Value Added Tax Act 1994

1. Introductory Text

2. Part I The charge to tax

   1. Imposition and rate of VAT

      1. 1. Value added tax.

      2. 2. Rate of VAT.

      3. 3. Taxable persons and registration.

      4. 3A. Supply of electronic services in member States: special accounting scheme

   2. Supply of goods or services in the United Kingdom

      1. 4. Scope of VAT on taxable supplies.

      2. 5. Meaning of supply: alteration by Treasury order.

      3. 6. Time of supply.

      4. 7. Place of supply.

      5. 8. Reverse charge on supplies received from abroad.

      6. 9. Place where supplier or recipient of services belongs.

      7. 9A. Reverse charge on gas and electricity supplied by persons outside the United Kingdom

   3. Acquisition of goods from member States

      1. 10. Scope of VAT on acquisitions from member States.

      2. 11. Meaning of acquisition of goods from another member State.

      3. 12. Time of acquisition.

      4. 13. Place of acquisition.

      5. 14. Acquisitions from persons belonging in other member States.

   4. Importation of goods from outside the member States

      1. 15. General provisions relating to imported goods.

      2. 16. Application of customs enactments.

      3. 17. Free zone regulations.

   5. Goods subject to a warehousing regime

      1. 18. Place and time of acquisition or supply.

      2. 18A. Fiscal warehousing.

      3. 18B. Fiscally warehoused goods: relief.

      4. 18C. Warehouses and fiscal warehouses: services.

      5. 18D. Removal from warehousing: accountability.

      6. 18E. Deficiency in fiscally warehoused goods.

      7. 18F. Sections 18A to 18E: supplementary.

   6. Determination of value

      1. 19. Value of supply of goods or services.

      2. 20. Valuation of acquisitions from other member States.

      3. 21. Value of imported goods.

      4. 22. Value of certain goods.

      5. 23. Gaming machines.

   7. Payment of VAT by taxable persons

      1. 24. Input tax and output tax.

      2. 25. Payment by reference to accounting periods and credit for input tax against output tax.

      3. 26. Input tax allowable under section 25.

      4. 26A. Disallowance of input tax where consideration not paid

      5. 26AB. Adjustment of output tax in respect of supplies under section 55A

      6. 26B. Flat-rate scheme

      7. 27. Goods imported for private purposes.

      8. 28. Payments on account of VAT.

      9. 29. Invoices provided by recipients of goods or services.

3. Part II Reliefs, exemptions and repayments

   1. Reliefs etc. generally available

      1. 29A. Reduced rate

      2. 30. Zero-rating.

      3. 31. Exempt supplies and acquisitions.

      4. 32. Relief on supply of certain second-hand goods.

      5. 33. Refunds of VAT in certain cases.

      6. 33A. Refunds of VAT to museums and galleries

      7. 34. Capital goods.

      8. 35. Refund of VAT to persons constructing certain buildings.

      9. 36. Bad debts.

   2. Acquisitions

      1. 36A. Relief from VAT on acquisition if importation would attract relief

   3. Imports, overseas businesses etc

      1. 37. Relief from VAT on importation of goods.

      2. 38. Importation of goods by taxable persons.

      3. 39. Repayment of VAT to those in business overseas.

      4. 40. Refunds in relation to new means of transport supplied to other member States.

4. Part III Application of Act in particular cases

   1. 41. Application to the Crown.

   2. 42. Local authorities.

   3. 43. Groups of companies.

   4. 43A. Groups: eligibility.

   5. 43AA. Power to alter eligibility for grouping

   6. 43B. Groups: applications.

   7. 43C. Groups: termination of membership.

   8. 43D. Groups: duplication

   9. 44. Supplies to groups.

   10. 45. Partnerships.

   11. 46. Business carried on in divisions or by unincorporated bodies, personal representatives etc.

   12. 47. Agents etc.

   13. 48. VAT representatives.

   14. 49. Transfers of going concerns.

   15. 50. Terminal markets.

   16. 50A. Margin schemes.

   17. 51. Buildings and land.

   18. 51B. Face-value vouchers

   19. 52. Trading stamp schemes.

   20. 53. Tour operators.

   21. 54. Farmers etc.

   22. 55. Customers to account for tax on supplies of gold etc.

   23. 55A. Customers to account for tax on supplies of goods of a kind used in missing trader intra-community fraud

   24. 56. Fuel for private use.

   25. 57. Determination of consideration for fuel supplied for private use.

5. Part IV Administration, collection and enforcement

   1. General administrative provisions

      1. 58. General provisions relating to the administration and collection of VAT.

