is converted into separate options to tax different parcels of land comprised in that land or part. Those separate options to tax are treated for the purposes of this Part of this Schedule— But— The notification of the election given by E must identify— In this paragraph— In this paragraph “relevant group member” and “relevant interest”, have the meaning given by paragraph 21. In this paragraph any reference to a real estate election under paragraph 21 does not include an election which is made under sub-paragraph (11) of that paragraph.
An option to tax any land exercised by any person (“the taxpayer”) may be revoked with effect from the day on which it was exercised if— There is no relevant transfer of a business as a going concern if, since the option had effect, no grant in relation to the land has been made which is treated as neither a supply of goods nor a supply of services because— The notification of the revocation must— The Commissioners may publish a notice for the purposes of this paragraph providing that a revocation under this paragraph is effective only if— A notice under sub-paragraph (4) may—
An option to tax exercised by any person in relation to any building or land is treated for the purposes of this Part of this Schedule as revoked if the person does not have a relevant interest in the building or land throughout any continuous period of 6 years beginning at any time after the option has effect. The option to tax is treated for the purposes of this Part of this Schedule as revoked from the end of that period. In this paragraph “a relevant interest in the building or land” means an interest in, right over or licence to occupy the building or land (or any part of it). This paragraph is subject to paragraph 26 (anti-avoidance).
An option to tax any land exercised by any person (“the taxpayer”) may be revoked if the time that has lapsed since the day on which the option had effect is more than 20 years and— If the conditions specified in the public notice are met in relation to the option, the revocation has effect only if notification of the revocation is given to the Commissioners. The notification must— If— the Commissioners may nonetheless treat the option as if it had been validly revoked in accordance with this paragraph. An application for the prior permission of the Commissioners must— If the taxpayer gets the prior permission of the Commissioners for the revocation of an option, the option is revoked from— The Commissioners may specify an earlier day or time only if— The Commissioners may specify a day or time under sub-paragraph (6)(b) by reference to the happening of an event or the meeting of a condition. The Commissioners may specify conditions subject to which their permission is given and, if any of those conditions are broken, they may treat the revocation as if it had not been made.
Sub-paragraphs (2) and (3) of paragraph 22 (revocation of option to tax where a real estate election is made) do not apply if condition A or B is met. Paragraph 24 (lapse of option to tax) does not apply if condition A, B or C is met. Condition A is that— Condition B is that— A person (“A”) meets the conditions in this sub-paragraph if— Condition C is that the opter is a body corporate and, at the relevant time, a relevant associate of the opter in relation to the building or land— In this paragraph— “relevant interest in the building or land” means an interest in, right over or license to occupy the building or land (or any part of it); “the relevant time”, in relation to any option to tax, means the time from which the option would (but for this paragraph) have been treated as revoked as a result of paragraph 22(2) or (3) or 24; “opter” means the person who exercised the option to tax in question.
This paragraph applies if— The taxpayer may exclude— from the effect of the option if notification of that exclusion is given to the Commissioners. The exclusion has effect from the earliest of the following times— The notification of the exclusion must— Sub-paragraphs (4) to (6) of paragraph 18 (meaning of “building”) apply for the purposes of this paragraph as they apply for the purposes of that paragraph. For the purposes of this paragraph the reference to the construction of a building is to be read without regard to Note (17) or (18)(b) of Group 5 of Schedule 8 (which would otherwise apply as a result of paragraph 33 of this Schedule). The Commissioners may publish a notice for determining the time at which the construction of a building on any land is to be taken to begin for the purposes of this paragraph.
This paragraph applies if— The person may exercise the option to tax the land only if— The Commissioners must refuse their permission if they are not satisfied that there would be a fair and reasonable attribution of relevant input tax to relevant supplies. For this purpose— In deciding whether there would be a fair and reasonable attribution of relevant input tax to relevant supplies, the Commissioners must have regard to all the circumstances of the case. But they must have regard in particular to—
An application for the prior permission of the Commissioners under paragraph 28 must— The Commissioners may specify conditions subject to which their permission is given and, if any of those conditions are broken, they may treat the application as if it had not been made. If the applicant (A) gets the prior permission of the Commissioners, A is, as a result of this sub-paragraph, treated for the purposes of this Part of this Schedule as if A had exercised the option to tax the land with effect from—
This paragraph applies if— The Commissioners may, in the case of any such option, subsequently dispense with the requirement for their prior permission to be given under paragraph 28. If the Commissioners dispense with that requirement, a purported option—
This paragraph applies if— For the purposes of this Part of this Schedule, the option to tax has effect, in relation to those supplies, as if the grant had been made after that time.
Note (10) of Group 5 of Schedule 8 applies for the purposes of this Part of this Schedule.
In this Part of this Schedule, references to the expressions listed in the first column are to be read in accordance with the provisions listed in the second column— Expression Provision building designed or adapted for use as a dwelling or a number of dwellings Note (2) to Group 5 of Schedule 8 completion of a building Note (2) to Group 1 of Schedule 9 construction of a building Notes (16) to (18) to Group 5 of Schedule 8 (but see paragraph 27(6) of this Schedule) construction of a building intended for use as a dwelling or a number of dwellings Note (3) to Group 5 of Schedule 8 grant Note (1) to Group 5 of Schedule 8/ Notes (1) and (1A) to Group 1 of Schedule 9 use for a relevant charitable purpose Notes (6) and (12) to Group 5 of Schedule 8 use for a relevant residential purpose Notes (4), (5) and (12) to Group 5 of Schedule 8 (but see paragraphs 6(9) and 10(4) of this Schedule)
In this Part of this Schedule— For the purposes of this Part of this Schedule any question whether a person is connected with another person is to be decided in accordance with section 1122 of the Corporation Tax Act 2010 ; but this is subject to sub-paragraph (2A). For the purposes of this Part of this Schedule, a company is not connected with another company only because both are under the control of— In sub-paragraph (2A) “company” and “control” have the same meaning as in section 839 of the Taxes Act. Any reference in any provision of this Part of this Schedule to a public notice is to a notice published by the Commissioners for the purposes of that provision.
This paragraph applies if— If the grant is made— the grant does not fall within Group 1 of Schedule 9 (exemptions for land). For the meaning of “relevant associate”, see paragraph 3.
This paragraph explains for the purposes of this Part of this Schedule what is meant by a “relevant associate” in a case where a person (“the opter”) exercises an option to tax in relation to any building or land. A person is a relevant associate of the opter if under sections 43A to 43D (groups of companies) the person— But a person (“P”) ceases to be a relevant associate of the opter in relation to the building or land in the following circumstances. P ceases to be a relevant associate of the opter in relation to the building or land at the time when all of the following conditions are first met— P also ceases to be a relevant associate of the opter in relation to the building or land if P— The time when P ceases to be a relevant associate of the opter is determined in accordance with that paragraph. In this paragraph “relevant interest in the building or land” means an interest in, right over or licence to occupy the building or land (or any part of it).
This paragraph applies for the purposes of paragraph 3(5) in relation to a person (“P”) who has been a relevant associate of the opter. If the conditions specified in the public notice under paragraph 3(5)(a) are met in relation to P, P ceases to be a relevant associate of the opter only if notification of those conditions being met is given to the Commissioners. The notification must— An application for the prior permission of the Commissioners must— If P gets the prior permission of the Commissioners, P ceases to be a relevant associate of the opter from— The Commissioners may specify an earlier day only if— The day specified may be the day from which P would have ceased to be a relevant associate of the opter if those conditions had been so met. The Commissioners may specify conditions subject to which their permission is given and, if any of those conditions are broken, they may treat the application as if it had not been made.
This Part of this Schedule applies where one or more relevant zero-rated supplies relating to a building (or part of a building) have been made to a person (“P”). In this Part of this Schedule— Where P is a person treated as a member of a group under sections 43A to 43D, any reference in this Part of this Schedule to P includes a reference to any member of that group.
Paragraph 37 applies on each occasion during the relevant period when— The relevant premises fall (or part of the relevant premises falls) within this sub-paragraph if P has, since the beginning of the relevant period, disposed of P’s entire interest in the relevant premises (or part). The relevant premises fall (or a part of the relevant premises falls) within this sub-paragraph if— Sub-paragraph (5) applies where— Where this sub-paragraph applies, sub-paragraph (3) applies as if— Where P is a charity using the relevant premises (or a part of the relevant premises) as a village hall or similarly in providing social or recreational facilities for a local community the premises are (or the part is) treated as being used for a relevant charitable purpose whether or not any person in occupation is using the premises (or part) for a relevant charitable purpose.
Where this paragraph applies, P’s interest, right or licence in the relevant premises held immediately prior to the time when the increase referred to in paragraph 36(1) occurs is treated for the purposes of this Part of this Schedule as— immediately prior to the time of that increase. The supply is taken to be a taxable supply which is not zero-rated as a result of Group 5 of Schedule 8. The value of the supply is taken to be—
Note (10) of Group 5 of Schedule 8 applies for the purposes of this Part of this Schedule.
In this Part of this Schedule, references to the expressions listed in the first column are to be read in accordance with the provisions listed in the second column— Expression Provision completion of a building Note (2) to Group 1 of Schedule 9 grant Note (1) to Group 5 of Schedule 8/ Notes (1) and (1A) to Group 1 of Schedule 9 use for a relevant charitable purpose Notes (6) and (12) to Group 5 of Schedule 8 use for a relevant residential purpose Notes (4), (5) and (12) to Group 5 of Schedule 8
An option to tax has no effect in relation to any grant in relation to a building or part of a building if the building or part of the building is designed or adapted, and is intended, for use— In relation to the expression “relevant residential purpose”, see the certification requirement imposed as a result of the application of Note (12) of Group 5 of Schedule 8 by paragraph 33 of this Schedule.
An option to tax has no effect in relation to any grant made to a person (“the recipient”) in relation to a building or part of a building if the recipient certifies that the building or part of the building is intended for use— The recipient must give the certificate to the person making the grant (“the seller”)— The recipient may give the certificate to the seller only if the recipient— The recipient is a relevant intermediary if— For this purpose a person has the relevant disposal intention if— A person (P) gives a qualifying certificate to another if P gives a certificate to that other person stating that P has the relevant conversion intention or intends to dispose of the relevant interest to another person (Q) who has given a certificate to P stating— and so on (in the case of further disposals of the relevant interest). In this paragraph— For the purposes of this paragraph a building or part of a building is not to be regarded as intended for use as a dwelling or number of dwellings at any time if there is intended to be a period before that time during which it will not be so used (but disregarding use for incidental or other minor purposes). For the purposes of this paragraph the reference to use solely for a relevant residential purpose is to be read without regard to Note (12) of Group 5 of Schedule 8 (which would otherwise apply as a result of paragraph 33 of this Schedule). The Commissioners may publish a notice for the purposes of this paragraph—
An option to tax has no effect in relation to any grant made to a person in relation to a building or part of a building intended by the person for use— In relation to the expression “relevant charitable purpose”, see the certification requirement imposed as a result of the application of Note (12) of Group 5 of Schedule 8 by paragraph 33 of this Schedule.
This paragraph applies if the benefit of the consideration for the grant of an interest in, right over or licence to occupy land accrues to a person (“the beneficiary”) other than the person making the grant. The beneficiary is to be treated for the purposes of this Act as the person making the grant. So far as any input tax of the person actually making the grant is attributable to the grant, it is to be treated for the purposes of this Act as input tax of the beneficiary.
An option to tax has no effect in relation to any grant made in relation to a pitch for a residential caravan. A caravan is not a residential caravan if residence in it throughout the year is prevented by the terms of a covenant, statutory planning consent or similar permission.
the person to whom the benefit accrues shall for the purposes of this Act be treated as the person making the grant; and
to the extent that any input tax of the person actually making the grant is attributable to the grant it shall be treated as input tax of the person to whom the benefit accrues.
An option to tax has no effect in relation to any grant made in relation to facilities for the mooring of a residential houseboat. In this paragraph—
Section 58.
The Commissioners for Her Majesty’s Revenue and Customs shall be responsible for the collection and management of VAT.
Regulations under this paragraph may require the keeping of accounts , the making of returns and the submission of information in such form and manner as may be specified in the regulations ... or by the Commissioners in accordance with the regulations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Regulations under this paragraph may require the submission to the Commissioners by taxable persons, at such times and intervals, in such cases and in such form and manner as may be— of statements containing such particulars of supplies to which section 55A(6) applies in which the taxable persons are concerned, and of the persons concerned in those supplies, as may be so specified. Regulations under this paragraph may make provision for requiring— to give to the Commissioners such notification of that fact at such time and in such form and manner as may be specified in the regulations or by the Commissioners in accordance with the regulations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Regulations under this paragraph may make provision— The provision that may be made by regulations made by virtue of sub-paragraph (5A) includes— Subsection (3) of section 97 (orders subject to Commons approval) applies to a statutory instrument containing any regulations made by virtue of sub-paragraph (5A) which amend an enactment as it applies to an order within subsection (4) of that section. For the purposes of sub-paragraph (5A)— For the purposes of sub-paragraphs (5A) to (5D) “means of transport” means— but only if the ship, aircraft or vehicle is intended for the transport of persons or goods. The Treasury may by order vary sub-paragraph (5E) by adding or deleting any ship, aircraft or vehicle of a description specified in the order to or from those which are for the time being specified there. Regulations under this paragraph may make special provision for such taxable supplies by retailers of any goods or of any description of goods or of services or any description of services as may be determined by or under the regulations and, in particular— Regulations under this paragraph may make provision whereby, in such cases and subject to such conditions as may be determined by or under the regulations, VAT in respect of a supply may be accounted for and paid by reference to the time when consideration for the supply is received; and any such regulations may make such modifications of the provisions of this Act (including in particular, but without prejudice to the generality of the power, the provisions as to the time when, and the circumstances in which, credit for input tax is to be allowed) as appear to the Commissioners necessary or expedient. Regulations under this paragraph may make provision whereby, in such cases and subject to such conditions as may be determined by or under the regulations— may be accounted for and paid, and any question as to the inclusion of any duty or agricultural levy in the value of the supply ... determined, by reference to the duty point or by reference to such later time as the Commissioners may allow. In this sub-paragraph “dutiable goods” and “duty point” have the same meanings as in section 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Regulations under this paragraph may make provision— Regulations under this paragraph may make different provision for different circumstances and may provide for different dates as the commencement of prescribed accounting periods applicable to different persons. Regulations under this paragraph may include incidental, supplemental, consequential, saving, transitional or transitory provision. The provisions made by regulations under this paragraph for cases where goods are treated as supplied by a taxable person by virtue of paragraph 7 of Schedule 4 may require VAT chargeable on the supply to be accounted for and paid, and particulars thereof to be provided, by such other person and in such manner as may be specified by the regulations. Where, at the end of a prescribed accounting period, the amount of VAT due from any person or the amount of any VAT credit would be less than £1, that amount shall be treated as nil.
Regulations may prescribe, or provide for the Commissioners to impose in a particular case, conditions that must be complied with in relation to— The items to which this paragraph applies are— Regulations under this paragraph may make different provision for different circumstances.
Regulations may require a taxable person supplying goods or services to provide an invoice (a “VAT invoice”) to the person supplied. A VAT invoice must give— Regulations may confer power on the Commissioners to allow the requirements of any regulations as to the information to be given in a VAT invoice to be relaxed or dispensed with. Regulations may— Regulations may— Regulations may confer power on the Commissioners to require a person who has received in the United Kingdom a VAT invoice that is (or part of which is) in a language other than English to provide them with an English translation of the invoice (or part). Regulations under this paragraph—
The Commissioners may, as a condition of allowing or repaying input tax to any person, require the production of such evidence relating to VAT as they may specify. If they think it necessary for the protection of the revenue, the Commissioners may require, as a condition of making any VAT credit, the giving of such security for the amount of the payment as appears to them appropriate. If they think it necessary for the protection of the revenue, the Commissioners may require a taxable person, as a condition of his supplying or being supplied with goods or services under a taxable supply, to give security, or further security, for the payment of any VAT that is or may become due from— In sub-paragraph (2) above “relevant goods or services” means goods or services supplied by or to the taxable person. Security under sub-paragraph (2) above shall be of such amount, and shall be given in such manner, as the Commissioners may determine. The powers conferred on the Commissioners by sub-paragraph (2) above are without prejudice to their powers under section 48(7).
This paragraph applies where a taxable person provides to himself a document (a “self-billed invoice”) that purports to be a VAT invoice in respect of a supply of goods or services to him by another taxable person. Subject to compliance with such conditions as may be— a self-billed invoice shall be treated as the VAT invoice required by regulations under paragraph 2A above to be provided by the supplier. For the purposes of section 6(4) (under which the time of supply can be determined by the prior issue of an invoice) a self-billed invoice shall not be treated as issued by the supplier. For the purposes of section 6(5) and (6) (under which the time of supply can be determined by the subsequent issue of an invoice) a self-billed invoice in relation to which the conditions mentioned in sub-paragraph (2) are complied with shall, subject to compliance with such further conditions as may be prescribed, be treated as issued by the supplier. In such a case, any notice of election given or request made for the purposes of section 6(5) or (6) by the person providing the self-billed invoice shall be treated for those purposes as given or made by the supplier. Regulations under this paragraph—
VAT due from any person shall be recoverable as a debt due to the Crown. Where an invoice shows a supply of goods or services as taking place with VAT chargeable on it, there shall be recoverable from the person who issued the invoice an amount equal to that which is shown on the invoice as VAT or, if VAT is not separately shown, to so much of the total amount shown as payable as is to be taken as representing VAT on the supply. Sub-paragraph (2) above applies whether or not— and any sum recoverable from a person under the sub-paragraph shall, if it is in any case VAT be recoverable as such and shall otherwise be recoverable as a debt due to the Crown. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Every taxable person shall keep such records as the Commissioners may by regulations require .... Regulations under sub-paragraph (1) above may make different provision for different cases and may be framed by reference to such records as may be specified in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice. The Commissioners may require any records kept in pursuance of this paragraph to be preserved for such period not exceeding 6 years as they may specify in writing (and different periods may be specified for different cases). The duty under this paragraph to preserve records may be discharged— subject to any conditions or exceptions specified in writing by the Commissioners for Her Majesty's Revenue and Customs. In relation to a relevant taxable person, a duty under this paragraph to preserve records relating to a relevant taxable supply must be discharged by at least preserving the information contained in the records electronically. A relevant taxable person must make available to the Commissioners electronically on request any records preserved in accordance with sub-paragraph (4A). In sub-paragraph (4A) “relevant taxable supply” means a supply of goods where— In sub-paragraphs (4A) and (4B) “relevant taxable person” means a person who is a taxable person and who— The Commissioners may by regulations make further provision about the form in which, and means by which, records are to be kept and preserved. Regulations under sub-paragraph (5) may— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Regulations under sub-paragraph (5) requiring records to be kept or preserved in electronic form may (among other things) make provision— Regulations under sub-paragraph (5) requiring records to be kept or preserved in electronic form may—
The Commissioners may direct any taxable person named in the direction to keep such records as they specify in the direction in relation to such goods as they so specify. A direction under this paragraph may require the records to be compiled by reference to VAT invoices or any other matter. The Commissioners may not make a direction under this paragraph unless they have reasonable grounds for believing that the records specified in the direction might assist in identifying taxable supplies in respect of which the VAT chargeable might not be paid. The taxable supplies in question may be supplies made by— A direction under this paragraph— The Commissioners may require any records kept in pursuance of this paragraph to be preserved for such period not exceeding 6 years as they may require. Sub-paragraph (4) of paragraph 6 (preservation of information) applies for the purposes of this paragraph as it applies for the purposes of that paragraph. This paragraph is without prejudice to the power conferred by paragraph 6(1) to make regulations requiring records to be kept. Any records required to be kept by virtue of this paragraph are in addition to any records required to be kept by virtue of paragraph 6.
The Commissioners may by regulations make provision for requiring taxable persons to notify to the Commissioners such particulars of changes in circumstances relating to those persons or any business carried on by them as appear to the Commissioners required for the purpose of keeping the register kept under this Act up to date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
An authorised person may take samples from goods that are in the possession of either a person who supplies goods or a fiscal warehousekeeper if it appears necessary to do so— Any sample taken under this paragraph shall be disposed of and accounted for in such manner as the Commissioners may direct. Where a sample is taken under this paragraph from the goods in any person’s possession and is not returned to him within a reasonable time and in good condition the Commissioners shall pay him by way of compensation a sum equal to the cost of the sample to him or such larger sum as they may determine.
An authorised person may at any reasonable time require a person making such a supply as is referred to in section 23(1) or any person acting on his behalf—
to open any machine on which relevant machine games (as defined in section 23A) are capable of being played; and
to carry out any other operation which may be necessary to enable the authorised person to ascertain the amount which, in accordance with section 23(3), is to be taken as the value of supplies made in the circumstances mentioned in subsection (1) of that section in any period.
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Where, on an application by an authorised person, a justice of the peace or, in Scotland, a justice (within the meaning of section 308 of the Criminal Procedure (Scotland) Act 1995) is satisfied that there are reasonable grounds for believing— he may make an order under this paragraph. An order under this paragraph is an order that the person who appears to the justice to be in possession of the recorded information to which the application relates shall— not later than the end of the period of 7 days beginning on the date of the order or the end of such longer period as the order may specify. The reference in sub-paragraph (2)(a) above to giving an authorised person access to the recorded information to which the application relates includes a reference to permitting the authorised person to take copies of it or to make extracts from it. Where the recorded information consists of information stored in any electronic form, an order under this paragraph shall have effect as an order to produce the information in a form in which it is visible and legible or from which it can readily be produced in a visible and legible form and, if the authorised person wishes to remove it, in a form in which it can be removed. This paragraph is without prejudice to paragraphs 7 and 10 above.
An authorised person who removes anything in the exercise of a power conferred by or under paragraph 10 or 11 above shall, if so requested by a person showing himself— provide that person with a record of what he removed. The authorised person shall provide the record within a reasonable time from the making of the request for it. Subject to sub-paragraph (7) below, if a request for permission to be granted access to anything which— is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed or by someone acting on behalf of such a person, the officer shall allow the person who made the request access to it under the supervision of an authorised person. Subject to sub-paragraph (7) below, if a request for a photograph or copy of any such thing is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall— Where anything is photographed or copied under sub-paragraph (4)(b) above the photograph or copy shall be supplied to the person who made the request. The photograph or copy shall be supplied within a reasonable time from the making of the request. There is no duty under this paragraph to grant access to, or to supply a photograph or copy of, anything if the officer in overall charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice— Any reference in this paragraph to the officer in overall charge of the investigation is a reference to the person whose name and address are endorsed on the warrant or order concerned as being the officer so in charge.
Where, on an application made as mentioned in sub-paragraph (2) below, the appropriate judicial authority is satisfied that a person has failed to comply with a requirement imposed by paragraph 12 above, the authority may order that person to comply with the requirement within such time and in such manner as may be specified in the order. An application under sub-paragraph (1) above shall be made— In this paragraph “the appropriate judicial authority” means— In England and Wales and Northern Ireland, an application for an order under this paragraph shall be made by way of complaint; and sections 21 and 42(2) of the Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this paragraph.
A certificate of the Commissioners— shall be sufficient evidence of that fact until the contrary is proved. A photograph of any document furnished to the Commissioners for the purposes of this Act and certified by them to be such a photograph shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself. Any document purporting to be a certificate under sub-paragraph (1) or (2) above shall be deemed to be such a certificate until the contrary is proved.
Section 61.
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for limiting the time within which appeals may be brought;
for enabling hearings to be held in private in such circumstances as may be determined by or under the rules;
for parties to proceedings to be represented by such persons as may be determined by or under the rules;
for requiring persons to attend to give evidence;
for discovery and for requiring persons to produce documents;
for the payment of expenses and allowances to persons attending as witnesses or producing documents;
for the award and recovery of costs;
for authorising the administration of oaths to witnesses; and
with respect to the joinder of appeals brought by different persons where a notice is served under section 61 and the appeals relate to, or to different portions of, the basic penalty referred to in the notice.
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Section 100.
The continuity of the law relating to VAT shall not be affected by the substitution of this Act for the enactments repealed by this Act and earlier enactments repealed by and corresponding to any of those enactments (“the repealed enactments”). Any reference, whether express or implied, in any enactment, instrument or document (including this Act or any Act amended by this Act) to, or to things done or falling to be done under or for the purposes of, any provision of this Act shall, if and so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision in the repealed enactments has or had effect, a reference to, or as the case may be, to things done or falling to be done under or for the purposes of, that corresponding provision. Any reference, whether express or implied, in any enactment, instrument or document (including the repealed enactments and enactments, instruments and documents passed or made or otherwise coming into existence after the commencement of this Act) to, or to things done or falling to be done under or for the purposes of, any of the repealed enactments shall, if and so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision of this Act has effect, a reference to, or as the case may be to things done or falling to be done under or for the purposes of, that corresponding provision. Without prejudice to paragraphs (1) to (3) above, in any case where as respects the charge to VAT on any supply, acquisition or importation made at a time before 1st September 1994 but falling in a prescribed accounting period to which Part I applies any question arising under Part I and relating to that charge to VAT shall continue to be determined in accordance with the law in force at that time.
The continuity of the law relating to VAT shall not be affected by the substitution of this Act for the enactments repealed by this Act and earlier enactments repealed by and corresponding to any of those enactments (“the repealed enactments”). Any reference, whether express or implied, in any enactment, instrument or document (including this Act or any Act amended by this Act) to, or to things done or falling to be done under or for the purposes of, any provision of this Act shall, if and so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision in the repealed enactments has or had effect, a reference to, or as the case may be, to things done or falling to be done under or for the purposes of, that corresponding provision. Any reference, whether express or implied, in any enactment, instrument or document (including the repealed enactments and enactments, instruments and documents passed or made or otherwise coming into existence after the commencement of this Act) to, or to things done or falling to be done under or for the purposes of, any of the repealed enactments shall, if and so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision of this Act has effect, a reference to, or as the case may be to things done or falling to be done under or for the purposes of, that corresponding provision. Without prejudice to paragraphs (1) to (3) above, in any case where as respects the charge to VAT on any supply, acquisition or importation made at a time before 1st September 1994 but falling in a prescribed accounting period to which Part I applies any question arising under Part I and relating to that charge to VAT shall continue to be determined in accordance with the law in force at that time.
Supplies for qualifying use of—
“Qualifying use” means— The following supplies are always for domestic use— Supplies not within Note (2) are for domestic use if and only if the goods supplied are for use in— Use for a relevant residential purpose means use as— except use as a hospital, a prison or similar institution or an hotel or inn or similar establishment. Self-catering holiday accommodation includes any accommodation advertised or held out as such. “Houseboat” means a boat or other floating decked structure designed or adapted for use solely as a place of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion. Where there is a supply of goods partly for qualifying use and partly not— Paragraph (a) of item 1 shall be deemed to include combustible materials put up for sale for kindling fires but shall not include matches. Paragraphs (b) and (c) of item 1 do not include any road fuel gas (within the meaning of the Hydrocarbon Oil Duties Act 1979) on which a duty of excise has been charged or is chargeable. Paragraph (d) of item 1 does not include hydrocarbon oil on which a duty of excise has been or is to be charged without relief from, or rebate of, such duty by virtue of the provisions of the Hydrocarbon Oil Duties Act 1979. “Fuel oil” means heavy oil which contains in solution an amount of asphaltenes of not less than 0.5 per cent. or which contains less than 0.5 per cent. but not less than 0.1 per cent. of asphaltenes and has a closed flash point not exceeding 150°C. “Gas oil” means heavy oil of which not more than 50 per cent. by volume distils at a temperature not exceeding 240°C and of which more than 50 per cent. by volume distils at a temperature not exceeding 340°C. “Kerosene” means heavy oil of which more than 50 per cent. by volume distils at a temperature not exceeding 240°C. “Heavy oil” shall have the same meaning as in the Hydrocarbon Oil Duties Act 1979.
So far as this Act re-enacts any provision contained in a statutory instrument made in exercise of powers conferred by any Act, it shall be without prejudice to the validity of that provision, and any question as to its validity shall be determined as if the re-enacted provision were contained in a statutory instrument made under those powers.
Where a vehicle in respect of which purchase tax was remitted under section 23 of the Purchase Tax Act 1963 (vehicles for use outside the United Kingdom) is brought back to the United Kingdom the vehicle shall not, when brought back, be treated as imported for the purpose of VAT chargeable on the importation of goods.
Where there were in force immediately before 21st April 1975 arrangements between the Commissioners and any taxable person for supplies made by him (or such supplies made by him as were specified in the arrangements) to be treated as taking place at times or on dates which, had section 6(10) been in force when the arrangements were made, could have been provided for by a direction under that section, he shall be treated for the purposes of that section as having requested the Commissioners to give a direction thereunder to the like effect, and the Commissioners may give a direction (or a general direction applying to cases of any class or description specified in the direction) accordingly.
Any appointment to a panel of chairmen of the tribunals current at the commencement of this Act and made by the Treasury before the passing of the 1983 Act shall not be affected by the repeal by this Act of paragraph 8 of Schedule 10 to that Act. The terms of appointment of any person who was appointed to the office of President of the tribunal or chairman or other member of the tribunals before 1st April 1986 and holds that office on the coming into force of this Act shall continue to have effect notwithstanding the re-enactment, as Schedule 12 to this Act, of Schedule 8 to the 1983 Act as amended by Schedule 8 to the Finance Act 1985.
Notwithstanding the repeal by this Act of section 32B of the 1983 Act, that section shall continue to apply in relation to any supply in relation to which section 14 does not apply by virtue of section 14(8), and for the purposes to this paragraph section 32B shall have effect as if it were included in Part III of this Act, any reference in section 32B to any enactment repealed by this Act being read as a reference to the corresponding provision of this Act.
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A supply of services made after the commencement of this Act in pursuance of a legally binding obligation incurred before 21st June 1988 shall if— be a zero-rated supply for the purposes of this Act. Where a grant, assignment or other supply is zero-rated by virtue of this paragraph, it is not a relevant zero-rated supply for the purposes of Part 2 of Schedule 10.
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Where an offence for the continuation of which a penalty was provided has been committed under an enactment repealed by this Act, proceedings may be taken under this Act in respect of the continuance of the offence after the commencement of this Act in the same manner as if the offence had been committed under the corresponding provision of this Act.
Part IV of this Act, except section 72, shall not apply in relation to any act done or omitted to be done before 25th July 1985, and the following provision of this Schedule shall have effect accordingly.
Section 72 shall have effect in relation to any offence committed or alleged to have been committed at any time (“the relevant time”) before the commencement of this Act subject to the following provisions of this paragraph. Where the relevant time falls between 25th July 1983 and 26th July 1985 (the dates of passing of the 1983 and 1985 Finance Acts respectively), section 72 shall apply—
The provisions of this paragraph have effect in relation to section 59. Section 59 shall apply in any case where a person is in default in respect of a prescribed accounting period which has ended before the commencement of this Act, but shall have effect in any case where the last day referred to in subsection (1) of that section falls before 1st October 1993 subject to the following modifications— Section 59 shall have effect, in any case where a person has been served with a surcharge liability notice and that person is in default in respect of a prescribed accounting period because of a failure of the Commissioners to receive a return or an amount of VAT on or before a day falling before 30th September 1993 with the omission of—
Section 63 does not apply in relation to returns and assessments made for prescribed accounting periods beginning before 1st April 1990 but subject to that shall have effect in relation to the cases referred to in the following sub-paragraphs subject to the modifications there specified. Subsection (1) shall have effect in a case falling within paragraph (b) of that subsection where the assessment was made on or before 10th March 1992 with the substitution of “20 per cent.” for “ 15 per cent. ”. In relation to any prescribed accounting period beginning before 1st December 1993 section 63 shall have effect with the substitution— In relation to any prescribed accounting period beginning before 1st June 1994 section 63 shall have effect with the substitution for subsection (3) of the following subsection—and in subsection (8) for “this section” there shall be substituted “ subsections (5) and (7) above ”.
In relation to any prescribed accounting period beginning before 1st December 1993 section 64 shall have effect subject to the following modifications— A penalty liability notice shall not be served under section 64 by reference to any material inaccuracy in respect of a prescribed accounting period beginning before 1st December 1993, and the penalty period specified in any penalty liability notice served before that day shall be deemed to end with the day before that day.
Section 70 shall not apply in relation to any penalty to which a person has been assessed before 27th July 1993 and in the case of any penalty in relation to which that section does not apply by virtue of this paragraph, section 60 shall have effect subject to the following modifications— and in section 61(6) for “70” there shall be substituted “ 60(3A) ”.
in subsection (1) for “subsection (6)” there shall be substituted “ subsections (3A) and (6) ”;
after subsection (3) there shall be inserted—;
in subsection (4)(b) for the words from “under” to “this section” there shall be substituted “ to reduce a penalty under this section, as provided in subsection (4) above, and, in determining the extent of such a reduction in the case of any person, the Commissioners or tribunal will have regard to the extent of the co-operation which he has given to the Commissioners in their investigation ”;
Section 74 shall not apply in relation to prescribed accounting periods beginning before 1st April 1990 and subsection (3) of that section shall not apply in relation to interest on amounts assessed or, as the case may be, paid before 1st October 1993.
Nothing in this Act shall prejudice the effect of the Finance (No.2) Act 1992 (Commencement No.4 and Transitional Provisions) Order 1992 and accordingly—
where Article 4 of that Order applies immediately before the commencement of this Act in relation to any importation of goods, that Article and the legislation repealed by this Act shall continue to apply in relation to that importation as if this Act had not been enacted, and
where Article 5 of that Order applies in relation to any goods, this Act shall apply in relation to those goods in accordance with that Article and Article 6 of that Order.
An assessment may be made under section 73 in relation to amounts paid or credited before the commencement of this Act but—
in relation to an amount paid or credited before 30th July 1990 section 73(2) shall have effect with the omission of the words from “or which” to “out to be”, and
in relation to amounts repaid or paid to any person before the passing of the Finance Act 1982 section 73 shall have effect with the omission of subsection (2).
Section 81 shall have effect in relation to amounts becoming due before 10th May 1994 with the omission of subsections (4) and (5).
Without prejudice to paragraph 1 above, section 83 applies to things done or omitted to be done before the coming into force of this Act and accordingly references in Part V to any provision of this Act includes a reference to the corresponding provision of the enactments repealed by this Act or by any enactment repealed by such an enactment. Section 84 shall have effect before such day as may be appointed for the purposes of section 18(3) of the Finance Act 1994 with the substitution for subsection (5) of the following subsection—
Nothing in paragraph 7 of Schedule 14 shall affect the validity of any Order made under section 6 of the Isle of Man Act 1979 and, without prejudice to section 17 of the Interpretation Act 1978, for any reference in any such Order to any enactment repealed by this Act there shall be substituted a reference to the corresponding provision of this Act.
In section 2(5A) of the Diplomatic Privileges Act 1964 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.
In paragraph 10(1A) of the Commonwealth Secretariat Act 1966 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.
In section 1(8A) of the Consular Relations Act 1968 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.
In paragraph 19(c) of Schedule 1 to the International Organisations Act 1968 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.
In section 1(5) of the Diplomatic and other Privileges Act 1971 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.
“free zone goods” are goods which are within a free zone;
In section 1(1)(d) of the Isle of Man Act for “13 of the Value Added Tax Act 1983” there shall be substituted “ 23 of the Value Added Tax Act 1994 ”. In section 6 of that Act— In section 14(4)(b) for “section 33(2A) of the Finance Act 1972” there shall be substituted “ paragraph 5(3) of Schedule 11 to the Value Added Tax Act 1994 ”.
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The Income and Corporation Taxes Act 1988 shall be subject to the following amendments. In section 827 for—
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in subsection (6) for “1983” and “2(2)” there shall be substituted “1994” and “4(2)”; and
in subsection (7) for “14” and “1983” there shall be substituted “24” and “1994”.
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In section 7 of the Finance Act 1994—
in subsection (4) for “25 and 29 of the Finance Act 1985” and “40 of the Value Added Tax Act 1983” there shall be substituted, respectively, “ 85 and 87 of the Value Added Tax Act 1994 ” and “ 83 of that Act ” ;
in subsection (5) for “8 to the Value Added Tax Act 1983” there shall be substituted “ 12 to the Value Added Tax Act 1994 ”.
In paragraph 23 of Schedule 2 to the Vehicle Excise and Registration Act 1994—
for “2C of the Value Added Tax Act 1983” there shall be substituted “ 3 of the Value Added Tax Act 1994 ”;
for “(7) of section 16” there shall be substituted “ (8) of section 30 ”; and
for “subsection (9)” there shall be substituted “ subsection (10) ”.
