(1)Schedule 5 to the Value Added Tax Act 1983 (zero-rating) shall have effect subject to the modifications in Schedule 6 to this Act.
(2)In Schedule 6 to this Act—
(a)Part I has effect with respect to supplies made on or after 1st May 1984; and
(b)Parts II and III have effect with respect to supplies made on or after 1st June 1984.
After subsection (2) of section 27 of the Value Added Tax Act 1983 (application of value added tax legislation to the Crown) there shall be inserted the following subsections—
“(2A)Where tax is chargeable on the supply of goods or services to, or on the importation of goods by, a Government department and the supply or importation is not for the purpose—
(a)of any business carried on by the department, or
(b)of a supply by the department which, by virtue of a direction under subsection (2) above, is treated as a supply in the course or furtherance of a business,
then, if and to the extent that the Treasury so direct and subject to subsection (2B) 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 tax so chargeable.
(2B)The Commissioners may make the refunding of any amount due under subsection (2A) 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.”
Textual Amendments
F1S. 12 repealed by Finance Act 1988 (c. 39), s. 148, Sch. 14 Pt. III and expressed to be repealed (1.9.1994 with effect as mentioned in s. 101(1) of the amending Act) by 1994 c. 23, ss. 100(2), 101(1), Sch. 15 (with Sch. 13 paras. 2, 9)
In section 16 of the Value Added Tax Act 1983 (zero-rating) in subsection (5) (certain supplies outside the United Kingdom and other transactions to be treated as supplies of goods or services in the United Kingdom) the words “of a supply of goods or services outside the United Kingdom or" and “supply or" shall be omitted.