   2. Disclosure of avoidance schemes

      1. 58A. Disclosure of avoidance schemes

   3. Default surcharges and other penalties and criminal offences

      1. 59. The default surcharge.

      2. 59A. Default surcharge: payments on account.

      3. 59B. Relationship between sections 59 and 59A.

      4. 60. VAT evasion: conduct involving dishonesty.

      5. 61. VAT evasion: liability of directors etc.

      6. 62. Incorrect certificates as to zero-rating etc.

      7. 63. Penalty for misdeclaration or neglect resulting in VAT loss for one accounting period equalling or exceeding certain amounts.

      8. 64. Repeated misdeclarations.

      9. 65. Inaccuracies in EC sales statements or in statements relating to section 55A.

      10. 66. Failure to submit EC sales statement or statement relating to section 55A.

      11. 67. Failure to notify and unauthorised issue of invoices.

      12. 68. Breaches of walking possession agreements.

      13. 69. Breaches of regulatory provisions.

      14. 69A. Breach of record-keeping requirements etc. in relation to transactions in gold.

      15. 69B. Breach of record-keeping requirements imposed by directions

      16. 70. Mitigation of penalties under sections 60, 63, 64 and 67.

      17. 71. Construction of sections 59 to 70.

      18. 72. Offences.

   4. Assessments of VAT and other payments due

      1. 73. Failure to make returns etc.

      2. 74. Interest on VAT recovered or recoverable by assessment.

      3. 75. Assessments in cases of acquisitions of certain goods by non-taxable persons.

      4. 76. Assessment of amounts due by way of penalty, interest or surcharge.

      5. 77. Assessments: time limits and supplementary assessments.

   5. Liability for unpaid VAT of another

      1. 77A. Joint and several liability of traders in supply chain where tax unpaid

   6. Interest, repayment supplements etc. payable by Commissioners

      1. 78. Interest in certain cases of official error.

      2. 78A. Assessment for interest overpayments.

      3. 79. Repayment supplement in respect of certain delayed payments or refunds.

      4. 80. Credit for, or repayment of, overstated or overpaid VAT

      5. 80A. Arrangements for reimbursing customers.

      6. 80B. Assessments of amounts due under section 80A arrangements.

      7. 81. Interest given by way of credit and set-off of credits.

6. Part V Appeals

   1. 82. Appeal tribunals.

   2. 83. Appeals.

   3. 84. Further provisions relating to appeals.

   4. 85. Settling appeals by agreement.

   5. 86. Appeals to Court of Appeal.

   6. 87. Enforcement of registered or recorded tribunal decisions etc.

7. Part VI Supplementary provisions

   1. Change in rate of VAT etc. and disclosure of information

      1. 88. Supplies spanning change of rate etc.

      2. 89. Adjustments of contracts on changes in VAT.

      3. 90. Failure of resolution under Provisional Collection of Taxes Act 1968.

      4. 91. Disclosure of information for statistical purposes.

   2. Interpretative provisions

      1. 92. Taxation under the laws of other member States etc.

      2. 93. Territories included in references to other member States etc.

      3. 94. Meaning of “business” etc.

      4. 95. Meaning of “new means of transport”.

      5. 96. Other interpretative provisions.

   3. Supplementary provisions

      1. 97. Orders, rules and regulations.

      2. 97A. Place of supply orders: transitional provision.

      3. 98. Service of notices.

      4. 99. Refund of VAT to Government of Northern Ireland.

      5. 100. Savings and transitional provisions, consequential amendments and repeals.

      6. 101. Commencement and extent.

      7. 102. Short title.

8. SCHEDULES

   1. SCHEDULE A1

      Charge at Reduced Rate

      1. The supplies

         1. 1. (1) Subject to the following provisions of this Schedule, the...

      2. Interpretation

         1. 2. For the purposes of this Schedule the following supplies are...

         2. 3. (1) For the purposes of this Schedule supplies not within...

         3. 4. (1) Paragraph 1(1)(a) (i)above shall be deemed to include combustible...

         4. 5. (1) For the purposes of this paragraph—

         5. 6. (1) In paragraph 1(4) above “women’s sanitary protection products” means...