Chapter Short title Extent of repeal 1979 c. 2. Customs and Excise Management Act 1979 Sections 100B and 100C. 1983 c. 55. Value Added Tax Act 1983 The whole Act. 1984 c. 24. Dentists Act 1984 In Schedule 5, paragraph 16. 1984 c. 43. Finance Act 1984 Sections 10 to 13. Schedule 6. 1984 c. 51. Inheritance Tax Act 1984 In Schedule 8, paragraph 24. 1984 c. 60. Police and Criminal Evidence Act 1984 In Schedule 6, paragraph 41. 1985 c. 54. Finance Act 1985 Sections 11 to 33. Schedules 6, 7 and 8. In Schedule 26, paragraph 14. 1986 c. 41. Finance Act 1986 Sections 9 to 15. Schedule 6. 1987 c. 16. Finance Act 1987 Sections 11 to 19. Schedule 2. 1987 c. 18. Debtors (Scotland) Act 1987 In Schedule 4, paragraph 4. 1988 c. 39. Finance Act 1988 Sections 13 to 22. 1988 c. 54. Road Traffic (Consequential Provisions) Act 1988 In Schedule 3, paragraph 32. 1989 c. 26. Finance Act 1989 Sections 18 to 26. Schedule 3. 1989 c. 40. Companies Act 1989 In Schedule 18, paragraph 27. 1989 c. 44. Opticians Act 1989 Section 37(3). 1990 c. 11. Planning (Consequential Provisions) Act 1990 In Schedule 2, paragraph 61. 1990 c. 19. National Health Service and Community Care Act 1990 Section 61(4). In Schedule 8, paragraph 9. 1990 c. 29. Finance Act 1990 Sections 10 to 16. 1990 c. 41. Courts and Legal Services Act 1990 In Schedule 10, paragraph 52. 1990 c. 42. Broadcasting Act 1990 In Schedule 20, paragraph 37. 1991 c. 21. Disability Living Allowance and Disability Working Allowance Act 1991 In Schedule 2, paragraph 13. 1991 c. 31. Finance Act 1991 Sections 13 to 18. 1992 c. 12. Taxation of Chargeable Gains Act 1992 In Schedule 10, paragraph 6. 1992 c. 20. Finance Act 1992 Sections 6 and 7. 1992 c. 48. Finance (No.2) Act 1992 Sections 14(1) and (3) to (6). Sections 15 to 17. Schedule 3, Parts I and II. 1992 c. 52. Trade Union and Labour Relations (Consolidation) Act 1992 In Schedule 2, paragraph 32. 1992 c. 53. Tribunals and Inquiries Act 1992 In Schedule 3, paragraph 17. 1993 c. 8. Judicial Pensions and Retirement Act 1993 In Schedule 6, paragraph 35. In Schedule 8, paragraph 16. 1993 c. 34. Finance Act 1993 Sections 42 to 50. Schedule 2. 1994 c. 9 Finance Act 1994 Section 7(1) and (2). In section 18(3) the words from “and for” to the end. Sections 45 and 47. 1994 c. 22 Vehicle Excise and Registration Act 1994 In Schedule 3, paragraph 21.
Chapter Short title Extent of repeal 1979 c.2. Customs and Excise Management Act 1979 Sections 100B and 100C. 1983 c.55. Value Added Tax Act 1983 The whole Act. 1984 c.24. Dentists Act 1984 In Schedule 5, paragraph 16. 1984 c.43. Finance Act 1984 Sections 10 to 13. Schedule 6. 1984 c.51. Inheritance Tax Act 1984 In Schedule 8, paragraph 24. 1984 c.60. Police and Criminal Evidence Act 1984 In Schedule 6, paragraph 41. 1985 c.54. Finance Act 1985 Sections 11 to 33. Schedules 6, 7 and 8. In Schedule 26, paragraph 14. 1986 c.41. Finance Act 1986 Sections 9 to 15. Schedule 6. 1987 c.16. Finance Act 1987 Sections 11 to 19. Schedule 2. 1987 c.18. Debtors (Scotland) Act 1987 In Schedule 4, paragraph 4. 1988 c.39. Finance Act 1988 Sections 13 to 22. 1988 c.54. Road Traffic (Consequential Provisions) Act 1988 In Schedule 3, paragraph 32. 1989 c.26. Finance Act 1989 Sections 18 to 26. Schedule 3. 1989 c.40. Companies Act 1989 In Schedule 18, paragraph 27. 1989 c.44. Opticians Act 1989 Section 37(3). 1990 c.11. Planning (Consequential Provisions) Act 1990 In Schedule 2, paragraph 61. 1990 c.19. National Health Service and Community Care Act 1990 Section 61(4). In Schedule 8, paragraph 9. 1990 c.29. Finance Act 1990 Sections 10 to 16. 1990 c.41. Courts and Legal Services Act 1990 In Schedule 10, paragraph 52. 1990 c.42. Broadcasting Act 1990 In Schedule 20, paragraph 37. 1991 c.21. Disability Living Allowance and Disability Working Allowance Act 1991 In Schedule 2, paragraph 13. 1991 c.31. Finance Act 1991 Sections 13 to 18. 1992 c.12. Taxation of Chargeable Gains Act 1992 In Schedule 10, paragraph 6. 1992 c.20. Finance Act 1992 Sections 6 and 7. 1992 c.48. Finance (No.2) Act 1992 Sections 14(1) and (3) to (6). Sections 15 to 17. Schedule 3, Parts I and II. 1992 c.52. Trade Union and Labour Relations (Consolidation) Act 1992 In Schedule 2, paragraph 32. 1992 c.53. Tribunals and Inquiries Act 1992 In Schedule 3, paragraph 17. 1993 c.8. Judicial Pensions and Retirement Act 1993 In Schedule 6, paragraph 35. In Schedule 8, paragraph 16. 1993 c.34. Finance Act 1993 Sections 42 to 50. Schedule 2. 1994 c.9 Finance Act 1994 Section 7(1) and (2). In section 18(3) the words from “and for” to the end. Sections 45 and 47. 1994 c.22 Vehicle Excise and Registration Act 1994 In Schedule 3, paragraph 21.
Chapter Short title Extent of repeal S.I.1980/440 Value Added Tax (Fuel and Power) Order 1980 The whole Order. S.I.1983/1717 Value Added Tax (Charities Etc.) Order 1983 The whole Order. S.I.1984/489 Value Added Tax (Handicapped Persons) Order 1984 The whole Order. S.I.1984/631 Value Added Tax (Lifeboats) Order 1984 The whole Order. S.I.1984/766 Value Added Tax (Charities Etc.) Order 1984 The whole Order. S.I.1984/767 Value Added Tax (Marine etc. Insurance) Order 1984 The whole Order. S.I.1984/959 Value Added Tax (Handicapped Persons) (No.2) Order 1984 The whole Order. S.I.1984/1784 Value Added Tax (Optical Appliances) Order 1984 The whole Order. S.I.1985/18 Value Added Tax (Protected Buildings) Order 1985 The whole Order. S.I.1985/431 Value Added Tax (Charities Etc.) Order 1985 The whole Order. S.I.1985/432 Value Added Tax (Finance) Order 1985 The whole Order. S.I.1985/799 Value Added Tax (Hiring of Goods) Order 1985 The whole Order. S.I.1985/919 Value Added Tax (Handicapped Persons) Order 1985 Article 3. S.I.1985/1900 Value Added Tax (Welfare) Order 1985 The whole Order. S.I.1986/530 Value Added Tax (Handicapped Persons and Charities) Order 1986 The whole Order. S.I.1987/437 Value Added Tax (Charities) Order 1987 The whole Order. S.I.1987/517 Value Added Tax (Betting, Gaming and Lotteries) Order 1987 The whole Order. S.I.1987/518 Value Added Tax (International Services) Order 1987 The whole Order. S.I.1987/1072 Value Added Tax (Construction of Buildings) (No.2) Order 1987 Article 2. S.I.1987/860 Value Added Tax (Finance) Order 1987 The whole Order. S.I.1987/1259 Value Added Tax (Education) Order 1987 The whole Order. S.I.1987/1806 Value Added Tax (Tour Operators) Order 1987 Article 11. S.I.1988/507 Value Added Tax (Confectionery) Order 1988 The whole Order. S.I.1988/1282 Value Added Tax (Training) Order 1988 The whole Order. S.I.1989/267 Value Added Tax (Education) Order 1989 The whole Order. S.I.1989/470 Value Added Tax (Fund-Raising Events and Charities) Order 1989 The whole Order. S.I.1989/2272 Value Added Tax (Finance, Health and Welfare) Order 1989 The whole Order. S.I.1990/682 Value Added Tax (Increase of Registration Limits) Order 1990 The whole Order. S.I.1990/750 Value Added Tax (Charities) Order 1990 The whole Order. S.I.1990/752 Value Added Tax (Transport) Order 1990 The whole Order. S.I.1990/2037 Value Added Tax (Insurance) Order 1990 The whole Order. S.I.1990/2129 Value Added Tax (Charities) (No.2) Order 1990 The whole Order. S.I.1990/2553 Value Added Tax (Construction of Dwellings and Land) Order 1990 The whole Order. S.I.1991/737 Value Added Tax (Charities) Order 1991 The whole Order. S.I.1991/738 Value Added Tax (Increase of Registration Limits) Order 1991 The whole Order. S.I.1991/2534 Value Added Tax (Piped Gas) (Metrication) Order 1991 The whole Order. S.I.1991/2569 Value Added Tax (Buildings and Land) Order 1991 The whole Order. S.I.1992/628 Value Added Tax (Charities and Aids for Handicapped Persons) Order 1992 The whole Order. S.I.1992/629 Value Added Tax (Increase of Registration Limits) Order 1992 The whole Order. S.I.1992/733 Value Added Tax (Increase for Consideration for Fuel) Order 1992 The whole Order. S.I.1992/3065 Value Added Tax (Motor Vehicles for the Handicapped) Order 1992 The whole Order. S.I.1992/3126 Value Added Tax (Transport) Order 1992 The whole Order. S.I.1992/3127 Value Added Tax (Means of Transport) Order 1992 The whole Order. S.I.1992/3131 Value Added Tax (Tax Free Shops) Order 1992 The whole Order. S.I.1992/3223 Value Added Tax (International Services and Transport) Order 1992 The whole Order. S.I.1993/765 Value Added Tax (Increase for Consideration for Fuel) Order 1993 The whole Order. S.I.1993/766 Value Added Tax (Increase of Registration Limits) Order 1993 The whole Order. S.I.1993/767 Value Added Tax (Protective Boots and Helmets) Order 1993 The whole Order. S.I.1993/1124 Value Added Tax (Education) (No.2) Order 1993 The whole Order. S.I.1993/2214 Finance Act 1993 (Appointed Day) Order 1993 The whole Order. S.I.1993/2328 Value Added Tax (Reverse Charge) Order 1993 The whole Order. S.I.1993/2498 Value Added Tax (Beverages) Order 1993 The whole Order. S.I.1993/2498 Value Added Tax (Beverages) Order 1983 The whole Order. S.I.1993/2952 Value Added Tax (Increase of Consideration for Fuel) (No.2) Order 1993 The whole Order. S.I.1993/2953 Value Added Tax (Increase of Registration Limits) (No.2) Order 1993 The whole Order. S.I.1994/686 Value Added Tax (Tax Free Shops) Order 1994 The whole Order. S.I.1994/687 Value Added Tax (Sport, Physical Education and Fund-Raising Events) 1994 The whole Order. S.I.1994/1188 Value Added Tax (Education) Order 1994 The whole Order.
CEMA = Customs and Excise Management Act 1979 c. 2 1984 = Finance Act 1984 c. 43 PACE = Police and Criminal Evidence Act 1984 c. 60 1985 = Finance Act 1985 c. 54 1986 = Finance Act 1986 c. 41 1987 = Finance Act 1987 c. 16 1988 = Finance Act 1988 c. 39 1989 = Finance Act 1989 c. 26 1990 = Finance Act 1990 c. 29 CLSA = Courts and Legal Services Act 1990 c. 41 DLA = Disability Living Allowance and Disability Working Allowance Act 1991 c. 21 1991 = Finance Act 1991 c. 31 1992 = Finance Act 1992 c. 20 1992(2) = Finance (No.2) Act 1992 c. 48 JPRA = Judicial Pensions and Retirement Act 1993 c. 8 1993 = Finance Act 1993 c. 34 1994 = Finance Act 1994 c. 9
S.I.1983/1717 = The Value Added Tax (Charities Etc.) Order 1983 S.I.1984/489 = The Value Added Tax (Handicapped Persons) Order 1984 S.I.1984/631 = The Value Added Tax (Lifeboats) Order 1984 S.I.1984/766 = The Value Added Tax (Charities Etc.) Order 1984 S.I.1984/767 = The Value Added Tax (Marine etc. Insurance) Order 1984 S.I.1984/959 = The Value Added Tax (Handicapped Persons) (No.2) Order 1984 S.I.1985/18 = The Value Added Tax (Protected Buildings) Order 1985 S.I.1985/431 = The Value Added Tax (Charities Etc.) Order 1985 S.I.1985/432 = The Value Added Tax (Finance) Order 1985 S.I.1985/799 = The Value Added Tax (Hiring of Goods) Order 1985 S.I. 1985/919 = The Value Added Tax (Handicapped Persons) Order 1985 S.I.1985/1900 = The Value Added Tax (Welfare) Order 1985 S.I.1986/530 = The Value Added Tax (Handicapped Persons and Charities) Order 1986 S.I.1987/437 = The Value Added Tax (Charities) Order 1987 S.I.1987/517 = The Value Added Tax (Betting, Gaming and Lotteries) Order 1987 S.I. 1987/860 = The Value Added Tax (Finance) Order 1987 S.I.1987/1806 = The Value Added Tax (Tour Operators) Order 1987 S.I.1987/1427 = Value Added Tax (Cash Accounting) Regulations 1987 S.I.1988/507 = The Value Added Tax (Confectionary) Regulations 1988 S.I.1989/470 = The Value Added Tax (Fund-Raising Events and Charities) Order 1989 S.I.1989/2272 = The Value Added Tax (Finance, Health and Welfare) Order 1989 S.I.1990/750 = The Value Added Tax (Charities) Order 1990 S.I.1990/752 = The Value Added Tax (Transport) Order 1990 S.I.1990/2037 = The Value Added Tax (Insurance) Order 1990 S.I.1990/2129 = The Value Added Tax (Charities) (No.2) Order 1990 S.I.1990/2553 = The Value Added Tax (Construction of Dwellings and Land) Order 1990 S.I.1991/737 = The Value Added Tax (Charities) Order 1991 S.I.1991/2534 = The Value Added Tax (Piped Gas) (Metrication) Order 1991 S.I.1991/2569 = The Value Added Tax (Buildings and Land) Order 1991 S.I.1991/2727 = Free Zone Regulations 1991 S.I.1992/628 = The Value Added Tax (Charities and Aids for Handicapped Persons) Order 1992 S.I.1992/3065 = The Value Added Tax (Motor Vehicles for the Handicapped) Order 1992 S.I.1992/3095 = Customs and Excise (Single Market etc.) Regulations 1992 S.I.1992/3126 = The Value Added Tax (Transport) Order 1992 S.I.1992/3127 = The Value Added Tax (Means of Transport) Order 1992 S.I.1992/3128 = The Value Added Tax (Reverse Charge) Order 1992 S.I.1992/3131 = The Value Added Tax (Tax Free Shops) Order 1992 S.I.1992/3223 = The Value Added Tax (International Services and Transport) Order 1992 S.I.1993/765 = The Value Added Tax (Increase for Consideration for Fuel) Order 1993 S.I.1993/766 = The Value Added Tax (Increase of Registration Limits) Order 1993 S.I.1993/767 = The Value Added Tax (Protective Boots and Helmets) Order 1993 S.I.1993/2328 = The Value Added Tax (Reverse Charge) Order 1993 S.I.1993/2498 = The Value Added Tax (Beverages) Order 1993 S.I.1993/2952 = Value Added Tax (Increase of Consideration for Fuel) (No.2) Order 1993 S.I.1993/2953 = Value Added Tax (Increase of Registration Limits) (No.2) Order 1993 S.I.1994/686 = Value Added Tax (Tax Free Shops) Order 1994 S.I.1994/687 = Value Added Tax (Sport, Physical Education and Fund-raising Events) Order 1994 S.I.1994/1188 = Value Added Tax (Education) Order 1994 Provision Derivation 1(1) 1983 s.1; amended 1992(2) Sch.3 para.2. (2) 1983 s.2(3). (3) 1983 s.2A(4); added 1992(2) Sch.3 para.3. (4) 1983 s.2B(1); added 1992(2) Sch.3 para.3. 2 1983 s.9; amended 1991 s.13; 1992(2) Sch.3 para.11; 1993 s.42(2). 3 1983 s.2C; added 1992(2) Sch.3 para.3. 4 1983 s.2(1), (2). 5 1983 s.3; amended 1992(2) Sch.3 para.4. 6(1) to (3) 1983 s.4 (4) to (6) 1983 s.5(1) to (3) (7), (8) 1983 s.5(3A), (3B); added 1992(2) Sch.3 para.6(1). (9) to (13) 1983 s.5(4) to (8). (14) 1983 s.5(9); amended 1993 s.45(2). (15) 1983 s.5(10); amended 1992(2) Sch.3 para.6(3). 7(1), (2) 1983 s.6(1), (2); 1987 s.12(2); 1992(2) Sch.3 para.7(1), (2); 1993 s.44(3). (3) to (7) 1983 s.6(2A), (2B), (2C), (2D), (3); 1992(2) Sch.3 para.7(3). (8) 1983 s.6(4); 1992(2) Sch.3 para.7(4). (9) 1983 s.6(4A); 1992(2) Sch.3 para.7(5). (10) 1983 s.6(5). (11) 1983 s.6(6); 1992(2) Sch.3 para.7(6). 8(1) to (5) 1983 s.7(1) to (5); 1987 Sch.2 para.1. (6) 1983 s.7(6); 1992(2) Sch.3 para.8. 9 1983 s.8. 10 1983 s.2A(1) to (3); added 1992(2) Sch.3 para.3. 11 1983 s.8A; added 1992(2) Sch.3 para.10. 12 1983 s.8B; added 1992(2) Sch.3 para.10. 13 1983 s.8C; added 1992(2) Sch.3 para.10; amended 1993 s.44(3)(b). 14 1983 s.8D; added 1993 s.44. 15 1983 s.2B(2) to (4); added 1992(2) Sch.3 para.3. 16(1) 1983 s.24(1); substituted 1992(2) Sch.3 para.25. (2) 1983 s.24(2). 17(1) 1983 s.24(1); substituted 1992(2) Sch.3 para.25. (2) CEMA s.100C(1); 1984 Sch.4 Pt.I; S.I.1991/2727. (3) CEMA s.100B; 1984 Sch.4 Pt.I; S.I.1991/2727. (4) CEMA s.100C(3), (4); 1984 Sch.4 Pt.I; S.I.1991/2727. 18 1983 s.35; substituted 1992(2) Sch.3 para.35. 19 1983 s.10; amended 1992(2) Sch.3 para.12. 20 1983 s.10A; added 1992(2) Sch.3 para.13. 21(1), (2) 1983 s.11(1), (2); amended 1992(2) Sch.3 para.14. (3) 1983 s.11(2A); added 1992(2) Sch.3 para.14. 22 1983 s.12. 23 1983 s.13. 24(1), (2) 1983 s.14(3); amended and para.(aa) added 1992(2) Sch.3 para.15(2). (3) 1983 s.14(3A); added 1990 s.12(2); amended 1992(2) Sch.3 para.15(3). (4) 1983 s.14(3B); added 1991 s.14. (5) 1983 s.14(4); amended 1992(2) Sch.3 para.15(4). (6) 1983 s.14(9); amended 1992(2) Sch.3 para.15(5), (6). (7) 1983 s.14(11); added 1990 s.12(3). 25(1), (2) 1983 s.14(1), (2); amended 1992(2) Sch.3 para.15(1). (3) to (6) 1983 s.14(5) to (8). (7) 1983 s.14(10); amended 1992(2) Sch.3 para.15(5), (6). 26(1) to (3) 1983 s.15(1) to (3); substituted 1987 s.12(1); subs.(3)(d) added 1989 s.26; amended and subs.(2)(ba) added 1992(2) Sch.3 para.16. (4) 1983 s.15(4) 27 1983 s.26; amended 1992(2) Sch.3 para.27. 28 1983 s.38C; added 1992 s.6. 29 1988 s.22. 30(1), (2) 1983 s.16(1), (2). (3) 1983 s.16(3); amended 1992(2) Sch.3 para.17(1). (4) 1983 s.16(4). (5) 1983 s.16(5). (6) 1983 s.16(6); amended 1986 s.12(1); 1992(2) Sch.3 para.17(2). (7) 1983 s.16(6A); added 1990 s.13. (8), (9) 1983 s.16(7), (8); amended 1992(2) Sch.3 para.17(3). (10) 1983 s.16(9); amended 1986 s.12(2). 31 1983 s.17; amended 1992(2) Sch.3 para.18. 32 1983 s.18; amended 1992(2) Sch.3 para.19. 33(1), (2) 1983 s.20(1), (2); amended 1992(2) Sch.3 para.21. (3) 1983 s.20(3); para.(j) substituted Broadcasting Act 1990 c. 42 Sch.20 para.37. (4) 1983 s.20(4). (5) 1983 s.20(4A); added Broadcasting Act 1990 c. 42 Sch.20 para.37. (6) 1983 s.20(5). 34 1983 s.36; amended 1992(2) Sch.3 para.36. 35(1), (2) 1983 s.21(1), (2); substituted 1989 Sch.3 para.5; amended 1992(2) Sch.3 para.23(1). (3) 1983 s.21(2A); added 1992(2) Sch.3 para.23(2). 36 1990 s.11; amended 1991 s.15; 1993 s.48. 37(1) 1983 s.19(1); amended 1992(2) Sch.3 para.20(1). (2) 1983 s.19(1A); added 1986 s.13; amended 1992(2) Sch.3 para.20(2). (3), (4) 1983 s.19(2); amended 1992(2) Sch.3 para.20(3), (4). 38 1983 s.25; amended 1992(2) Sch.3 para.26. 39 1983 s.23; amended 1987 Sch.2 para.2; 1992(2) Sch.3 para.24. 40 1983 s.20A; added 1992(2) Sch.3 para.22. 41(1), (2) 1983 s.27(1), (2). (3), (4) 1983 s.27(2A), (2B); added 1984 s.11; amended 1992(2) Sch.3 para.28. (5) 1983 s.27(3). (6) 1983 s.27(4); amended National Health Service and Community Care Act 1990 (c. 19) Sch.8 para.9; Health and Personal Social Services (Northern Ireland Consequential Amendments) Order 1991 S.I.195 Art.5. (7) 1983 s.27(5); added National Health Service and Community Care Act 1990 (c. 19) s.61(4). (8) 1983 s.27(6); added Health and Personal Social Services (Northern Ireland Consequential Amendments) Order 1991 S.I.195 Art.5. 42 1983 s.28; amended 1990 s.10(8). 43(1) 1983 s.29(1); amended 1992(2) Sch.3 para.29. (2) 1983 s.29(2) (3) 1983 s.29(3), (3A); added 1991 s.16. (4) to (8) 1983 s.29(4) to (8); amended Companies Consolidation (Consequential Provisions) Act 1985 (c. 9) Sch.2; Companies Act 1989 (c. 40) Sch.18 para.27. 44(1), (2), (3) Section 29A added 1987 s.15; s.29A(1), (2) amended 1990 s.14(2); 1992(2) Sch.3 para.30(1), (2). (4) 1983 s.29A(3A); added 1990 s.14(3). (5) to (10) 1983 s.29A(4) to (9); amended 1992(2) Sch.3 para.30(3). 45 1983 s.30; amended 1992(2) Sch.3 para.31. 46(1) to (4) 1983 s.31(1) to (4); amended 1992(2) Sch.3 para.32(1). (5) 1983 s.31(5); added 1985 s.31. (6) 1983 s.31(6); added 1992(2) Sch.3 para.32(2). 47(1) 1983 s.32(2); substituted 1992(2) Sch.3 para.33. (2), (3) 1983 s.32(3), (4). 48 1983 s.32A; added 1992(2) Sch.3 para.34. 49 1983 s.33. 50 1983 s.34. 51 1983 s.35A; added 1989 Sch.3 para.6. 52 1983 s.37; substituted 1992(2) Sch.3 para.37. 53 1983 s.37A; added 1987 s.16. 54 1983 s.37B; added 1992(2) s.16. 55 1983 s.37C; added 1993 s.45. 56(1), (2) 1986 s.9(1), (2). (3)(a) 1986 s.9(3)(a). (b) 1986 s.9(3)(aa); added 1992(2) Sch.3 para.94. (c) to (e) 1986 s.9(3)(b) to (d). (4) 1986 s.9(4). (5) 1986 s.9(5); amended 1992(2) Sch.3 para.94. (6) to (10) 1986 s.9(6) to (10); amended Road Traffic (Consequential Provisions) Act 1988 (c. 54) Sch.3 para.32. 57(1) 1986 Sch.6 para.1. (2), (3) 1986 Sch.6 para.2; Table A substituted S.I.1993/765; amended S.I.1993/2952. (4) 1986 Sch.6 para.4; amended 1993 s.43(3). (5) 1986 Sch.6 para.5(1); amended 1993 s.43(2)(a), (b). (6) 1986 Sch.6 para.5(2). (7) 1986 Sch.6 para.6(1); amended 1993 s.43(2)(c). (8) 1986 Sch.6 para.6(2); amended 1993 s.43(2)(d). 58 1983 s.38; amended 1992(2) Sch.3 para.38. 59(1) 1985 s.19(1). (2) 1985 s.19(2)(a), (c); amended 1993 Sch.2 para.5(1). (3) 1985 s.19(3); amended 1993 Sch.2 para.5(2). (4) 1985 s.19(4); substituted 1993 Sch.2 para.6(1). (5) 1985 s.19(5); amended 1993 Sch.2 para.6(2),7. (6) 1985 s.19(5A); added 1993 Sch.2 para.6(3). (7) to (10) 1985 s.19(6) to (9). (11) 1993 Sch.2 para.5(3),7(2), (4). 60(1) 1985 s.13(1); amended 1993 Sch.2 para.3(2)(a). (2)(a) 1985 s.13(2)(ba); added 1992(2) Sch.3 para.77(1)(b). (b) 1985 s.13(2)(a). (c) 1985 s.13(2)(b); amended 1992(2) Sch.3 para.77(1)(a). (d) 1985 s.13(2)(d); added 1990 s.11(12). (e) 1985 s.13(2)(c). (3) 1985 s.13(3). (4) to (6) 1985 s.13(5) to (7). (7) 1985 s.27(1). 61(1) to (5) 1986 s.14(1) to (5). (6) 1986 s.14(8). 62 1985 s.13A; added 1989 s.23. 63(1) 1985 s.14(1); amended 1992 s.7(1). (2) 1985 s.14(2); substituted 1988 s.16(2); amended 1993 Sch.2 para.1. (3) 1985 s.14(4); amended 1988 s.16(3); 1994 s.45. (4) to (6) 1985 s.14(4A), (4B), (4C); added 1993 Sch.2 para.1(2). (7) 1985 s.14(5); amended 1988 s.16(4). (8), (9) 1985 s.14(5A), (5B); added 1988 s.16(5); amended 1992(2) Sch.3 para.78; 1993 Sch.2 para.1(3); 1994 s.45. (10), (11) 1985 s.14(6), (7). 64 1985 s.14A; added 1988 s.17. (1) 1985 s.14A(1); amended 1993 Sch.2 para.2(1). (2), (3) 1985 s.14A(2), (3); substituted 1993 Sch.2 para.2(2). (4) 1985 s.14A(4); amended 1993 Sch.2 para.2(3). (5) 1985 s.14A(5). (6) 1985 s.14A(6); amended 1993 Sch.2 para.2(4). (7) 1985 s.14A(7). 65 1985 s.14B; added 1992(2) Sch.3 para.79. 66 1985 s.17A(1) to (8), (10); added 1992(2) Sch.3 para.82. 67(1) 1985 s.15(1)(a), (aa), (b); amended 1988 s.18(1); 1992(2) Sch.3 para.80(1). (2) 1985 s.15(2). (3) 1985 s.15(3); amended 1988 s.18(2); 1992(2) Sch.3 para.80(2). (4) 1985 s.15(3A); added 1988 s.18(3); amended 1992(2) Sch.3 para.80(3). (5), (6) 1985 s.15(3B), (3C); added 1992(2) Sch.3 para.80(4). (7) 1985 s.15(3D); added 1992(2) s.16(5). (8) to (11) 1985 s.15(4) to (7). 68 1985 s.16. 69(1) 1985 s.17(1); amended 1988 s.19(1)(b). (a) 1985 s.17(1)(a); amended 1988 s.19(1)(a); 1992(2) Sch.3 para.81(a). (b) 1985 s.17(1)(aa); added 1992(2) Sch.3 para.81(b). (c), (d), 1985 s.17(1)(b), (c). (e), (f) 1985 s.17(1)(d), (e); added 1986 s.15(1). (2) 1985 s.17(2). (3) 1985 s.17(3); amended 1988 s.19(2). (4) 1985 s.17(4)(a), (c) to (e). (5) to (9) 1985 s.17(5) to (7), (9), (10). (10) — 70 1985 s.15A; added 1993 Sch.2 para.3(1). 71 1985 s.33(2), (3). 72(1) 1983 s.39(1); amended 1985 s.12(2). (2) 1983 s.39(1A); added 1985 s.12(3); para.(ba) added 1992(2) Sch.3 para.39(1)(b); amended 1990 s.11(11)(a); 1992(2) Sch.3 para.39(1)(a). (3) 1983 s.39(2); amended 1985 s.12(2), (4). (4) to (7) 1983 s.39(2A), (2B), (2C), (2D); added 1985 s.12(5); amended 1992(2) Sch.3 para.39(2). (8) 1983 s.39(3); amended 1985 s.12(2). (9) 1983 s.39(3A); added 1985 s.12(6). (10) 1983 s.39(4); amended 1992(2) Sch.3 para.39(3). (11) 1983 s.39(5). (12) 1983 s.39(9); 1985 s.33(5)(a). (13) 1985 s.33(5)(a); amended 1992(2) Sch.3 para.86. 73(1) 1983 Sch.7 para.4(1). (2), (3) 1983 Sch.7 para.4(2), (2A); substituted 1988 s.15(2); amended 1990 s.15(1); 1992(2) Sch.3 para.66(1). (4), (5) 1983 Sch.7 para.4(3), (4); Bankruptcy (Scotland) Act 1985 (c. 66) s.75(11). (6) 1983 Sch.7 para.4(5); amended 1988 s.15(3); 1992(2) Sch.3 para.66(2). (7) 1983 Sch.7 para.4(6); amended 1985 Sch.7 para.1(2); 1992(2) Sch.3 para.66(3). (8) 1983 Sch.7 para.4(6A); added 1985 Sch.7 para.1(3). (9), (10) 1983 Sch.7 para.4(9), (10); amended 1988 s.15(4); Bankruptcy (Scotland) Act 1985 (c. 66) s.75(11). 74(1) 1985 s.18(1); amended 1988 s.14(8)(b); 1990 s.16(2); 1992(2) Sch.3 para.83; 1993 Sch.2 para.4(1). (2) 1985 s.18(3); amended 1990 s.16(3); 1993 Sch.2 para.4(1). (3) 1985 s.18(3A); added 1993 Sch.2 para.4(2), (3). (4) to (7) 1985 s.18(6), (7), (8)(a), (b), (9); amended 1990 s.16(5). (8) 1993 Sch.2 para.4(3). 75 1983 Sch.7 para.4A; added 1992(2) Sch.3 para.67; amended Bankruptcy (Scotland) Act 1985 (c. 66) s.75(11). 76(1) 1985 s.21(1); amended 1988 s.19(3); 1992(2) Sch.3 para.84(1). (2) 1985 s.21(1A); added 1988 s.19(3);. (3) to (5) 1985 s.21(2) to (4). (6) 1985 s.21(4A); added 1992(2) Sch.3 para.84(2). (7) to (10) 1985 s.21(5) to (8); amended 1992(2) Sch.3 para.84(3), (4); Bankruptcy (Scotland) Act 1985 (c. 66) s.75(11). 77 1985 s.22(1) to (5), (6); amended 1992(2) Sch.3 para.85. 78 1983 s.38A; added 1991 s.17 (1) to (8) 1983 s.38A(1) to (8). (9) 1983 s.38A(8A); added 1992(2) s.15(2). (10) to (12) 1983 s.38A(9) to (11). (13) 1983 s.38A(12); 1992(2) s.15(4). 79(1) to (3) 1985 s.20(1) to (3); substituted 1988 s.20; 1994 s.46. (4) 1985 s.20(3A); added 1992(2) s.15(1). (5) to (7) 1985 s.20(4), (5), (7); substituted 1988 s.20. 80 1989 s.24; S.I.1989/2271. 81(1), (2) 1983 s.38B; added 1991 s.17. (3) to (5) 1988 s.21; amended 1994 s.45. 82(1) 1983 s.40(1), Sch.8 para.1; 1985 s.30(1). (2) 1983 s.40; 1994 s.7(1) (3), (4) 1985 Sch.8 para.6. 83(a) 1983 s.40(1)(a). (b) 1983 s.40(1)(b); amended 1992(2) Sch.3 para.40(a). (c) 1983 s.40(1)(c). (d) 1983 s.40(1)(fa); added 1992(2) Sch.3 para.40(c). (e) 1983 s.40(1)(d); substituted 1987 Sch.2 para.4. (f) 1983 s.40(1)(g). (g) 1983 s.40(1)(e). (h) 1983 s.40(1)(f); amended 1990 s.11(11)(b). (j) 1983 s.40(1)(da); added 1992(2) Sch.3 para.40(b). (k) 1983 s.40(1)(h). (l) 1983 s.40(1)(n); amended 1992(2) Sch.3 para.40(f). (m) 1983 s.40(1)(hza); added 1992(2) s.16(2). (n) 1983 s.40(1)(o); added 1985 s.24(1); amended 1992(2) Sch.3 para.40(g). (o) 1986 s.14(6). (p) 1983 s.40(1)(m); amended 1992(2) Sch.3 para.40(e). (q), (r) 1983 s.40(1)(p), (q); added 1985 s.24(1). (s) 1983 s.40(1)(ha); added 1991 s.17(1). (t) 1983 s.40(1)(s); added 1989 s.24(9). (u) 1983 s.40(1)(hh); added 1986 s.10(2). (v) 1983 s.40(1)(j). (w) 1983 s.40(1)(ja); added 1992(2) Sch.3 para.40(d). (x) 1983 s.40(1)(k). (y) 1983 s.40(1)(r); added S.I.1987/1427 reg.11. (z) 1983 s.40(1)(l). 84(1) — (2) 1983 s.40(2); amended 1985 s.24(3). (3) 1983 s.40(3); amended 1985 s.24(4). (4) 1983 s.40(3ZA); added 1993 s.46(1). (5) 1983 s.40(3B); added (as (3A)) 1985 s.24(5); amended 1986 s.10(3). (6) 1983 s.40(1A); added 1985 s.24(2) and amended 1993 Sch.2 para.3(2)(b); 1986 s.14(6). (7) 1983 s.40(3A); added 1986 s.10(3). (8) to (10) 1983 s.40(4) to (6); amended 1994 s.18(3). (11) 1993 s.46(2). 85 1985 s.25. 86 1985 s.26(1), (2)(a), (3); amended Tribunals and Inquiries Act 1992 (c. 53) Sch.3 para.17. 87 1985 s.29. 88(1) 1983 s.41(1); amended 1992(2) Sch.3 para.41(1). (2), (3) 1983 s.41(2), (3). (4) 1983 s.41(3A); added 1992(2) Sch.3 para.41(2). (5), (6) 1983 s.41(4), (5). (7) 1983 s.41(6); added 1992(2) Sch.3 para.41(3). 89(1) 1983 s.42(1). (2) 1983 s.42(1A); added 1989 Sch.3 para.7(1). (3) 1983 s.42(2); amended 1989 Sch.3 para.7(2). 90 1983 s.43; amended 1992(2) Sch.3 para.42. 91 1983 s.44; amended Transfer of Functions (Economic Statistics) Order 1989 S.I.1989/992. 92 1983 s.46A; amended 1992(2) Sch.3 para.44. 93 1983 s.46B; amended 1992(2) Sch.3 para.44. 94 1983 s.47. 95(1) 1983 s.47A(1); added 1992(2) Sch.3 para.45. (2) 1983 s.47A(1A); added S.I. 1992/3127. (3) to (5) 1983 s.47A(2) to (4); added 1992(2) Sch.3 para.45. 96(1) 1983 s.48(1); amended 1987 s.13; 1989 Sch.3 para.9; 1992(2) Sch.3 para.46(1). (2) 1983 s.48(9); added 1992(2) Sch.3 para.46(4). (3) 1983 s.48(1A); added 1992(2) Sch.3 para.46(2). (4) 1983 s.20(6). (5) 1983 s.48(1B); added 1992(2) Sch.3 para.46(2). (6), (7) 1983 s.48(4) (8) to (11) 1983 s.48(5) to (8); amended 1992(2) Sch.3 para.46. 97(1) 1983 s.45(1). (2) 1985 s.26(2)(b), 27(3)(c). (3), (4) 1983 s.45(3), (4); amended 1987 s.16(2); 1992 s.6(2); para.(d) added 1989 Sch.3 para.8; para.(e) added 1992(2) s.16(3). (5) 1983 s.45(2); 1985 s.15(8), 17(8), 17A(9), 18(8). 98 1983 s.46; amended 1992(2) Sch.3 para.43. 99 1983 s.49; amended 1992(2) Sch.3 para.47. 100 — 101 — 102 — Schedule 1 para.1(1) to (4) 1983 Sch.1 para.1(1) to (4); substituted 1987 s.14(2); 1990 s.10(2), (3); amended 1992(2) Sch.3 para.48; S.I.1993/766; S.I.1993/2953. (5), (6) 1983 Sch.1 para.1(4A), (4B); added 1992(2) Sch.3 para.48. (7) 1983 Sch.1 para.1(5); substituted 1987 s.14(2); amended 1988 s.14(2); 1990 s.10(4); 1992(2) Sch.3 para.48. (8) 1983 Sch.1 para.1(6); added 1989 Sch.3 para.10(a); amended 1990 s.10(5). para.2(1) to (6) 1983 Sch.1 para.1A(1) to (6); added 1986 s.10(1); amended 1992(2) Sch.3 para.49(1). (7)(a), (b) 1983 Sch.1 para.1A(7)(a), (b); added 1986 s.10(1). (c) 1983 Sch.1 para.1A(7)(ba); added 1992(2) Sch.3 para.49(2). (d) to (f) 1983 Sch.1 para.1A(7)(c) to (e); added 1986 s.10(1). (8) 1983 Sch.1 para.1A(8); added 1986 s.10(1). para.3 1983 Sch.1 para.1B; added 1992(2) Sch.3 para.50. para.4 1983 Sch.1 para.2; substituted 1987 s.14(3); amended 1988 s.14(2); 1989 Sch.3 para.10(b); 1992(2) Sch.3 para.51; S.I.1993/766; S.I.1993/2953. para.5 to 8 1983 Sch.1 para.3, 4, 4A, 4B; substituted 1990 s.10(6); amended 1992(2) Sch.3 para.52. para.9, 10 1983 Sch.1 para.5,5A; substituted 1988 s.14(4); amended 1992(2) Sch.3 para.53; repealed in part 1992(2) Sch.18 Pt.V. para.11, 12 1983 Sch.1 para.7, 7A; substituted 1988 s.14(5); amended 1992(2) Sch.3 para.54, 55. para.13(1) 1983 Sch.1 para.8A(1); substituted 1988 s.14(6); amended 1992(2) Sch.3 para.56. (2) 1983 Sch.1 para.9(1); amended 1992(2) Sch.3 para.57. (3) 1983 Sch.1 para.10; substituted 1988 s.14(6). (4) 1983 Sch.1 para.8A(1A), 9(1A); added 1992(2) Sch.3 para.56, 57. (5) 1983 Sch.1 para.8A(1B), 9(1B); added 1992(2) Sch.3 para.56, 57. (6) 1983 Sch.1 para.8A(2); substituted 1988 s.14(6); amended 1992(2) Sch.3 para.56. para.14, 15 1983 Sch.1 para.11, 12; substituted 1988 s.14(7); amended 1992(2) Sch.3 para.58. para.16 1983 Sch.1 para.13; substituted 1987 s.14(10). para.17 1983 Sch.1 para.14. para.18 1983 Sch.1 para.9(2); substituted 1988 s.14(6); amended 1992(2) Sch.3 para.57. para.19 1983 Sch.1 para.15. Schedule 2 1983 Sch.1A; added 1992(2) Sch.3 para.59. Schedule 3 1983 Sch.1B; added 1992(2) Sch.3 para.59; amended S.I.1993/766; S.I.1993/2953. Schedule 4 para.1 to 4 1983 Sch.2 para.1 to 4; amended 1989 Sch.3 para.11. para.5(1), (2) 1983 Sch.2 para.5(1), (2); amended 1989 Sch.3 para.11; 1993 s.47(2). (3) 1983 Sch.2 para.5(2A); added 1993 s.47(3). (4) 1983 Sch.2 para.5(3). (5) 1983 Sch.2 para.5(3A); added 1993 s.47(4). (6) 1983 Sch.2 para.5(4). para.6 1983 Sch.2 para.5A; added 1992(2) Sch.3 para.60. para.7 1983 Sch.2 para.6 para.8(1), (2) 1983 Sch.2 para.7(1), (2); amended 1992(2) Sch.3 para.60. (3) 1983 Sch.2 para.7(2A); added 1992(2) s.16(4). (4) 1983 Sch.2 para.7(3) para.9 1983 Sch.2 para.8; added 1989 Sch.3 para.11. Schedule 5 para.1 to 6 1983 Sch.3 para.1 to 6 para.7 1983 Sch.3 para.6A; added S.I.1985/799. para.8 1983 Sch.3 para.7; amended S.I.1985/799. para.9 1983 Sch.3 para.8; added S.I.1992/3128; substituted S.I.1993/2328. para.10 S.I.1993/2328 para.4. Schedule 6 para.1 1983 Sch.4 para.1; amended 1987 s.17(1); Income and Corporation Taxes Act 1988 (c. 1) Sch.29. para.2 1983 Sch.4 para.3. para.3 1983 Sch.4 para.3A; added 1992(2) Sch.3 para.61. para.4 1983 Sch.4 para.4 para.5, 6, 7 1983 Sch.4 para.6, 7 ,8; amended 1992(2) Sch.3 para.61. para.8 1983 Sch.4 para.8A; added 1992(2) Sch.3 para.61. para.9 1983 Sch.4 para.9; amended 1986 s.11; 1989 Sch.3 para.4(2). para.10 1983 Sch.4 para.10. para.11 1983 Sch.4 para.11; substituted 1992(2) Sch.3 para.61. para.12, 13 1983 Sch.4 para.12, 13. Schedule 7 1983 Schedule 4A; added 1992(2) Sch.3 para.62. Schedule 8 1983 Schedule 5 Group 1 to 4 Group 1 to 4; amended 1984 Sch.6 para.1; S.I.1988/507; 1989 s.19; S.I.1986/530; S.I.1992/628. Group 5 Group 8; substituted 1989 Sch.3 para.1; amended S.I.1990/2553. Group 6 Group 8A; added 1984 Sch.6 para.8. Item 1, 2 Group 8A Item 1, 2; amended 1989 Sch.3 para.2. Notes (1) to (8) Group 8A Notes (1), (1A), (2), (3), (4), (6), (6A), (7); amended S.I.1985/18; 1989 Sch.3 para.2; Planning (Consequential Provisions) Act 1990 c. 11 Sch.2 para.61; Planning (Northern Ireland) Order 1991 S.I.1220 (N.I. 11). Group 7 Group 9; substituted S.I.1992/3223. Group 8 Item 1 to 13 Group 10 Item 1 to 10, 12 to 14; amended S.I.1984/631; S.I.1987/1806; S.I.1990/752; S.I.1992/628; S.I.1992/3126; S.I.1992/3223. Notes (1) to (9) Group 10 Notes (1), (2), (2A), (3) to (8); amended S.I.1987/1806; S.I.1990/752; S.I.1992/3126. Group 9 Group 11; amended 1989 Sch.3 para.3. Group 10 Group 12. Group 11 Group 13. Group 12 Item 1 to 20 Group 14 Item 1 to 10, 10A, 10B, 11, 12, 12A, 13 to 17; amended DLA Sch.2 para.13; S.I.1984/489; S.I.1984/959; S.I.1986/530; S.I.1987/437; S.I.1992/628; S.I.1992/3065. Notes (1) to (9) Group 14 Notes (1) to (9); amended DLA Sch.2 para.13; 1S.I.984/959; S.I.1985/919; S.I.1986/530. Group 13 Group 15 Item 1, 3, 4, Notes (2) to (6); amended 1992(2) Sch.3 para.63; S.I.1992/3095 Sch.1 para.8. Group 14 Group 15A; added S.I.1992/3131; S.I.1994/686. Group 15 Item 1 to 10 Group 16 Item 1 to 10; amended S.I.1986/530; S.I.1987/437; S.I.1990/750; S.I.1991/737. Notes (1) to (12) Group 16 Notes (1), (3) to (13); amended S.I.1983/1717; S.I.1984/766; S.I.1985/431; S.I.1986/530; S.I.1987/437; S.I.1989/470; S.I.1990/750; S.I.1990/2129; S.I.1991/737. Group 16 Group 17; amended 1989 s.22; S.I.1993/767. Schedule 9 Schedule 6 Group 1 Item 1(a) to (n) Group 1 Item 1(a), (aa), (b) to (l); substituted 1989 Sch.3 para.4; amended S.I.1990/2553; S.I.1991/2569. Notes (1) to (16) Group 1 Notes (1) to (6), (6A), (7) to (10), (10A), (10B), (11) to (13); amended S.I.1990/2553; S.I.1991/2569. Group 2 Group 2; amended S.I.1990/2037. Group 3 Group 3. Group 4 Group 4 Item 1, 2, Notes (1), (2), (4); amended S.I.1987/517. Group 5 Item 1 to 9 Group 5 Item 1 to 6, 6A, 7, 8; 1987 s.18(1); S.I.1987/860; S.I.1989/2272. Notes (1) to (6) Group 5 Notes (1) to (6); amended S.I.1985/432; S.I.1989/2272. Group 6 Substituted S.I.1994/1188. Group 7 Item 1 to 11 Group 7 Item (1) to (11); amended Opticians Act 1989 (c. 44) s.37(3); S.I.1985/1900; 1988 s.13; S.I.1989/2272. Notes (1) to (7) Group 7 Notes (1) to (7); amended S.I.1985/1900; 1988 s.13. Group 8 Group 8. Group 9 Group 9. Group 10 Group 10; amended S.I.1994/687. Group 11 Group 11; amended Inheritance Tax 1984 (c. 51) Sch.8 para.24; 1985 Sch.26 para.26; 1986 s.100. Group 12 Group 12 Item 1, 2, Notes (1), (1A), (2); added S.I.1989/470; amended S.I.1991/737; S.I.1994/687. Schedule 10 1983 Schedule 6A; added 1989 Sch.3 para.6. para.1, 2 1983 Sch.6A para.1,2; amended S.I.1991/2569. para.3(1) to (6) 1983 Sch.6A para.3(1) to (6); amended S.I.1991/2569. (7), (8) 1983 Sch.6A para.3(8), (9). (9) 1983 Sch.6A para.3(10); added S.I.1991/2569. para.4, 5 1983 Sch.6A para.4, 5; amended S.I.1991/2569. para.6(1), (2) 1983 Sch.6A para.6(1),(2); amended S.I.1991/2569. (3), (4) 1983 Sch.6A para.6(2A), (2B); added S.I.1991/2569. (5) 1983 Sch.6A para.6(3). (6) to (8) 1983 Sch.6A para.6(4) to (6); added S.I.1991/2569. para.7 1983 Sch.6A para.6A; added S.I.1991/2569. para.8, 9 1983 Sch.6A para.7, 8; amended S.I.1991/2569. Schedule 11 para.1 1983 Sch.7 para.1. para.2(1), (2) 1983 Sch.7 para.2(1), (2); amended 1992(2) Sch.3 para.64. (3) to (5) 1983 Sch.7 para.2(2A), (2B), (2C); added 1992(2) Sch.3 para.64. (6) 1983 Sch.7 para.2(3). (7) 1983 Sch.7 para.2(3A); added 1987 s.11(2). (8), (9) 1983 Sch.7 para.2(3B), (3C); added 1992(2) Sch.3 para.64; amended 1993 s.50(4) (10) to (13) 1983 Sch.7 para.2(4) to (7); amended 1989 s.25(2). para.3(1), (2) 1983 Sch.7 para.3(1), (2) (3) 1983 Sch.7 para.3(2A); amended 1992(2) Sch.3 para.65. para.4 1983 Sch.7 para.5; amended 1992(2) Sch.3 para.68. para.5 1983 Sch.7 para.6; amended 1984 s.16; Debtors (Scotland) Act (c.18) Sch.4 para.4; 1992(2) Sch.3 para.69. para.6(1) 1983 Sch.7 para.7(1); amended 1992(2) Sch.3 para.70. (2) 1983 Sch.7 para.7(1A); added 1989 s.25. (3) to (6) 1983 Sch.7 para.7(2) to (5); amended 1985 Sch.7 para.2; PACE Sch.6 para.41. para.7(1) to (4) 1983 Sch.7 para.8(1) to (4); amended 1985 Sch.7 para.3; 1992(2) Sch.3 para.71. (5) to (7) 1983 Sch.7 para.8(4A), (4B), (4C); amended 1985 Sch.7 para.3. (8) 1983 Sch.7 para.8(5). para.8 1983 Sch.7 para.9; amended 1992(2) Sch.3 para.72. para.9 1983 Sch.7 para.9A; added 1985 Sch.7 para.4. para.10 1983 Sch.7 para.10; amended PACE Sch.6 para.41; 1985 Sch.7 para.5; 1992(2) Sch.3 para.73. para.11 to 13 1983 Sch.7 para.10A, 10B, 10C; added 1985 Sch.7 para.6. para.14 1983 Sch.7 para.11; amended 1992(2) Sch.3 para.74. Schedule 12 para.1 1983 Sch.8 para.1; 1994 s.7. para.2 1983 Sch.8 para.2; amended 1985 Sch.8 para.2; CLSA Sch.10 para.52. para.3(1) 1983 Sch.8 para.3(1); substituted JPRA Sch.6 para.35. (2) to (4) 1983 Sch.8 para.3(2) to (4); amended 1985 Sch.8 para.3. (5) 1983 Sch.8 para.3(4A); added JPRA Sch.8 para.16. (6) 1983 Sch.8 para.3(5); amended 1985 Sch.8 para..3. para.4 1983 Sch.8 para.4; amended 1985 Sch.8 para.4. para.5, 6 1983 Sch.8 para.5, 6. para.7(1) to (3) 1983 Sch.8 para.7(1) to (3). (4) to (7) 1983 Sch.8 para.7(3A), (3B), (3C), (3E); added 1985 Sch.8 para.5; amended CLSA Sch.10 para.52; JPRA Sch.6 para.35. (8) 1983 Sch.8 para.7(4); amended 1985 Sch.8 para.5. (9) 1983 Sch.8 para.7(4A); added JPRA 1993 Sch.8 para.16. (10) 1983 Sch.8 para.7(5); amended 1985 Sch.8 para.5. para.8 1983 Sch.8 para.8 para.9 1983 Sch.8 para.9; 1985 s.27(3). (a) to (d) 1983 Sch.8 para.9(a) to (d). (e) 1983 Sch.8 para.9(dd); added 1985 s.27(2). (f) to (h) 1983 Sch.8 para.9(e) to (g); amended 1985 s.27(2). (j) 1986 s.14(7) para.10 1983 Sch.8 para.10; added 1985 s.28.
