Commencement Information
I1Sch. 3 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.8.1992 by S.I. 1992/1867, art. 3, Sch. Pt. I; Sch. 3 partly in force at 1.12.1992 S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
28(1)In subsection (2A) of section 27 (application to the Crown), for “or on the importation of goods by, a Government department and the supply" there shall be substituted “ a Government department, on the acquisition of any goods by a Government department from another member State or on the importation of any goods by a Government department from a place outside the member States and the supply, acquisition ”.
(2)In subsection (2B) of that section, after “supply" there shall be inserted “ acquisition ”.
Commencement Information
I2Sch. 3 para. 28 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
29In paragraph (c) of section 29(1) (tax on importation payable by representative member)—
(a)for “importation of any goods" there shall be substituted “ acquisition of goods from another member State or on the importation of goods from a place outside the member States ”; and
(b)for the words from “for the purposes" to the end of the paragraph there shall be substituted—
“(i)in the case of goods acquired from another member State, for the purposes of paragraph 4(6) of Schedule 7 to this Act; and
(ii)in the case of goods imported from a place outside the member States, for those purposes and the purposes of section 25 above,
as acquired or, as the case may be, imported by the representative member; ”.
Commencement Information
I3Sch. 3 para. 29 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
30(1)In subsection (2) of section 29A (supplies to groups), after the word “and", in the first place where it occurs, there shall be inserted “ acquisitions and ”.
(2)In subsection (3) of that section, for “acquired by" there shall be substituted “ assets of ”.
(3)In subsection (8) of that section, for “acquisition" there shall be substituted “ supply to or acquisition or importation ”.
Commencement Information
I4Sch. 3 para. 30 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
31(1)In subsection (1) of section 30 (partnerships)—
(a)after “partnership" there shall be inserted “ or carrying on in partnership any other activities in the course or furtherance of which they acquire goods from other member States ”; and
(b)after “such persons" there shall be inserted “ or are acquired by such persons from another member State ”.
(2)In subsection (2) of that section, at the end there shall be inserted “ or on the acquisition of goods by the partnership from another member State. ”
(3)In subsection (5) of that section, after the word “period", in the second place where it occurs, there shall be inserted “ or on the acquisition during that period by the firm of any goods from another member State ”.
Commencement Information
I5Sch. 3 para. 31 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
32(1)In subsection (3) of section 31 (business carried on in divisions or by unincorporated bodies etc.), after the word “organisation", in the third place where it occurs, there shall be inserted “ or whether goods are acquired by such a club, association or organisation from another member State ”.
(2)After subsection (5) of that section there shall be inserted the following subsection—
“(6)References in this section to a business include references to any other activities in the course or furtherance of which any body corporate or any club, association, organisation or other unincorporated body acquires goods from another member State.”
Commencement Information
I6Sch. 3 para. 32 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
33In section 32 (agents etc.), for subsection (2) there shall be substituted the following subsection—
“(2)Where—
(a)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
(b)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,
the goods may be treated for the purposes of this Act as acquired and supplied or, as the case may be, imported and supplied by the taxable person as principal.”
Commencement Information
I7Sch. 3 para. 33 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
34After section 32 there shall be inserted the following sections—
“32A(1)Where any person—
(a)is a taxable person for the purposes of this Act or, without being a taxable person, is a person who makes taxable supplies or who acquires goods in the United Kingdom from one or more other member States;
(b)does not have any business establishment or other fixed establishment in the United Kingdom; and
(c)in the case of an individual, does not have his usual place of residence in the United Kingdom,
the Commissioners may direct that person to appoint another person (in this Act referred to as a “tax representative") to act on his behalf in relation to value added tax.
(2)With the agreement of the Commissioners, any person who has not been required to appoint a tax representative under subsection (1) above may do so if he is a person in relation to whom the conditions specified in paragraphs (a) to (c) of that subsection are satisfied.