         6. 7. Interpretation of paragraph 1(5)

         7. 8. Interpretation of paragraph 1(6): introductory

         8. 9. Interpretation of paragraph 1(6): meaning of “qualifying conversion”

         9. 10. Interpretation of paragraph 1(6): meaning of “changed number of dwellings conversion”

         10. 11. Interpretation of paragraph 1(6): meaning of “house in multiple occupation conversion”

         11. 12. Interpretation of paragraph 1(6): meaning of “special residential conversion”

         12. 13. Special residential conversions: reduced rate only for supplies made to intended user of converted accommodation

         13. 14. Interpretation of paragraph 1(6): “qualifying conversion” includes related garage works

         14. 15. Interpretation of paragraph 1(6): conversion not “qualifying” if planning consent and building control approval not obtained

         15. 16. Interpretation of paragraph 1(6): meaning of “supply of qualifying services”

         16. 17. Interpretation of paragraphs 11 to 14: meaning of “qualifying residential purpose”

         17. 18. Interpretation of paragraph 1(7): introductory

         18. 19. Paragraph 1(7) only applies where dwelling has been empty for at least 3 years

         19. 20. Paragraph 1(7) only applies if planning consent and building control approval obtained

         20. 21. Interpretation of paragraph 1(7): meaning of “supply of qualifying services”

         21. 22. Interpretation of paragraph 1(6) and (7): meaning of “building materials”

   2. SCHEDULE 1

      Registration in respect of taxable supplies

      1. Liability to be registered

         1. 1. (1) Subject to sub-paragraphs (3) to (7) below, a person...

         2. 1A. (1) Paragraph 2 below is for the purpose of preventing...

         3. 2. (1) Without prejudice to paragraph 1 above, if the Commissioners...

         4. 3. A person who has become liable to be registered under...

         5. 4. (1) Subject to sub-paragraph (2) below, a person who has...

      2. Notification of liability and registration

         1. 5. (1) A person who becomes liable to be registered by...

         2. 6. (1) A person who becomes liable to be registered by...

         3. 7. (1) A person who becomes liable to be registered by...

         4. 8. Where a person becomes liable to be registered by virtue...

      3. Entitlement to be registered

         1. 9. Where a person who is not liable to be registered...

         2. 10. (1) Where a person who is not liable to be...

      4. Notification of end of liability or entitlement etc

         1. 11. A person registered under paragraph 5, 6 or 9 above...

         2. 12. A person registered under paragraph 10 above who—

      5. Cancellation of registration

         1. 13. (1) Subject to sub-paragraph (4) below, where a registered person...

      6. Exemption from registration

         1. 14. (1) Notwithstanding the preceding provisions of this Schedule, where a...

      7. Power to vary specified sums by order

         1. 15. The Treasury may by order substitute for any of the...

      8. Supplementary

         1. 16. The value of a supply of goods or services shall...

         2. 17. Any notification required under this Schedule shall be made in...

         3. 18. In this Schedule “registrable” means liable or entitled to be...

         4. 19. References in this Schedule to supplies are references to supplies...

   3. SCHEDULE 2

      Registration in respect of supplies from other member States

      1. Liability to be registered

         1. 1. (1) A person who— (a) is not registered under this...

         2. 2. (1) Subject to sub-paragraph (2) below, a person who has...

      2. Notification of liability and registration

         1. 3. (1) A person who becomes liable to be registered under...

      3. Request to be registered

         1. 4. (1) Where a person who is not liable to be...

      4. Notification of matters affecting continuance of registration

         1. 5. (1) Any person registered under this Schedule who ceases to...

      5. Cancellation of registration

         1. 6. (1) Subject to paragraph 7 below, where a person registered...

      6. Conditions of cancellation

         1. 7. (1) The Commissioners shall not, under paragraph 6(1) above, cancel...

      7. Power to vary specified sums by order

         1. 8. The Treasury may by order substitute for any of the...

      8. Supplementary

         1. 9. Any notification required under this Schedule shall be made in...

         2. 10. For the purposes of this Schedule a supply of goods...

   4. SCHEDULE 3

      Registration in respect of acquisitions from other member States

      1. Liability to be registered

         1. 1. (1) A person who— (a) is not registered under this...

         2. 2. (1) Subject to sub-paragraph (2) below, a person who has...

      2. Notification of liability and registration

         1. 3. (1) A person who becomes liable to be registered under...

      3. Entitlement to be registered etc

         1. 4. (1) Where a person who is not liable to be...

      4. Notification of matters affecting continuance of registration

         1. 5. (1) Any person registered under this Schedule who ceases to...

      5. Cancellation of registration

         1. 6. (1) Subject to paragraph 7 below, where a person registered...

      6. Conditions of cancellation

         1. 7. (1) The Commissioners shall not, under paragraph 6(1) above, cancel...

      7. Exemption from registration

         1. 8. (1) Notwithstanding the preceding provisions of this Schedule, where a...

      8. Power to vary specified sums by order

         1. 9. The Treasury may by order substitute for any of the...

      9. Supplementary

         1. 10. Any notification required under this Schedule shall be made in...