Subject to the following provisions of this Schedule, the supplies falling within this paragraph are— A supply to which any of paragraphs (b) to (k) of sub-paragraph (1) above applies is a supply falling within this paragraph only to the extent that the consideration for it— Where a grant is made under a relevant scheme in order to fund a supply of a description falling within any of paragraphs (b) to (k) of sub-paragraph (1) above (“the relevant supply”) and also to fund a supply to which none of those paragraphs applies (“the non-relevant supply”) then the proportion of the grant that is to be attributed, for the purposes of sub-paragraph (1A) above, to the relevant supply shall be the same proportion as the consideration reasonably attributable to that supply bears to the consideration for that supply and for the non-relevant supply. In this paragraph “qualifying use” means— Where there is a supply of goods partly for qualifying use and partly not— The supplies falling within this paragraph also include supplies of women’s sanitary protection products. The supplies falling within this paragraph also include supplies of children’s car seats. The supplies falling within this paragraph also include— The supplies falling within this paragraph also include— Sub-paragraph (9) below applies where a supply of services is only in part a supply to which sub-paragraph (6)(a) or (7)(a) above applies. The supply, to the extent that it is one to which paragraph (a) of sub-paragraph (6) or (7) above applies, is to be taken to be a supply to which that paragraph applies; and an apportionment may be made to determine that extent.
For the purposes of this Schedule the following supplies are always for domestic use—
a supply of not more than one tonne of coal or coke held out for sale as domestic fuel;
a supply of wood, peat or charcoal not intended for sale by the recipient;
a supply to a person at any premises of piped gas (that is, gas within paragraph 1(1)(a)(ii) above, or petroleum gas in a gaseous state, provided through pipes) where the gas (together with any other piped gas provided to him at the premises by the same supplier) was not provided at a rate exceeding 150 therms a month or, if the supplier charges for the gas by reference to the number of kilowatt hours supplied, 4397 kilowatt hours a month;
a supply of petroleum gas in a liquid state where the gas is supplied in cylinders the net weight of each of which is less than 50 kilogrammes and either the number of cylinders supplied is 20 or fewer or the gas is not intended for sale by the recipient;
a supply of petroleum gas in a liquid state, otherwise than in cylinders, to a person at any premises at which he is not able to store more than two tonnes of such gas;
a supply of not more than 2,300 litres of fuel oil, gas oil or kerosene;
a supply of electricity to a person at any premises where the electricity (together with any other electricity provided to him at the premises by the same supplier) was not provided at a rate exceeding 1000 kilowatt hours a month.
For the purposes of this Schedule supplies not within paragraph 2 above are for domestic use if and only if the goods supplied are for use in— For the purposes of this Schedule use for a relevant residential purpose means use as— except use as a hospital, a prison or similar institution or an hotel or inn or similar establishment. For the purposes of this Schedule self-catering holiday accommodation includes any accommodation advertised or held out as such. In this Schedule “houseboat” means a boat or other floating decked structure designed or adapted for use solely as a place of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion.
Paragraph 1(1)(a) (i)above shall be deemed to include combustible materials put up for sale for kindling fires but shall not include matches. Paragraph 1(1)(a)(ii) and (iii) above shall not include any road fuel gas (within the meaning of the Hydrocarbon Oil Duties Act 1979) on which a duty of excise has been charged or is chargeable. Paragraph 1(1)(a)(iv) above shall not include hydrocarbon oil on which a duty of excise has been or is to be charged without relief from, or rebate of, such duty by virtue of the provisions of the Hydrocarbon Oil Duties Act 1979. In this Schedule “fuel oil” means heavy oil which contains in solution an amount of asphaltenes of not less than 0.5 per cent. or which contains less than 0.5 per cent. but not less than 0.1 per cent. of asphaltenes and has a closed flash point not exceeding 150°C. In this Schedule “gas oil” means heavy oil of which not more than 50 per cent. by volume distils at a temperature not exceeding 240°C and of which more than 50 per cent. by volume distils at a temperature not exceeding 340°C. In this Schedule “kerosene” means heavy oil of which more than 50 per cent. by volume distils at a temperature not exceeding 240°C. In this Schedule “heavy oil” shall have the same meaning as in the Hydrocarbon Oil Duties Act 1979.
For the purposes of this paragraph— For the purposes of paragraph 1(1) above a person to whom a supply is made is “a qualifying person” if at the time of the supply he— The benefits referred to in sub-paragraph (2) above are as follows— For the purposes of paragraph 1(1)(aa) and (ab) above “ residential accommodation ” means— For the purposes of paragraph 1(1)(aa) and (ab) above “ use for a relevant charitable purpose ” means use by a charity in either or both of the following ways, namely— For the purposes of paragraph 1(1)(aa) and (ab) above “List A energy-saving materials” means any of the following— For the purposes of paragraph 1(1)(b) and (c) above “ List B energy-saving materials ” means any of the following— For the purposes of paragraph 1(1)(j) and (k) above, “ qualifying security goods ” means any of the following— For the purposes of paragraph 1 above a scheme is a “relevant scheme” if it is one which—
In paragraph 1(4) above “women’s sanitary protection products” means women’s sanitary protection products of any of the following descriptions— Sub-paragraph (1)(a) above does not include protective briefs or any other item of clothing.
Paragraph 1(5) above is interpreted in accordance with the provisions of this paragraph. The following are “ children’s car seats ”— In this paragraph “ safety seat ” means a seat— For the purposes of this paragraph, a wheeled framework is “ related ” to a safety seat if the framework and the seat are each designed so that— In this paragraph “ booster seat ” means a seat designed— In this paragraph “ booster cushion ” means a cushion designed— In this paragraph “ child ” means a person aged under 14 years.
Paragraph 1(6) above is interpreted in accordance with paragraphs 9 to 17 and 22 below. In paragraphs 10 to 14 below, “ single household dwelling ” means a dwelling— In paragraphs 10 to 14 below “ multiple occupancy dwelling ” means a dwelling— The conditions are— For the purposes of this paragraph, a dwelling “ is designed ” for occupation of a particular kind if it is so designed—
A “qualifying conversion” means— Sub-paragraph (1) above is subject to paragraphs 14 and 15 below.
A “changed number of dwellings conversion” is— The first condition is that after the conversion the premises being converted contain a number of single household dwellings that is— The second condition is that there is no part of the premises being converted that is a part that after the conversion contains the same number of single household dwellings (whether zero, one or two or more) as before the conversion.
A “house in multiple occupation conversion” is— The condition is that—
A “special residential conversion” is a conversion of premises consisting of— The first condition is that, before the conversion, the premises being converted contain only— In sub-paragraph (2) above “dwelling” means single household dwelling or multiple occupancy dwelling. The second condition is that where before the conversion the premises being converted contain a multiple occupancy dwelling or two or more such dwellings, the use to which that dwelling, or any of those dwellings, was last put before the conversion was not to any extent use for a qualifying residential purpose (see paragraph 17 below). The third condition is that the premises being converted must be intended to be used after the conversion solely for a qualifying residential purpose. The fourth condition is that, where the qualifying residential purpose is an institutional purpose, the premises being converted must be intended to form after the conversion the entirety of an institution used for that purpose. In sub-paragraph (6) above “institutional purpose” means a purpose within paragraph 17(a) to (c), (f) or (g) below.
This paragraph applies where the qualifying conversion concerned is a special residential conversion. Paragraph 1(6)(a) or (b) above does not apply to a supply unless— Those requirements are that the certificate— In sub-paragraph (2)(a) above “the qualifying residential purpose” means the purpose within paragraph 17 below for which the premises being converted are intended to be used after the conversion.
A qualifying conversion includes any garage works related to the— concerned. In this paragraph “garage works” means— For the purposes of sub-paragraph (1) above, garage works are “related” to a conversion if— In sub-paragraph (2) above “non-residential” means neither designed, nor adapted, for use—
A conversion is not a qualifying conversion if any statutory planning consent needed for the conversion has not been granted. A conversion is not a qualifying conversion if any statutory building control approval needed for the conversion has not been granted.
In the case of a conversion of a building, “supply of qualifying services” means a supply of services that consists in— In the case of a conversion of part of a building, “supply of qualifying services” means a supply of services that consists in— In this paragraph—
For the purposes of paragraphs 11 to 14 above, “use for a qualifying residential purpose” means use as— except use as a hospital, prison or similar institution or an hotel, inn or similar establishment.
a home or other institution providing residential accommodation for children,
a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder,
a hospice,
residential accommodation for students or school pupils,
residential accommodation for members of any of the armed forces,
a monastery, nunnery or similar establishment, or
an institution which is the sole or main residence of at least 90 per cent. of its residents,
Paragraph 1(7) above is interpreted in accordance with this paragraph and paragraphs 19 to 22 below. For the purposes of paragraph 1(7) above (and paragraphs 19 to 21 below)—
Paragraph 1(7) above does not apply to a supply unless either of the empty home conditions is satisfied. The first “empty home condition” is that the dwelling concerned has not been lived in during the period of 3 years ending with the commencement of the relevant works. The second “empty home condition” is that— In this paragraph “the relevant works” means— In sub-paragraph (3) above, references to a person acquiring a dwelling are to that person having a major interest in the dwelling granted, or assigned, to him for a consideration.
Paragraph 1(7) above does not apply to a supply unless any statutory planning consent needed for the renovation or alteration has been granted. Paragraph 1(7) above does not apply to a supply unless any statutory building control approval needed for the renovation or alteration has been granted.
“Supply of qualifying services” means a supply of services that consists in— In sub-paragraph (1)(a) above, the reference to the carrying out of works to the fabric of the dwelling does not include the incorporation, or installation as fittings, in the dwelling of any goods that are not building materials (see paragraph 22 below).
“Building materials” has the meaning given by Notes (22) and (23) of Group 5 to Schedule 8 (zero-rating of construction and conversion of buildings).
A person becomes liable to be registered under this Schedule at any time if conditions A to D are met. Condition A is that— Condition B is that those supplies (or any of them) are or will be made in the course or furtherance of a business carried on by the person. Condition C is that the person has no business establishment, or other fixed establishment, in the United Kingdom in relation to any business carried on by the person. Condition D is that the person is not registered under this Act.
A person does not become liable to be registered by virtue of paragraph 1(2)(b) if the reason for believing that taxable supplies will be made in the 30-day period mentioned there is that a business, or part of a business, carried on by a taxable person is to be transferred to the person as a going concern in that period. But if the transfer takes place, the transferee becomes liable to be registered under this Schedule at the time of the transfer if conditions A to D in paragraph 1 are met in relation to the transferee at that time. In determining for the purposes of sub-paragraph (2) whether condition B is met, the reference in paragraph 1(3) to a business is to be read as a reference to the business, or part of the business, that is transferred to the transferee.
A person is treated as having become liable to be registered under this Schedule at any time when the person would have become so liable under paragraph 1 or 2 but for any registration that is subsequently cancelled under—
paragraph 11,
paragraph 13(3) of Schedule 1,
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paragraph 6(2) of Schedule 3A.
A person does not cease to be liable to be registered under this Schedule except in accordance with sub-paragraph (2). A person who has become liable to be registered under this Schedule ceases to be so liable at any time if the Commissioners are satisfied that—
A person who becomes liable to be registered by virtue of paragraph 1(2)(a) or 2(2) must notify the Commissioners of the liability before the end of the period of 30 days beginning with the day on which the liability arises. The Commissioners must register any such person (whether or not the person so notifies them) with effect from the beginning of the day on which the liability arises.
A person who becomes liable to be registered by virtue of paragraph 1(2)(b) must notify the Commissioners of the liability before the end of the period by reference to which the liability arises. The Commissioners must register any such person (whether or not the person so notifies them) with effect from the beginning of the period by reference to which the liability arises.
A person registered under paragraph 5 or 6 who, on any day, ceases to make or have the intention of making taxable supplies in the course or furtherance of a business carried on by that person must notify the Commissioners of that fact within 30 days beginning with that day. But the person need not notify the Commissioners if on that day the person would otherwise be liable or entitled to be registered under this Act (disregarding for this purpose the person's registration under this Schedule and any enactment that prevents a person from being liable to be registered under different provisions at the same time).
The Commissioners must cancel a person's registration under this Schedule if— The cancellation is to be made with effect from— But the Commissioners must not cancel the registration with effect from any time unless they are satisfied that it is not a time when the person would be subject to a requirement to be registered under this Act.
The Commissioners may cancel a person's registration under this Schedule if they are satisfied that the person has ceased to be liable to be registered under this Schedule. The cancellation is to be made with effect from— But the Commissioners must not cancel the registration with effect from any time unless they are satisfied that it is not a time when the person would be subject to a requirement, or entitled, to be registered under this Act.
In determining for the purposes of paragraphs 8 and 9 whether a time is a time when a person would be subject to a requirement, or entitled, to be registered under this Act, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when the person is already registered or when the person is so liable under any other provision must be disregarded.
The Commissioners may cancel a person's registration under this Schedule if they are satisfied that the person was not liable to be registered under this Schedule on the day on which the person was registered. The cancellation is to be made with effect from the day on which the person was registered.
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The Commissioners may exempt a person from registration under this Schedule if the person satisfies them that the taxable supplies that the person makes or intends to make— The power in sub-paragraph (1) is exercisable only if the person so requests and the Commissioners think fit. If there is a material change in the nature of the supplies made by a person exempted under this paragraph, the person must notify the Commissioners of the change— If it appears to the Commissioners that a request under this paragraph should no longer be acted upon on or after any day or has been withdrawn on any day, they must register the person who made the request with effect from that day. A reference in this paragraph to supplies is to supplies made in the course or furtherance of a business carried on by the person.
Any notification required under this Schedule must be made in such form and manner and must contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.
A person who is not registered under this Act, and is not liable to be registered under Schedule 1 or 1A, becomes liable to be registered under this Schedule at any time— A person shall be treated as having become liable to be registered under this Schedule at any time when he would have become so liable under sub-paragraph (1) above but for any registration which is subsequently cancelled under paragraph 6(2) below, paragraph 13(3) of Schedule 1 or paragraph 11 of Schedule 1A. A person shall not cease to be liable to be registered under this Schedule except in accordance with paragraph 2 below.
A person who has become liable to be registered under this Schedule shall cease to be so liable at any time if the Commissioners are satisfied that he has ceased to make relevant supplies.
A person who becomes liable to be registered by virtue of paragraph 1(1)(a) above shall notify the Commissioners of the liability before the end of the period of 30 days beginning with the day on which the liability arises. The Commissioners shall register any such person (whether or not he so notifies them) with effect from the beginning of the day on which the liability arises.
A person who becomes liable to be registered by virtue of paragraph 1(1)(b) above shall notify the Commissioners of the liability before the end of the period by reference to which the liability arises. The Commissioners shall register any such person (whether or not he so notifies them) with effect from the beginning of the period by reference to which the liability arises.
Subject to sub-paragraph (2) below, a person registered under paragraph 3 or 4 above who ceases to make or have the intention of making relevant supplies shall notify the Commissioners of that fact within 30 days of the day on which he does so. Sub-paragraph (1) above does not apply if the person would, when he so ceases, be otherwise liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded.
Subject to sub-paragraph (3) below, where the Commissioners are satisfied that a registered person has ceased to be liable to be registered under this Schedule, they may cancel his registration with effect from the day on which he so ceased or from such later date as may be agreed between them and him. Where the Commissioners are satisfied that on the day on which a registered person was registered he was not registrable, they may cancel his registration with effect from that day. The Commissioners shall not under sub-paragraph (1) above cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement, or entitled, to be registered under this Act. In determining for the purposes of sub-paragraph (3) above whether a person would be subject to a requirement, or entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when he is already registered or when he is so liable under any other provision shall be disregarded.
Notwithstanding the preceding provisions of this Schedule, where a person who makes or intends to make relevant supplies satisfies the Commissioners that any such supply is zero-rated or would be zero-rated if he were a taxable person, they may, if he so requests and they think fit, exempt him from registration under this Schedule. Where there is a material change in the nature of the supplies made by a person exempted under this paragraph from registration under this Schedule, he shall notify the Commissioners of the change— Where there is a material alteration in any quarter in the proportion of relevant supplies of such a person that are zero-rated, he shall notify the Commissioners of the alteration within 30 days of the end of the quarter. If it appears to the Commissioners that a request under sub-paragraph (1) above should no longer have been acted upon on or after any day, or has been withdrawn on any day, they shall register the person who made the request with effect from that day.
Any notification required under this Schedule shall be made in such form and manner and shall contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.
For the purposes of this Schedule a supply of goods is a relevant supply where— In relation to any goods, a person is the predecessor of another for the purposes of this paragraph if— and the reference in this paragraph to a person’s predecessor includes references to the predecessors of his predecessor through any number of transfers. The reference in this paragraph to a repayment of VAT is a reference to such a repayment under a scheme embodied in regulations made under section 39.
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Section 7A
A supply of services to which this paragraph applies is to be treated as made in the country in which the land in connection with which the supply is made is situated. This paragraph applies to— In sub-paragraph (2)(c) “holiday accommodation” includes any accommodation in a building, hut (including a beach hut or chalet), caravan, houseboat or tent which is advertised or held out as holiday accommodation or as suitable for holiday or leisure use. In sub-paragraph (2)(d) “similar establishment” includes premises in which there is provided furnished sleeping accommodation, whether with or without the provision of board or facilities for the preparation of food, which are used by, or held out as being suitable for use by, visitors or travellers.
A supply of services consisting of the transportation of passengers (or of any luggage or motor vehicles accompanying passengers) is to be treated as made in the country in which the transportation takes place, and (in a case where it takes place in more than one country) in proportion to the distances covered in each. For the purposes of sub-paragraph (1) transportation which takes place partly outside the territorial jurisdiction of a country is to be treated as taking place wholly in the country if— For the purposes of sub-paragraph (1) a pleasure cruise is to be regarded as the transportation of passengers (so that services provided as part of a pleasure cruise are to be treated as supplied in the same place as the transportation of the passengers). In sub-paragraph (3) “pleasure cruise” includes a cruise wholly or partly for education or training.
A supply of services consisting of the short-term hiring of a means of transport is to be treated as made in the country in which the means of transport is actually put at the disposal of the person by whom it is hired. But this is subject to sub-paragraphs (3) and (4). For the purposes of this Schedule the hiring of a means of transport is “short-term” if it is hired for a continuous period not exceeding— Where— the supply is to be treated to that extent as made outside the United Kingdom. Where— the supply is to be treated to that extent as made in the United Kingdom.
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A supply of restaurant or catering services is to be treated as made in the country in which the services are physically carried out.
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Where— the supply is to be treated to that extent as made outside the United Kingdom. Where— the supply is to be treated to that extent as made in the United Kingdom.
This paragraph applies to a supply of services consisting of the provision of— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Where— the supply is to be treated to that extent as made outside the United Kingdom. Where— the supply is to be treated to that extent as made in the United Kingdom.
Where— the supply is to be treated to that extent as made outside the United Kingdom. Where— the supply is to be treated to that extent as made in the United Kingdom. Examples of what are electronically supplied services for the purposes of this Schedule include— But where the supplier of a service and the supplier's customer communicate via electronic mail, this does not of itself mean that the service provided is an electronically supplied service for the purposes of this Schedule.
A supply to a relevant business person of services to which this paragraph applies is to be treated as made in the country in which the events in question actually take place. This paragraph applies to the provision of—
Where— the supply is to be treated as made outside the United Kingdom.
a supply of services to a relevant business person consisting of the transportation of goods would otherwise be treated as made in the United Kingdom, and
the transportation takes place wholly outside the United Kingdom,
This paragraph applies to a supply of services consisting of the repair of tangible movable property where— Where— the supply is to be treated as made outside the United Kingdom. Where— the supply is to be treated as made in the United Kingdom.
This paragraph applies to a supply of services to a relevant business person consisting of the provision of telecommunication services. In this Schedule “telecommunication services” means services relating to the transmission, emission or reception of signals, writing, images and sounds or information of any nature by wire, radio, optical or other electromagnetic systems, including— Where— the supply is to be treated to that extent as made outside the United Kingdom. Where— the supply is to be treated to that extent as made in the United Kingdom.
A supply of services to which this paragraph applies is to be treated as made in the same country as the supply to which it relates. This paragraph applies to a supply to a person who is not a relevant business person consisting of the making of arrangements for a supply by or to another person or of any other activity intended to facilitate the making of such a supply.
A supply of services to a person who is not a relevant business person consisting of the transportation of goods is to be treated as made in the country in which the transportation takes place, and (in a case where it takes place in more than one country) in proportion to the distances covered in each. For the purposes of sub-paragraph (1) transportation which takes place partly outside the territorial jurisdiction of a country is to be treated as taking place wholly in the country if— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A supply to a person who is not a relevant business person of ancillary transport services is to be treated as made where the services are physically performed. “Ancillary transport services” means loading, unloading handling and similar activities.