(3)Where any person is appointed by virtue of this section to be the tax representative of another (in this section referred to as his “principal”), then, subject to subsections (4) to (6) below, the tax representative—
(a)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 value added tax or of any subordinate legislation made under this Act or any such enactment;
(b)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
(c)shall be personally liable in respect of—
(i)any failure to secure his principal’s compliance with or discharge of any such obligation or liability; and
(ii)anything done for purposes connected with acting on his principal’s behalf,
as if the obligations and liabilities imposed on his principal were imposed jointly and severally on the tax representative and his principal.
(4)A tax 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—
(a)require the registration of the names of tax representatives against the names of their principals in any register kept for the purposes of this Act; and
(b)make it the duty of a tax 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.
(5)A tax representative shall not by virtue of subsection (3) above be guilty of any offence except in so far as—
(a)the tax representative has consented to, or connived in, the commission of the offence by his principal;
(b)the commission of the offence by his principal is attributable to any neglect on the part of the tax representative; or
(c)the offence consists in a contravention by the tax representative of an obligation which, by virtue of that subsection, is imposed both on the tax representative and on his principal.
(6)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 tax 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.
(7)Where a person fails to appoint a tax representative in accordance with any direction under subsection (1) above, the Commissioners may require him to provide such security, or further security, as they may think appropriate for the payment of any tax which is or may become due from him.
(8)For the purposes of this Act a person shall not be treated as having been directed to appoint a tax representative, or as having been required to provide security under subsection (7) above, unless the Commissioners have either—
(a)served notice of the direction or requirement on him; or
(b)taken all such other steps as appear to them to be reasonable for bringing the direction or requirement to his attention.
32B(1)Where—
(a)a person who makes or intends to make taxable supplies of goods requests the Commissioners to allow his supplies to be taxed in accordance with this section; and
(b)the Commissioners are satisfied that that person is a person to whom this section applies,
the Commissioners may, if they think fit, allow that person’s taxable supplies to be so taxed until it appears to them that the person is no longer a person to whom this section applies or that the request is withdrawn or should, for any other reason, no longer be acted upon.
(2)This section applies to a person if—
(a)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;
(b)he is for the time being neither registered under this Act nor required to be registered under Schedule 1A to this Act;
(c)he does not have a tax representative and is not for the time being required under section 32A above to appoint one; and
(d)he intends that his taxable supplies should be confined to supplies of goods made to taxable persons who are willing to account for and pay the tax chargeable thereon.
(3)A person whose taxable supplies for the time being fall to be taxed in accordance with this section—
(a)shall be a taxable person for the purposes of this Act; but
(b)shall not, by virtue of any provision of this Act, be registered, or be or become liable to be registered, under Schedule 1 to this Act.
(4)Where—
(a)any person’s taxable supplies for the time being fall to be taxed in accordance with this section; and
(b)that person makes a taxable supply of goods to a taxable person who has given, and not withdrawn, an undertaking to account for and pay any tax chargeable on supplies of goods made to him by the supplier in question,
it shall be for the person supplied, on the supplier’s behalf, to account for and pay any tax on the supply of those goods, and not for the supplier.
(5)Where any person’s taxable supplies for the time being fall to be taxed in accordance with this section, any acquisition from another member State by that person of any goods the first supply of which after their acquisition is to a person who under this section is required to account for and pay the tax on that supply shall be treated for the purposes of this Act as taking place outside the United Kingdom.
(6)The Commissioners may by regulations provide—
(a)for the form and manner in which any request under subsection (1) above, or any undertaking such as is mentioned in subsection (4)(b) above, is to be made or withdrawn;
(b)for the manner in which the making or withdrawal of any such undertaking is to be notified to the Commissioners;
(c)for a person whose taxable supplies for the time being fall to be taxed in accordance with this section to be under an obligation to notify the Commissioners if he makes any taxable supply to which subsection (4) above does not apply and which is not zero-rated;
(d)for prescribed provisions of this Act and of any other enactment (whenever passed) relating to value added tax to have effect, where under this section a person supplied with any goods is required to account for and pay any tax on the supply, as if that tax were on supplies or acquisitions made by him.”