         2. 11. For the purposes of this Schedule an acquisition of goods...

   5. SCHEDULE 3A

      Registration in respect of disposals of assets for which a VAT repayment is claimed

      1. Liability to be registered

         1. 1. (1) A person who is not registered under this Act,...

         2. 2. A person who has become liable to be registered under...

      2. Notification of liability and registration

         1. 3. (1) A person who becomes liable to be registered by...

         2. 4. (1) A person who becomes liable to be registered by...

      3. Notification of end of liability

         1. 5. (1) Subject to sub-paragraph (2) below, a person registered under...

      4. Cancellation of registration

         1. 6. (1) Subject to sub-paragraph (3) below, where the Commissioners are...

      5. Exemption from registration

         1. 7. (1) Notwithstanding the preceding provisions of this Schedule, where a...

      6. Supplementary

         1. 8. Any notification required under this Schedule shall be made in...

         2. 9. (1) For the purposes of this Schedule a supply of...

   6. SCHEDULE 3B

      Supply of electronic services in member States: special accounting scheme

      1. Part 1 Registration

         1. The register

            1. 1. Persons registered under this Schedule are to be registered in...

         2. Persons who may be registered

            1. 2. (1) A person may be registered under this Schedule if...

         3. Qualifying supplies

            1. 3. In this Schedule, “ qualifying supply ” means a supply...

         4. Registration request

            1. 4. (1) If a person— (a) satisfies the Commissioners that the...

         5. Date on which registration takes effect

            1. 5. (1) Where a person is registered under this Schedule, his...

         6. Registration number

            1. 6. On registering a person under this Schedule, the Commissioners must—...

         7. Obligation to notify changes

            1. 7. (1) A person who has made a registration request must...

         8. Cancellation of registration

            1. 8. (1) The Commissioners must cancel a person’s registration under this...

         9. Registration after cancellation for persistent default

            1. 9. (1) The Commissioners— (a) are not required by paragraph 4(1)...

      2. Part 2 Obligations following registration, etc

         1. Liability for VAT

            1. 10. (1) A person is liable to pay VAT under and...

         2. Obligation to submit special accounting returns

            1. 11. (1) A person who is, or has been, registered under...

         3. Further obligations with respect to special accounting returns

            1. 12. (1) A special accounting return must set out in sterling...

         4. Payment of VAT

            1. 13. (1) A person who is required to submit a special...

         5. Obligations to keep and produce records

            1. 14. (1) A person must keep records of the transactions which...

         6. Commissioners' power to request production of records

            1. 15. (1) The Commissioners may request a person to make available...

      3. Part 3 Understatements and overstatements of UK VAT

         1. Understatement or overstatement of UK VAT in special scheme return

            1. 16. (1) If the Commissioners consider that a person who is...

      4. Part 4 Application of provisions relating to VAT

         1. Registration under this Act

            1. 17. Notwithstanding any provision in this Act to the contrary, a...

         2. De-registration

            1. 18. Where a person who is registered under Schedule 1 satisfies...

         3. VAT representatives

            1. 19. Section 48(1) ( VAT representatives) does not permit the Commissioners...

         4. Appeals

            1. 20. (1) An appeal shall lie to a tribunal with respect...

         5. Payments on account of non-UK VAT to other member States

            1. 21. (1) Neither— (a) paragraph 1(2) of Schedule 11, nor

         6. Refund of UK VAT

            1. 22. (1) The provisions which give effect to the 1986 VAT...

      5. Part 5 Supplementary

         1. Interpretation

            1. 23. (1) In this Schedule— “ the 1977 VAT Directive ”...

   7. SCHEDULE 4

      Matters to be treated as supply of goods or services

      1. 1. (1) Any transfer of the whole property in goods is...

      2. 2. Matters to be treated as supply of goods or services

      3. 3. The supply of any form of power, heat, refrigeration or...

      4. 4. The grant, assignment or surrender of a major interest in...

      5. 5. (1) Subject to sub-paragraph (2) below, where goods forming part...

      6. 6. (1) Where, in a case not falling within paragraph 5(1)...

      7. 7. Where in the case of a business carried on by...

      8. 8. (1) Where a person ceases to be a taxable person,...

      9. 9. (1) Subject to sub-paragraphs (2) and (3) below, paragraphs 5...

   8. SCHEDULE 5

      Services supplied where received

      1. 1. Transfers and assignments of copyright, patents, licences, trademarks and similar...

      2. 2. Advertising services.

      3. 3. Services of consultants, engineers, consultancy bureaux, lawyers, accountants and other...

      4. 4. Acceptance of any obligation to refrain from pursuing or exercising,...