A supply to a person who is not a relevant business person (“the recipient”) of services consisting of the long-term hiring of a means of transport is to be treated as made in the country in which the recipient belongs. But this is subject to sub-paragraph (2) and paragraph 3(3) and (4). A supply to a person who is not a relevant business person (“the recipient”) of services consisting of the long-term hiring of a pleasure boat which is actually put at the disposal of the recipient at the supplier's business establishment, or some other fixed establishment of the supplier, is to be treated as made in the country where the pleasure boat is actually put at the disposal of the recipient. For the purposes of this Schedule, the hiring of a means of transport is “long-term” if it is not short-term (as to the meaning of which see paragraph 3(2)).
A supply to a person who is not a relevant business person of services consisting of the valuation of, or carrying out of work on, goods is to be treated as made where the services are physically performed.
A supply to a person who is not a relevant business person of services to which this paragraph applies is to be treated as made in the country in which the activities concerned actually take place. This paragraph applies to the provision of—
A supply to a person who is not a relevant business person of services to which this paragraph applies is to be treated as made in the country in which the recipient belongs (but see ... paragraph 8). This paragraph applies to- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A supply consisting of the provision to a person (“the recipient”) who— of services to which this paragraph applies is to be treated as made in the country in which the recipient belongs. This paragraph applies to—
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Section 18B. Description of goods customs tariff (within the meaning of TCTA 2018) code Tin 8001 Copper 7402 7403 7405 7408 Zinc 7901 Nickel 7502 Aluminium 7601 Lead 7801 Indium ex 811291 ex 811299 Cereals 1001 to 1005 1006: unprocessed rice only 1007 to 1008 Oil seeds and oleaginous fruit 1201 to 1207 Coconuts, Brazil nuts and cashew nuts 801 Other nuts 502 Olives 71120 Grains and seeds (including soya beans) 1201 to 1207 Coffee, not roasted 901 11 0 901 12 0 Tea 902 Cocoa beans, whole or broken, raw or roasted 1801 Raw sugar 1701 11 1701 12 Rubber, in primary forms or in plates, sheets or strip 4001 4002 Wool 5101 Chemicals in bulk Chapters 28 and 29 Mineral oils (including propane and butane; also including crude petroleum oils) 2709 2710 2711 12 2711 13 Silver 7106 Platinum (palladium, rhodium) 7110 11 0 7110 21 0 7110 31 0 Potatoes 701 Vegetable oils and fats and their fractions, whether or not refined, but not chemically modified 1507 to 1515
Cable-suspended passenger transport systems Group 13 Caravans Group 12 Children’s car seats.................... Group 5 Contraceptive products Group 8 Course of catering Group 14 Domestic fuel or power.................... Group 1 Installation of energy-saving materials from 1st April 2027 .................... Group 2 Heating equipment, security goods and gas supplies: grant-funded installation or connection.................... Group 3 Holiday accommodation etc Group 15 Installation of mobility aids for the elderly Group 10 Renovation and alteration of dwellings.................... Group 7 Residential conversions.................... Group 6 Shows and certain other attractions Group 16 Smoking cessation products Group 11 Welfare advice or information Group 9 . . . . . .
ITEM NO.
Supplies for qualifying use of— NOTES:
coal, coke or other solid substances held out for sale solely as fuel;
coal gas, water gas, producer gases or similar gases;
petroleum gases, or other gaseous hydrocarbons, whether in a gaseous or liquid state;
fuel oil, gas oil or kerosene; or
electricity, heat or air-conditioning.
Item 1(a) shall be deemed to include combustible materials put up for sale for kindling fires but shall not include matches. Item 1(b) and (c) shall not include any road fuel gas (within the meaning of the Hydrocarbon Oil Duties Act 1979 (c. 5)) on which a duty of excise has been charged or is chargeable. Item 1(d) shall not include hydrocarbon oil on which a duty of excise has been or is to be charged without relief from, or rebate of, such duty by virtue of the provisions of the Hydrocarbon Oil Duties Act 1979 , unless the oil is—
In this Group “fuel oil” means heavy oil which contains in solution an amount of asphaltenes of not less than 0.5 per cent. or which contains less than 0.5 per cent. but not less than 0.1 per cent. of asphaltenes and has a closed flash point not exceeding 150°C. In this Group “gas oil” means heavy oil of which not more than 50 per cent. by volume distils at a temperature not exceeding 240°C and of which more than 50 per cent. by volume distils at a temperature not exceeding 340°C. In this Group “kerosene” means heavy oil of which more than 50 per cent. by volume distils at a temperature not exceeding 240°C. In this paragraph “heavy oil” has the same meaning as in the Hydrocarbon Oil Duties Act 1979.
In this Group “qualifying use” means—
domestic use; or
use by a charity otherwise than in the course or furtherance of a business.
For the purposes of this Group, where there is a supply of goods partly for qualifying use and partly not—
if at least 60 per cent. of the goods are supplied for qualifying use, the whole supply shall be treated as a supply for qualifying use; and
in any other case, an apportionment shall be made to determine the extent to which the supply is a supply for qualifying use.
For the purposes of this Group the following supplies are always for domestic use—
a supply of not more than one tonne of coal or coke held out for sale as domestic fuel;
a supply of wood, peat or charcoal not intended for sale by the recipient;
a supply to a person at any premises of piped gas (that is, gas within item 1(b), or petroleum gas in a gaseous state, provided through pipes) where the gas (together with any other piped gas provided to him at the premises by the same supplier) was not provided at a rate exceeding 150 therms a month or, if the supplier charges for the gas by reference to the number of kilowatt hours supplied, 4397 kilowatt hours a month;
a supply of petroleum gas in a liquid state where the gas is supplied in cylinders the net weight of each of which is less than 50 kilogrammes and either the number of cylinders supplied is 20 or fewer or the gas is not intended for sale by the recipient;
a supply of petroleum gas in a liquid state, otherwise than in cylinders, to a person at any premises at which he is not able to store more than two tonnes of such gas;
a supply of not more than 2,300 litres of fuel oil, gas oil or kerosene;
a supply of electricity to a person at any premises where the electricity (together with any other electricity provided to him at the premises by the same supplier) was not provided at a rate exceeding 1000 kilowatt hours a month.
For the purposes of this Group supplies not within paragraph 5 are for domestic use if and only if the goods supplied are for use in—
a building, or part of a building, that consists of a dwelling or number of dwellings;
a building, or part of a building, used for a relevant residential purpose;
self-catering holiday accommodation;
a caravan; or
a houseboat.
For the purposes of this Group, “use for a relevant residential purpose” means use as— except use as a hospital, a prison or similar institution or an hotel or inn or similar establishment. For the purposes of this Group “self-catering holiday accommodation” includes any accommodation advertised or held out as such. In paragraph 6 “houseboat” means a boat or other floating decked structure designed or adapted for use solely as a place of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion.
ITEM NO.
Supplies to a qualifying person of any services of installing heating appliances in the qualifying person’s sole or main residence.
Supplies of heating appliances made to a qualifying person by a person who installs those appliances in the qualifying person’s sole or main residence.
Supplies to a qualifying person of services of connecting, or reconnecting, a mains gas supply to the qualifying person’s sole or main residence.
Supplies of goods made to a qualifying person by a person connecting, or reconnecting, a mains gas supply to the qualifying person’s sole or main residence, being goods whose installation is necessary for the connection, or reconnection, of the mains gas supply.
Supplies to a qualifying person of services of installing, maintaining or repairing a central heating system in the qualifying person’s sole or main residence.
Supplies of goods made to a qualifying person by a person installing, maintaining or repairing a central heating system in the qualifying person’s sole or main residence, being goods whose installation is necessary for the installation, maintenance or repair of the central heating system.
Supplies consisting in the leasing of goods that form the whole or part of a central heating system installed in the sole or main residence of a qualifying person.
Supplies of goods that form the whole or part of a central heating system installed in a qualifying person’s sole or main residence and that, immediately before being supplied, were goods leased under arrangements such that the consideration for the supplies consisting in the leasing of the goods was, in whole or in part, funded by a grant made under a relevant scheme.
Supplies , so far as not falling within Group 23 in Schedule 8, to a qualifying person of services of installing, maintaining or repairing a renewable source heating system in the qualifying person’s sole or main residence.
Supplies , so far as not falling within Group 23 in Schedule 8, of goods made to a qualifying person by a person installing, maintaining or repairing a renewable source heating system in the qualifying person’s sole or main residence, being goods whose installation is necessary for the installation, maintenance or repair of the system.
Supplies to a qualifying person of services of installing qualifying security goods in the qualifying person’s sole or main residence.
Supplies of qualifying security goods made to a qualifying person by a person who installs those goods in the qualifying person’s sole or main residence. NOTES:
Each of items 1 to 7 and 8A to 10 applies to a supply only to the extent that the consideration for the supply is, or is to be, funded by a grant made under a relevant scheme. Item 8 applies to a supply only to the extent that the consideration for the supply—
For the purposes of this Group a scheme is a “relevant scheme” if it is one which satisfies the conditions specified in this paragraph. The first condition is that the scheme has as one of its objectives the funding of the installation of energy-saving materials in the homes of any persons who are qualifying persons. The second condition is that the scheme disburses, whether directly or indirectly, its grants in whole or in part out of funds made available to it in order to achieve that objective— The reference in sub-paragraph (3)(f) to an arrangement approved by the Gas and Electricity Markets Authority includes a reference to an arrangement approved by the Director General of Electricity Supply, or the Director General of Gas Supply, before the transfer (under the Utilities Act 2000 (c. 27)) of his functions to the Authority.
Where a grant is made under a relevant scheme in order— the proportion of the grant that is to be attributed, for the purposes of paragraph 1, to the relevant supply shall be the same proportion as the consideration reasonably attributable to that supply bears to the consideration for that supply and for the non-relevant supply.
to fund a supply of a description to which any of items 1 to 10 applies (“the relevant supply”), and
also to fund a supply to which none of those items applies (“the non-relevant supply”),
For the purposes of items 1 and 2 “heating appliances” means any of the following—
gas-fired room heaters that are fitted with thermostatic controls;
electric storage heaters;
closed solid fuel fire cassettes;
electric dual immersion water heaters with factory-insulated hot water tanks;
gas-fired boilers;
oil-fired boilers;
radiators.
For the purposes of items 5 to 8 “central heating system” includes a system which generates electricity.
For the purposes of items 8A and 8B “renewable source heating system” means a space or water heating system which uses energy from—
renewable sources, including solar, wind and hydroelectric power, or
near renewable resources, including ground and air heat.
For the purposes of items 9 and 10 “qualifying security goods” means any of the following—
locks or bolts for windows;
locks, bolts or security chains for doors;
spy holes;
smoke alarms.
For the purposes of this Group, a person to whom a supply is made is “a qualifying person” if at the time of the supply he— Those benefits are— In sub-paragraph (2)—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM NO.
Supplies of children’s car seats. NOTES:
For the purposes of this Group, the following are “children’s car seats”— In this Group “child” means a person aged under 14 years.
In this Group “safety seat” means a seat—
designed to be sat in by a child in a road vehicle,
designed so that, when in use in a road vehicle, it can be restrained in one or more of the following ways—
by a seat belt fitted in the vehicle, or
by belts, or anchorages, that form part of the seat being attached to the vehicle, or
by a related base unit, and
incorporating an integral harness, or integral impact shield, for restraining a child seated in it.
In this Group “related base unit” means a base unit which is designed solely for the purpose of attaching a safety seat securely in a road vehicle by means of anchorages that form part of the base unit and which, when in use in a road vehicle, can be restrained in one or more of the following ways—
by a seat belt fitted in the vehicle, or
by permanent anchorage points in the vehicle, or
by belts attached to permanent anchorage points in the vehicle.
For the purposes of this Group, a wheeled framework is “related” to a safety seat if the framework and the seat are each designed so that—
when the seat is not in use in a road vehicle it can be attached to the framework, and
when the seat is so attached, the combination of the seat and the framework can be used as a child’s pushchair.
In this Group “booster seat” means a seat designed—
to be sat in by a child in a road vehicle, and
so that, when in use in a road vehicle, it and a child seated in it can be restrained by a seat belt fitted in the vehicle.
In this Group “booster cushion” means a cushion designed—
to be sat on by a child in a road vehicle, and
so that a child seated on it can be restrained by a seat belt fitted in the vehicle
ITEM NO.
The supply, in the course of a qualifying conversion, of qualifying services related to the conversion.
The supply of building materials if—
the materials are supplied by a person who, in the course of a qualifying conversion, is supplying qualifying services related to the conversion, and
those services include the incorporation of the materials in the building concerned or its immediate site. NOTES:
Sub-paragraph (2) applies where a supply of services is only in part a supply to which item 1 applies. The supply, to the extent that it is one to which item 1 applies, is to be taken to be a supply to which item 1 applies. An apportionment may be made to determine that extent.
A “qualifying conversion” means— Sub-paragraph (1) is subject to paragraphs 9 and 10.
A “changed number of dwellings conversion” is— The first condition is that after the conversion the premises being converted contain a number of single household dwellings that is— The second condition is that there is no part of the premises being converted that is a part that after the conversion contains the same number of single household dwellings (whether zero, one or two or more) as before the conversion.
For the purposes of this Group “single household dwelling” means a dwelling— For the purposes of this Group “multiple occupancy dwelling” means a dwelling— The conditions are— For the purposes of this paragraph, a dwelling “is designed” for occupation of a particular kind if it is so designed—
A “house in multiple occupation conversion” is— The condition is that—
For the purposes of this Group “use for a relevant residential purpose” means use as— except use as a hospital, prison or similar institution or an hotel, inn or similar establishment.
a home or other institution providing residential accommodation for children,
a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder,
a hospice,
residential accommodation for students or school pupils,
residential accommodation for members of any of the armed forces,
a monastery, nunnery or similar establishment, or
an institution which is the sole or main residence of at least 90 per cent. of its residents,
A “special residential conversion” is a conversion of premises consisting of— The first condition is that— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The second condition is that, where the relevant residential purpose for which the premises are intended to be used is an institutional purpose, the premises being converted must be intended to form after the conversion the entirety of an institution used for that purpose. In sub-paragraph (6) “institutional purpose” means a purpose within paragraph 6(a) to (c), (f) or (g).
This paragraph applies where the qualifying conversion concerned is a special residential conversion. Item 1 or 2 does not apply to a supply unless— Those requirements are that the certificate— In sub-paragraph (2)(a) “the relevant residential purpose” means the purpose within paragraph 6 for which the premises being converted are intended to be used after the conversion.
A qualifying conversion includes any garage works related to the— concerned. In this paragraph “garage works” means— For the purposes of sub-paragraph (1), garage works are “related” to a conversion if— In sub-paragraph (2) “non-residential” means neither designed, nor adapted, for use—
A conversion is not a qualifying conversion if any statutory planning consent needed for the conversion has not been granted. A conversion is not a qualifying conversion if any statutory building control approval needed for the conversion has not been granted.
In the case of a conversion of a building, “supply of qualifying services” means a supply of services that consists in— In the case of a conversion of part of a building, “supply of qualifying services” means a supply of services that consists in— In this paragraph—
In this Group “building materials” has the meaning given by Notes (22) and (23) of Group 5 to Schedule 8 (zero-rating of construction and conversion of buildings).
ITEM NO.
The supply, in the course of the renovation or alteration of qualifying residential premises, of qualifying services related to the renovation or alteration.
The supply of building materials if—
the materials are supplied by a person who, in the course of the renovation or alteration of qualifying residential premises, is supplying qualifying services related to the renovation or alteration, and
those services include the incorporation of the materials in the premises concerned or their immediate site. NOTES:
Sub-paragraph (2) applies where a supply of services is only in part a supply to which item 1 applies. The supply, to the extent that it is one to which item 1 applies, is to be taken to be a supply to which item 1 applies. An apportionment may be made to determine that extent.
Item 1 or 2 does not apply to a supply unless— The first “empty home condition” is that neither— have been lived in during the period of 2 years ending with the commencement of the relevant works. The second “empty home condition” is that— In this paragraph “the relevant works” means— In sub-paragraph (3), references to a person acquiring a dwelling are to that person having a major interest in the dwelling granted, or assigned, to him for a consideration.
For the purposes of this Group a renovation or alteration of any premises includes any garage works related to the renovation or alteration. In this paragraph “garage works” means— For the purposes of sub-paragraph (1), garage works are “related” to a renovation or alteration if—
Item 1 or 2 does not apply to a supply unless any statutory planning consent needed for the renovation or alteration has been granted. Item 1 or 2 does not apply to a supply unless any statutory building control approval needed for the renovation or alteration has been granted.
Item 1 or 2 does not apply to a supply if the premises in question are a building, or part of a building, which, when it was last lived in, was used for a relevant residential purpose unless— Where a number of buildings on the same site are— then each of those buildings, to the extent that it would not be so regarded otherwise, shall be treated as intended for use solely for a relevant residential purpose.
“Supply of qualifying services” means a supply of services that consists in— In sub-paragraph (1)(a), the reference to the carrying out of works to the fabric of the premises does not include the incorporation, or installation as fittings, in the premises of any goods that are not building materials.
In this Group “building materials” has the meaning given by Notes (22) and (23) of Group 5 to Schedule 8 (zero-rating of construction and conversion of buildings).
ITEM NO.
Supplies of contraceptive products, other than relevant exempt supplies. NOTES: Meaning of “contraceptive products” In this Group “contraceptive product” means any product designed for the purposes of human contraception, but does not include any product designed for the purpose of monitoring fertility. Meaning of “relevant exempt supplies” In this Group “relevant exempt supplies” means supplies which fall within item 4 of Group 7 of Schedule 9 (exempt supplies of goods in any hospital etc. in connection with medical or surgical treatment etc.).
ITEM NO.
Supplies of welfare advice or information by— NOTES: Meaning of “welfare advice or information” In this Group “welfare advice or information” means advice or information which directly relates to— the physical or mental welfare of elderly, sick, distressed or disabled persons, or the care or protection of children and young persons. Meaning of “state-regulated” For the purposes of this Group “state-regulated” has the same meaning as in Group 7 (health and welfare) of Schedule 9 (see Note (8) of that Group). Meaning of “state-regulated” Item 1 does not include— supplies that would be exempt by virtue of Group 6 of Schedule 9 (education) if they were made by an eligible body within the meaning of that Group, supplies of goods, unless the goods are supplied wholly or almost wholly for the purpose of conveying the advice or information, or supplies of advice or information provided solely for the benefit of a particular individual or according to his personal circumstances.
a charity, or
a state-regulated private welfare institution or agency.
ITEM NO. NOTES: Meaning of “mobility aids” For the purposes of this Group “mobility aids” means any of the following— grab rails; ramps; stair lifts; bath lifts; built-in shower seats or showers containing built-in shower seats; walk-in baths fitted with sealable doors. Meaning of “domestic accommodation” For the purposes of this Group “domestic accommodation” means a building, or part of a building, that consists of a dwelling or a number of dwellings.
The supply of services of installing mobility aids for use in domestic accommodation by a person who, at the time of the supply, is aged 60 or over.
The supply of mobility aids by a person installing them for use in domestic accommodation by a person who, at the time of the supply, is aged 60 or over.
ITEM NO.
Supplies of pharmaceutical products designed to help people to stop smoking tobacco.
NOTE: This Group does not include— removable contents other than goods of a kind mentioned in item 4 of Group 5 of Schedule 8, or the supply of accommodation in a caravan.
Supplies of caravans which exceed the limits of size of a trailer for the time being permitted to be towed on roads by a motor vehicle having a maximum gross weight of 3,500 kilogrammes.
The supply of such services as are described in paragraph 1(1) or 5(4) of Schedule 4 in respect of a caravan within item 1.
Item No. NOTES: Supplies not within item 1 Item 1 does not include the transport of passengers to, from or within— a place of entertainment, recreation or amusement; or a place of cultural, scientific, historical or similar interest, by the person, or a person connected with that person, who supplies a right of admission to, or a right to use facilities at, such a place. For the purposes of Note 1 any question as to whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010.
Transport of passengers by means of a cable-suspended chair, bar, gondola or similar vehicle designed or adapted to carry not more than 9 passengers.
Item No NOTES Note (3A) to Group 1 (Food) of Schedule 8 applies in relation to this Group as it applies in relation to Note (3) in that Group. Notes (3B) to (3D) to Group 1 (Food) of Schedule 8 apply in relation to this Group as they apply in relation to that Group. “Alcoholic beverage” means a beverage within Item 3 in the list of excepted items in Group 1 of Schedule 8.
Supplies in the course of catering of—
any food or drink for consumption on the premises on which it is supplied, or
any hot food or hot drink for consumption off those premises,
Item No
Any supply which, because it falls within paragraph (d), (e) so far as the supply consists of the grant of a licence to occupy holiday accommodation, (f) or (g) of Item 1 in Group 1 (Land) of Schedule 9, is not an exempt supply by virtue of that Item.
Item No
Supplies of a right of admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas and exhibitions and similar cultural events and facilities but excluding any supplies that are exempt supplies by virtue of Items 1 or 2 in Group 13 of Schedule 9.
Section 40A(1)
VAT is charged, in accordance with this Schedule, on the acquisition in Northern Ireland of goods from a member State— VAT charged on the acquisition of goods in Northern Ireland from a member State is a liability of the person who acquires the goods and (subject to provisions about accounting and payment) becomes due at the time of acquisition. VAT charged on the acquisition of goods in Northern Ireland from a member State in accordance with this Schedule is referred to in this Schedule as “NI acquisition VAT”. References to VAT (without more) in this Act include NI acquisition VAT. The Commissioners may by regulations make provision about (including provision modifying) the application of provision that applies to value added tax made by or under any enactment (including provision made by or under this Act) to NI acquisition VAT or to goods acquired in Northern Ireland from a member State.
NI acquisition VAT is charged on any acquisition from a member State of any goods where— In this Act, a “taxable acquisition” means an acquisition of goods from a member State that— An acquisition of goods from a member State falls within this sub-paragraph if—
References in this Act to the acquisition of goods from a member State are to an acquisition of goods in pursuance of a transaction that— and references in this Act, in relation to such an acquisition, to the supplier are to be construed accordingly. Where the person with the property in any goods does not change in consequence of anything which is treated for the purposes of this Act as a supply of goods, that supply is to be treated for the purposes of this Act as a transaction in pursuance of which there is an acquisition by the person making the supply. The Treasury may by regulations make provision about the circumstances in which an acquisition of goods is not to be treated as an acquisition of goods from a member State.
For the purposes of this Act, the normal rule for determining the time that goods were acquired from a member State is that they are treated as being acquired on the earlier of— But— Regulations under sub-paragraph (2)(b) may include provision treating an acquisition as a series of acquisitions taking place at different times. In sub-paragraph (1) “relevant invoice” means an invoice of a description prescribed by regulations made by the Commissioners. For the purposes of this Act “first removal”, in relation to goods acquired, means the first removal of the goods in the course of the transaction in pursuance of which they are acquired.
For the purposes of this Act, the normal rule for determining whether goods are acquired in Northern Ireland is that they are treated as being acquired in Northern Ireland if— But— If an acquisition of goods is not treated, for the purposes of this Act, as taking place in Northern Ireland it is treated for those purposes as an acquisition taking place outside Northern Ireland. The Commissioners may by regulations make provision—
Sub-paragraph (2) applies where— Where this sub-paragraph applies— For the purposes of this Act, other than for the purposes of Part 8 of this Schedule, a supply of goods is treated as involving their removal from a member State to Northern Ireland, and is treated as not being a taxable supply if— But neither sub-paragraph (2) nor sub-paragraph (3) applies in relation to a supply unless— complies with such requirements to provide information to the Commissioners or to the person supplied as may be specified in regulations made by the Commissioners. The requirements to provide information that may be specified in regulations include— Where a taxable acquisition is treated as having been made by virtue of this paragraph, that acquisition is treated as taking place at the time referred to in paragraph 4(1)(b) (day on which invoice issued). For the purposes of this paragraph a person belongs in a member State if— In determining, for the purposes of sub-paragraph (7)(d), whether a person is required to be registered under this Act, ignore any supplies made by the person that would be ignored for the purposes of this Act if the person belonged in a member State and complied with the information requirements that would apply by virtue of sub-paragraph (4). Where— the supply to that person of those goods and the supply by that person of those goods to the person who would be the customer in that corresponding case are to be ignored for the purposes of this Act. References in this paragraph to a person being taxable in a member State do not include references to a person who is so taxable by virtue only of provisions of the law of that member State corresponding to the provisions of this Act by virtue of which a person who is not registered under this Act is a taxable person if the person is required to be so registered.
The Commissioners may by regulations make provision for the identification of persons for the purposes of VAT in Northern Ireland. In this Act “identified for the purposes of VAT in Northern Ireland” means identified in accordance with regulations under this paragraph. A person may only be identified for the purposes of VAT in Northern Ireland if— Regulations may make provision— Regulations may also make provision— In this paragraph “specified” means specified in regulations.
For the purposes of this Act the value of any acquisition of goods from a member State is taken to be the value of the transaction in pursuance of which they are acquired. Where goods are acquired from a member State otherwise than in pursuance of a taxable supply, the value of the transaction in pursuance of which they are acquired is to be determined for the purposes of sub-paragraph (1) in accordance with this Part, and for those purposes— If the transaction is for a consideration in money, its value is taken to be such amount as is equal to the consideration. If the transaction is for a consideration not consisting or not wholly consisting of money, its value is taken to be such amount in money as is equivalent to the consideration. Where a transaction in pursuance of which goods are acquired from a member State is not the only matter to which a consideration in money relates, the transaction is deemed to be for such part of the consideration as is properly attributable to it.
Where, in the case of the acquisition of any goods from a member State— the Commissioners may direct that the value of the relevant transaction is taken to be its open market value. A direction under this paragraph must be given— A direction given to a person under this paragraph in respect of a transaction may include a direction that the value of any transaction— is be taken to be its open market value. For the purposes of this paragraph, the open market value of a transaction in pursuance of which goods are acquired from a member State is to be taken to be the amount which would fall to be taken as its value under paragraph 8(3) if it were for such consideration in money as would be payable by a person standing in no such relationship with any person as would affect that consideration. Section 1122 of the Corporation Tax Act 2010 (“connected” persons) applies for the purpose of determining whether a person is connected with another for the purposes of this paragraph. A direction under this paragraph may be varied or withdrawn by the Commissioners by a further direction given by notice in writing.
This paragraph applies, in such cases as the Commissioners may by regulations prescribe, to an acquisition— The value of the relevant transaction in relation to an acquisition to which this paragraph applies is the sum of the value of that transaction (apart from this paragraph) and the total amount of relevant duty charged that is not already reflected in the value of that transaction. In this paragraph “relevant duty” in relation to an acquisition means—
Where goods are acquired from a member State in pursuance of anything which is treated as a supply for the purposes of this Act as a result of paragraph 5(1) of Schedule 4 or paragraph 30 of Schedule 9ZB and there is no consideration, sub-paragraph (3) applies for determining the value of the relevant transaction. Sub-paragraph (3) also applies for determining the value of the relevant transaction in the case of an acquisition by a supplier that is deemed to take place as a result of paragraph 60(2)(c) or 61(2)(c). The value of the relevant transaction is taken to be— For the purposes of sub-paragraph (3), the amount of consideration in money that would be payable by any person if the person were to purchase any goods is taken to be the amount that would be so payable after the deduction of any amount included in the purchase price in respect of VAT on the supply of the goods to that person.
Subject to the following provisions of this paragraph, where— then, for the purpose of valuing the relevant transaction, that sum is to be converted into sterling at the market rate which, on the relevant day, would apply in the United Kingdom to a purchase with sterling of that sum in the currency in question by the person making the acquisition. Where the Commissioners have published a notice which, for the purposes of this paragraph, specifies— a rate specified in or determined in accordance with the notice, as for the time being in force, applies (instead of the rate for which sub-paragraph (1) provides) in the case of any transaction in pursuance of which goods are acquired by a person who opts, in such manner as may be allowed by the Commissioners, for the use of that rate in relation to that transaction. An option for the purposes of sub-paragraph (2) for the use of a particular rate or method of determining a rate— In specifying a method of determining a rate of exchange, a notice published by the Commissioners under sub-paragraph (2) may allow a person to apply to the Commissioners for the use, for the purpose of valuing some or all of the transactions in pursuance of which goods are acquired by the person from a member State, of a rate of exchange which is different from any which would otherwise apply. On an application made in accordance with provision contained in a notice under sub-paragraph (4), the Commissioners may authorise the use with respect to the applicant of such a rate of exchange, in such circumstances, in relation to such transactions and subject to such conditions as they think fit. A notice published by the Commissioners for the purposes of this paragraph may be withdrawn or varied by a subsequent notice published by the Commissioners. Where goods are acquired from a member State, the appropriate rate of exchange is to be determined for the purpose of valuing the relevant transaction by reference to the relevant time; and, accordingly, the day on which that time falls is the relevant day for the purposes of sub-paragraph (1).
In this Part of this Schedule—
NI acquisition VAT is input tax in relation to the taxable person acquiring the goods in question if the goods are used or are to be used for the purpose of any business carried on or to be carried on by the person. NI acquisition VAT is output tax in relation to the taxable person acquiring the goods in question (including VAT which is also to be counted as input tax by virtue of sub-paragraph (1)). Subsections (5) to (6A) of section 24 (input tax and output tax) apply to NI acquisition VAT as they apply to VAT on the supply or importation of goods.
A taxable person must account for and pay NI acquisition VAT by reference to prescribed accounting periods (see section 25(1)). Subsections (2) to (6) of section 25 (payment by reference to accounting period and credit for input tax against output tax) contain provision relevant to the payment of NI acquisition VAT. Subsection (7) of that section (power to make order excluding credit for VAT paid) applies to acquisitions in Northern Ireland from a member State as it applies to the supply of goods. Section 26(1) has effect as if the reference to “input tax on supplies and importations” included input tax on acquisitions in Northern Ireland from a member State. That section and sections 26A to 28 contain further provision relevant to the payment of NI acquisition VAT.
NI acquisition VAT is charged at the rate of 5% (instead of at the rate provided by section 2) if— Regulations under this paragraph may provide that sub-paragraph (1)(a) does not apply to a description of a supply specified in Schedule 7A that is specified in those regulations. The power to specify a description of an acquisition conferred by sub-paragraph (1)(b) may be exercised so as to describe an acquisition of goods by reference to matters unrelated to the characteristics of the goods.
Section 30(3) (zero-rating) applies to an acquisition of goods in Northern Ireland from a member State as it would apply to an importation of those goods. The Treasury may by regulations provide— The Commissioners may by regulations provide for the zero-rating of supplies of goods, or of such goods as may be specified in the regulations, in cases where— Section 30(10) applies to a supply of goods that has been zero-rated in pursuance of regulations made under sub-paragraph (3) as it applies to a supply of goods that has been zero-rated in pursuance of regulations made under section 30(8) or (9). An acquisition of goods from a member State is an exempt acquisition if the goods are acquired in pursuance of an exempt supply (see section 31).
Sections 33 to 33C, 33E and 34 apply to an acquisition of goods from a member State as they apply to a supply of those goods. The Treasury may by order make provision for relieving from NI acquisition VAT if, or to the extent that, relief from VAT would be given by an order under section 37 (relief from VAT on importation) if the acquisition in question were an importation. An order under sub-paragraph (2) may provide for relief to be subject to such conditions as appear to the Treasury to be necessary or expedient, which may include conditions— Where relief from NI acquisition VAT given by an order under this paragraph was subject to a condition that has been breached or not complied with, the VAT becomes payable at the time of the breach or, as the case may be, at the latest time allowed for compliance. Section 38 has effect as if after “by him” there were inserted “ or on the acquisition of goods by that person from member States ”.
Where— the Commissioners must, on a claim made in that behalf, refund to that person the amount of NI acquisition VAT so chargeable. Where— the Commissioners must, on a claim made in that behalf, pay to that person an amount equal to that VAT so chargeable. The works to which this paragraph applies are— Subsections (1B) and (1D) of section 35 (refund of VAT to persons constructing certain buildings) apply for the purposes of this paragraph as they apply for the purposes of that section. Subsection (2) of that section applies to a refund under subparagraph (1) or (2) as it applies to a refund of VAT under that section. Subsections (4) and (4A) of that section apply for the purpose of construing this paragraph. Subsection (5) of that section has effect as if in paragraphs (a) and (b), after “this section” there were inserted “ or paragraph 18A of Schedule 9ZA ”. The provisions made by or under this Act or any other enactment (whenever passed or made) that apply to a refund under section 35 apply to a refund under sub-paragraph (2) as if references in those provisions (however framed)—
Where a person who is not a taxable person makes such a supply of goods consisting in a new means of transport that involves the removal of the goods to a member State from Northern Ireland, the Commissioners must, on a claim made in that behalf, refund to that person, as the case may be— But the amount of VAT that is to be refunded under this paragraph is not to exceed the amount that would have been payable on the supply involving the removal if it had been a taxable supply by a taxable person and had not been zero-rated. A claim for refund of VAT under this paragraph must—
Subsections (3) and (4) of section 41 (application to the Crown) apply to NI acquisition VAT as they apply to VAT chargeable on the supply of goods.
Section 43 (groups of companies) applies to an acquisition of goods from a member State as it would apply to an importation of those goods as if the reference in subsection (1)(c) to section 38 were omitted. Subsections (2) and (9) of section 44 (supplies to groups) apply to input tax on acquisitions as they applies to input tax on supplies.
Subsection (1) of section 45 (partnerships) applies to persons carrying on in partnership activities, other than carrying on a business, in the course or furtherance of which they acquire goods from a member State as it apples to persons carrying on a business in partnership. Subsections (2) and (5) of that section apply to a liability for NI acquisition VAT as they apply to VAT on the supply of goods or services.
In section 46 (business carried on in divisions or by unincorporated bodies, personal representatives etc) any reference to “a business” includes any activity in the course or furtherance of which any body corporate or any club, association, organisation or other unincorporated body acquires goods from a member State. Subsection (3) of that section (no account to be taken in change of members of a club, association or organisation) applies in relation to the determination of whether goods are acquired from a member State by a club, association or organization mentioned in that subsection as it applies in relation to the determination of whether goods or services are supplied by such a club, association or organisation.
Where goods are acquired from a member State by a person who is not a taxable person (“N”) and a taxable person (“T”) acts in relation to the acquisition and then supplies the goods in T's own name as agent of N, the goods are to be treated for the purposes of this Act as acquired and supplied by T as principal. Section 47 (agents) has effect as if—
Subsection (1)(a) of section 48 (VAT representatives and security) applies to a person who, without being a taxable person, acquires goods in Northern Ireland from one or more member States as it applies to a person who, without being a taxable person, makes taxable supplies.
Section 50A(5) (margin schemes) has effect as if after “supply,” there were inserted “ acquisition ”.
Section 69(1) (breaches of regulatory provisions) applies to a failure to comply with a requirement imposed under paragraph 42, 52 or 65(1) or (2)(a) of this Schedule as it applies to a requirement imposed under the provisions mentioned in subsection (1)(a) of that section. Section 69(2) has effect as if after “imposed under” there were inserted “ paragraph 64 or 65(2)(b) of Schedule 9ZA or ”.
Any reference in section 72(1) or (8) (offences)— Subsection (5) of section 72 applies to a claim for a refund under regulations made under paragraph 5(4) or under paragraph 18A or 19 as it applies to a claim for a refund under the provisions mentioned in paragraph (a) of that subsection. Subsection (10) of that section applies where a person has reason to believe that NI acquisition VAT has been or will be evaded as it applies where a person has reason to believe that VAT on the supply of goods or services has been or will be evaded.
Subsection (3) of section 73 (failure to make returns etc) applies to an amount which by reason of the cancellation of a person's registration under paragraph 43(2), 43(5) or 53(5) ought not to have been paid as it applies to an amount which ought not to have been paid by reason of the cancellation of a person's registration under any of the provisions mentioned in that subsection. Subsection (7) of that section applies to the acquisition of goods from a member State by a taxable person as it applies to the supply of goods to a taxable person.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Where a person who has, at a time when the person was not a taxable person, acquired in Northern Ireland from a member State any goods subject to a duty of excise or consisting in a new means of transport and— the Commissioners may assess the amount of VAT due on the acquisition to the best of their judgment and notify their assessment to that person. An assessment under this paragraph must be made within the time limits provided for in section 77 and may not be made after the later of— but (subject to section 77) where further such evidence comes to the Commissioners' knowledge after the making of an assessment under this section, another assessment may be made under this paragraph, in addition to any earlier assessment. Where an amount has been assessed and notified to any person under this paragraph, it is, subject to the provisions of this Act as to appeals, deemed to be an amount of VAT due from the person and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced. For the purposes of this paragraph, notification to a personal representative, trustee in bankruptcy, trustee in sequestration, receiver, liquidator or person otherwise acting in a representative capacity in relation to the person who made the acquisition in question is to be treated as notification to that person.