Commencement Information
I8Sch. 3 para. 34 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
35For section 35 (supplies of dutiable goods in warehouse) there shall be substituted the following section—
“35(1)Where—
(a)any goods have been removed from a place outside the member States and have entered the territory of the Community;
(b)the material time for any acquisition of those goods from another member State or for any supply of those goods is while they are subject to a warehousing regime and before the duty point; and
(c)those goods are not mixed with any dutiable goods which were produced or manufactured in the United Kingdom or acquired from another member State,
then the acquisition or supply mentioned in paragraph (b) above shall be treated for the purposes of this Act as taking place outside the United Kingdom.
(2)Subsection (3) below applies where—
(a)any dutiable goods are acquired from another member State; or
(b)any person makes a supply of—
(i)any dutiable goods which were produced or manufactured in the United Kingdom or acquired from another member State; or
(ii)any goods comprising a mixture of goods falling within sub-paragraph (i) above and other goods.
(3)Where this subsection applies and the material time for the acquisition or supply mentioned in subsection (2) above is while the goods in question are subject to a warehousing regime and before the duty point, that acquisition or 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.
(4)Where the material time for any acquisition or 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 acquisition or supply nevertheless falls, for the purposes of this Act, to be treated as taking place in the United Kingdom—
(a)that acquisition or 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
(b)in the case of a supply, any tax payable on the supply shall be paid (subject to any regulations under subsection (5) below)—
(i)at the time when the supply is treated as taking place under paragraph (a) above; and
(ii)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.
(5)The Commissioners may by regulations make provision—
(a)for enabling goods to be removed from a warehousing regime by a taxable person without payment of tax chargeable in respect of those goods by virtue of subsection (4)(a) above; and
(b)for that tax to be accounted for together with the tax chargeable on supplies of goods and services by that person.
(6)In this section—
“dutiable goods” means any goods which are subject—
to a duty of excise; or
in accordance with any provision for the time being having effect for transitional purposes in connection with the accession of any State to the European Communities, to any Community customs duty or agricultural levy of the Economic Community;
“the duty point”, in relation to any goods, means—
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
in the case of goods which are not so subject, the time when any Community customs debt in respect of duty on the entry of the goods into the territory of the Community would be incurred or, as the case may be, the corresponding time in relation to any such duty or levy as is mentioned in paragraph (b) of the definition of dutiable goods;
“material time”—
in relation to any acquisition or supply the time of which is determined in accordance with regulations under section 5(9) or 8B(3) above, means such time as may be prescribed for the purpose of this section by those regulations;
in relation to any other acquisition, means the time of the event which, in relation to the acquisition, is the first relevant event for the purposes of taxing it; and
in relation to any other supply, means the time when the supply would be treated as taking place in accordance with subsection (2) of section 4 above if paragraph (c) of that subsection were omitted;
“warehouse” means any warehouse where goods may be stored in any member State without payment of any one or more of the following, that is to say—
Community customs duty;
any agricultural levy of the Economic Community;
value added tax on the importation of the goods into any member State;
any duty of excise or any duty which is equivalent in another member State to a duty of excise.
(7)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 (whether in the same or different member States) without the payment in a member State of any duty, levy or tax; and references to the removal of goods from a warehousing regime shall be construed accordingly.”
Commencement Information
I9Sch. 3 para. 35 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
36(1)In subsection (1) of section 36 (capital goods), after “supply" there shall be inserted “ acquisition ”.
(2)In subsection (2) of that section, after “supplied" there shall be inserted “ acquired ”.