      5. 5. Banking, financial and insurance services (including reinsurance, but not including...

      6. 5A. The provision of access to, and of transport or transmission...

      7. 6. The supply of staff.

      8. 7. The letting on hire of goods other than means of...

      9. 7A. Telecommunications services, that is to say services relating to the...

      10. 7B. Radio and television broadcasting services.

      11. 7C. Electronically supplied services, for example— (a) website supply, web-hosting and...

      12. 8. The services rendered by one person to another in procuring...

      13. 9. Any services not of a description specified in paragraphs 1...

      14. 10. Section 8(1) shall have effect in relation to any service—...

   9. SCHEDULE 5A

      Goods Eligible to be Fiscally Warehoused

   10. SCHEDULE 6

       Valuation: special cases

       1. 1. (1) Where— (a) the value of a supply made by...

       2. 1A. (1) Where— (a) the value of a supply made by...

       3. 2. Where— (a) the whole or part of a business carried...

       4. 3. (1) Where— (a) any goods whose supply involves their removal...

       5. 4. (1) Where goods or services are supplied for a consideration...

       6. 5. Valuation: special cases

       7. 6. (1) Where there is a supply of goods by virtue...

       8. 7. Where there is a supply of services by virtue of—...

       9. 8. Where any supply of services is treated by virtue of...

       10. 9. (1) This paragraph applies where a supply of services consists...

       11. 10. (1) This paragraph applies to a supply of goods or...

       12. 11. (1) Subject to the following provisions of this paragraph, where—...

       13. 12. Regulations may require that in prescribed circumstances there is to...

       14. 13. A direction under paragraph 1 or 2 above may be...

   11. SCHEDULE 7

       Valuation of acquisitions from other member states: special cases

       1. 1. (1) Where, in the case of the acquisition of any...

       2. 2. (1) Where, in such cases as the Commissioners may by...

       3. 3. (1) Where goods are acquired from another member State in...

       4. 4. (1) Subject to the following provisions of this paragraph, where—...

       5. 5. In this Schedule— “relevant transaction”, in relation to any acquisition...

   12. SCHEDULE 7A

       CHARGE AT REDUCED RATE

       1. Part 1 INDEX TO REDUCED-RATE SUPPLIES OF GOODS AND SERVICES

       2. Part 2 THE GROUPS

          1. Group 1 — Supplies of domestic fuel or power

             1. ITEM NO.

             2. 1. Supplies for qualifying use of— (a) coal, coke or other...

             3. 1. Matters included or not included in the supplies

             4. 2. Meaning of “fuel oil”, “gas oil” and “kerosene”

             5. 3. Meaning of “qualifying use”

             6. 4. Supplies only partly for qualifying use

             7. 5. Supplies deemed to be for domestic use

             8. 6. Other supplies that are for domestic use

             9. 7. Interpretation of paragraph 6

          2. Group 2 — Installation of energy-saving materials

             1. NOTES:

             2. 1. Supplies of services of installing energy-saving materials in—

             3. 2. Supplies of energy-saving materials by a person who installs those...

             4. 1. Meaning of “energy-saving materials”

             5. 2. Meaning of “residential accommodation”

             6. 3. Meaning of “use for a relevant charitable purpose”

          3. Group 3 — Grant-funded installation of heating equipment or security goods or connection of gas supply

             1. ITEM NO.

             2. 1. Supplies to a qualifying person of any services of installing...

             3. 2. Supplies of heating appliances made to a qualifying person by...

             4. 3. Supplies to a qualifying person of services of connecting, or...

             5. 4. Supplies of goods made to a qualifying person by a...

             6. 5. Supplies to a qualifying person of services of installing, maintaining...

             7. 6. Supplies of goods made to a qualifying person by a...

             8. 7. Supplies consisting in the leasing of goods that form the...

             9. 8. Supplies of goods that form the whole or part of...

             10. 8A. Supplies to a qualifying person of services of installing, maintaining...

             11. 8B. Supplies of goods made to a qualifying person by a...

             12. 9. Supplies to a qualifying person of services of installing qualifying...

             13. 10. Supplies of qualifying security goods made to a qualifying person...