Section 77 (time limits and supplementary assessments) has effect as if—
in subsection (1), in the words before paragraph (a), after “or 76” there were inserted “ or paragraph 31 of Schedule 9ZA ”;
in paragraph (a) of that subsection, after “importation” there were inserted “ or acquisition ”;
in subsection (4), after “importation” there were inserted “ , acquisition ”;
in subsection (4C) after paragraph (a) there were inserted—;
in subsection (6), after “73(6)(b)” there were inserted “ or paragraph 31(2)(b) of Schedule 9ZA ”.
In section 80 (credit for, or repayment of, overstated or overpaid VAT) has effect as if in subsection (3C) reference to VAT provisions included any provision of any EU instrument relating to VAT, or to any matter connected with VAT, that has effect in Northern Ireland as a result of section 7A of the European Union (Withdrawal) Act 2018 (general implementation of withdrawal agreement).
The following matters are to be treated as if they were included in the list of matters in subsection (1) of section 83 (matters subject to appeal to the tribunal)— Section 84 (further provisions relating to appeals) has effect as if in subsection (4)(c), after “supply” there were inserted “ , acquisition ”.
This paragraph applies where there is a change in the rate of VAT in force under section 2 or paragraph 16 of this Schedule or in the descriptions of exempt, zero-rated or reduced-rate acquisitions. Where— the rate at which VAT is chargeable on the acquisition, or any question of whether it is an exempt, zero-rated or reduced-rate acquisition, is to be determined as at the time of the first removal of the goods, if the person making the acquisition so elects. References in this paragraph to a zero-rated acquisition is to an acquisition on which no NI acquisition VAT is charged as a result of provision made by or under paragraph 17 (zero-rating). Reference in this paragraph to a reduced rate acquisition is to an acquisition on which NI acquisition VAT is charged at the rate in force under paragraph 16(1).
Where— the amount repayable is to be the difference between the VAT paid by reference to that value at the rate specified in the resolution and the VAT that would have been payable by reference to that value at the lower rate. Where— the VAT chargeable at the lower rate is to be charged by reference to the same value as that by reference to which NI acquisition VAT would have been chargeable at the rate specified in the resolution. Section 90(3) (failure of resolution under Provisional Collection of Taxes Act 1968) has effect as if after “or 35” there were inserted “ or paragraph 18A or 19 of Schedule 9ZA ”.
Section 99 (refund of VAT to Government of Northern Ireland) applies to—
A person who— becomes liable to be registered under this Part of this Schedule at the end of any month if, in the period beginning with 1 January of the year in which that month falls, that person had made relevant acquisitions whose value exceeds £90,000. A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) becomes liable to be registered under this Part of this Schedule at any time if there are reasonable grounds for believing that the value of the person's relevant acquisitions in the following 30 days will exceed £90,000. A person is treated as having become liable to be registered under this Part of this Schedule at any time when the person would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 43(2) or 53(5) of this Schedule, paragraph 13(3) of Schedule 1, paragraph 11 of Schedule 1A or paragraph 6(2) of Schedule 3A. A person does not cease to be liable to be registered under this Part of this Schedule except in accordance with paragraph 39. In determining the value of any person⿿s relevant acquisitions for the purposes of this paragraph, so much of the consideration for any acquisition as represents any liability of the supplier, under the law of a member State, for VAT on the transaction in pursuance of which the acquisition is made, is to be disregarded. In determining the value of a person⿿s acquisitions for the purposes of sub-paragraph (1) or (2), acquisitions to which paragraph 19(6) of Schedule 9ZB (last acquisition or supply of goods before removal from Northern Ireland fiscal warehousing) applies are to be disregarded.
A person who has become liable to be registered under this Part of this Schedule ceases to be so liable if at any time— But a person does not cease to be liable to be registered under this Part of this Schedule at any time if there are reasonable grounds for believing that the value of that person⿿s relevant acquisitions in the following 30 days will exceed £90,000.
A person who becomes liable to be registered under this Part of this Schedule must notify the Commissioners of the liability— The Commissioners must register any such person (whether or not the person notifies them) with effect from the relevant time or from such earlier time as may be agreed between the Commissioners and the person. In this paragraph “the relevant time“—
Where a person who is not liable to be registered under this Act and is not already so registered satisfies the Commissioners that the person makes relevant acquisitions, the Commissioners must, if the person so requests, register the person with effect from the day on which the request is made or from such earlier date as may be agreed between the Commissioners and the person. Where a person who is not liable to be registered under this Act and is not already so registered— the Commissioners may, subject to such conditions as they think fit to impose, register the person with effect from such date as may be agreed between the Commissioners and the person. Conditions imposed under sub-paragraph (2) may— Where a person who is entitled to be registered under paragraph 9 or 10 of Schedule 1 requests registration under this paragraph, the person is to be registered under that Schedule, and not under this Part of this Schedule.
Any person registered under this Part of this Schedule who ceases to be registrable under this Act must notify the Commissioners of that fact within 30 days of the day on which the person ceases to be registrable. A person registered under paragraph 41(2) must notify the Commissioners, within 30 days of the first occasion after the person's registration when the person makes a relevant acquisition, that the person has made that acquisition. For the purposes of this paragraph a person ceases to be registrable under this Act where—
Where a person registered under this Part of this Schedule satisfies the Commissioners that the person is not liable to be so registered, the Commissioners must, if the person so requests, cancel that registration with effect from the day on which the request is made or from such later date as may be agreed between the Commissioners and the person. Where the Commissioners are satisfied that a person registered under this Part of this Schedule has ceased since the person's registration to be registrable under this Part of this Schedule, they may cancel that registration with effect from the day on which the person so ceased or from such later date as may be agreed between the Commissioners and the person. Where the Commissioners are satisfied that a person who has been registered under paragraph 41(2) and is not for the time being liable to be registered under this Part of this Schedule— the Commissioners may cancel the person's registration with effect from the date so specified or, as the case may be, the date of the contravention or from such later date as may be agreed between the Commissioners and the person. But the Commissioners may not, under sub-paragraph (1), (2) or (3), cancel a person⿿s registration with effect from any time unless the Commissioners are satisfied that it is not a time when that person would be subject to a requirement, or in a case falling under sub-paragraph (2) or (3) a requirement or entitlement, to be registered under this Act. Where the Commissioners are satisfied that, on the day on which a person was registered under this Part of this Schedule, the person— the Commissioners may cancel that registration with effect from that day. The registration of a person who— may not be cancelled with effect from any time before 1 January which is, or next follows, the second anniversary of the date on which the person's registration took effect. But sub-paragraph (6) does not apply to cancellation under sub-paragraph (3) or (5). In determining, for the purposes of sub-paragraphs (4) and (6), whether a person would be subject to a requirement, or would be entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when the person is already registered or when the person is so liable under any other provision is to be disregarded. For the purposes of this paragraph, a person is registrable under this Part of this Schedule at any time when the person is liable to be registered under this Part of this Schedule or is a person who makes relevant acquisitions.
Where a person who makes or intends to make relevant acquisitions satisfies the Commissioners that any such acquisition would be an acquisition in pursuance of a transaction which would be zero-rated if it were a taxable supply by a taxable person, the Commissioners may, if the person so requests and the Commissioners think fit, exempt the person from registration under this Part of this Schedule until it appears to the Commissioners that the request should no longer be acted upon or is withdrawn. Where a person who is exempted under this paragraph from registration under this Part of this Schedule makes any relevant acquisition in pursuance of any transaction which would, if it were a taxable supply by a taxable person, be chargeable to VAT otherwise than as a zero-rated supply, the person must notify the Commissioners of the change within 30 days of the date the acquisition was made.
The Treasury may by regulations substitute for any of the sums for the time being specified in this Part of this Schedule such greater sums as the Treasury consider appropriate.
Any notification required under this Part of this Schedule must be made in such form and manner and must contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.
For the purposes of this Part of this Schedule “relevant acquisition” means an acquisition that—
is a taxable acquisition (see paragraph 2(2)) of goods other than goods which are subject to a duty of excise or consist in a new means of transport, and
is otherwise than in pursuance of a taxable supply and is treated, for the purposes of this Act, as taking place in Northern Ireland.
This sub-paragraph applies where — The person becomes liable to be registered on any day in a given year if— A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) becomes liable to be registered under this Part of this Schedule where— A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) above becomes liable to be registered under this Part of this Schedule if the person makes a supply that— A person is treated as having become liable to be registered under this Part of this Schedule at any time when the person would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 43(3)or 53(5) of this Schedule, paragraph 13(3) of Schedule 1, paragraph 11 of Schedule 1A, or paragraph 6(2) of Schedule 3A. A person does not cease to be liable to be registered under this Part of this Schedule except in accordance with paragraph 49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . For the purposes of this paragraph, a supply of goods or services is a “European supply” if it is— For the purposes of sub-paragraph (8)(a), a person is not a taxable person if they are not liable or entitled to register for VAT in accordance with the law of the place where the person to whom the services are supplied is established, has their permanent address or usually resides. In sub-paragraph (8), “the VAT Directive” means Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.
A person who has become liable to be registered under this Part of this Schedule by virtue of paragraph 48(1)(i) ceases to be so liable if at any time— A person who has become liable to be registered under this Part of this Schedule by virtue of paragraph 48(1)(ii) ceases to be so liable by virtue of that paragraph if at any time paragraph 48(1A) applies in relation to that person. A person who has become liable to be registered under this Part of this Schedule by virtue of paragraph 48(3) ceases to be so liable by virtue of that paragraph if at any time the Commissioners are satisfied that the person— But — Sub-paragraphs (8) to (10) of paragraph 48 apply for the purposes of this paragraph as they apply for the purposes of that paragraph.
A person who becomes liable to be registered under this Part of this Schedule must notify the Commissioners of the liability within the period of 30 days after the day on which the liability arises. The Commissioners must register any such person (whether or not the person has notified them) with effect from the day on which the liability arose or from such earlier time as may be agreed between the Commissioners and the person.
Where a person who is not liable to be registered under this Act and is not already so registered— the Commissioners may, subject to such conditions as they think fit to impose, register the person with effect from such date as may be agreed between the Commissioners and the person. Conditions imposed under sub-paragraph (1) may— Where a person who is entitled to be registered under paragraph 9 or 10 of Schedule 1 requests registration under this paragraph, the person is to be registered under that Schedule, and not under this Part of this Schedule.
Any person registered under this Part of this Schedule who ceases to be registrable under this Act must notify the Commissioners of that fact within 30 days of the day on which the person ceases to be registrable. A person registered under paragraph 51 by reference to any intention to exercise any option or to make supplies of any description must notify the Commissioners within 30 days of exercising that option or, as the case may be, of the first occasion after registration when the person makes such a supply, that the person has exercised the option or made such a supply. A person who has exercised an option mentioned in paragraph 48(2) which, as a consequence of the option's revocation or otherwise, ceases to have effect in relation to any relevant supplies by the person must notify the Commissioners, within 30 days of the option⿿s ceasing so to have effect, that it has done so. For the purposes of this paragraph, a person ceases to be registrable under this Act where—
Where a person registered under this Part of this Schedule satisfies the Commissioners that the person is not liable to be so registered, the Commissioners must, if the person so requests, cancel that registration with effect from the day on which the request is made or from such later date as may be agreed between the Commissioners and the person. Where the Commissioners are satisfied that a person who has been registered under paragraph 51 and is not for the time being liable to be registered under this Part of this Schedule— the Commissioners may cancel the person's registration with effect from the date so specified or, as the case may be, the date of the contravention or from such later date as may be agreed between the Commissioners and the person. But the Commissioners may not, under sub-paragraph (1) or (2), cancel a person⿿s registration with effect from any time unless the Commissioners are satisfied that it is not a time when that person would be subject to a requirement, or in a case falling under sub-paragraph (2) a requirement or entitlement, to be registered under this Act. In determining for the purposes of sub-paragraph (3) whether a person would be subject to a requirement, or would be entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when the person is already registered or when the person is so liable under any other provision is to be disregarded. Where the Commissioners are satisfied that, on the day on which a person was registered under this Part of this Schedule, the person— the Commissioners may cancel that registration with effect from that day. The registration of a person who has exercised an option mentioned in paragraph 48(2) may not be cancelled with effect from any time before the 1 January which is, or next follows, the second anniversary of the date on which the person's registration took effect.
The Treasury may by regulations substitute for any of the sums for the time being specified in this Part of this Schedule such greater sums as the Treasury consider appropriate.
Any notification required under this Part of this Schedule must be made in such form and manner and must contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.
For the purposes of this Part of this Schedule “relevant supply” means a supply of goods that—
involves the removal of the goods to Northern Ireland from a place outside the United Kingdom by or under the directions of the person making the supply,
does not involve the installation or assembly of the goods at a place in Northern Ireland,
is a transaction in pursuance of which goods are acquired in Northern Ireland from a member State by a person who is not a taxable person,
is made in the course or furtherance of a business carried on by the supplier, and
is neither an exempt supply nor a supply of goods which are subject to a duty of excise or consist in a new means of transport and is not anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) of Schedule 4 or paragraph 30 of Schedule 9ZB.
This Part of this Schedule applies where— For the purposes of this Part of this Schedule, where the destination territory is Northern Ireland, a customer is identified for the purposes of VAT in accordance with the law of the destination territory if the customer is registered under this Act and is identified for the purposes of VAT in Northern Ireland. In this Part of this Schedule—
The removal of the goods from the origin territory is not to be treated by reason of paragraph 30 of Schedule 9ZB as a supply of goods by the supplier.
The rules in sub-paragraph (2) apply if— The rules are that— In sub-paragraph (2) and in paragraphs 60(2) and 61(2) “the relevant territory” means— For the meaning of a “relevant event”, see paragraph 63.
The rules in sub-paragraph (2) apply (subject to paragraph 62) if— The rules are that— For the meaning of a “relevant event”, see paragraph 63.
The rules in sub-paragraph (2) apply (subject to paragraph 62) if during the period of 12 months beginning with the day the goods arrive in the destination territory the supplier does not transfer the whole property in the goods to the customer and no relevant event occurs. The rules are that— For the meaning of a “relevant event”, see paragraph 63.
The rules in paragraphs 60(2) and 61(2) do not apply if during the period of 12 months beginning with the day the goods arrive in the destination territory—
the goods are returned to the origin territory by or under the direction of the supplier, and
the supplier records the return of the goods in the register provided for in Article 243(3) of Council Directive 2006/112/EC.
For the purposes of this Part of this Schedule each of the following events is a relevant event— But the event mentioned in paragraph (a) of sub-paragraph (1) is not a relevant event for the purposes of this Part of this Schedule if— Where the destination territory is Northern Ireland, the reference in sub-paragraph (2)(c) to the number assigned to the substitute customer for the purposes of VAT is to the number assigned to the substitute customer for the purposes of VAT in the United Kingdom along with an NI VAT identifier. In a case where sub-paragraph (2) applies, references in this Part of this Schedule to the customer are to be then read as references to the substitute customer. In a case where the goods are destroyed, lost or stolen but it is not possible to determine the date on which that occurred, the goods are to be treated for the purposes of this Part of this Schedule as having been destroyed, lost or stolen on the date on which they were found to be destroyed or missing.
In a case where the origin territory is Northern Ireland, any record made by the supplier in pursuance of paragraph 57(1)(g), 62(b) or 63(2)(d) must be preserved for such period not exceeding 6 years as the Commissioners may specify in writing.
In a case where the destination territory is Northern Ireland, the customer must as soon as is reasonably practicable make a record of the information relating to the goods that is specified in Article 54A(2) of Council Implementing Regulation (EU) No. 282/2011 of 15 March 2011 laying down implementing measures for Directive 2006/112/EC on the common system of value added tax. A record made under this paragraph must—
Paragraph 1 of Schedule 1 (registration in respect of taxable supplies: UK establishment) has effect as if— Paragraph 2 of that Schedule has effect as if in sub-paragraph (7), after paragraph (b) there were inserted—. Paragraph 4(3) of that Schedule has effect as if after “are supplied” there were inserted “ and any taxable supplies which would not be taxable supplies apart from paragraph 29(1) of Schedule 9ZB ”.
Paragraph 3 of Schedule 1A (registration in respect of taxable supplies: non-UK establishment) has effect as if the provisions mentioned in paragraphs (a) to (e) of that paragraph included paragraphs 43(5) and 53(5) of this Schedule.
Paragraph 1 of Schedule 3A (registration in respect of disposals of assets for which a VAT repayment is claimed) has effect as if—
in sub-paragraph (1), after “or 1A” there were inserted “ or Part 8 or 9 of Schedule 9ZA ”, and
the provisions mentioned in sub-paragraph (2) included paragraphs 43(5) and 53(5) of this Schedule.
Paragraph 1A of Schedule 6 (valuation: special cases) has effect as if— Paragraph 6(1) of that Schedule has effect as if—
Group 12 in Part 2 of Schedule 8 (zero-rating: drugs etc) has effect as if—
in Note (1), after “goods are” there were inserted “ acquired from a member State or ”;
in Note (5N), in paragraph (b), after “made a” there were inserted “ reckonable zero-rated acquisition, or ”;
in Note (5O), in paragraph (b), after “zero-rated” there were inserted “ acquisition or ”;
“reckonable zero-rated acquisition”, in relation to a motor vehicle, means an acquisition of the vehicle from a member State in a case where NI acquisition VAT is not chargeable as a result of item 2(f) or 2A.
Group 14 in Part 2 of Schedule 9 (exemptions: supplies of goods where input tax cannot be recovered) has effect as if—
in paragraph (a) of item 1, after “ supply to, ” there were inserted “ or acquisition ”;
in Note (7)(a), after “ supply to, ” there were inserted “ or acquisition ”;
in Note (9)—
in the words before paragraph (a), after “ supply to, ” there were inserted “ or acquisition ”;
in paragraph (b), after “ supply to, ” there were inserted “ or acquisition ”;
in Note (10)—
after “on a supply” there were inserted “ , acquisition ”;
after “that supply”, there were inserted “ , acquisition ”;
in Note (15)—
after “anything the supply” there were inserted “ , acquisition ”;
after “be a supply” there were inserted “ , acquisition ”.
Paragraph 1(5) of Schedule 9A (anti-avoidance provisions: groups) has effect as if, in paragraph (a), after “importation” there were inserted “ or acquisition ”. Schedule 11A (disclosure of avoidance schemes) has effect as if the reference to VAT “incurred” by a taxable person in paragraph 2A(1)(b) included VAT on the acquisition by the person of any goods from a member State.
Regulations under this paragraph may require the submission to the Commissioners by taxable persons, at such times and intervals, in such cases and in such form and manner as may be— of statements containing such particulars of transactions in which the taxable persons are concerned and to which this sub-paragraph applies, and of the persons concerned in those transactions, as may be so specified. Sub-paragraph (1) applies to transactions involving the movement of goods between a member State and Northern Ireland, or between member States. Sections 65 and 66 (inaccuracies in, or and failure to submit, section 55A statements) apply to any statement which is required to be submitted to the Commissioners in accordance with regulations under sub-paragraph (1) as they apply to a section 55A statement. Regulations under this paragraph may make provision in relation to cases where— for requiring the person who acquires the goods to give to the Commissioners such notification of the acquisition, and for requiring any VAT on the acquisition to be paid, at such time and in such form or manner as may be specified in the regulations or (in the case of the notification requirement) by the Commissioners in accordance with the regulations. Regulations under this paragraph may provide for a notification required by virtue of sub-paragraph (4)— Regulations under this paragraph may provide for— Sub-paragraphs (1) to (4), (5) and (6) are to be treated, for the purposes of this Act, as if they were contained in paragraph 2 of Schedule 11.
Paragraph 2 of Schedule 11 has effect as if— Paragraph 2(8) of Schedule 11 applies to NI acquisition VAT in respect of an acquisition by any person from a member State of dutiable goods as it applies to VAT in respect of any supply by a taxable person of dutiable goods. Invoices described in regulations under paragraph 4(2)(b) of this Schedule or paragraph 28(2)(b) of Schedule 9ZB are items to which paragraph 3 of Schedule 11 applies (in addition to the items described in paragraph 3(2)(a) and (b) of that Schedule). Paragraph 6 of Schedule 11 has effect as if— Paragraph 8(1) of Schedule 11 applies— Paragraph 14(1) has effect as if in paragraph (c), after “paragraph 5A” there were inserted “ or paragraph 73(1) or (4) of Schedule 9ZA ”.
The following provisions apply to NI acquisition VAT as they apply to value added tax charged in accordance with section 1(1)(c) of this Act— Section 8 of the Consular Relations Act 1968 applies to VAT charged on the acquisition of oil in Northern Ireland from a member State as it applies to VAT charged on the importation of oil.
Section 13 of the Customs and Excise Duties (General Reliefs) Act 1979 (power to provide reliefs for VAT etc) has effect as if, in subsection (4), in the definition of “value added tax” after “goods” there were inserted “ or on the acquisition of goods from a member State ”.
Section 8 of the Vehicle Excise and Registration Act 1994 (vehicles removed into UK) has effect as if, in subsection (2)—
in paragraph (a), after “United Kingdom” there were inserted “ , or on the acquisition of the vehicle from a member State, ”;
in paragraph (c), after “charged on the” there were inserted “ acquisition or ”.
Paragraph 11 of Schedule 36 to the Finance Act 2008 (information and inspection powers) has effect as if— Paragraph 34 of that Schedule has effect as if— Value added tax Obligations under paragraphs 40 and 44(2) of Schedule 9ZA to VATA 1994 (obligations to notify liability to register and notify acquisition affecting exemption from registration). Value added tax Obligation under paragraph 50 of Schedule 9ZA to VATA 1994 (obligation to notify liability to register). Value added tax Obligation under regulations under paragraph 73(4) of Schedule 9ZA to VATA 1994 (obligation to give notification of acquisition of goods from a member State). For the purposes of paragraph 7 of that Schedule— In a case to which sub-paragraph (6) of paragraph 7 of that Schedule applies (whether as a result of sub-paragraph (3) of this paragraph or otherwise), the amount of the “potential lost revenue” as determined in accordance with that sub-paragraph is—
Schedule 18 to the Finance Act 2016 (serial tax avoidance) has effect as if—
in paragraph 5(4), after paragraph (a) there were inserted—;
the references to VAT “incurred” by a taxable person in paragraphs 6(1)(b) and 36(7)(b) included VAT on the acquisition by the person of any goods from a member State.
Schedule 17 to the Finance (No. 2) Act 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes) has effect as if—
the reference in paragraph 6(2)(b) to VAT “incurred” by a taxable person included VAT on the acquisition by the person of any goods from a member State;
in paragraph 6(5), after paragraph (a) there were inserted—.
References in this Act, in relation to a member State, to the law of that member State are to be construed as confined to so much of the law of that member State as for the time being has effect for the purposes of any EU instrument relating to VAT. References in this Act to a person being taxable in a member State are references to that person being taxable under so much of the law of that member State as makes provision for purposes corresponding, in relation to that member State, to the purposes of so much of this Act as makes provision as to whether a person is a taxable person. The Commissioners may by regulations make provision for the manner in which any of the following are to be or may be proved for any of the purposes of this Act— The Commissioners may by regulations provide— In any proceedings (whether civil or criminal), a certificate of the Commissioners— is sufficient evidence of that fact until the contrary is proved, and any document purporting to be a certificate under this subsection is deemed to be such a certificate until the contrary is proved. Without prejudice to the generality of any of the powers of the Commissioners under the relevant information provisions, those powers are, for the purpose of facilitating compliance with any obligation of the United Kingdom under the EU withdrawal agreement, exercisable with respect to matters that are relevant to a charge to VAT under the law of a member State, as they are exercisable with respect to matters that are relevant for any of the purposes of this Act. The reference in sub-paragraph (6) to the relevant information provisions is a reference to the provisions of section 73(7) and Schedule 11 (see also paragraph 73 which contains provision treated as if contained within that Schedule) relating to—
The Commissioners may by regulations provide for the territory of the European Union, or for the member States, to be treated for any of the purposes of this Act as including or excluding such territories as may be prescribed. Without prejudice to the generality of the powers conferred by sub-paragraph (1) and section 16, the Commissioners may, for any of the purposes of this Act, by regulations provide for prescribed provisions of any customs and excise legislation to apply in relation to cases where any territory is treated under sub-paragraph (1) as excluded from the territory of the European Union, with such exceptions and adaptations as may be prescribed. In sub-paragraph (2) the reference to customs and excise legislation is a reference to any provision (whenever passed, made or adopted) which has effect in relation to, or to any assigned matter connected with, the importation or exportation of goods or movements of goods between Northern Ireland and Great Britain. In sub-paragraph (3) “assigned matter” has the same meaning as in the Management Act.
In this Act “means of transport” in the expression “new means of transport” means any of the following if they are intended for the transport of persons or goods— For the purposes of this Schedule a means of transport is to be treated as new, in relation to any supply or any acquisition from a member State, at any time unless at that time— The Treasury may by order vary this paragraph— The Commissioners may by regulations make provision specifying the circumstances in which a means of transport is to be treated for the purposes of this paragraph as having first entered into service.
Where the context requires it, references in this Schedule to VAT means value added tax charged in accordance with the law of a member State (instead of in accordance with this Act).
Section 40A(2)
The importation of Union goods into the United Kingdom as a result of their entry into Northern Ireland is not an importation for the purposes of value added tax. Accordingly, no charge to VAT occurs on the importation of Union goods into the United Kingdom as a result of their entry into Northern Ireland (but see paragraph 1 of Schedule 9ZA, which imposes a charge to VAT on the acquisition of goods in Northern Ireland from a member State). VAT on the importation of any other goods imported into the United Kingdom as a result of their entry into Northern Ireland is to be charged and payable as if it were relevant NI import duty (instead of as provided under section 1(4)). Sub-paragraph (3) is to be taken as applying, in relation to any VAT chargeable on the importation of such goods— Section 15 (meaning of “importation of goods” into the United Kingdom) applies to the importation of such goods as if— In section 16 (application of customs enactments)— The Commissioners may by regulations— In this Schedule— This paragraph is subject to paragraph 4 of Schedule 9ZC.
For the purposes of this Act, the value of goods imported into the United Kingdom as a result of their entry into Northern Ireland is their value as if determined for the purposes of relevant NI import duty, whether or not the goods are subject to that duty. Accordingly, section 21(1) (value of imported goods) does not apply in relation to such goods. Subsections (2) to (7) of section 21 apply in relation to such goods (and sub-paragraph (1) is subject to those subsections) as if—
A supply of goods that involves the removal of goods from Northern Ireland to Great Britain or vice versa is zero-rated (see section 30(1)) if such other conditions, if any, as may be specified in regulations or imposed by the Commissioners are fulfilled. A supply of goods that involves the removal of goods from Great Britain to Northern Ireland is not zero-rated under sub-paragraph (1) if, in respect of the supply, the supplier exercises an option under an order made under section 50A. Where goods are removed from Northern Ireland to Great Britain, VAT is charged on the entry of those goods into Great Britain as if those goods had been imported into the United Kingdom. Accordingly, any provision made by or under any enactment— Where goods are removed from Great Britain to Northern Ireland, VAT is charged on the entry of those goods into Northern Ireland as if those goods had been imported into the United Kingdom as a result of their entry (from a place outside the United Kingdom) into Northern Ireland. Accordingly, any provision made by or under any enactment— Sub-paragraphs (3) and (5)— The Treasury may by regulations—
This paragraph applies to a removal of goods from Northern Ireland to Great Britain or vice versa, instead of section 15 (general provision relating to imported goods). Goods are treated as imported— Where the removal is made in the course of a taxable supply made by a taxable person, the taxable person is the person who is treated as having imported the goods. Where the removal is a removal to which paragraph 6(3A) (certain supplies from a member State to Great Britain via Northern Ireland) applies, the person who supplies the goods is the person who is treated as having imported the goods. Otherwise, each person who— is a person who is treated as having imported the goods. For the purposes of this paragraph “the relevant assumptions” are— The Commissioners may by regulations make provision— A person is “relevant” for the purposes of sub-paragraph (6)(c) if the person was not a taxable person at the time they became liable to the VAT in question. If two or more persons are treated as having imported goods those persons are jointly and severally liable to any VAT that is payable on the removal that is treated as an importation as a result of paragraph 3. The preceding provisions of this paragraph, and any provision made under sub-paragraph (6)(a), are to be ignored in reading any reference to importation or to an importer in anything applied for the purposes of this Act by section 16(1) or (2). But sub-paragraph (9) does not apply so far as the context otherwise requires or provision to the contrary is contained in regulations under section 16(3). Sub-paragraphs (3) , (3A) and (4) are subject to paragraph 4A of Schedule 9ZC.
This paragraph applies where goods are removed from Northern Ireland to Great Britain and— Where this paragraph applies—
No VAT is to be charged on the removal of qualifying Northern Ireland goods from Northern Ireland to Great Britain as a result of paragraph 3(2) unless the removal is made in the course of a taxable supply made by a taxable person. But the relief provided by sub-paragraph (1) does not apply to a removal of qualifying goods from Northern Ireland to Great Britain if— Any VAT that is chargeable as a result of sub-paragraph (2)(a) becomes chargeable from the later of— This sub-paragraph applies to a removal if— In this paragraph “qualifying Northern Ireland goods” has the meaning it has in the European Union (Withdrawal) Act 2018 (see section 8C(6) of that Act).
Item 1 of Group 13 of Schedule 8 (zero-rating)—
applies to a supply of goods which are removed from Great Britain to Northern Ireland as if the reference to a Customs declaration were to such a declaration made for the purposes of Union customs legislation (rather than under Part 1 of TCTA 2018);
does not apply to goods which are removed from Northern Ireland to Great Britain where no Customs declaration under Part 1 of TCTA 2018 is required to be made in respect of the removal of the goods.
Subsection (5) of Section 30 (export by charities treated as supply in United Kingdom) has effect as if the reference to the export of goods—
included the removal of goods from Great Britain to Northern Ireland, and
did not include the export of goods from Northern Ireland to a place in the member States.
Section 30(6) (zero-rating of exports by supplier) has effect as if reference to the export of goods did not include the export of goods from Northern Ireland to a place in the member States.
Subsection (8) of section 30 (power to zero-rate supplies where goods have been or are to be exported) has effect as if reference to the export of goods—
included the removal of goods from Northern Ireland to Great Britain, or vice versa, and
did not include the export of goods from Northern Ireland to a place in the member States.
Section 30(9) (zero-rating of supply of exported goods let on hire) has effect as if the reference to the export of goods did not include the export of goods from Northern Ireland to a place in the member States.
Where a supply of goods has been zero-rated under paragraph 3(1), or as a result of regulations under section 30(8), on the basis that the goods have been or are to be removed from Northern Ireland to Great Britain, section 30(10) (forfeiture of goods found in the United Kingdom) applies in relation to that supply as if any reference to the United Kingdom were to Northern Ireland. Where a supply of goods has been zero-rated under paragraph 3(1) or 31A(3), or as a result of regulations under section 30(8), on the basis that the goods have been or are to be removed from Great Britain to Northern Ireland, section 30(10) applies in relation to that supply as if any reference to the United Kingdom were to Great Britain.
Section 37 (relief from VAT on importation of goods) has effect as if any reference to the export of goods did not include the export of goods from Northern Ireland to a place in the member States. That section has effect in relation to a removal of goods from Northern Ireland to Great Britain (which is treated as an importation as a result of paragraph 3(3)) as if any reference to the export of goods included their removal from Great Britain to Northern Ireland. That section has effect in relation to a removal of goods from Great Britain to Northern Ireland (which is treated as an importation as a result of paragraph 3(5)) as if any reference to the export of goods included their removal from Northern Ireland to Great Britain.
Item 3 of Group 13 of Schedule 8 (zero-rating) has effect as if the reference to goods for export did not include goods for export from Northern Ireland to a place in the member States. Group 15 of that Schedule has effect as if—
Section 18 (place and time of supply) has effect as if— Section 18A (fiscal warehousing) has effect as if the reference to “such place in the United Kingdom” in subsection (3) were to “such place in Great Britain”.
A supply of goods, or an acquisition of goods in Northern Ireland from a member State, is treated as taking place outside the United Kingdom where— The Commissioners may by regulations provide that sub-paragraph (1) does not apply in circumstances specified or described in the regulations. A supply of dutiable goods which were produced or manufactured in Northern Ireland or acquired from a member State, or a supply of a mixture of such goods and other goods, is treated as taking place outside the United Kingdom where the conditions in sub-paragraph (5) are met. An acquisition in Northern Ireland from a member State of dutiable goods is treated as taking place outside the United Kingdom where those conditions are met. Those conditions are— Where— sub-paragraph (7) applies to the supply or acquisition. Where this sub-paragraph applies to a supply or acquisition of goods, the supply or acquisition is treated as taking place at the earlier of— Where sub-paragraph (7) applies to a supply of goods, any VAT payable on the supply must be paid— The Commissioners may by regulations make provision for enabling a taxable person to pay the VAT the person is required to pay by virtue of sub-paragraph (8) at a time later than that provided for by that sub-paragraph. Regulations under sub-paragraph (9) may in particular make provision for either or both of the following— and the regulations may make different provision for different descriptions of taxable person and for different descriptions of goods. In this paragraph— References in this paragraph to goods being subject to a Northern Ireland warehousing regime are to goods being kept in a Northern Ireland warehouse or being transported between Northern Ireland warehouses (whether in the same country or different countries) without the payment in a country of any duty, levy or VAT; and references to the removal of goods from a warehousing regime are to be construed accordingly.
The Commissioners may, if it appears to them proper, upon application approve any registered person as a Northern Ireland fiscal warehousekeeper, and such approval is subject to such conditions as the Commissioners impose. Subject to those conditions and to regulations made under paragraph 25(6), such a person is entitled to keep a Northern Ireland fiscal warehouse. “Northern Ireland fiscal warehouse” means a place in Northern Ireland in the occupation or under the control of a Northern Ireland fiscal warehousekeeper that the warehousekeeper has notified to the Commisioners as a Northern Ireland fiscal warehouse. Retail premises may not be notified as a Northern Ireland fiscal warehouse. A place notified under sub-paragraph (3) is a Northern Ireland fiscal warehouse from the later of— A place ceases to be a Northern Ireland fiscal warehouse— The Commissioners may in considering an application by a person to be a Northern Ireland fiscal warehousekeeper take into account any matter which they consider relevant, and may without prejudice to the generality of that provision take into account all or any one or more of the following— For the purposes of paragraphs (e) and (f) of sub-paragraph (7)— Subject to sub-paragraph (10), a person approved under sub-paragraph (1) remains a Northern Ireland fiscal warehousekeeper until the person— The Commissioners may if they consider it appropriate from time to time— Any application by or on behalf of a person to be a Northern Ireland fiscal warehousekeeper must be in writing and in such form as the Commissioners may direct and must be accompanied by such information as the Commissioners require. Any approval by the Commissioners under sub-paragraph (1), and any withdrawal of approval or other act by them under sub-paragraph (10), must be notified to the fiscal warehousekeeper in writing and takes effect on such notification being made or on any later date specified for the purpose in the notification. Without prejudice to the provisions of section 43 concerning liability for VAT, “registered person”, for the purposes of this paragraph, includes any person who under that section is for the time being treated as a member of a group.
Sub-paragraph (2) applies to any place in Northern Ireland that was a fiscal warehouse immediately before the coming into force of paragraph 17. On the coming into force of that paragraph, a place to which this sub-paragraph applies becomes a Northern Ireland fiscal warehouse (and may cease to be in accordance with that paragraph). On the coming into force of that paragraph, any fiscal warehousekeeper in relation to such a place immediately before the coming into force of that paragraph becomes a Northern Ireland warehousekeeper (and may cease to be in accordance with that paragraph). But a person does not cease to be a fiscal warehousekeeper in relation to a place in Great Britain as a result of sub-paragraph (3). Sub-paragraph (6) applies to a fiscal warehousekeeper who becomes a Northern Ireland fiscal warehousekeeper as a result of sub-paragraph (3). Any condition imposed under section 18A(1) or (6) that, immediately before the coming into force of paragraph 17, applied to a fiscal warehousekeeper to whom this sub-paragraph applies, applies to that person as a Northern Ireland fiscal warehousekeeper as if imposed under paragraph 17 (and may be varied or revoked accordingly). In this paragraph “fiscal warehouse” and “fiscal warehousekeeper” have the meaning they have in sections 18A to 18F (see section 18F).