Commencement Information
I10Sch. 3 para. 36 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
37For section 37 (trading stamp schemes) there shall be substituted the following section—
The Commissioners may by regulations modify sections 10 and 10A of this Act and Schedules 4 and 4A to this Act for the purpose of providing (in place of the provision for the time being contained in those sections and Schedules) for the manner of determining for the purposes of this Act the value of—
(a)a supply of goods, or
(b)a transaction in pursuance of which goods are acquired from another member State,
in a case where the goods are supplied or acquired under a trading stamp scheme (within the meaning of the Trading Stamps Act 1964 or the Trading Stamps Act (Northern Ireland) 1965) or under any scheme of an equivalent description which is in operation in another member State.”
Commencement Information
I11Sch. 3 para. 37 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
11In section 9(1) (rate of tax)—
(a)after paragraph (a) there shall be inserted the following paragraph—
“(aa)on the acquisition of goods from another member State, by reference to the value of the acquisition as determined under this Act; and”; and
(b)in paragraph (b), after the word “goods", in the first place where it occurs, there shall be inserted “ from a place outside the member States ”.
Commencement Information
I12Sch. 3 para. 11 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
12(1)In subsection (1) of section 10 (value of supply of goods or services), for “shall be determined as follows" there shall be substituted “ shall, except as otherwise provided by or under this Act, be determined in accordance with this section and Schedule 4 to this Act, and for those purposes subsections (2) to (4) below have effect subject to that Schedule ”.
(2)For subsection (3) of that section (value where supply for no consideration or for consideration not or not wholly in money) there shall be substituted the following subsection—
“(3)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 tax chargeable, is equivalent to the consideration.”
Commencement Information
I13Sch. 3 para. 12 wholly in force at 1.8.1992 by S.I. 1992/1867, para. 3, Sch. Pt. I.
13After section 10 there shall be inserted the following section—
“10A(1)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.
(2)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 4A to this Act, and for those purposes—
(a)subsections (3) to (5) below have effect subject to Schedule 4A to this Act; and
(b)section 10 above and Schedule 4 to this Act shall not apply in relation to the transaction.
(3)If the transaction is for a consideration in money, its value shall be taken to be such amount as is equal to the consideration.
(4)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.
(5)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.”
Commencement Information
I14Sch. 3 para. 13 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
14(1)In subsection (1) of section 11 (value of imported goods), for the words from “imported goods" onwards there shall be substituted “ goods imported from a place outside the member States shall (subject to subsections (2) and (2A) below) be determined according to the rules applicable in the case of Community customs duties, whether or not the goods in question are subject to any such duties. ”
(2)In subsection (2) of that section, for the words before paragraph (a) there shall be substituted “ For the purposes of this Act the value of any goods imported from a place outside the member States shall 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- ”.
(3)After subsection (2) of that section there shall be inserted the following subsection—
“(2A)Subject to subsection (2) above, where—
(a)goods are imported from a place outside the member States for a consideration which is or includes a price in money payable as on the transfer of property;
(b)the terms on which those goods are so imported allow a discount for prompt payment of that price;
(c)those terms do not include provision for payment of that price by instalments; and
(d)payment of that price is made in accordance with those terms so that the discount falls to be allowed,
the value of the goods shall be taken for the purposes of this Act to be reduced by the amount of the discount.”
Commencement Information
I15Sch. 3 para. 14 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
61(1)In Schedule 4, paragraphs 2 and 5 (valuation for purposes of tax on importation where persons connected and prompt payment discounts) shall cease to have effect.
(2)After paragraph 3 of that Schedule there shall be inserted the following paragraph—
“3A(1)Where—
(a)any goods whose supply involves their removal to the United Kingdom—
(i)are charged in connection with their removal to the United Kingdom with a duty of excise or with car tax; or
(ii)on that removal are subject, in accordance with any provision for the time being having effect for transitional purposes in connection with the accession of any State to the European Communities, to any Community customs duty or agricultural levy of the Economic Community;
or
(b)the time of supply of any dutiable goods, or of any goods which comprise a mixture of dutiable goods and other goods, is determined under section 35(4) of this Act to be the duty point,
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, tax or, as the case may be, agricultural levy which has been or is to be paid in respect of the goods.