             14. 1. Supply only included so far as grant-funded

             15. 2. Meaning of “relevant scheme”

             16. 3. Apportionment of grants that also cover other supplies

             17. 4. Meaning of “heating appliances”

             18. 4A. Meaning of “central heating system”

             19. 4B. Meaning of “renewable source heating system”

             20. 5. Meaning of “qualifying security goods”

             21. 6. Meaning of “qualifying person”

          4. Group 4 — Women’s sanitary products

             1. ITEM NO.

             2. 1. Supplies of women’s sanitary products. NOTES:

             3. 1. Meaning of “women’s sanitary products”

          5. Group 5 — Children’s car seats

             1. ITEM NO.

             2. 1. Supplies of children’s car seats. NOTES:

             3. 1. Meaning of “children’s car seats”

             4. 2. Meaning of “safety seat”

             5. 3. Meaning of “related wheeled framework”

             6. 4. Meaning of “booster seat”

             7. 5. Meaning of “booster cushion”

          6. Group 6 — Residential conversions

             1. ITEM NO.

             2. 1. The supply, in the course of a qualifying conversion, of...

             3. 2. The supply of building materials if— (a) the materials are...

             4. 1. Supplies only partly within item 1

             5. 2. Meaning of “qualifying conversion”

             6. 3. Meaning of “changed number of dwellings conversion”

             7. 4. Meaning of “single household dwelling” and “multiple occupancy dwelling”

             8. 5. Meaning of “house in multiple occupation conversion”

             9. 6. Meaning of “use for a relevant residential purpose”

             10. 7. Meaning of “special residential conversion”

             11. 8. Special residential conversions: reduced rate only for supplies made to intended user of converted accommodation

             12. 9. “Qualifying conversion” includes related garage works

             13. 10. Conversion not “qualifying” if planning consent and building control approval not obtained

             14. 11. Meaning of “supply of qualifying services”

             15. 12. Meaning of “building materials”

          7. Group 7 — RESIDENTIAL RENOVATIONS AND ALTERATIONS

             1. ITEM NO.

             2. 1. The supply, in the course of the renovation or alteration...

             3. 2. The supply of building materials if— (a) the materials are...

             4. 1. Supplies only partly within item 1

             5. 2. Meaning of “alteration” and “qualifying residential premises”

             6. 3. Items 1 and 2 only apply where premises have been empty for at least 3 years

             7. 3A. Items 1 and 2 apply to related garage works

             8. 4. Items 1 and 2 only apply if planning consent and building control approval obtained

             9. 4A. Items 1 and 2 only apply if building used for relevant residential purpose is subsequently used solely for that purpose

             10. 5. Meaning of “supply of qualifying services”

             11. 6. Meaning of “building materials”

          8. Group 8— CONTRACEPTIVE PRODUCTS

             1. 1. Supplies of contraceptive products, other than relevant exempt supplies. NOTES:...

          9. Group 9— WELFARE ADVICE OR INFORMATION

             1. 1. Supplies of welfare advice or information by—

   13. SCHEDULE 8

       Zero-rating

       1. Part I Index to zero-rated supplies of goods and services

       2. Part II The Groups

          1. Group 1— Food

             1. The supply of anything comprised in the general items set...

             2. General items

                1. 1. Item No.

                2. 2. Animal feeding stuffs.

                3. 3. Seeds or other means of propagation of plants comprised in...

                4. 4. Live animals of a kind generally used as, or yielding...

             3. Excepted items

                1. 1. Item No.

                2. 2. Confectionery, not including cakes or biscuits other than biscuits wholly...

                3. 3. Beverages chargeable with any duty of excise specifically charged on...

                4. 4. Other beverages (including fruit juices and bottled waters) and syrups,...

                5. 5. Any of the following when packaged for human consumption without...

                6. 6. Pet foods, canned, packaged or prepared; packaged foods (not being...

                7. 7. Goods described in items 1, 2 and 3 of the...

             4. Items overriding the exceptions

                1. 1. Item No.

                2. 2. Drained cherries.

                3. 3. Candied peels.

                4. 4. Tea, mateg, herbal teas and similar products, and preparations and...

                5. 5. Cocoa, coffee and chicory and other roasted coffee substitutes, and...

                6. 6. Milk and preparations and extracts thereof.

                7. 7. Preparations and extracts of meat, yeast or egg.

                8. Notes:

          2. Group 2— Sewerage services and water

             1. 1. Item No.

             2. 2. The supply, for use otherwise than in connection with the...

          3. Group 3— Books, etc.

             1. 1. Item No.

             2. 2. Newspapers, journals and periodicals.

             3. 3. Children’s picture books and painting books.

             4. 4. Music (printed, duplicated or manuscript).

             5. 5. Maps, charts and topographical plans.

             6. 6. Covers, cases and other articles supplied with items 1 to...

             7. Note:

          4. Group 4— Talking books for the blind and handicapped and wireless sets for the blind

             1. 1. Item No.

             2. 2. The supply to a charity of— (a) wireless receiving sets;...