Sub-paragraphs (5) and (6) apply where— A certificate prepared for the purposes of sub-paragraph (1)(d) must be kept for such period as the Commissioners may by regulations specify. Sub-paragraphs (5) and (6) also apply where— A certificate under sub-paragraph (1)(d) or (3)(d) must be in such form as may be specified by regulations or by the Commissioners in accordance with regulations. An acquisition or supply to which this sub-paragraph applies is treated for the purposes of this Act as taking place outside the United Kingdom if any subsequent supply of those goods is while they are subject to the Northern Ireland fiscal warehousing regime. Where an acquisition or supply to which this sub-paragraph applies falls, for the purposes of this Act, to be treated as taking place in the United Kingdom that acquisition or supply is treated for the purposes of this Act as taking place when the goods are removed from the Northern Ireland fiscal warehousing regime. Where— VAT is chargeable on that acquisition or supply notwithstanding that the acquirer or the supplier is not a taxable person. For the purposes of this paragraph, apart from sub-paragraph (6), an acquisition or supply is treated as taking place at the material time for the acquisition or supply. In this paragraph “eligible goods” has the meaning it has in section 18B, but as if in section 18B(6)(b)— The Commissioners may by regulations provide that goods of a description specified in regulations are, for the purposes of this paragraph, to be treated— The Commissioners may by regulations provide for the zero-rating of supplies of goods, or of such goods as may be specified in regulations, in cases where— Section 30(10) (zero-rating) applies in relation to regulations made under sub-paragraph (11) as it applies to regulations made under section 30(8) or (9).
Section 18B(5) (fiscally warehoused goods: relief) has effect as if after “Schedule 1” there were inserted “ and paragraphs 38(6) and 48(7) of Schedule 9ZA, or any of those provisions ”.
Section 18C has effect as if any reference to— Subsection (2) of that section has effect in relation to goods subject to a Northern Ireland warehousing or Northern Ireland fiscal warehousing regime as if the term “material time” had the meaning it has in this Part of this Schedule. Subsection (3) of that section has effect in relation to goods subject to a Northern Ireland warehousing or Northern Ireland fiscal warehousing regime as if the term “duty point” had the meaning it has in paragraph 16. Subsection (4)(b) of that section has effect in relation to goods subject to a Northern Ireland fiscal warehousing regime as if after “carried out under” there were inserted “ Union customs legislation (within the meaning of Schedule 9ZB) or under ”.
This paragraph applies to any supply to which paragraph 19(6) applies (supply treated as taking place on removal or duty point) and any acquisition to which paragraph 19(7) applies (acquisition treated as taking place on removal where acquirer not a taxable person). Any VAT payable on the supply or acquisition must (subject to any regulations under sub-paragraph (3)) be paid— The Commissioners may by regulations make provision for enabling a taxable person to pay the VAT the person is required to pay by virtue of sub-paragraph (2) at a time later than that provided by that sub-paragraph. Regulations may make different provisions for different descriptions of taxable persons and for different descriptions of goods and services.
Section 18E applies— In this paragraph “fiscal warehousekeeper” has the meaning it has in sections 18A to 18F (see section 18F).
Where— the person preparing the certificate is liable to a penalty. The amount of the penalty is the amount of VAT actually chargeable on the acquisition. A person is not liable to a penalty under sub-paragraph (1) if the person satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for having prepared the certificate in question. If a person is convicted of an offence (whether under this Act or otherwise) by reason of preparing an incorrect certificate for the purposes of paragraph 19(1)(d), the person is not liable to a penalty under sub-paragraph (1). A penalty under sub-paragraph (1) is to be treated, for the purposes of sections 76 and 83 (assessments and appeals), as if it were a penalty under section 62 (incorrect certificates). Section 62 has effect as if in subsection (1)(a)(ii), after “18C(1)(c)” there were inserted “ or paragraph 19(3)(d) of Schedule 9ZB (Northern Ireland fiscal warehouses) ”.
In this Part of this Schedule— Any reference in this Part of this Schedule to goods being subject to a Northern Ireland fiscal warehousing regime is, subject to any regulations made under sub-paragraph (6), a reference to eligible goods being kept in a Northern Ireland fiscal warehouse or being transferred between Northern Ireland fiscal warehouses in accordance with such regulations; and any reference to the removal of goods from a Northern Ireland fiscal warehousing regime are to be construed accordingly. Where as a result of an operation on eligible goods subject to a Northern Ireland fiscal warehousing regime they change their nature but the resulting goods are also eligible goods, the provisions of this Part of this Schedule apply as if the resulting goods were the original goods. Where as a result of an operation on eligible goods subject to a Northern Ireland fiscal warehousing regime they cease to be eligible goods, on their ceasing to be so this Part applies as if they had at that time been removed from the regime; and for that purpose the proprietor of the goods is treated as if that person were the person removing them. Where— this Part of this Schedule applies as if the goods of which the person is the fiscal warehousekeeper, or the goods in the fiscal warehouse, as the case may be, had at that time been removed from the fiscal warehousing regime; and for that purpose the proprietor of the goods is to be treated as if the proprietor were the person removing them. The Commissioners may make regulations governing the deposit, keeping, securing and treatment of goods in a Northern Ireland fiscal warehouse, and the removal of goods from a Northern Ireland fiscal warehouse. Regulations may, without prejudice to the generality of sub-paragraph (6), include provision— and may contain such incidental or supplementary provisions as the Commissioners think necessary or expedient. Regulations may make different provision for different cases, including different provision for different Northern Ireland fiscal warehousekeepers or descriptions of Northern Ireland fiscal warehousekeeper, for Northern Ireland fiscal warehouses of different descriptions or for goods of different classes or descriptions or of the same class or description in different circumstances.
Paragraph 3 of Schedule 6 (valuation: special cases) has effect in relation to goods whose supply involves their removal to Northern Ireland from a place outside the United Kingdom as if— Paragraph 2(8) of Schedule 11 has effect as if after “section 18” there were inserted “ in relation to goods other than goods in Northern Ireland, or paragraph 16 of Schedule 9ZB in relation to goods in Northern Ireland ”. Section 702 of the Income Tax (Earnings and Pensions) Act 2003 (meaning of “readily convertible asset”) has effect as if in subsection (6)(a), in the definition of “warehousing regime”, after “Value Added Tax Act 1994 (c23))” there were inserted “ or a Northern Ireland warehousing or Northern Ireland fiscal warehousing regime (within the meaning of paragraphs 16 to 25 of Schedule 9ZB to that Act) ”. Paragraph 11 of Schedule 36 to the Finance Act 2008 (power to inspect premises) has effect as if—
Paragraph 3(1) (zero-rating of supplies involving removal of goods from Northern Ireland to Great Britain or vice versa) does not apply to a supply of relevant goods. In this paragraph “relevant goods” has the meaning it has in section 9A (reverse charge on gas, electricity, heat or cooling).
Where any supply of goods involves both— subsections (2), (4) to (6) and (10) to (12) of section 6 (time of supply) do not apply and the supply is treated for the purposes of this Act as taking place on whichever is the earlier of the days specified in sub-paragraph (2). The days mentioned in sub-paragraph (1) are— Section 6(14) has effect as if after “section 55(4)” there were inserted “ or paragraph 28 of Schedule 9ZB ”.
Goods whose place of supply is not determined under subsection (2) or (3) of section 7 (place of supply of goods) are treated as supplied in the United Kingdom where— Goods whose place of supply is not determined under sub-paragraph (1) or subsection (2) or (3) of section 7 and which do not consist in a new means of transport are treated as supplied outside the United Kingdom where— But sub-paragraph (2) does not apply in relation to any supply in a case where the liability mentioned in sub-paragraph (2)(c) depends on the exercise by any person of an option in the United Kingdom corresponding to such an option as is mentioned in paragraph 48(2) of Schedule 9ZA unless that person has given, and has not withdrawn, a notification to the Commissioners that the person wishes supplies by that person to be treated as taking place outside the United kingdom where they are supplies in relation to which the other requirements of sub-paragraph (2) are satisfied. The Commissioners may by regulations provide that a notification for the purposes of sub-paragraph (3) is not to be given or withdrawn except in such circumstances, and in such form and manner, as may be prescribed. For the purposes of this paragraph— Section 7 has effect as if the references in subsections (5A) to (7) to “the preceding provisions of this section” included sub-paragraphs (1) and (2) of this paragraph.
A person carrying on a business makes a supply of goods where— Sub-paragraph (1) applies to the removal of goods, whether or not that removal of the goods is, or is connected with, a transaction for consideration. Sub-paragraph (1) does not apply— Sub-paragraph (1) is subject to paragraph 58 of Schedule 9ZA (call-off stock arrangements).
Subsection (1)(a) of Section 43 (disregard of supplies between members of groups) does not apply to a supply of goods if the goods are in Northern Ireland at the time they are supplied unless the supplier and the recipient each has a business establishment, or some other fixed establishment, in Northern Ireland.
A removal of goods from Great Britain to Northern Ireland to which this sub-paragraph applies is to be treated as a taxable supply of goods made in the course or furtherance of a business carried on by the person who removes the goods. Sub-paragraph (1) applies to a removal of goods if— That condition is that P uses the goods, after their removal, exclusively for the purpose of making— A supply of goods which is treated as arising under sub-paragraph (1) is zero-rated. VAT incurred by P on the removal of the goods from Great Britain to Northern Ireland (see paragraph 3(4)) is not to be treated as attributable (for the purposes of section 26) to the supply treated as arising under sub-paragraph (1).
A removal of goods from Great Britain to Northern Ireland to which this sub-paragraph applies is to be treated as a taxable supply of goods made in the course or furtherance of a business carried on by the person who removes the goods. Subject to sub-paragraph (4), sub-paragraph (1) applies to a removal of goods if— That condition is that P uses the goods, after their removal, exclusively for— Sub-paragraph (1) does not apply in relation to— A supply of goods which is treated as arising under sub-paragraph (1) is zero-rated. VAT incurred by P on the removal of goods from Great Britain to Northern Ireland (see paragraph 3(4) of Schedule 9ZB) is not to be treated as attributable (for the purposes of section 26) to the supply treated as arising under sub-paragraph (1).
Paragraph 3(1) (zero-rating of supply of goods removed from Great Britain to Northern Ireland and vice versa) applies to goods removed from Northern Ireland to the Isle of Man as they apply to goods removed from Northern Ireland to Great Britain. The following provisions apply to goods removed to Northern Ireland from the Isle of Man as they apply to goods removed from Great Britain to Northern Ireland— Paragraph 4 (liability for VAT on movements between Great Britain and Northern Ireland) applies to goods removed to Northern Ireland from the Isle of Man as they apply to goods removed from Great Britain to Northern Ireland as if the references to a “taxable person” included a person who is, or is required to be, registered under an Act of Tynwald for the purposes of any tax imposed by or under an Act of Tynwald which corresponds to VAT. Paragraph 7 (zero-rating of supplies made before declaration on removal) applies to goods removed to Northern Ireland from the Isle of Man as it applies to goods removed from Great Britain to Northern Ireland.
Subsection (8) of section 30 (power to zero-rate supplies where goods have been or are to be exported) has effect as if reference to the export of goods included the removal of goods from Northern Ireland to the Isle of Man. Where a supply of goods has been zero-rated as a result of paragraph 3(1) or regulations under section 30(8), on the basis that the goods have been or are to be removed from Northern Ireland to the Isle of Man, section 30(10) applies in relation to that supply as if any reference to the United Kingdom were to Northern Ireland. Section 37 (relief from VAT on importation of goods) has effect in relation to a removal of goods to Northern Ireland from the Isle of Man (which is treated as an importation as a result of paragraphs 3(5) and 32(2)) as if any reference to the export of goods included their removal from Northern Ireland to the Isle of Man. Group 15 of Schedule 8 (zero-rating) has effect as if—
Part 4 (warehouses) has effect as if any reference to Great Britain included the Isle of Man (see also article 2 of the Value Added Tax (Isle of Man) Order 1982 which provides that this Act has effect as if the Isle of Man were part of the United Kingdom subject to the provisions of that Order).
Nothing in this Part of this Schedule is to be taken as extending to the Isle of Man.
Part 3 of Schedule 9ZC (liability to be registered of persons treated as having imported goods under Part 1 of that Schedule) applies in relation to a person treated as having imported goods under paragraph 4(3A) of this Schedule as it applies to a person treated as having imported goods under Part 1 of that Schedule. But sub-paragraph (1) does not apply in relation to a person who is treated as having imported goods under Part 1 of Schedule 9ZC. For the purposes of sub-paragraph (1), Schedule 9ZC has effect as if—
Section 40A(3)
Except in relation to a removal to which paragraph 6(3A) of Schedule 9ZB (certain supplies from a member State to Great Britain via Northern Ireland) applies, references in the following provisions of this Act to goods being imported do not include goods imported into the United Kingdom as a result of their entry into Northern Ireland or goods treated as having been imported into the United Kingdom as a result of their being removed from Northern Ireland to Great Britain—
section 5A(3) (the imported consignment condition);
section 7(5B)(b) (place of supply of goods);
section 7AA(1)(c) (reverse charge on goods supplied from abroad).
Section 5A has effect as if in subsection (1)(c)(ii) after “outside the United Kingdom” there were inserted “ and prior to the supply the goods were located in Great Britain ”.
This Act has effect as if after section 5A there were inserted—
Section 77F (exception from liability under section 5A) has effect as if—
in the heading, after “section 5A” there were inserted “ or Part 1 of Schedule 9ZC ”;
in subsection (1), after “section 5A” there were inserted “ or Part 1 of Schedule 9ZC ”;
in subsection (2), after “(as defined in section 5A” there were inserted “ or Part 1 of Schedule 9ZC, as the case may be ”.
In Part 2 of Schedule 8 (zero-rating: the groups), Group 21 (online marketplaces: deemed supply) has effect as if after Item 1 there were inserted—
In Schedule 11, paragraph 6 has effect subject to the following modifications. Sub-paragraph (1) has effect as if at the start there were inserted “Subject to paragraph 6ZA, Sub-paragraph (4C) has effect as if— Sub-paragraph (4D) has effect as if—
Schedule 11 has effect as if after paragraph 6 there were inserted—
Sub-paragraph (2) applies (instead of section 6) to a supply of goods deemed to have taken place by section 5B(2)(a) or (b) (as it has effect in accordance with paragraph 1B of this Schedule). The supply of goods is to be treated as taking place at the time when payment for the goods has been accepted within the meaning of Article 41a of the Implementing Regulation. In this paragraph, “the Implementing Regulation” has the same meaning as in Schedule 9ZE.
Sub-paragraph (2) applies, instead of section 15(4) and (5) (as modified by paragraph 1 of Schedule 9ZB), where— The person who is treated as having imported the goods is— In sub-paragraph (1)(b)(ii), “VAT registration number” means the number allocated by the Commissioners to a person registered under this Act. For the purposes of sub-paragraph (1)(d)(i), “excepted goods” means goods of a class or description subject to any duty of excise whether or not those goods are in fact chargeable with that duty, and whether or not that duty has been paid on the goods. The Commissioners may by regulations substitute a different figure for a figure that is at any time specified in sub-paragraph (1)(c).
Sub-paragraph (2) applies, instead of paragraph 4(3) , (3A) and (4) of Schedule 9ZB, in relation to a removal of goods from Northern Ireland to Great Britain or, as the case may be, vice versa where— The operator of the online marketplace is the person who is treated as having imported the goods. But sub-paragraph (2) does not apply where the person to whom the goods are supplied (“R”)— In sub-paragraph (3)— The Commissioners may by regulations specify the details that must be provided for the purposes of sub-paragraph (3)(c).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In the Value Added Tax Regulations 1995 (S.I. 1995/2518), Part 3 (VAT invoices and other invoicing requirements) has effect subject to the following modifications. In regulation 13 (obligation to provide a VAT invoice), paragraph (1C) has effect as if— In regulation 13A (electronic invoicing), paragraph (5) has effect as if— Regulation 16B (retailers' and simplified invoices: exceptions), has effect as if—
A person who is treated as having imported goods under Part 1 of this Schedule and— becomes liable to be registered under this Schedule at the point they are so treated. A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) becomes liable to be registered under this Schedule at any time if there are reasonable grounds for believing that the person will be treated as having imported goods under Part 1 of this Schedule in the following 30 days. A person is treated as having become liable to be registered under this Schedule at any time when the person would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 11(2) of this Schedule, paragraph 13(3) of Schedule 1, paragraph 11 of Schedule 1A, paragraph 6(2) of Schedule 3A or paragraph 43 or 53 of Schedule 9ZA. A person does not cease to be liable to be registered under this Schedule except in accordance with paragraph 7.
A person who has become liable to be registered under this Schedule ceases to be so liable at any time if the Commissioners are satisfied that the person is no longer a person who is, or will be, treated as having imported goods under Part 1 of this Schedule. But a person does not cease to be liable to be registered under this Schedule at any time if there are reasonable grounds for believing that the person will be treated as having imported goods under Part 1 of this Schedule in the following 30 days.
A person who becomes liable to be registered under this Schedule must notify the Commissioners of the liability— The Commissioners must register any such person (whether or not the person notifies them) with effect from the relevant time. In this paragraph “the relevant time”—
Where a person who is not liable to be registered under this Act and is not already so registered— the Commissioners may, subject to such conditions as they think fit to impose, register the person with effect from such date as may be agreed between the Commissioners and the person. Conditions imposed under sub-paragraph (1) may— Where a person who is entitled to be registered under paragraph 9 or 10 of Schedule 1 requests registration under this paragraph, the person is to be registered under that Schedule, and not under this Schedule.
Any person registered under this Schedule who ceases to be registrable under this Act must notify the Commissioners of that fact within 30 days of the day on which the person ceases to be registrable. A person registered under paragraph 9(1) must notify the Commissioners, within 30 days of the first occasion after the person's registration when the person makes or facilitates a relevant supply, that the person has made or facilitated that supply. For the purposes of this paragraph a person ceases to be registrable under this Act where—
Where a person registered under this Schedule satisfies the Commissioners that the person is not liable to be so registered, the Commissioners must, if the person so requests, cancel that registration with effect from the day on which the request is made or from such later date as may be agreed between the Commissioners and the person. Where the Commissioners are satisfied that a person registered under this Schedule has ceased since the person's registration to be registrable under this Schedule, they may cancel that registration with effect from the day on which the person so ceased or from such later date as may be agreed between the Commissioners and the person. Where the Commissioners are satisfied that a person who has been registered under paragraph 9(1) and is not for the time being liable to be registered under this Schedule— the Commissioners may cancel the person's registration with effect from the date so specified or, as the case may be, the date of the contravention or from such later date as may be agreed between the Commissioners and the person. But the Commissioners may not, under sub-paragraph (1), (2) or (3), cancel a person⿿s registration with effect from any time unless the Commissioners are satisfied that it is not a time when that person would be subject to a requirement, or in a case falling under sub-paragraph (2) or (3) a requirement or entitlement, to be registered under this Act. Where the Commissioners are satisfied that, on the day on which a person was registered under this Schedule, the person— the Commissioners may cancel that registration with effect from that day. In determining, for the purposes of sub-paragraph (4), whether a person would be subject to a requirement, or would be entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when the person is already registered or when the person is so liable under any other provision is to be disregarded. For the purposes of this paragraph, a person is registrable under this Schedule at any time when the person is liable to be registered under this Schedule or is a person who makes or facilitates relevant supplies.
Any notification required under this Part of this Schedule must be made in such form and manner and must contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.
For the purposes of this Part of this Schedule a supply is a “relevant supply” if the person making or facilitating it would be treated as having imported goods under Part 1 of this Schedule.
Value added tax Obligation under paragraph 8 of Schedule 9ZC to VATA 1994 (obligations to notify liability to register and notify matters affecting continuance of registration).
Section 40A
In this Schedule—
Parts 2 and 3 establish a special accounting scheme (the One Stop Shop scheme, referred to in this Schedule as the “OSS scheme”) which may be used by persons making intra-Community distance sales of goods from Northern Ireland to member States;
Part 4 is about persons participating in a non-UK scheme;
Part 5 is about the collection of UK VAT;
Part 6 is about appeals;
Part 7 contains definitions.
For the purposes of this Schedule, “scheme supply” means a supply of goods that would be an “intra-Community distance sale of goods” within the meaning given by Article 14(4) of the VAT Directive if references in that Article to a “Member State” were read as if they included a reference to Northern Ireland ....
Persons registered under the OSS scheme are to be registered in a single register kept by the Commissioners for the purposes of the scheme.
A person (“P”) may register under the OSS scheme if— P may not be registered under the OSS scheme if they are a participant in a non-UK scheme (see para 38(1)). P must register under the OSS scheme if P intends to account for VAT on scheme supplies even if P is ... registered under this Act.
The Commissioners must register a person (“P”) under the OSS scheme if P— A registration request must state— A registration request must—
Where a person (“P”) is registered under this Schedule, P's registration takes effect on the date determined in accordance with Article 57d of the Implementing Regulation.
The Commissioners may, by means of a notice published by them, make further provision about registration under this Schedule.
A person (“P”) registered under the OSS scheme must inform the Commissioners of the date when P first makes scheme supplies (unless P has already given the Commissioners that information under paragraph 5(2)(b)). That information, and any information P is required to give under Article 57h of the Implementing Regulation (notification of certain changes), must be communicated by such electronic means, and in such manner, as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require.
The Commissioners must cancel the registration of a person (“P”) under the OSS scheme if—
P has ceased to make, or no longer intends to make, scheme supplies and has notified the Commissioners of that fact;
the Commissioners otherwise determine that P has ceased to make, or no longer intends to make, such supplies;
P has ceased to satisfy any of the other requirements for registration in paragraph 4(1) and has notified the Commissioners of that fact,
the Commissioners otherwise determine that P has ceased to satisfy any of those conditions, or
the Commissioners determine that P has persistently failed to comply with P's obligations in or under this Schedule or the Implementing Regulation.
This paragraph applies where a person (“P”)— P is liable to pay to the Commissioners the gross amount of VAT on the supply. The gross amount of VAT on the supply is determined in accordance with sub-paragraphs (4) and (5), without any deduction of VAT pursuant to Article 168 of the VAT Directive. If the supply is treated as made in the United Kingdom, the amount is the amount of VAT that would be charged on the supply on the assumption for all purposes of this Act relating to the determination of— that P is registered under this Act. If the supply is treated as made in a member State, the amount is the amount of VAT charged on the supply in accordance with the law of that member State.
A person (“P”) who is or has been registered under the OSS scheme must submit a return (an “OSS scheme return”) to the Commissioners for each reporting period. Each quarter for the whole or part of which P is registered under the OSS scheme is a “reporting period” for P.
An OSS scheme return is to be made out in sterling. Any conversion from one currency into another for the purposes of sub-paragraph (1) is to be made using the exchange rates published by the European Central Bank— An OSS scheme return—
A person who is required to submit an OSS scheme return must pay, by the deadline for submitting the return, the amounts required in accordance with paragraph 10 in respect of scheme supplies made in the reporting period to which the return relates. A payment under this paragraph must be made in such manner as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require.
A person (“P”) who is registered under the OSS scheme must keep and make available to the Commissioners, on request, ... obligatory records .... The records must be made available by electronic means. In sub-paragraph (1) “obligatory records” means records , of transactions entered into by P covered by the scheme, containing the information referred to in Article 63c(1) of the Implementing Regulation.
Section 44 of the Commissioners for Revenue and Customs Act 2005 (requirement to pay receipts into the Consolidated Fund) does not apply to any money received for or on account of VAT that is required to be paid to a member State under Article 46 of Council Regulation (EU) No 904/2010.
A person (“P”) who— is not required to discharge any obligation placed on them as a taxable person, to the extent that the obligation relates to a scheme supply treated as made in the United Kingdom. The reference in sub-paragraph (1) to an obligation placed on P as a taxable person is to an obligation— This paragraph does not prevent P claiming, in reliance on section 25(2) (deduction of input tax from output tax by a taxable person), a credit for input tax incurred on scheme supplies treated as made in the United Kingdom.
In this Schedule “a non-UK scheme” means any provision of the law of a member State which implements Section 3 of Chapter 6 of Title XII of the VAT Directive. In relation to a non-UK scheme, references to the “administering member State” are to the member State under whose law the scheme is established.
A participant in a non-UK scheme is not required to be registered under this Act by virtue of making scheme supplies in respect of which the participant is required to make returns under that other scheme. Sub-paragraph (1) overrides any contrary provision in this Act. Where a participant in a non-UK scheme who is not registered under this Act (“the unregistered person”) makes relevant supplies, it is to be assumed for all purposes of this Act relating to the determination of— that the unregistered person is registered under this Act. Scheme supplies made by the unregistered person are “relevant supplies” if—
Sub-paragraph (2) applies where a person (“P”) who is registered under Schedule 1A or Part 9 of Schedule 9ZA— The Commissioners may cancel P's registration under Schedule 1A or Part 9 of Schedule 9ZA (as the case may be) with effect from—
A person (“P”) who— is not required to discharge any obligation placed on them as a taxable person, to the extent that the obligation relates to relevant supplies. The reference in sub-paragraph (1) to an obligation placed on P as a taxable person is to an obligation— A supply made by a participant in a non-UK scheme is a “relevant supply” if— The Commissioners may by regulations specify cases in relation to which sub-paragraph (1) is not to apply. In section 25(2) (deduction of input tax from output tax by a taxable person) the reference to output tax that is due from the taxable person does not include any VAT that the taxable person is liable under a non-UK scheme to pay to the tax authorities for the administering member State.
In paragraph 1 of Schedule 6 (valuation: supply to connected person at less than market value) the reference to a supply made by a taxable person is to be read as including a scheme supply that is made by a participant in a non-UK scheme (and is treated as made in the United Kingdom).
The power of the Commissioners to make regulations under section 39 (repayment of VAT to those in business overseas) includes power to make provision for giving effect to the second sentence of Article 369j of the VAT Directive (which provides for VAT on certain supplies to participants in special accounting schemes to be refunded in accordance with Directive 2008/9/EC).
A person (“P”) who is a participant in a non-UK special scheme must keep and make available to the Commissioners, on request, obligatory records. The records must be made available by electronic means. In sub-paragraph (1) “obligatory records” means records, of transactions entered into by P covered by the scheme, containing the information referred to in Article 63c(1) of the Implementing Regulation.
For the purposes of this Schedule, section 73 (failure to make returns etc) is to be read as if— See also the modifications in paragraph 23. In this Schedule “relevant non-UK return” means a non-UK return (see paragraph 38(1)) that is required to be made (wholly or partly) in respect of scheme supplies that are treated as made in the United Kingdom.
Sub-paragraphs (2) and (3) make modifications of section 73 which— Section 73 has effect as if, after subsection (3), there were inserted— The reference in section 73(9) to subsection (1) of that section is taken to include a reference to section 73(3A) (treated as inserted by sub-paragraph (2)). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
References to prescribed accounting periods in section 77 (assessments: time limits, etc) are to be read in accordance with the modifications made by paragraphs 22 and 23—
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Where a person who has made an OSS scheme return or a relevant non-UK return makes a claim under paragraph 31(7)(b) (overpayments) in relation to an error in the return, the ... return is taken for the purposes of this Act to have been amended by the information in the claim. Where a person who has made an OSS scheme return or a relevant non-UK return gives the Commissioners a notice relating to the return under paragraph 33(2) (increase or decrease in consideration), the ... return is taken for the purposes of this Act to have been amended by that information. Where (in a case not falling within sub-paragraph (1) or (2)) a person who has made an OSS scheme return or a relevant non-UK return notifies the Commissioners ... of a change that needs to be made to the return to correct an error, or rectify an omission, in it, the ... return is taken for the purposes of this Act to have been amended by that information.
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A person may make a claim if the person— A person may make a claim if the person has, as a participant in a non-UK scheme, paid (to the tax authorities for the administering member State or to the Commissioners) an amount by way of UK VAT that was not UK VAT due (“the overpaid amount”), otherwise than in the circumstances mentioned in sub-paragraph (1)(c). A person who is or has been a participant in a non-UK scheme may make a claim if the Commissioners— Where a person makes a claim under sub-paragraph (1) or (2), the Commissioners must repay the overpaid amount to the person. Where a person makes a claim under sub-paragraph (3), the Commissioners must credit the person with the amount not due. Where— the Commissioners must pay (or repay) to the person so much of the amount as remains to the person's credit. The reference in sub-paragraph (1) to a claim is to a claim made— Sub-paragraphs (1) and (2) do not require any amount to be repaid except to the extent that is required by Article 63 of the Implementing Regulation.
In section 80 (credit for, or repayment of, overstated or overpaid VAT), subsections (3) to (3C) (unjust enrichment) and (4A) ... and (6) (recovery by assessment of amounts wrongly credited) have effect as if— In section 80(3) to (3C), (4A) ... and (6), as modified by sub-paragraph (1), references to the crediting of amounts are to be read as including the payment of amounts. The Commissioners are not liable to repay the overpaid amount on a claim made— if the claim is made more than 4 years after the relevant date. On a claim made under paragraph 31(3), the Commissioners are not liable to credit the amount not due if the claim is made more than 4 years after the relevant date. The “relevant date” is— A person makes an “incorrect disclosure” where—
This paragraph applies where— The person must, in the tax period in which the increase or decrease is accounted for in the person’s business accounts, notify the Commissioners of the adjustment needed to the figures in the OSS scheme return or non-UK return (as the case may be) because of the increase or decrease. Where the change to which a notice under sub-paragraph (2) relates is an increase in the consideration for a supply, the person must pay to the Commissioners the difference between— Where the change to which an amendment or notice under sub-paragraph (2) relates is a decrease in the consideration for a supply, the amendment or notice has effect as a claim; and where a claim is made the Commissioners must repay any UK VAT paid by the person that would not have been UK VAT due from the person had the consideration for the supply always been the decreased amount. The Commissioners may by regulations specify— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In this paragraph “UK supply” means a scheme supply that is treated as made in the United Kingdom.
Where a participant in a non-UK scheme— the amending of the return may be treated as the making of a claim to the Commissioners for the purposes of section 36(2) (bad debts: claim for refund of VAT).
has submitted a non-UK return to the tax authorities for the administering member State, and
amends the return to take account of the writing-off as a bad debt of the whole or part of the consideration for a scheme supply that is treated as made in the United Kingdom,
Where a person corrects a non-UK return in a way that constitutes telling the tax authorities for the administering member State about— the person is regarded as telling HMRC about that for the purposes of paragraph 9 of Schedule 24 to the Finance Act 2007.
an inaccuracy in the return,
a supply of false information, or
a withholding of information,
Where a participant in a non-UK scheme is liable to pay UK VAT to the tax authorities for the administering member State in accordance with the scheme, the UK VAT is regarded for the purposes of section 130(6) of the Finance Act 2008 (set-off) as payable to the Commissioners.
An appeal lies to the tribunal with respect to any of the following— Part 5 of this Act (reviews and appeals), and any order or regulations under that Part, have effect as if an appeal under this paragraph were an appeal which lies to the tribunal under section 83(1) (but not under any particular paragraph of that subsection). Where the Commissioners have made an assessment under section 73 in reliance on paragraph 22 or 23—
In this Schedule— In relation to a non-UK scheme (or a non-UK return), references in this Schedule to “the tax authorities” are to the tax authorities for the member State under whose law the scheme is established. References in this Schedule to scheme supplies being “treated as made” in the United Kingdom are to their being treated as made in the United Kingdom by paragraph 29(1) of Schedule 9ZB.
Section 40A
In this Schedule—
Parts 2 and 3 establish a special accounting scheme (the Import One Stop Shop scheme, referred to in this Schedule as the “IOSS scheme”) which may be used by certain persons making supplies of goods—
to Northern Ireland from countries or territories other than Great Britain, the Isle of Man or member States, or
into the European Union from countries or territories other than Northern Ireland or member States;
Part 4 makes provision about the collection of UK VAT on such supplies;
Part 5 makes provision about IOSS representatives;
Part 6 makes supplementary provision;
Part 7 is about appeals;
Part 8 contains definitions.
For the purposes of this Schedule, a supply of goods is , subject to sub-paragraph (3), a “qualifying supply of goods” if— For the purposes of sub-paragraph (1)(a), the second paragraph of Article 14(4) of the VAT Directive is to be read as if after “Member State” there were inserted “ or Northern Ireland ”. A supply of goods is not a “qualifying supply of goods” if—
Persons registered under the IOSS scheme are to be registered in a single register kept by the Commissioners for the purposes of the scheme.
A person (“P”) may register under the IOSS scheme if—
P makes or intends to make one or more qualifying supplies of goods in the course of a business that P carries on,
one of the following applies—
P is established in Northern Ireland,
P is established in a country or territory with which the EU has concluded an agreement making provision corresponding or similar to that contained in Council Directive 2010/24/EU or Regulation (EU) No 904/2010, or
P is represented by an IOSS representative established in Northern Ireland (see Part 5),
P is not identified under any provision of the law of a member State which implements Section 4 of Chapter 6 of Title XII of the VAT Directive, and
P is not barred from registering by—
the second paragraph of Article 369l(3) of the VAT Directive, or
any provision of the Implementing Regulation.
The Commissioners must register a person (“P”) under the IOSS scheme if P— A registration request must state— A registration request must include a statement— A registration request must—
Where a person (“P”) is registered under this Schedule, P's registration takes effect on the date determined in accordance with Article 57d of the Implementing Regulation.
Where the Commissioners register a person under the IOSS scheme who is an IOSS representative the Commissioners must also register under the IOSS scheme each person represented by the representative. The Commissioners may, by means of a notice published by them, make further provision about registration under this Schedule.
A notification under Article 57h of the Implementing Regulation (notification of certain changes) must be given by such electronic means, and in such manner, as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations prescribe.
The Commissioners must cancel the registration of a person (“P”) under the IOSS scheme if—
P has ceased to make, or no longer intends to make, qualifying supplies of goods and has notified the Commissioners of that fact,
the Commissioners otherwise determine that P has ceased to make, or no longer intends to make, such supplies,
P has ceased to satisfy any of the other conditions for registration in paragraph 4 and has notified the Commissioners of that fact,
the Commissioners otherwise determine that P has ceased to satisfy any of those conditions,
the Commissioners determine that P has persistently failed to comply with P's obligations in or under this Schedule or the Implementing Regulation, or
any of the circumstances described in Article 369r(3)(a) to (e) of the VAT Directive occur in relation to P.
This paragraph applies where a person (“P”)— P is liable to pay to the Commissioners the VAT on the supply under and in accordance with this Schedule. The amount of VAT which a person is liable to pay on the supply is to be determined in accordance with sub-paragraphs (4) to (6), without any deduction of VAT pursuant to Article 168 of the VAT Directive. If the supply is treated as made in the United Kingdom, the amount is the amount of VAT charged on the supply under this Act (see paragraph 34(2)) and that amount is to be regarded for the purposes of this Act as VAT charged in accordance with this Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If the supply is treated as made in a member State, the amount is the amount of VAT charged on the supply in accordance with the law of that member State.
A person (“P”) who is, or has been, registered under this Schedule must submit a return (an “IOSS scheme return”) to the Commissioners for each reporting period. Each month for the whole or any part of which P is registered under this Schedule is a “reporting period” for P.
An IOSS scheme return is to be made out in sterling. Any conversion from one currency into another for the purposes of sub-paragraph (1) is to be made using the exchange rates published by the European Central Bank— An IOSS scheme return—
A person who is required to submit an IOSS scheme return must pay, by the deadline for submitting the return, the amounts required in accordance with paragraph 10 in respect of qualifying supplies of goods made in the reporting period to which the return relates. A payment under this paragraph must be made in such manner as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require.
A person (“P”) who is registered under the IOSS scheme must keep and make available to the Commissioners, on request, ... obligatory records .... The records must be made available by electronic means. In sub-paragraph (1) “obligatory records” means records , of transactions entered into by P covered by the scheme, containing the information referred to in Article 63c(2) of the Implementing Regulation.
Section 44 of the Commissioners for Revenue and Customs Act 2005 (requirement to pay receipts into the Consolidated Fund) does not apply to any money received for or on account of VAT that is required to be paid to a member State under Article 46 of Council Regulation (EU) No 904/2010.
For the purposes of this Schedule, section 73 (failure to make returns etc) is to be read as if— See also the modifications in paragraph 17. In this Schedule “relevant special scheme return” means a special scheme return (see paragraph 43(1)) that is required to be made (wholly or partly) in respect of qualifying supplies of goods that are treated as made in the United Kingdom.