(2)In this paragraph “dutiable goods” and “duty point” have the same meanings as in section 35 of this Act.”
(3)In paragraph 7 of that Schedule (valuation of supplies where there is no consideration)—
(a)at the beginning there shall be inserted “ (1) ”;
(b)in sub-paragraph (b), after “paragraph 5(1)" there shall be inserted “ or 5A ”; and
(c)for the words from “the value" to the end of the paragraph there shall be substituted— “then, except where paragraph 10 below applies, the value of the supply shall be determined as follows.
(2)The value of the supply shall be taken to be—
(a)such consideration in money as would be payable by the person making the supply if he were, at the time of the supply, to purchase goods identical in every respect (including age and condition) to the goods concerned; or
(b)where the value cannot be ascertained in accordance with paragraph (a) above, such consideration in money as would be payable by that person if he were, at that time, to purchase goods similar to, and of the same age and condition as, the goods concerned; or
(c)where the value can be ascertained in accordance with neither paragraph (a) nor paragraph (b) above, the cost of producing the goods concerned if they were produced at that time.
(3)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 value added tax on the supply of the goods to that person.”
(4)After paragraph 8 of that Schedule there shall be inserted the following paragraph—
“8A Where any supply of services is treated by virtue of section 7 of this Act as made by the person by whom they are received, the value of the supply shall be taken—
(a)in a case where the consideration for which the services were in fact supplied to him was a consideration in money, to be such amount as is equal to that consideration; and
(b)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.”
(5)For paragraph 11 of that Schedule (rates of exchange) there shall be substituted the following paragraph—
“11(1)Subject to the following provisions of this paragraph, where—
(a)there is a supply of goods or services; and
(b)any sum relevant for determining the value of the supply is expressed in a currency other than sterling,
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.
(2)Where the Commissioners have published a notice which, for the purposes of this paragraph, specifies—
(a)rates of exchange; or
(b)methods of determining rates of exchange,
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.
(3)An option for the purposes of sub-paragraph (2) above for the use of a particular rate or method of determining a rate—
(a)shall not be exercised by any person except in relation to all such supplies by him as are of a particular description or after a particular date; and
(b)shall not be withdrawn or varied except with the consent of the Commissioners and in such manner as they may require.
(4)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.
(5)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.
(6)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.
(7)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.”
Commencement Information
I16Sch. 3 para. 61 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 para. 61(3) wholly in force at 1.8.1992 by S.I. 1992/1867, art. 3, Sch. Pt. I; Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).
62After Schedule 4 there shall be inserted the following Schedule—
1(1)Where, in the case of the acquisition of any goods from another member State—
(a)the relevant transaction is for a consideration in money;
(b)the value of the relevant transaction is (apart from this paragraph) less than the transaction’s open market value;
(c)the supplier and the person who acquires the goods are connected; and
(d)that person is not entitled under sections 14 and 15 of this Act to credit for all the tax on the acquisition,
the Commissioners may direct that the value of the relevant transaction shall be taken to be its open market value.
(2)A direction under this paragraph shall be given by notice in writing to the person by whom the acquisition in question is made; but no direction may be given more than three years after the relevant time.
(3)A direction given to a person under this paragraph in respect of a transaction may include a direction that the value of any transaction—
(a)in pursuance of which goods are acquired by him from another member State after the giving of the notice, or after such later date as may be specified in the notice; and
(b)as to which the conditions in paragraphs (a) to (d) of sub-paragraph (1) above are satisfied,
shall be taken to be its open market value.
(4)For the purposes of this paragraph the open market value of a transaction in pursuance of which goods are acquired from another member State shall be taken to be the amount which would fall to be taken as its value under section 10A(3) of this Act 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.