          5. GROUP 5-CONSTRUCTION OF BUILDINGS, ETC.

             1. 1. Item No.

             2. 2. The supply in the course of the construction of—

             3. 3. The supply to a relevant housing association in the course...

             4. 4. The supply of building materials to a person to whom...

             5. Notes:

          6. GROUP 6—PROTECTED BUILDINGS

             1. 1. Item No.

             2. 2. The supply, in the course of an approved alteration of...

             3. 3. The supply of building materials to a person to whom...

             4. Notes:

          7. Group 7— International services

             1. 1. Item No.

             2. 2. The supply of services consisting of the making of arrangements...

          8. Group 8— Transport

             1. 1. The supply, repair or maintenance of a qualifying ship or...

             2. 2. The supply, repair or maintenance of a qualifying aircraft or...

             3. 2A. The supply of parts and equipment, of a kind ordinarily...

             4. 2B. The supply of life jackets, life rafts, smoke hoods and...

             5. 3. (a) The supply to and repair or maintenance for a...

             6. 4. Transport of passengers— (a) in any vehicle, ship or aircraft...

             7. 5. The transport of goods from a place within to a...

             8. 6. Any services provided for— (a) the handling of ships or...

             9. 6A. Air navigation services.

             10. 7. Pilotage services.

             11. 8. Salvage or towage services.

             12. 9. Any services supplied for or in connection with the surveying...

             13. 10. The making of arrangements for— (a) the supply of, or...

             14. 11. The supply— (a) of services consisting of

             15. 12. The supply of a designated travel service to be enjoyed...

             16. 13. Intra-Community transport services supplied in connection with the transport of...

             17. Notes:

          9. Group 9— Caravans and houseboats

             1. 1. Item No.

             2. 2. Houseboats being boats or other floating decked structures designed or...

             3. 3. The supply of such services as are described in paragraph...

             4. Note:

          10. Group 10— Gold

              1. 1. Item No.

              2. 2. The supply, by a member of the London Gold Market...

              3. Notes:

          11. Group 11— Bank notes

              1. 1. Item No.

          12. Group 12— Drugs, medicines, aids for the handicapped, etc.

              1. 1. Item No.

              2. 1A. The supply of any qualifying goods in accordance with a...

              3. 2. The supply to a handicapped person for domestic or his...

              4. 2A. The supply of a qualifying motor vehicle—

              5. 3. The supply to a handicapped person of services of adapting...

              6. 4. The supply to a charity of services of adapting goods...

              7. 5. The supply to a handicapped person or to a charity...

              8. 6. The supply of goods in connection with a supply described...

              9. 7. The supply to a handicapped person or to a charity...

              10. 8. The supply to a handicapped person of a service of...

              11. 9. The supply to a charity of a service described in...

              12. 10. The supply to a handicapped person of a service of...

              13. 11. The supply to a charity of a service of providing,...

              14. 12. The supply to a charity of a service of providing,...

              15. 13. The supply of goods in connection with a supply described...

              16. 14. The letting on hire of a motor vehicle for a...

              17. 15. The sale of a motor vehicle which had been let...

              18. 16. The supply to a handicapped person of services necessarily performed...

              19. 17. The supply to a charity providing a permanent or temporary...

              20. 18. The supply of goods in connection with a supply described...

              21. 19. The supply to a handicapped person for domestic or his...

              22. 20. The supply of services necessarily performed by a control centre...

              23. Notes:

          13. Group 13— Imports, exports etc.

              1. 1. Item No.

              2. 2. The supply to or by an overseas authority, overseas body...

              3. 3. The supply to an overseas authority, overseas body or overseas...

              4. Notes:

          14. Group 14— Tax-free shops

              1. Notes:

          15. Group 15— Charities etc.

              1. 1. The sale, or letting on hire, by a charity of...

              2. 1A. The sale, or letting on hire, by a taxable person...

              3. 2. The donation of any goods for any one or more...

              4. 3. The export of any goods by a charity to a...

              5. 4. The supply of any relevant goods for donation to a...

              6. 5. The supply of any relevant goods to an eligible body...

              7. 6. Repair and maintenance of relevant goods owned by an eligible...

              8. 7. The supply of goods in connection with the supply described...

              9. 8. The supply to a charity of a right to promulgate...

              10. 8A. A supply to a charity that consists in the promulgation...

              11. 8B. The supply to a charity of services of design or...

              12. 8C. The supply to a charity of goods closely related to...

              13. 9. The supply to a charity, providing care or medical or...

              14. 10. The supply to a charity of a substance directly used...

              15. Notes:

          16. Group 16— Clothing and footwear

              1. 1. Item No.