Sub-paragraphs (2) and (3) make modifications of section 73 which— Section 73 has effect as if, after subsection (3), there were inserted— The reference in section 73(9) to subsection (1) of that section is taken to include a reference to section 73(3A) (treated as inserted by sub-paragraph (2)). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
References to prescribed accounting periods in section 77 (assessments: time limits etc) are to be read in accordance with the modifications made by paragraphs 16 and 17—
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Where a person who has made a relevant special scheme return makes a claim under paragraph 25(7)(b) (overpayments) in relation to an error in the return, the relevant special scheme return is taken for the purposes of this Act to have been amended by the information in the claim. Where a person who has made a relevant special scheme return gives the Commissioners a notice relating to the return under paragraph 27(2)(b) (increase or decrease in consideration), the relevant special scheme return is taken for the purposes of this Act to have been amended by that information. Where (in a case not falling within sub-paragraph (1) or (2)) a person who has made a relevant special scheme return notifies the Commissioners (after the expiry of the period during which the special scheme return may be amended under Article 61 of the Implementing Regulation) of a change that needs to be made to the return to correct an error, or rectify an omission, in it, the relevant special scheme return is taken for the purposes of this Act to have been amended by that information.
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A person may make a claim if the person— A person may make a claim if the person has, as a participant in a special scheme, paid (to the tax authorities for the administering member State or to the Commissioners) an amount by way of UK VAT that was not UK VAT due (“the overpaid amount”), otherwise than in the circumstances mentioned in sub-paragraph (1)(c). A person who is or has been a participant in a special scheme may make a claim if the Commissioners— Where a person makes a claim under sub-paragraph (1) or (2), the Commissioners must repay the overpaid amount to the person. Where a person makes a claim under sub-paragraph (3), the Commissioners must credit the person with the amount not due. Where— the Commissioners must pay (or repay) to the person so much of the amount as remains to the person's credit. The reference in sub-paragraph (1) to a claim is to a claim made— Sub-paragraphs (1) and (2) do not require any amount to be repaid except to the extent that is required by Article 63 of the Implementing Regulation.
In section 80 (credit for, or repayment of, overstated or overpaid VAT), subsections (3) to (3C) (unjust enrichment) and (4A) ... and (6) (recovery by assessment of amounts wrongly credited) have effect as if— In section 80(3) to (3C), (4A) ... and (6), as modified by sub-paragraph (1), references to the crediting of amounts are to be read as including the payment of amounts. The Commissioners are not liable to repay the overpaid amount on a claim made— if the claim is made more than 4 years after the relevant date. On a claim made under paragraph 25(3), the Commissioners are not liable to credit the amount not due if the claim is made more than 4 years after the relevant date. The “relevant date” is— A person makes an “incorrect disclosure” where—
This paragraph applies where— The person must, in the tax period in which the increase or decrease is accounted for in the person's business accounts— Where the change to which an amendment or notice under sub-paragraph (2) relates is an increase in the consideration for a UK supply, the person must pay to the tax authorities for the administering member State (in accordance with Article 62 of the Implementing Regulation) or, in a case falling within sub-paragraph (2)(b), the Commissioners, the difference between— Where the change to which an amendment or notice under sub-paragraph (2) relates is a decrease in the consideration for a UK supply, the amendment or notice has effect as a claim; and where a claim is made the Commissioners must repay any VAT paid by the person that would not have been VAT due from the person had the consideration for the supply always been the decreased amount. The Commissioners may by regulations specify— A payment made under sub-paragraph (3) in a case within sub-paragraph (2)(a) must be made before the end of the tax period referred to in sub-paragraph (2). In this paragraph “UK supply” means a qualifying supply of goods that is treated as made in the United Kingdom.
Where a participant in a special scheme— the amending of the return may be treated as the making of a claim to the Commissioners for the purposes of section 36(2) (bad debts: claim for refund of VAT).
has submitted a special scheme return to the tax authorities for the administering member State, and
amends the return to take account of the writing-off as a bad debt of the whole or part of the consideration for a qualifying supply of goods that is treated as made in the United Kingdom,
Where a person corrects a special scheme return in a way that constitutes telling the tax authorities for the administering member State about— the person is regarded as telling HMRC about that for the purposes of paragraph 9 of Schedule 24 to the Finance Act 2007 (reductions for disclosure).
an inaccuracy in the return,
a supply of false information, or
a withholding of information,
Where a participant in a special scheme is liable to pay UK VAT to the tax authorities for the administering member State in accordance with the scheme, the UK VAT is regarded for the purposes of section 130(6) of the Finance Act 2008 (set-off) as payable to the Commissioners.
A person (“P”) who is a participant in a special scheme (other than the IOSS scheme) must keep and make available to the Commissioners, on request, obligatory records. The records must be made available by electronic means. In sub-paragraph (1) “obligatory records” means records, of transactions entered into by P covered by the scheme, containing the information referred to in Article 63c(2) of the Implementing Regulation.
A person may register as an IOSS representative for the purposes of the IOSS scheme if the person is established in Northern Ireland. A person may not be represented by more than one IOSS representative at a time.
Before a person (“R”) can be registered as an IOSS representative, R must provide to the Commissioners the information required by Article 369p(2) and (3) of the VAT Directive. The Commissioners may by regulations or by means of a notice published by them make further provision about the registration of a person as an IOSS representative. The provision that may be made under sub-paragraph (2) includes provision—
Where a person registered under the IOSS scheme (“P”) is represented by an IOSS representative (“R”), R—
may act on P's behalf in relation to the IOSS scheme,
must secure (where appropriate by acting on P's behalf) P's compliance with and discharge of the obligations and liabilities to which P is subject by virtue of or under this Schedule, and
is personally liable in respect of— as if the obligations and liabilities imposed on P were imposed jointly and severally on R and P.
any failure to secure P's compliance with or discharge of any such obligation or liability, and
anything done for purposes connected with acting on P's behalf,
Notwithstanding any provision in this Act to the contrary ..., a participant in a special scheme is not required to be registered under this Act by virtue of making qualifying supplies of goods. Where a participant in a special scheme (“the scheme participant”) makes relevant supplies, it is to be assumed for all purposes of this Act relating to the determination of— that the scheme participant is registered under this Act. A supply made by a participant in a special scheme is a “relevant supply” if— References in this Schedule to a person being registered under this Act do not include a reference to that person being registered under the IOSS scheme.
Where a person (“P”) who is registered under Schedule 1 or 1A solely by virtue of the fact that P makes or intends to make qualifying supplies of goods satisfies the Commissioners that P intends to apply for— the Commissioners may, if P so requests, cancel P's registration under Schedule 1 or, as the case may be, 1A with effect from the day on which the request is made or from such later date as may be agreed between P and the Commissioners.
registration under this Schedule, or
identification under any provision of the law of a member State which implements Section 4 of Chapter 6 of Title XII of the VAT Directive,
A person who— is not required to discharge any obligation placed on the person as a taxable person, so far as the obligation relates to relevant supplies unless the obligation is an input tax obligation. The reference in sub-paragraph (1) to an obligation placed on the person as a taxable person is to an obligation— A supply made by a participant in a special scheme is a “relevant supply” if— In section 25(2) (deduction of input tax from output tax by a taxable person) the reference to output tax that is due from the taxable person does not include any VAT that the taxable person is liable under a special scheme to pay to the tax authorities for the administering member State. In this paragraph, “input tax obligation” means an obligation imposed on a taxable person relating to a claim to deduct under section 25(2) or to the payment of a VAT credit.
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No charge to VAT occurs on the importation of goods into the United Kingdom as a result of their entry into Northern Ireland ... where— The Commissioners may by means of a notice published by them make provision about the procedures that must be followed or the conditions that must be complied with to satisfy them that an importation ... falls within sub-paragraph (1).
Sub-paragraphs (3) and (4) apply (instead of sections 6 and 7) for the purposes of determining when and where a supply of goods within sub-paragraph (2) takes place. A supply of goods is within this sub-paragraph where— The supply of goods is to be treated as taking place at the time when payment for the goods has been accepted, within the meaning of Article 61b of the Implementing Regulation. The goods are to be treated as supplied—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sub-paragraph (4) applies (instead of section 7) to a supply of goods deemed to have taken place by section 5B(2)(a) where the operator of the online marketplace that facilitated the supply of goods from P to R (within the meaning of that section) is a participant in a special scheme. The supply of goods is to be treated as taking place outside the United Kingdom. Sub-paragraph (6) applies (instead of section 7) to a supply of goods deemed to have taken place by section 5B(2)(b) where the operator of the online marketplace that facilitated the supply of goods from P to R (within the meaning of that section) is a participant in a special scheme. The supply of goods is to be treated as taking place in the United Kingdom.
Section 48(1ZA) (VAT representatives) does not permit the Commissioners to direct a participant in a special scheme to appoint a VAT representative.
Part 21 of the Value Added Tax Regulations 1995 (S.I. 1995/2518) has effect in relation to a participant in a special scheme as it applies to a trader (within the meaning of those Regulations) subject to the following modifications. Regulation 186 (repayments of VAT) has effect as if after “imported by him into the United Kingdom” there were inserted “ by virtue of their entry into Northern Ireland ”. That Part has effect as if regulations 187, 188(1) and 188(2)(b) were omitted (VAT representatives and persons to whom Part 21 applies).
An appeal lies to the tribunal with respect to any of the following— Part 5 of this Act (reviews and appeals), and any order or regulations under that Part, have effect as if an appeal under this paragraph were an appeal which lies to the tribunal under section 83(1) (but not under any particular paragraph of that subsection). Where the Commissioners have made an assessment under section 73 in reliance on paragraph 16 or 17—
In this Schedule— References in this Schedule to qualifying supplies of goods being “treated as made”—
Section 40A
This Act has effect subject to the following modifications.
A person is not to be treated as being registered under this Act merely by virtue of the person being registered under the OSS scheme (within the meaning of Schedule 9ZD) or the IOSS scheme (within the meaning of Schedule 9ZE).
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Section 80 (credit for, or repayment of, overstated or overpaid VAT) has effect subject to the following modifications. Subsection (7) has effect as if after “this section” there were inserted “(and paragraph 31 of Schedule 9ZD and paragraph 25 of Schedule 9ZE)”. That section has effect as if after subsection (7) there were inserted—
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Schedule 1A (registration in respect of taxable supplies: non-UK establishment) has effect as if after paragraph 11 there were inserted—
Schedule 11 (administration, collection and enforcement) has effect as if in paragraph 4 (power to require security and production of evidence), after sub-paragraph (1A) there were inserted—
In Schedule 24 to FA 2007, paragraph 1 (error in taxpayer's document) has effect as if—
VAT Return under a special accounting scheme.
before sub-paragraph (5) there were inserted—
FA 2009 has effect subject to the following modifications.
Section 101 (late payment interest on sums due to HMRC) has effect as if after subsection (9) there were inserted—
Section 102 (repayment interest on sums to be paid by HMRC) has effect as if after subsection (1) there were inserted—
Part 2 of Schedule 54 (repayment interest: special provision as to repayment interest start date) has effect as if after paragraph 12C there were inserted—
Part 2A of Schedule 54 (repayment interest: VAT: special provision as to period for which amount carries interest) has effect as if—
at the beginning of paragraph 12D there were inserted “Subject to paragraph 12DA,”;
after paragraph 12D there were inserted—
Part 2 of Schedule 54A (further provision as to late payment interest and repayment interest: Value Added Tax) has effect as if—
at the beginning of paragraph 5 there were inserted “Subject to paragraph 5A”;
after paragraph 5 there were inserted—.
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Section 54 of the Taxation (Cross-border Trade) Act 2018 (prohibition on collection of certain taxes or duties on behalf of country or territory without reciprocity) does not apply in relation to VAT collected by HMRC under Schedule 9ZD or 9ZE. But sub-paragraph (1) is not to be read as having any bearing on whether or not, in the absence of that sub-paragraph, accounting for VAT collected under those Schedules would otherwise have been authorised.
Schedule 26 to FA 2021 (penalties for failure to pay tax) has effect subject to the following modifications. 1A Amount of UK VAT payable under paragraph 10(2) of Schedule 9ZD to VATA 1994 The date determined in accordance with paragraph 13(1) of Schedule 9ZD to VATA 1994 as the date by which the amount must be paid 1B Amount of UK VAT payable under paragraph 10(2) of Schedule 9ZE to VATA 1994 The date determined in accordance with paragraph 13(1) of Schedule 9ZE to VATA 1994 as the date by which the amount must be paid 1C Amount of UK VAT payable to the tax authorities for the administering member State under a non-UK scheme in respect of scheme supplies treated as made in the United Kingdom The date by which a non-UK return relating to the amount must be submitted 1D Amount of UK VAT payable to the tax authorities for the administering member State under a special scheme in respect of qualifying supplies of goods treated as made in the United Kingdom The date by which a special scheme return relating to the amount must be submitted Paragraph 1(2) has effect as if— Paragraph 3 has effect as if—
The Value Added Tax Regulations 1995 (S.I. 1995/2518) have effect subject to the following modifications.
In Part 5A (reimbursement arrangements), regulation 43A (interpretation of Part 5A) has effect as if, in the definition of “claim”, after paragraph (a) there were inserted—
Part 19 (bad debt relief (the new scheme)) has effect subject to the following modifications. Regulation 165 (interpretation of Part 19) has effect as if— Regulation 166 (the making of a claim to the Commissioners) has effect as if, at the beginning of paragraph (1) there were inserted “Subject to regulation 166A, and”. That Part has effect as if after regulation 166 there were inserted— Regulation 168 (records required to be kept by the claimant) has effect as if after paragraph (3) there were inserted— Regulation 171 (repayment of a refund) has effect as if at— Those Regulations have effect as if after regulation 171 there were inserted—
Part 20A of those Regulations (Repayments to EU traders incurring VAT on goods in Northern Ireland) has effect subject to the following modifications. Regulation 184D has effect as if, in the alternative version of regulation 173B(2)(c), after “Northern Ireland” there were inserted “, unless it is a supply or importation— Regulation 184I has effect as if, in the alternative version of regulation 173L(2), after “Northern Ireland” there were inserted “, unless it is a supply—
The Regulations have effect as if after regulation 213 there were inserted—
Subject to paragraph 2 below, the Commissioners may give a direction under this Schedule if, in any case— For the purposes of this Schedule, a relevant event occurs when a person— The condition mentioned in sub-paragraph (1) above is that— For the purposes of this paragraph the charging of VAT on a supply (“the undercharged supply”) otherwise than by reference to its full value shall be taken to give rise to a tax advantage if, and only if, a person has become entitled— The cases where a person shall be taken for the purposes of sub-paragraph (4) above to have become entitled to a credit for input tax allowable as attributable to the undercharged supply, or to a part of it, shall include any case where— For the purposes of sub-paragraphs (4) and (5) above where— the question, so far as it falls to be determined by reference to those assets, whether a credit for input tax to which any person has become entitled is one allowable as attributable to the whole or any part of a supply shall be determined as if the transferor and the transferee were the same person. Where, in a case to which sub-paragraph (6) above applies, the transferor himself acquired any of the assets in question by way of a supply falling within paragraphs (a) and (b) of that sub-paragraph, that sub-paragraph shall have the effect, as respects the assets so acquired, of requiring the person from whom those assets were acquired to be treated for the purposes of sub-paragraphs (4) and (5) above as the same person as the transferor and the transferee, and so on in the case of any number of successive supplies falling within those paragraphs. For the purposes of this paragraph any question— shall be determined, in relation to a supply of a right to goods or services or to a supply of goods or services by virtue of such a right, as if the supply of the right and supplies made by virtue of the right were a single supply of which the supply of the right and each of those supplies constituted different parts. References in this paragraph to the full value of a supply are references to the amount which (having regard to any direction under paragraph 1 of Schedule 6) would be the full value of that supply for the purposes of the charge to VAT if that supply were not a supply falling to be disregarded, to any extent, in pursuance of section 43(1)(a). References in this paragraph to the supply of a right to goods or services include references to the supply of any right, option or priority with respect to the supply of goods or services, and to the supply of an interest deriving from any right to goods or services.
The Commissioners shall not give a direction under this Schedule by reference to a relevant event if they are satisfied that— had as its main purpose or, as the case may be, as each of its main purposes a genuine commercial purpose unconnected with the fulfilment of the condition specified in paragraph 1(3) above. This paragraph shall not apply where the relevant event is the termination of a person's treatment as a member of a group by a notice under section 43C(1) or (3).
The directions that may be given by the Commissioners under this Schedule are either— A direction under this Schedule relating to a supply shall require it to be assumed (where it would not otherwise be the case) that, to the extent described in the direction, the supply was not a supply falling to be disregarded in pursuance of section 43(1)(a). A direction under this Schedule relating to a person shall require it to be assumed (where it would not otherwise be the case) that, for such period (comprising times before the giving of the direction or times afterwards or both) as may be described in the direction, the person— Where a direction under this Schedule requires any assumptions to be made, then— A direction falling within sub-paragraph (3)(b) above may identify in relation to any times or period the person who is to be assumed to have been, or to be, the representative member of the group at those times or for that period. A direction under this Schedule may vary the effect of a previous direction under this Schedule. The Commissioners may at any time, by notice in writing to the person to whom it was given, withdraw a direction under this Schedule. The refusal or non-refusal by the Commissioners of an application such as is mentioned in section 43B shall not prejudice the power of the Commissioners to give a direction under this Schedule requiring any case to be assumed to be what it would have been had the application not been refused or, as the case may be, had it been refused.
A direction under this Schedule shall not be given more than six years after whichever is the later of— A direction under this Schedule shall not be given by reference to a relevant event occurring on or before 28th November 1995. Subject to sub-paragraphs (1) and (2) above, a direction under this Schedule— For the purposes of this paragraph the reference, in relation to the giving of a direction, to the relevant entitlement is a reference to the entitlement by reference to which the requirements of paragraph 1(4) above are taken to be satisfied for the purposes of that direction.
A direction under this Schedule relating to a supply may be given to— A direction under this Schedule relating to a person (“the relevant person”) may be given to that person or to any person who at the time when the direction is given is, or in pursuance of the direction is to be treated as, the representative member of a group of which the relevant person— A direction given to any person under this Schedule shall be given to him by notice in writing. A direction under this Schedule must specify the relevant event by reference to which it is given.
Subject to sub-paragraph (3) below, where— the Commissioners may, to the best of their judgement, assess the amount of unpaid tax as tax due from the person to whom the direction was given or another relevant person and notify their assessment to that person. In sub-paragraph (1) above the reference to an amount of VAT for which a person would, on particular assumptions, have been liable before the giving of a direction under this Schedule is a reference to the aggregate of the following— Where any assessment falls to be made under this paragraph in a case in which the Commissioners are satisfied that the actual revenue loss is less than the unpaid tax, the total amount to be assessed under this paragraph shall not exceed what appears to them, to the best of their judgement, to be the amount of that loss. For the purposes of the making of an assessment under this paragraph in relation to any direction, the actual revenue loss shall be taken to be equal to the amount of the unpaid tax less the amount given by aggregating the amounts of every entitlement— which (whether as an entitlement of the person in relation to whom the assessment is made or as an entitlement of any other person) would have arisen on the assumptions contained in the direction, but not otherwise. An assessment under this paragraph relating to a direction may be notified to the person to whom that direction is given by being incorporated in the same notice as that direction. An assessment under this paragraph shall not be made— Where an amount has been assessed on any person under this paragraph and notified to him— Sub-paragraph (7) above does not have effect if or to the extent that the assessment in question has been withdrawn or reduced. Section 77(6) applies in relation to an assessment under this paragraph as it applies in relation to an assessment under section 73 or 76. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In this paragraph “ a relevant person ”, in relation to a direction, means—
References in this Schedule to being treated as a member of a group and to being eligible to be treated as a member of a group shall be construed in accordance with section 43 to 43C. For the purposes of this Schedule the giving of any notice or notification to any receiver, liquidator or person otherwise acting in a representative capacity in relation to another shall be treated as the giving of a notice or, as the case may be, notification to the person in relation to whom he so acts.
In this Schedule “face-value voucher” means a token, stamp or voucher (whether in physical or electronic form) that represents a right to receive goods or services to the value of an amount stated on it or recorded in it. References in this Schedule to the “face value” of a voucher are to the amount referred to in sub-paragraph (1) above.
The issue of a face-value voucher, or any subsequent supply of it, is a supply of services for the purposes of this Act.
This paragraph applies to a face-value voucher issued by a person who— Such a voucher is referred to in this Schedule as a “credit voucher”. The consideration for any supply of a credit voucher shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the voucher. Sub-paragraph (2) above does not apply if any of the persons from whom goods or services are obtained by the use of the voucher fails to account for any of the VAT due on the supply of those goods or services to the person using the voucher to obtain them. The Treasury may by order specify other circumstances in which sub-paragraph (2) above does not apply.
This paragraph applies to a face-value voucher issued by a person who— Such a voucher is referred to in this Schedule as a “retailer voucher”. The consideration for the issue of a retailer voucher shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the voucher. Sub-paragraph (2) above does not apply if— Any supply of a retailer voucher subsequent to the issue of it shall be treated in the same way as the supply of a voucher to which paragraph 6 below applies.
The consideration for the supply of a face-value voucher that is a postage stamp shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the stamp.
This paragraph applies to a face-value voucher that is not a credit voucher, a retailer voucher or a postage stamp. A supply of such a voucher is chargeable at the rate in force under section 2(1) (standard rate) except where sub-paragraph (3), (4) or (5) below applies. Where the voucher is one that can only be used to obtain goods or services in one particular non-standard rate category, the supply of the voucher falls in that category. Where the voucher is used to obtain goods or services all of which fall in one particular non-standard rate category, the supply of the voucher falls in that category. Where the voucher is used to obtain goods or services in a number of different rate categories—
Where— the supply of the voucher shall be treated as being made for no consideration.
a face-value voucher (other than a postage stamp) and other goods or services are supplied to the same person in a composite transaction, and
the total consideration for the supplies is no different, or not significantly different, from what it would be if the voucher were not supplied,
Paragraphs 2 to 4, 6 and 7 do not apply in relation to the issue, or any subsequent supply, of a face-value voucher that represents a right to receive goods or services of one type which are subject to a single rate of VAT.
In this Schedule— For the purposes of this Schedule— A reference in this Schedule to a voucher being used to obtain goods or services includes a reference to the case where it is used as part-payment for those goods or services.
Section 51C
In this Schedule “voucher” means an instrument (in physical or electronic form) in relation to which the following conditions are met. The first condition is that one or more persons are under an obligation to accept the instrument as consideration for the provision of goods or services. The second condition is that either or both of— are limited and are stated on or recorded in the instrument or the terms and conditions governing the use of the instrument. The third condition is that the instrument is transferable by gift (whether or not it is transferable for consideration). The following are not vouchers—
This paragraph gives the meaning of other expressions used in this Schedule. “Relevant goods or services”, in relation to a voucher, are any goods or services for the provision of which the voucher may be accepted as consideration. References in this Schedule to the transfer of a voucher do not include the voucher being offered and accepted as consideration for the provision of relevant goods or services. References in this Schedule to a voucher being offered or accepted as consideration for the provision of relevant goods or services include references to the voucher being offered or accepted as part consideration for the provision of relevant goods or services.
The issue, and any subsequent transfer, of a voucher is to be treated for the purposes of this Act as a supply of relevant goods or services. References in this Schedule to the “paragraph 3 supply”, in relation to the issue or transfer of a voucher, are to the supply of relevant goods or services treated by this paragraph as having been made on the issue or transfer of the voucher.
A voucher is a single purpose voucher if, at the time it is issued, the following are known— The supply categories are— For the purposes of this paragraph, assume that the supply of relevant goods or services is the provision of relevant goods or services for which the voucher may be accepted as consideration (rather than the supply of relevant goods or services treated as made on the issue or transfer of the voucher).
This paragraph applies where a single purpose voucher is accepted as consideration for the provision of relevant goods or services. The provision of the relevant goods or services is not a supply of goods or services for the purposes of this Act. But where the person who provides the relevant goods or services (the “provider”) is not the person who issued the voucher (the “issuer”), for the purposes of this Act the provider is to be treated as having made a supply of those goods or services to the issuer.
A voucher is a multi-purpose voucher if it is not a single purpose voucher.
Any consideration for the issue or subsequent transfer of a multi-purpose voucher is to be disregarded for the purposes of this Act. The paragraph 3 supply made on the issue or subsequent transfer of a multi-purpose voucher is to be treated as not being a supply within section 26(2).
Where a multi-purpose voucher is accepted as consideration for the provision of relevant goods or services, for the purposes of this Act— If the consideration for the most recent transfer of the voucher for consideration is known to the supplier, the value of the supply is such amount as, with the addition of the VAT chargeable on the supply, is equal to that consideration. If the consideration for the most recent transfer of the voucher for consideration is not known to the supplier, the value of the supply is such amount as, with the addition of the VAT chargeable on the supply, is equal to the face value of the voucher. The “face value” of a voucher is the monetary value stated on or recorded in—
This paragraph applies where— Section 47(3) does not apply. The paragraph 3 supply is treated as both a supply to the agent and a supply by the agent.
Nothing in this Schedule affects the application of this Act to any services provided, by a person who issues or transfers a voucher, in addition to the issue or transfer of the voucher.
This paragraph applies where, as part of a composite transaction— If the total consideration for the transaction is not different, or not significantly different, from what it would be if the voucher were not issued or transferred, the paragraph 3 supply is to be treated as being made for no consideration.
Section 58A
In this Schedule—
“non-deductible tax”, in relation to a taxable person, has the meaning given by paragraph 2A;
For the purposes of this Schedule, a taxable person obtains a tax advantage if— For the purposes of this Schedule, a person who is not a taxable person obtains a tax advantage if his non-refundable tax is less than it would otherwise be. In sub-paragraph (2), “non-refundable tax”, in relation to a person who is not a taxable person, means— but excluding (in each case) any VAT in respect of which he is entitled to a refund from the Commissioners by virtue of any provision of this Act.
In this Schedule “non-deductible tax”, in relation to a taxable person, means— For the purposes of sub-paragraph (1)(b), the VAT “incurred” by a taxable person is—
If it appears to the Treasury— the Treasury may by order designate that scheme for the purposes of this paragraph. A scheme may be designated for the purposes of this paragraph even though the Treasury are of the opinion that no scheme of that description could as a matter of law result in the obtaining by any person of a tax advantage. The order must allocate a reference number to each scheme. In this Schedule “designated scheme” means a scheme of a description designated for the purposes of this paragraph.
If it appears to the Treasury that a provision of a particular description is, or is likely to be, included in or associated with schemes that are entered into for the purpose of enabling any person to obtain a tax advantage, the Treasury may by order designate that provision for the purposes of this paragraph. A provision may be designated under this paragraph even though it also appears to the Treasury that the provision is, or is likely to be, included in or associated with schemes that are not entered into for the purpose of obtaining a tax advantage. In this paragraph “provision” includes any agreement, transaction, act or course of conduct.
For the purposes of this Schedule, a scheme is a “notifiable scheme”if— Condition A is that the scheme includes, or is associated with, a provision of a description designated under paragraph 4. Condition B is that the scheme has as its main purpose, or one of its main purposes, the obtaining of a tax advantage by any person.
This paragraph applies in relation to a taxable person where— Where the scheme is a designated scheme, the taxable person must notify the Commissioners within the prescribed time, and in such form and manner as may be required by or under regulations, of the reference number allocated to the scheme under paragraph 3(3). Sub-paragraph (2) does not apply to a taxable person in relation to any scheme if he has on a previous occasion— Where the scheme is not a designated scheme, the taxable person must, subject to sub-paragraph (4), provide the Commissioners within the prescribed time, and in such form and manner as may be required by or under regulations, with prescribed information relating to the scheme. Sub-paragraph (3) does not apply where the scheme is one in respect of which any person has previously— Sub-paragraph (3) also does not apply where the scheme is one in respect of which the taxable person has on a previous occasion provided the Commissioners with prescribed information under that sub-paragraph. This paragraph has effect subject to paragraph 7.
Paragraph 6 does not apply to a taxable person in relation to a scheme— Condition A is that the total value of the person’s taxable supplies and exempt supplies in the period of twelve months ending immediately before the beginning of the relevant period is less than the minimum turnover. Condition B is that the total value of the person’s taxable supplies and exempt supplies in the prescribed accounting period immediately preceding the relevant period is less than the appropriate proportion of the minimum turnover. In sub-paragraphs (2) and (3) “the minimum turnover” means— In sub-paragraph (3) “the appropriate proportion” means the proportion which the length of the prescribed accounting period bears to twelve months. The value of a supply of goods or services shall be determined for the purposes of this paragraph on the basis that no VAT is chargeable on the supply. The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (4)(a) or (b) such other sum as they think fit. This paragraph has effect subject to paragraph 8. In this paragraph—
The purpose of this paragraph is to prevent the maintenance or creation of any artificial separation of business activities carried on by two or more persons from resulting in an avoidance of the obligations imposed by paragraph 6. In determining for the purposes of sub-paragraph (1) whether any separation of business activities is artificial, regard shall be had to the extent to which the different persons carrying on those activities are closely bound to one another by financial, economic and organisational links. If the Commissioners make a direction under this section— The Commissioners shall not make a direction under this section naming any person unless they are satisfied— A direction under this paragraph shall be served on each of the persons named in it. A direction under this paragraph remains in force until it is revoked or replaced by a further direction.
Any person may, at any time, provide the Commissioners with prescribed information relating to a scheme or proposed scheme of a particular description which is (or, if implemented, would be) a notifiable scheme by virtue of paragraph 5(1)(b). On receiving the prescribed information, the Commissioners may—
A person who fails to comply with paragraph 6 shall be liable, subject to sub-paragraphs (2) and (3), to a penalty of an amount determined under paragraph 11. Conduct falling within sub-paragraph (1) shall not give rise to liability to a penalty under this paragraph if the person concerned satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for the failure. Where, by reason of conduct falling within sub-paragraph (1)— that conduct shall not give rise to a penalty under this paragraph.
Where the failure mentioned in paragraph 10(1) relates to a notifiable scheme that is not a designated scheme, the amount of the penalty is £5,000. Where the failure mentioned in paragraph 10(1) relates to a designated scheme, the amount of the penalty is 15 per cent. of the VAT saving (as determined under sub-paragraph (3)). For this purpose the VAT saving is— In sub-paragraph (3)(a) and (c) “the relevant periods” means the prescribed accounting periods beginning with that in respect of which the duty to comply with paragraph 6 first arose and ending with the earlier of the following— In sub-paragraph (3)(c), “notional non-deductible tax”, in relation to a taxable person, means the amount that would, but for the scheme, have been the amount of his non-deductible tax.
Where any person is liable under paragraph 10 to a penalty of an amount determined under paragraph 11, the Commissioners may, subject to sub-paragraph (3), assess the amount due by way of penalty and notify it to him accordingly. The fact that any conduct giving rise to a penalty under paragraph 10 may have ceased before an assessment is made under this paragraph shall not affect the power of the Commissioners to make such an assessment. In a case where— the notional tax shall be treated for the purposes of this Schedule as attributable to such period or periods as the Commissioners may determine to the best of their judgment and notify to the person liable for the penalty. In sub-paragraph (3) “the notional tax” means— No assessment to a penalty under this paragraph shall be made more than two years from the time when facts sufficient, in the opinion of the Commissioners, to indicate that there has been a failure to comply with paragraph 6 in relation to a notifiable scheme came to the Commissioners' knowledge. Where the Commissioners notify a person of a penalty in accordance with sub-paragraph (1), the notice of assessment shall specify— Where a person is assessed under this paragraph to an amount due by way of penalty and is also assessed under section 73(1), (2), (7), (7A) or (7B) for any of the prescribed accounting periods to which the assessment under this paragraph relates, the assessments may be combined and notified to him as one assessment, but the amount of the penalty shall be separately identified in the notice. If an amount is assessed and notified to any person under this paragraph, then unless, or except to the extent that, the assessment is withdrawn or reduced, that amount shall be recoverable as if it were VAT due from him. Subsection (10) of section 76 (notification to certain persons acting for others) applies for the purposes of this paragraph as it applies for the purposes of that section.
Regulations under this Schedule—
may make different provision for different circumstances, and
may include transitional provisions or savings.
This Table shows the derivation of the provisions of the Bill.