(5)For the purposes of this paragraph any question whether a person is connected with another shall be determined in accordance with section 839 of the Income and Corporation Taxes Act 1988.
(6)A direction under this paragraph may be varied or withdrawn by the Commissioners by a further direction given by notice in writing.
2(1)Where, in such cases as the Commissioners may by regulations prescribe, goods acquired in the United Kingdom from another member State—
(a)are charged in connection with their removal to the United Kingdom with a duty of excise or with car tax; or
(b)on that removal are subject, in accordance with any provision for the time being having effect for transitional purposes in connection with the accession of any State to the European Communities, to any Community customs duty or agricultural levy of the Economic Community,
then the value of the relevant transaction 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, tax or, as the case may be, agricultural levy which has been or is to be paid in respect of those goods.
(2)Sub-paragraph (1) above shall not require the inclusion of any amount of duty or agricultural levy in the value of a transaction in pursuance of which there is an acquisition of goods which, under subsection (4) of section 35 of this Act, is treated as taking place before the time which is the duty point within the meaning of that section.
3(1)Where goods are acquired from another member State in pursuance of anything which is treated as a supply for the purposes of this Act by virtue of paragraph 5(1) or 5A of Schedule 2 to this Act, the value of the relevant transaction shall be determined, in a case where there is no consideration, as follows.
(2)The value of the transaction shall be taken to be—
(a)such consideration in money as would be payable by the supplier if he were, at the time of the acquisition, to purchase goods identical in every respect (including age and condition) to the goods concerned; or
(b)where the value cannot be ascertained in accordance with paragraph (a) above, such consideration in money as would be payable by the supplier if he were, at that time, to purchase goods similar to, and of the same age and condition as, the goods concerned; or
(c)where the value can be ascertained in accordance with neither paragraph (a) nor paragraph (b) above, the cost of producing the goods concerned if they were produced at that time.
(3)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 value added tax on the supply of the goods to that person.
4(1)Subject to the following provisions of this paragraph, where—
(a)goods are acquired from another member State; and
(b)any sum relevant for determining the value of the relevant transaction is expressed in a currency other than sterling,
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 by the person making the acquisition of that sum in the currency in question.
(2)Where the Commissioners have published a notice which, for the purposes of this paragraph, specifies—
(a)rates of exchange; or
(b)methods of determining rates of exchange,
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 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.
(3)An option for the purposes of sub-paragraph (2) above for the use of a particular rate or method of determining a rate—
(a)shall not be exercised by any person except in relation to all such transactions in pursuance of which goods are acquired by him from another member State as are of a particular description or after a particular date; and
(b)shall not be withdrawn or varied except with the consent of the Commissioners and in such manner as they may require.
(4)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 the transactions in pursuance of which goods are acquired by him from another member State, of a rate of exchange which is different from any which would otherwise apply.
(5)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 transactions and subject to such conditions as they think fit.
(6)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.
(7)Where goods are acquired from another 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) above.
5In this Schedule—
“relevant transaction”, in relation to any acquisition of goods from another member State, means the transaction in pursuance of which the goods are acquired;
“the relevant time”, in relation to any such acquisition, means—
if the person by whom the goods are acquired is not a taxable person and the time of acquisition does not fall to be determined in accordance with regulations made under section 8B(3) above, the time of the event which, in relation to that acquisition, is the first relevant event for the purposes of taxing the acquisition; and
in any other case, the time of acquisition.”
Commencement Information
I17Sch. 3 para. 62 wholly in force; Sch. 3 not in force at Royal Assent see s. 14(3); Sch. 3 partly in force at 1.12.1992 by S.I. 1992/2979, art. 4, Sch. Pt. II; Sch. 3 in force, insofar as not already in force, at 1.1.1993 by S.I. 1992/3261, art. 3, Sch. (with transitional provisions in arts. 4, 5, 6, and 7).