The following abbreviations are used in the Table:—
CEMA = Customs and Excise Management Act 1979 c.2 1984 = Finance Act 1984 c.43 PACE = Police and Criminal Evidence Act 1984 c.60 1985 = Finance Act 1985 c.54 1986 = Finance Act 1986 c.41 1987 = Finance Act 1987 c.16 1988 = Finance Act 1988 c.39 1989 = Finance Act 1989 c.26 1990 = Finance Act 1990 c.29 CLSA = Courts and Legal Services Act 1990 c.41 DLA = Disability Living Allowance and Disability Working Allowance Act 1991 c.21 1991 = Finance Act 1991 c.31 1992 = Finance Act 1992 c.20 1992(2) = Finance (No.2) Act 1992 c.48 JPRA = Judicial Pensions and Retirement Act 1993 c.8 1993 = Finance Act 1993 c.34 1994 = Finance Act 1994 c.9
S.I.1983/1717 = The Value Added Tax (Charities Etc.) Order 1983 S.I.1984/489 = The Value Added Tax (Handicapped Persons) Order 1984 S.I.1984/631 = The Value Added Tax (Lifeboats) Order 1984 S.I.1984/766 = The Value Added Tax (Charities Etc.) Order 1984 S.I.1984/767 = The Value Added Tax (Marine etc. Insurance) Order 1984 S.I.1984/959 = The Value Added Tax (Handicapped Persons) (No.2) Order 1984 S.I.1985/18 = The Value Added Tax (Protected Buildings) Order 1985 S.I.1985/431 = The Value Added Tax (Charities Etc.) Order 1985 S.I.1985/432 = The Value Added Tax (Finance) Order 1985 S.I.1985/799 = The Value Added Tax (Hiring of Goods) Order 1985 S.I. 1985/919 = The Value Added Tax (Handicapped Persons) Order 1985 S.I.1985/1900 = The Value Added Tax (Welfare) Order 1985 S.I.1986/530 = The Value Added Tax (Handicapped Persons and Charities) Order 1986 S.I.1987/437 = The Value Added Tax (Charities) Order 1987 S.I.1987/517 = The Value Added Tax (Betting, Gaming and Lotteries) Order 1987 S.I. 1987/860 = The Value Added Tax (Finance) Order 1987 S.I.1987/1806 = The Value Added Tax (Tour Operators) Order 1987 S.I.1987/1427 = Value Added Tax (Cash Accounting) Regulations 1987 S.I.1988/507 = The Value Added Tax (Confectionary) Regulations 1988 S.I.1989/470 = The Value Added Tax (Fund-Raising Events and Charities) Order 1989 S.I.1989/2272 = The Value Added Tax (Finance, Health and Welfare) Order 1989 S.I.1990/750 = The Value Added Tax (Charities) Order 1990 S.I.1990/752 = The Value Added Tax (Transport) Order 1990 S.I.1990/2037 = The Value Added Tax (Insurance) Order 1990 S.I.1990/2129 = The Value Added Tax (Charities) (No.2) Order 1990 S.I.1990/2553 = The Value Added Tax (Construction of Dwellings and Land) Order 1990 S.I.1991/737 = The Value Added Tax (Charities) Order 1991 S.I.1991/2534 = The Value Added Tax (Piped Gas) (Metrication) Order 1991 S.I.1991/2569 = The Value Added Tax (Buildings and Land) Order 1991 S.I.1991/2727 = Free Zone Regulations 1991 S.I.1992/628 = The Value Added Tax (Charities and Aids for Handicapped Persons) Order 1992 S.I.1992/3065 = The Value Added Tax (Motor Vehicles for the Handicapped) Order 1992 S.I.1992/3095 = Customs and Excise (Single Market etc.) Regulations 1992 S.I.1992/3126 = The Value Added Tax (Transport) Order 1992 S.I.1992/3127 = The Value Added Tax (Means of Transport) Order 1992 S.I.1992/3128 = The Value Added Tax (Reverse Charge) Order 1992 S.I.1992/3131 = The Value Added Tax (Tax Free Shops) Order 1992 S.I.1992/3223 = The Value Added Tax (International Services and Transport) Order 1992 S.I.1993/765 = The Value Added Tax (Increase for Consideration for Fuel) Order 1993 S.I.1993/766 = The Value Added Tax (Increase of Registration Limits) Order 1993 S.I.1993/767 = The Value Added Tax (Protective Boots and Helmets) Order 1993 S.I.1993/2328 = The Value Added Tax (Reverse Charge) Order 1993 S.I.1993/2498 = The Value Added Tax (Beverages) Order 1993 S.I.1993/2952 = Value Added Tax (Increase of Consideration for Fuel) (No.2) Order 1993 S.I.1993/2953 = Value Added Tax (Increase of Registration Limits) (No.2) Order 1993 S.I.1994/686 = Value Added Tax (Tax Free Shops) Order 1994 S.I.1994/687 = Value Added Tax (Sport, Physical Education and Fund-raising Events) Order 1994 S.I.1994/1188 = Value Added Tax (Education) Order 1994 Provision Derivation 1(1) 1983 s.1; amended 1992(2) Sch.3 para.2. (2) 1983 s.2(3). (3) 1983 s.2A(4); added 1992(2) Sch.3 para.3. (4) 1983 s.2B(1); added 1992(2) Sch.3 para.3. 2 1983 s.9; amended 1991 s.13; 1992(2) Sch.3 para.11; 1993 s.42(2). 3 1983 s.2C; added 1992(2) Sch.3 para.3. 4 1983 s.2(1), (2). 5 1983 s.3; amended 1992(2) Sch.3 para.4. 6(1) to (3) 1983 s.4 (4) to (6) 1983 s.5(1) to (3) (7), (8) 1983 s.5(3A), (3B); added 1992(2) Sch.3 para.6(1). (9) to (13) 1983 s.5(4) to (8). (14) 1983 s.5(9); amended 1993 s.45(2). (15) 1983 s.5(10); amended 1992(2) Sch.3 para.6(3). 7(1), (2) 1983 s.6(1), (2); 1987 s.12(2); 1992(2) Sch.3 para.7(1), (2); 1993 s.44(3). (3) to (7) 1983 s.6(2A), (2B), (2C), (2D), (3); 1992(2) Sch.3 para.7(3). (8) 1983 s.6(4); 1992(2) Sch.3 para.7(4). (9) 1983 s.6(4A); 1992(2) Sch.3 para.7(5). (10) 1983 s.6(5). (11) 1983 s.6(6); 1992(2) Sch.3 para.7(6). 8(1) to (5) 1983 s.7(1) to (5); 1987 Sch.2 para.1. (6) 1983 s.7(6); 1992(2) Sch.3 para.8. 9 1983 s.8. 10 1983 s.2A(1) to (3); added 1992(2) Sch.3 para.3. 11 1983 s.8A; added 1992(2) Sch.3 para.10. 12 1983 s.8B; added 1992(2) Sch.3 para.10. 13 1983 s.8C; added 1992(2) Sch.3 para.10; amended 1993 s.44(3)(b). 14 1983 s.8D; added 1993 s.44. 15 1983 s.2B(2) to (4); added 1992(2) Sch.3 para.3. 16(1) 1983 s.24(1); substituted 1992(2) Sch.3 para.25. (2) 1983 s.24(2). 17(1) 1983 s.24(1); substituted 1992(2) Sch.3 para.25. (2) CEMA s.100C(1); 1984 Sch.4 Pt.I; S.I.1991/2727. (3) CEMA s.100B; 1984 Sch.4 Pt.I; S.I.1991/2727. (4) CEMA s.100C(3), (4); 1984 Sch.4 Pt.I; S.I.1991/2727. 18 1983 s.35; substituted 1992(2) Sch.3 para.35. 19 1983 s.10; amended 1992(2) Sch.3 para.12. 20 1983 s.10A; added 1992(2) Sch.3 para.13. 21(1), (2) 1983 s.11(1), (2); amended 1992(2) Sch.3 para.14. (3) 1983 s.11(2A); added 1992(2) Sch.3 para.14. 22 1983 s.12. 23 1983 s.13. 24(1), (2) 1983 s.14(3); amended and para.(aa) added 1992(2) Sch.3 para.15(2). (3) 1983 s.14(3A); added 1990 s.12(2); amended 1992(2) Sch.3 para.15(3). (4) 1983 s.14(3B); added 1991 s.14. (5) 1983 s.14(4); amended 1992(2) Sch.3 para.15(4). (6) 1983 s.14(9); amended 1992(2) Sch.3 para.15(5), (6). (7) 1983 s.14(11); added 1990 s.12(3). 25(1), (2) 1983 s.14(1), (2); amended 1992(2) Sch.3 para.15(1). (3) to (6) 1983 s.14(5) to (8). (7) 1983 s.14(10); amended 1992(2) Sch.3 para.15(5), (6). 26(1) to (3) 1983 s.15(1) to (3); substituted 1987 s.12(1); subs.(3)(d) added 1989 s.26; amended and subs.(2)(ba) added 1992(2) Sch.3 para.16. (4) 1983 s.15(4) 27 1983 s.26; amended 1992(2) Sch.3 para.27. 28 1983 s.38C; added 1992 s.6. 29 1988 s.22. 30(1), (2) 1983 s.16(1), (2). (3) 1983 s.16(3); amended 1992(2) Sch.3 para.17(1). (4) 1983 s.16(4). (5) 1983 s.16(5). (6) 1983 s.16(6); amended 1986 s.12(1); 1992(2) Sch.3 para.17(2). (7) 1983 s.16(6A); added 1990 s.13. (8), (9) 1983 s.16(7), (8); amended 1992(2) Sch.3 para.17(3). (10) 1983 s.16(9); amended 1986 s.12(2). 31 1983 s.17; amended 1992(2) Sch.3 para.18. 32 1983 s.18; amended 1992(2) Sch.3 para.19. 33(1), (2) 1983 s.20(1), (2); amended 1992(2) Sch.3 para.21. (3) 1983 s.20(3); para.(j) substituted Broadcasting Act 1990 c.42 Sch.20 para.37. (4) 1983 s.20(4). (5) 1983 s.20(4A); added Broadcasting Act 1990 c.42 Sch.20 para.37. (6) 1983 s.20(5). 34 1983 s.36; amended 1992(2) Sch.3 para.36. 35(1), (2) 1983 s.21(1), (2); substituted 1989 Sch.3 para.5; amended 1992(2) Sch.3 para.23(1). (3) 1983 s.21(2A); added 1992(2) Sch.3 para.23(2). 36 1990 s.11; amended 1991 s.15; 1993 s.48. 37(1) 1983 s.19(1); amended 1992(2) Sch.3 para.20(1). (2) 1983 s.19(1A); added 1986 s.13; amended 1992(2) Sch.3 para.20(2). (3), (4) 1983 s.19(2); amended 1992(2) Sch.3 para.20(3), (4). 38 1983 s.25; amended 1992(2) Sch.3 para.26. 39 1983 s.23; amended 1987 Sch.2 para.2; 1992(2) Sch.3 para.24. 40 1983 s.20A; added 1992(2) Sch.3 para.22. 41(1), (2) 1983 s.27(1), (2). (3), (4) 1983 s.27(2A), (2B); added 1984 s.11; amended 1992(2) Sch.3 para.28. (5) 1983 s.27(3). (6) 1983 s.27(4); amended National Health Service and Community Care Act 1990 (c.19) Sch.8 para.9; Health and Personal Social Services (Northern Ireland Consequential Amendments) Order 1991 S.I.195 Art.5. (7) 1983 s.27(5); added National Health Service and Community Care Act 1990 (c.19) s.61(4). (8) 1983 s.27(6); added Health and Personal Social Services (Northern Ireland Consequential Amendments) Order 1991 S.I.195 Art.5. 42 1983 s.28; amended 1990 s.10(8). 43(1) 1983 s.29(1); amended 1992(2) Sch.3 para.29. (2) 1983 s.29(2) (3) 1983 s.29(3), (3A); added 1991 s.16. (4) to (8) 1983 s.29(4) to (8); amended Companies Consolidation (Consequential Provisions) Act 1985 (c.9) Sch.2; Companies Act 1989 (c.40) Sch.18 para.27. 44(1), (2), (3) Section 29A added 1987 s.15; s.29A(1), (2) amended 1990 s.14(2); 1992(2) Sch.3 para.30(1), (2). (4) 1983 s.29A(3A); added 1990 s.14(3). (5) to (10) 1983 s.29A(4) to (9); amended 1992(2) Sch.3 para.30(3). 45 1983 s.30; amended 1992(2) Sch.3 para.31. 46(1) to (4) 1983 s.31(1) to (4); amended 1992(2) Sch.3 para.32(1). (5) 1983 s.31(5); added 1985 s.31. (6) 1983 s.31(6); added 1992(2) Sch.3 para.32(2). 47(1) 1983 s.32(2); substituted 1992(2) Sch.3 para.33. (2), (3) 1983 s.32(3), (4). 48 1983 s.32A; added 1992(2) Sch.3 para.34. 49 1983 s.33. 50 1983 s.34. 51 1983 s.35A; added 1989 Sch.3 para.6. 52 1983 s.37; substituted 1992(2) Sch.3 para.37. 53 1983 s.37A; added 1987 s.16. 54 1983 s.37B; added 1992(2) s.16. 55 1983 s.37C; added 1993 s.45. 56(1), (2) 1986 s.9(1), (2). (3)(a) 1986 s.9(3)(a). (b) 1986 s.9(3)(aa); added 1992(2) Sch.3 para.94. (c) to (e) 1986 s.9(3)(b) to (d). (4) 1986 s.9(4). (5) 1986 s.9(5); amended 1992(2) Sch.3 para.94. (6) to (10) 1986 s.9(6) to (10); amended Road Traffic (Consequential Provisions) Act 1988 (c.54) Sch.3 para.32. 57(1) 1986 Sch.6 para.1. (2), (3) 1986 Sch.6 para.2; Table A substituted S.I.1993/765; amended S.I.1993/2952. (4) 1986 Sch.6 para.4; amended 1993 s.43(3). (5) 1986 Sch.6 para.5(1); amended 1993 s.43(2)(a), (b). (6) 1986 Sch.6 para.5(2). (7) 1986 Sch.6 para.6(1); amended 1993 s.43(2)(c). (8) 1986 Sch.6 para.6(2); amended 1993 s.43(2)(d). 58 1983 s.38; amended 1992(2) Sch.3 para.38. 59(1) 1985 s.19(1). (2) 1985 s.19(2)(a), (c); amended 1993 Sch.2 para.5(1). (3) 1985 s.19(3); amended 1993 Sch.2 para.5(2). (4) 1985 s.19(4); substituted 1993 Sch.2 para.6(1). (5) 1985 s.19(5); amended 1993 Sch.2 para.6(2),7. (6) 1985 s.19(5A); added 1993 Sch.2 para.6(3). (7) to (10) 1985 s.19(6) to (9). (11) 1993 Sch.2 para.5(3),7(2), (4). 60(1) 1985 s.13(1); amended 1993 Sch.2 para.3(2)(a). (2)(a) 1985 s.13(2)(ba); added 1992(2) Sch.3 para.77(1)(b). (b) 1985 s.13(2)(a). (c) 1985 s.13(2)(b); amended 1992(2) Sch.3 para.77(1)(a). (d) 1985 s.13(2)(d); added 1990 s.11(12). (e) 1985 s.13(2)(c). (3) 1985 s.13(3). (4) to (6) 1985 s.13(5) to (7). (7) 1985 s.27(1). 61(1) to (5) 1986 s.14(1) to (5). (6) 1986 s.14(8). 62 1985 s.13A; added 1989 s.23. 63(1) 1985 s.14(1); amended 1992 s.7(1). (2) 1985 s.14(2); substituted 1988 s.16(2); amended 1993 Sch.2 para.1. (3) 1985 s.14(4); amended 1988 s.16(3); 1994 s.45. (4) to (6) 1985 s.14(4A), (4B), (4C); added 1993 Sch.2 para.1(2). (7) 1985 s.14(5); amended 1988 s.16(4). (8), (9) 1985 s.14(5A), (5B); added 1988 s.16(5); amended 1992(2) Sch.3 para.78; 1993 Sch.2 para.1(3); 1994 s.45. (10), (11) 1985 s.14(6), (7). 64 1985 s.14A; added 1988 s.17. (1) 1985 s.14A(1); amended 1993 Sch.2 para.2(1). (2), (3) 1985 s.14A(2), (3); substituted 1993 Sch.2 para.2(2). (4) 1985 s.14A(4); amended 1993 Sch.2 para.2(3). (5) 1985 s.14A(5). (6) 1985 s.14A(6); amended 1993 Sch.2 para.2(4). (7) 1985 s.14A(7). 65 1985 s.14B; added 1992(2) Sch.3 para.79. 66 1985 s.17A(1) to (8), (10); added 1992(2) Sch.3 para.82. 67(1) 1985 s.15(1)(a), (aa), (b); amended 1988 s.18(1); 1992(2) Sch.3 para.80(1). (2) 1985 s.15(2). (3) 1985 s.15(3); amended 1988 s.18(2); 1992(2) Sch.3 para.80(2). (4) 1985 s.15(3A); added 1988 s.18(3); amended 1992(2) Sch.3 para.80(3). (5), (6) 1985 s.15(3B), (3C); added 1992(2) Sch.3 para.80(4). (7) 1985 s.15(3D); added 1992(2) s.16(5). (8) to (11) 1985 s.15(4) to (7). 68 1985 s.16. 69(1) 1985 s.17(1); amended 1988 s.19(1)(b). (a) 1985 s.17(1)(a); amended 1988 s.19(1)(a); 1992(2) Sch.3 para.81(a). (b) 1985 s.17(1)(aa); added 1992(2) Sch.3 para.81(b). (c), (d), 1985 s.17(1)(b), (c). (e), (f) 1985 s.17(1)(d), (e); added 1986 s.15(1). (2) 1985 s.17(2). (3) 1985 s.17(3); amended 1988 s.19(2). (4) 1985 s.17(4)(a), (c) to (e). (5) to (9) 1985 s.17(5) to (7), (9), (10). (10) 70 1985 s.15A; added 1993 Sch.2 para.3(1). 71 1985 s.33(2), (3). 72(1) 1983 s.39(1); amended 1985 s.12(2). (2) 1983 s.39(1A); added 1985 s.12(3); para.(ba) added 1992(2) Sch.3 para.39(1)(b); amended 1990 s.11(11)(a); 1992(2) Sch.3 para.39(1)(a). (3) 1983 s.39(2); amended 1985 s.12(2), (4). (4) to (7) 1983 s.39(2A), (2B), (2C), (2D); added 1985 s.12(5); amended 1992(2) Sch.3 para.39(2). (8) 1983 s.39(3); amended 1985 s.12(2). (9) 1983 s.39(3A); added 1985 s.12(6). (10) 1983 s.39(4); amended 1992(2) Sch.3 para.39(3). (11) 1983 s.39(5). (12) 1983 s.39(9); 1985 s.33(5)(a). (13) 1985 s.33(5)(a); amended 1992(2) Sch.3 para.86. 73(1) 1983 Sch.7 para.4(1). (2), (3) 1983 Sch.7 para.4(2), (2A); substituted 1988 s.15(2); amended 1990 s.15(1); 1992(2) Sch.3 para.66(1). (4), (5) 1983 Sch.7 para.4(3), (4); Bankruptcy (Scotland) Act 1985 (c.66) s.75(11). (6) 1983 Sch.7 para.4(5); amended 1988 s.15(3); 1992(2) Sch.3 para.66(2). (7) 1983 Sch.7 para.4(6); amended 1985 Sch.7 para.1(2); 1992(2) Sch.3 para.66(3). (8) 1983 Sch.7 para.4(6A); added 1985 Sch.7 para.1(3). (9), (10) 1983 Sch.7 para.4(9), (10); amended 1988 s.15(4); Bankruptcy (Scotland) Act 1985 (c.66) s.75(11). 74(1) 1985 s.18(1); amended 1988 s.14(8)(b); 1990 s.16(2); 1992(2) Sch.3 para.83; 1993 Sch.2 para.4(1). (2) 1985 s.18(3); amended 1990 s.16(3); 1993 Sch.2 para.4(1). (3) 1985 s.18(3A); added 1993 Sch.2 para.4(2), (3). (4) to (7) 1985 s.18(6), (7), (8)(a), (b), (9); amended 1990 s.16(5). (8) 1993 Sch.2 para.4(3). 75 1983 Sch.7 para.4A; added 1992(2) Sch.3 para.67; amended Bankruptcy (Scotland) Act 1985 (c.66) s.75(11). 76(1) 1985 s.21(1); amended 1988 s.19(3); 1992(2) Sch.3 para.84(1). (2) 1985 s.21(1A); added 1988 s.19(3);. (3) to (5) 1985 s.21(2) to (4). (6) 1985 s.21(4A); added 1992(2) Sch.3 para.84(2). (7) to (10) 1985 s.21(5) to (8); amended 1992(2) Sch.3 para.84(3), (4); Bankruptcy (Scotland) Act 1985 (c.66) s.75(11). 77 1985 s.22(1) to (5), (6); amended 1992(2) Sch.3 para.85. 78 1983 s.38A; added 1991 s.17 (1) to (8) 1983 s.38A(1) to (8). (9) 1983 s.38A(8A); added 1992(2) s.15(2). (10) to (12) 1983 s.38A(9) to (11). (13) 1983 s.38A(12); 1992(2) s.15(4). 79(1) to (3) 1985 s.20(1) to (3); substituted 1988 s.20; 1994 s.46. (4) 1985 s.20(3A); added 1992(2) s.15(1). (5) to (7) 1985 s.20(4), (5), (7); substituted 1988 s.20. 80 1989 s.24; S.I.1989/2271. 81(1), (2) 1983 s.38B; added 1991 s.17. (3) to (5) 1988 s.21; amended 1994 s.45. 82(1) 1983 s.40(1), Sch.8 para.1; 1985 s.30(1). (2) 1983 s.40; 1994 s.7(1) (3), (4) 1985 Sch.8 para.6. 83(a) 1983 s.40(1)(a). (b) 1983 s.40(1)(b); amended 1992(2) Sch.3 para.40(a). (c) 1983 s.40(1)(c). (d) 1983 s.40(1)(fa); added 1992(2) Sch.3 para.40(c). (e) 1983 s.40(1)(d); substituted 1987 Sch.2 para.4. (f) 1983 s.40(1)(g). (g) 1983 s.40(1)(e). (h) 1983 s.40(1)(f); amended 1990 s.11(11)(b). (j) 1983 s.40(1)(da); added 1992(2) Sch.3 para.40(b). (k) 1983 s.40(1)(h). (l) 1983 s.40(1)(n); amended 1992(2) Sch.3 para.40(f). (m) 1983 s.40(1)(hza); added 1992(2) s.16(2). (n) 1983 s.40(1)(o); added 1985 s.24(1); amended 1992(2) Sch.3 para.40(g). (o) 1986 s.14(6). (p) 1983 s.40(1)(m); amended 1992(2) Sch.3 para.40(e). (q), (r) 1983 s.40(1)(p), (q); added 1985 s.24(1). (s) 1983 s.40(1)(ha); added 1991 s.17(1). (t) 1983 s.40(1)(s); added 1989 s.24(9). (u) 1983 s.40(1)(hh); added 1986 s.10(2). (v) 1983 s.40(1)(j). (w) 1983 s.40(1)(ja); added 1992(2) Sch.3 para.40(d). (x) 1983 s.40(1)(k). (y) 1983 s.40(1)(r); added S.I.1987/1427 reg.11. (z) 1983 s.40(1)(l). 84(1) (2) 1983 s.40(2); amended 1985 s.24(3). (3) 1983 s.40(3); amended 1985 s.24(4). (4) 1983 s.40(3ZA); added 1993 s.46(1). (5) 1983 s.40(3B); added (as (3A)) 1985 s.24(5); amended 1986 s.10(3). (6) 1983 s.40(1A); added 1985 s.24(2) and amended 1993 Sch.2 para.3(2)(b); 1986 s.14(6). (7) 1983 s.40(3A); added 1986 s.10(3). (8) to (10) 1983 s.40(4) to (6); amended 1994 s.18(3). (11) 1993 s.46(2). 85 1985 s.25. 86 1985 s.26(1), (2)(a), (3); amended Tribunals and Inquiries Act 1992 (c.53) Sch.3 para.17. 87 1985 s.29. 88(1) 1983 s.41(1); amended 1992(2) Sch.3 para.41(1). (2), (3) 1983 s.41(2), (3). (4) 1983 s.41(3A); added 1992(2) Sch.3 para.41(2). (5), (6) 1983 s.41(4), (5). (7) 1983 s.41(6); added 1992(2) Sch.3 para.41(3). 89(1) 1983 s.42(1). (2) 1983 s.42(1A); added 1989 Sch.3 para.7(1). (3) 1983 s.42(2); amended 1989 Sch.3 para.7(2). 90 1983 s.43; amended 1992(2) Sch.3 para.42. 91 1983 s.44; amended Transfer of Functions (Economic Statistics) Order 1989 S.I.1989/992. 92 1983 s.46A; amended 1992(2) Sch.3 para.44. 93 1983 s.46B; amended 1992(2) Sch.3 para.44. 94 1983 s.47. 95(1) 1983 s.47A(1); added 1992(2) Sch.3 para.45. (2) 1983 s.47A(1A); added S.I. 1992/3127. (3) to (5) 1983 s.47A(2) to (4); added 1992(2) Sch.3 para.45. 96(1) 1983 s.48(1); amended 1987 s.13; 1989 Sch.3 para.9; 1992(2) Sch.3 para.46(1). (2) 1983 s.48(9); added 1992(2) Sch.3 para.46(4). (3) 1983 s.48(1A); added 1992(2) Sch.3 para.46(2). (4) 1983 s.20(6). (5) 1983 s.48(1B); added 1992(2) Sch.3 para.46(2). (6), (7) 1983 s.48(4) (8) to (11) 1983 s.48(5) to (8); amended 1992(2) Sch.3 para.46. 97(1) 1983 s.45(1). (2) 1985 s.26(2)(b), 27(3)(c). (3), (4) 1983 s.45(3), (4); amended 1987 s.16(2); 1992 s.6(2); para.(d) added 1989 Sch.3 para.8; para.(e) added 1992(2) s.16(3). (5) 1983 s.45(2); 1985 s.15(8), 17(8), 17A(9), 18(8). 98 1983 s.46; amended 1992(2) Sch.3 para.43. 99 1983 s.49; amended 1992(2) Sch.3 para.47. 100 101 102 Schedule 1 para.1(1) to (4) 1983 Sch.1 para.1(1) to (4); substituted 1987 s.14(2); 1990 s.10(2), (3); amended 1992(2) Sch.3 para.48; S.I.1993/766; S.I.1993/2953. (5), (6) 1983 Sch.1 para.1(4A), (4B); added 1992(2) Sch.3 para.48. (7) 1983 Sch.1 para.1(5); substituted 1987 s.14(2); amended 1988 s.14(2); 1990 s.10(4); 1992(2) Sch.3 para.48. (8) 1983 Sch.1 para.1(6); added 1989 Sch.3 para.10(a); amended 1990 s.10(5). para.2(1) to (6) 1983 Sch.1 para.1A(1) to (6); added 1986 s.10(1); amended 1992(2) Sch.3 para.49(1). (7)(a), (b) 1983 Sch.1 para.1A(7)(a), (b); added 1986 s.10(1). (c) 1983 Sch.1 para.1A(7)(ba); added 1992(2) Sch.3 para.49(2). (d) to (f) 1983 Sch.1 para.1A(7)(c) to (e); added 1986 s.10(1). (8) 1983 Sch.1 para.1A(8); added 1986 s.10(1). para.3 1983 Sch.1 para.1B; added 1992(2) Sch.3 para.50. para.4 1983 Sch.1 para.2; substituted 1987 s.14(3); amended 1988 s.14(2); 1989 Sch.3 para.10(b); 1992(2) Sch.3 para.51; S.I.1993/766; S.I.1993/2953. para.5 to 8 1983 Sch.1 para.3, 4, 4A, 4B; substituted 1990 s.10(6); amended 1992(2) Sch.3 para.52. para.9, 10 1983 Sch.1 para.5,5A; substituted 1988 s.14(4); amended 1992(2) Sch.3 para.53; repealed in part 1992(2) Sch.18 Pt.V. para.11, 12 1983 Sch.1 para.7, 7A; substituted 1988 s.14(5); amended 1992(2) Sch.3 para.54, 55. para.13(1) 1983 Sch.1 para.8A(1); substituted 1988 s.14(6); amended 1992(2) Sch.3 para.56. (2) 1983 Sch.1 para.9(1); amended 1992(2) Sch.3 para.57. (3) 1983 Sch.1 para.10; substituted 1988 s.14(6). (4) 1983 Sch.1 para.8A(1A), 9(1A); added 1992(2) Sch.3 para.56, 57. (5) 1983 Sch.1 para.8A(1B), 9(1B); added 1992(2) Sch.3 para.56, 57. (6) 1983 Sch.1 para.8A(2); substituted 1988 s.14(6); amended 1992(2) Sch.3 para.56. para.14, 15 1983 Sch.1 para.11, 12; substituted 1988 s.14(7); amended 1992(2) Sch.3 para.58. para.16 1983 Sch.1 para.13; substituted 1987 s.14(10). para.17 1983 Sch.1 para.14. para.18 1983 Sch.1 para.9(2); substituted 1988 s.14(6); amended 1992(2) Sch.3 para.57. para.19 1983 Sch.1 para.15. Schedule 2 1983 Sch.1A; added 1992(2) Sch.3 para.59. Schedule 3 1983 Sch.1B; added 1992(2) Sch.3 para.59; amended S.I.1993/766; S.I.1993/2953. Schedule 4 para.1 to 4 1983 Sch.2 para.1 to 4; amended 1989 Sch.3 para.11. para.5(1), (2) 1983 Sch.2 para.5(1), (2); amended 1989 Sch.3 para.11; 1993 s.47(2). (3) 1983 Sch.2 para.5(2A); added 1993 s.47(3). (4) 1983 Sch.2 para.5(3). (5) 1983 Sch.2 para.5(3A); added 1993 s.47(4). (6) 1983 Sch.2 para.5(4). para.6 1983 Sch.2 para.5A; added 1992(2) Sch.3 para.60. para.7 1983 Sch.2 para.6 para.8(1), (2) 1983 Sch.2 para.7(1), (2); amended 1992(2) Sch.3 para.60. (3) 1983 Sch.2 para.7(2A); added 1992(2) s.16(4). (4) 1983 Sch.2 para.7(3) para.9 1983 Sch.2 para.8; added 1989 Sch.3 para.11. Schedule 5 para.1 to 6 1983 Sch.3 para.1 to 6 para.7 1983 Sch.3 para.6A; added S.I.1985/799. para.8 1983 Sch.3 para.7; amended S.I.1985/799. para.9 1983 Sch.3 para.8; added S.I.1992/3128; substituted S.I.1993/2328. para.10 S.I.1993/2328 para.4. Schedule 6 para.1 1983 Sch.4 para.1; amended 1987 s.17(1); Income and Corporation Taxes Act 1988 (c.1) Sch.29. para.2 1983 Sch.4 para.3. para.3 1983 Sch.4 para.3A; added 1992(2) Sch.3 para.61. para.4 1983 Sch.4 para.4 para.5, 6, 7 1983 Sch.4 para.6, 7 ,8; amended 1992(2) Sch.3 para.61. para.8 1983 Sch.4 para.8A; added 1992(2) Sch.3 para.61. para.9 1983 Sch.4 para.9; amended 1986 s.11; 1989 Sch.3 para.4(2). para.10 1983 Sch.4 para.10. para.11 1983 Sch.4 para.11; substituted 1992(2) Sch.3 para.61. para.12, 13 1983 Sch.4 para.12, 13. Schedule 7 1983 Schedule 4A; added 1992(2) Sch.3 para.62. Schedule 8 1983 Schedule 5 Group 1 to 4 Group 1 to 4; amended 1984 Sch.6 para.1; S.I.1988/507; 1989 s.19; S.I.1986/530; S.I.1992/628. Group 5 Group 8; substituted 1989 Sch.3 para.1; amended S.I.1990/2553. Group 6 Group 8A; added 1984 Sch.6 para.8. Item 1, 2 Group 8A Item 1, 2; amended 1989 Sch.3 para.2. Notes (1) to (8) Group 8A Notes (1), (1A), (2), (3), (4), (6), (6A), (7); amended S.I.1985/18; 1989 Sch.3 para.2; Planning (Consequential Provisions) Act 1990 c.11 Sch.2 para.61; Planning (Northern Ireland) Order 1991 S.I.1220 (N.I. 11). Group 7 Group 9; substituted S.I.1992/3223. Group 8 Item 1 to 13 Group 10 Item 1 to 10, 12 to 14; amended S.I.1984/631; S.I.1987/1806; S.I.1990/752; S.I.1992/628; S.I.1992/3126; S.I.1992/3223. Notes (1) to (9) Group 10 Notes (1), (2), (2A), (3) to (8); amended S.I.1987/1806; S.I.1990/752; S.I.1992/3126. Group 9 Group 11; amended 1989 Sch.3 para.3. Group 10 Group 12. Group 11 Group 13. Group 12 Item 1 to 20 Group 14 Item 1 to 10, 10A, 10B, 11, 12, 12A, 13 to 17; amended DLA Sch.2 para.13; S.I.1984/489; S.I.1984/959; S.I.1986/530; S.I.1987/437; S.I.1992/628; S.I.1992/3065. Notes (1) to (9) Group 14 Notes (1) to (9); amended DLA Sch.2 para.13; S.I.1984/959; S.I.1985/919; S.I.1986/530. Group 13 Group 15 Item 1, 3, 4, Notes (2) to (6); amended 1992(2) Sch.3 para.63; S.I.1992/3095 Sch.1 para.8. Group 14 Group 15A; added S.I.1992/3131; S.I.1994/686. Group 15 Item 1 to 10 Group 16 Item 1 to 10; amended S.I.1986/530; S.I.1987/437; S.I.1990/750; S.I.1991/737. Notes (1) to (12) Group 16 Notes (1), (3) to (13); amended S.I.1983/1717; S.I.1984/766; S.I.1985/431; S.I.1986/530; S.I.1987/437; S.I.1989/470; S.I.1990/750; S.I.1990/2129; S.I.1991/737. Group 16 Group 17; amended 1989 s.22; S.I.1993/767. Schedule 9 Schedule 6 Group 1 Item 1(a) to (n) Group 1 Item 1(a), (aa), (b) to (l); substituted 1989 Sch.3 para.4; amended S.I.1990/2553; S.I.1991/2569. Notes (1) to (16) Group 1 Notes (1) to (6), (6A), (7) to (10), (10A), (10B), (11) to (13); amended S.I.1990/2553; S.I.1991/2569. Group 2 Group 2; amended S.I.1990/2037. Group 3 Group 3. Group 4 Group 4 Item 1, 2, Notes (1), (2), (4); amended S.I.1987/517. Group 5 Item 1 to 9 Group 5 Item 1 to 6, 6A, 7, 8; 1987 s.18(1); S.I.1987/860; S.I.1989/2272. Notes (1) to (6) Group 5 Notes (1) to (6); amended S.I.1985/432; S.I.1989/2272. Group 6 Substituted S.I.1994/1188. Group 7 Item 1 to 11 Group 7 Item (1) to (11); amended Opticians Act 1989 (c.44) s.37(3); S.I.1985/1900; 1988 s.13; S.I.1989/2272. Notes (1) to (7) Group 7 Notes (1) to (7); amended S.I.1985/1900; 1988 s.13. Group 8 Group 8. Group 9 Group 9. Group 10 Group 10; amended S.I.1994/687. Group 11 Group 11; amended Inheritance Tax 1984 (c.51) Sch.8 para.24; 1985 Sch.26 para.26; 1986 s.100. Group 12 Group 12 Item 1, 2, Notes (1), (1A), (2); added S.I.1989/470; amended S.I.1991/737; S.I.1994/687. Schedule 10 1983 Schedule 6A; added 1989 Sch.3 para.6. para.1, 2 1983 Sch.6A para.1,2; amended S.I.1991/2569. para.3(1) to (6) 1983 Sch.6A para.3(1) to (6); amended S.I.1991/2569. (7), (8) 1983 Sch.6A para.3(8), (9). (9) 1983 Sch.6A para.3(10); added S.I.1991/2569. para.4, 5 1983 Sch.6A para.4, 5; amended S.I.1991/2569. para.6(1), (2) 1983 Sch.6A para.6(1),(2); amended S.I.1991/2569. (3), (4) 1983 Sch.6A para.6(2A), (2B); added S.I.1991/2569. (5) 1983 Sch.6A para.6(3). (6) to (8) 1983 Sch.6A para.6(4) to (6); added S.I.1991/2569. para.7 1983 Sch.6A para.6A; added S.I.1991/2569. para.8, 9 1983 Sch.6A para.7, 8; amended S.I.1991/2569. Schedule 11 para.1 1983 Sch.7 para.1. para.2(1), (2) 1983 Sch.7 para.2(1), (2); amended 1992(2) Sch.3 para.64. (3) to (5) 1983 Sch.7 para.2(2A), (2B), (2C); added 1992(2) Sch.3 para.64. (6) 1983 Sch.7 para.2(3). (7) 1983 Sch.7 para.2(3A); added 1987 s.11(2). (8), (9) 1983 Sch.7 para.2(3B), (3C); added 1992(2) Sch.3 para.64; amended 1993 s.50(4) (10) to (13) 1983 Sch.7 para.2(4) to (7); amended 1989 s.25(2). para.3(1), (2) 1983 Sch.7 para.3(1), (2) (3) 1983 Sch.7 para.3(2A); amended 1992(2) Sch.3 para.65. para.4 1983 Sch.7 para.5; amended 1992(2) Sch.3 para.68. para.5 1983 Sch.7 para.6; amended 1984 s.16; Debtors (Scotland) Act (c.18) Sch.4 para.4; 1992(2) Sch.3 para.69. para.6(1) 1983 Sch.7 para.7(1); amended 1992(2) Sch.3 para.70. (2) 1983 Sch.7 para.7(1A); added 1989 s.25. (3) to (6) 1983 Sch.7 para.7(2) to (5); amended 1985 Sch.7 para.2; PACE Sch.6 para.41. para.7(1) to (4) 1983 Sch.7 para.8(1) to (4); amended 1985 Sch.7 para.3; 1992(2) Sch.3 para.71. (5) to (7) 1983 Sch.7 para.8(4A), (4B), (4C); amended 1985 Sch.7 para.3. (8) 1983 Sch.7 para.8(5). para.8 1983 Sch.7 para.9; amended 1992(2) Sch.3 para.72. para.9 1983 Sch.7 para.9A; added 1985 Sch.7 para.4. para.10 1983 Sch.7 para.10; amended PACE Sch.6 para.41; 1985 Sch.7 para.5; 1992(2) Sch.3 para.73. para.11 to 13 1983 Sch.7 para.10A, 10B, 10C; added 1985 Sch.7 para.6. para.14 1983 Sch.7 para.11; amended 1992(2) Sch.3 para.74. Schedule 12 para.1 1983 Sch.8 para.1; 1994 s.7. para.2 1983 Sch.8 para.2; amended 1985 Sch.8 para.2; CLSA Sch.10 para.52. para.3(1) 1983 Sch.8 para.3(1); substituted JPRA Sch.6 para.35. (2) to (4) 1983 Sch.8 para.3(2) to (4); amended 1985 Sch.8 para.3. (5) 1983 Sch.8 para.3(4A); added JPRA Sch.8 para.16. (6) 1983 Sch.8 para.3(5); amended 1985 Sch.8 para..3. para.4 1983 Sch.8 para.4; amended 1985 Sch.8 para.4. para.5, 6 1983 Sch.8 para.5, 6. para.7(1) to (3) 1983 Sch.8 para.7(1) to (3). (4) to (7) 1983 Sch.8 para.7(3A), (3B), (3C), (3E); added 1985 Sch.8 para.5; amended CLSA Sch.10 para.52; JPRA Sch.6 para.35. (8) 1983 Sch.8 para.7(4); amended 1985 Sch.8 para.5. (9) 1983 Sch.8 para.7(4A); added JPRA 1993 Sch.8 para.16. (10) 1983 Sch.8 para.7(5); amended 1985 Sch.8 para.5. para.8 1983 Sch.8 para.8 para.9 1983 Sch.8 para.9; 1985 s.27(3). (a) to (d) 1983 Sch.8 para.9(a) to (d). (e) 1983 Sch.8 para.9(dd); added 1985 s.27(2). (f) to (h) 1983 Sch.8 para.9(e) to (g); amended 1985 s.27(2). (j) 1986 s.14(7) para.10 1983 Sch.8 para.10; added 1985 s.28.