              2. 2. The supply to a person for use otherwise than by...

              3. 3. Protective helmets for wear by a person driving or riding...

              4. Notes:

   14. SCHEDULE 9

       Exemptions

       1. Part I Index to exempt supplies of goods and services

       2. Part II The Groups

          1. Group 1— Land

             1. 1. Item No.

             2. Notes:

          2. Group 2 — Insurance

             1. 1. Insurance transactions and reinsurance transactions.

             2. 2. The Groups

             3. 3. The Groups

             4. 4. The provision by an insurance broker or insurance agent of...

             5. Notes:

          3. Group 3— Postal services

             1. 1. Item No.

             2. 2. The supply by the Post Office company of any services...

             3. Notes:

          4. Group 4— Betting, gaming and lotteries

             1. 1. Item No.

             2. 2. The granting of a right to take part in a...

             3. Notes:

          5. Group 5— Finance

             1. 1. Item No.

             2. 2. The making of any advance or the granting of any...

             3. 2A. The management of credit by the person granting it.

             4. 3. The provision of the facility of instalment credit finance in...

             5. 4. The provision of administrative arrangements and documentation and the transfer...

             6. 5. The provision of intermediary services in relation to any transaction...

             7. 5A. The underwriting of an issue within item 1 or any...

             8. 6. The issue, transfer or receipt of, or any dealing with,...

             9. 7. The Groups

             10. 8. The operation of any current, deposit or savings account.

             11. 9. The management of an authorised unit trust scheme or of...

             12. 10. The management of the scheme property of an open-ended investment...

             13. Notes:

          6. Group 6— Education

             1. 1. Item No.

             2. 2. The supply of private tuition, in a subject ordinarily taught...

             3. 3. The provision of examination services— (a) by or to an...

             4. 4. The supply of any goods or services (other than examination...

             5. 5. The provision of vocational training, and the supply of any...

             6. 5A. The provision of education or vocational training and the supply,...

             7. 6. The provision of facilities by— (a) a youth club or...

             8. Notes:

          7. Group 7— Health and welfare

             1. 1. Item No.

             2. 2. The supply of any services consisting in the provision of...

             3. 2A. The supply of any services or dental prostheses by a...

             4. 3. The supply of any services consisting in the provision of...

             5. 4. The provision of care or medical or surgical treatment and,...

             6. 5. The provision of a deputy for a person registered in...

             7. 6. Human blood.

             8. 7. Products for therapeutic purposes, derived from human blood.

             9. 8. Human (including foetal) organs or tissue for diagnostic or therapeutic...

             10. 9. The supply by— (a) a charity, (b) a state-regulated private...

             11. 10. The supply, otherwise than for profit, of goods and services...

             12. 11. The supply of transport services for sick or injured persons...

             13. Notes:

          8. Group 8— Burial and cremation

             1. 1. Item No.

             2. 2. The making of arrangements for or in connection with the...

          9. Group 9— SUBSCRIPTIONS TO TRADE UNIONS, PROFESSIONAL AND OTHER PUBLIC INTEREST BODIES

             1. 1. Item No.

             2. Note:

          10. Group 10— Sport, sports competitions and physical education

              1. 1. Item No.

              2. 2. The grant, by an eligible body established for the purposes...

              3. 3. The supply by an eligible body to an individual, except,...

              4. Notes:

          11. Group 11— Works of art etc

              1. 1. Item No.

              2. 2. The disposal of an object with respect to which inheritance...

              3. 3. The disposal of property with respect to which inheritance tax...

              4. 4. The disposal of an asset in a case in which...

          12. GROUP 12—FUND-RAISING EVENTS BY CHARITIES AND OTHER QUALIFYING BODIES

              1. 1. Item No.

              2. 2. The supply of goods and services by a qualifying body...

              3. 3. The supply of goods and services by a charity or...

              4. Notes:

              5. Notes:

          13. GROUP 13— CULTURAL SERVICES ETC

              1. 1. Item No.

              2. 2. The supply by an eligible body of a right of...

          14. GROUP 14—SUPPLIES OF GOODS WHERE INPUT TAX CANNOT BE RECOVERED

              1. 1. Item No.

              2. Notes:

          15. GROUP 15—INVESTMENT GOLD

              1. 1. Item No.

              2. 2. The grant, assignment or surrender of any right, interest, or...

              3. 3. The supply, by a person acting as agent for a...

              4. Notes:

   15. SCHEDULE 9A

       Anti-avoidance provisions: groups

       1. Power to give directions

          1. 1. (1) Subject to paragraph 2 below, the Commissioners may give...

       2. Restrictions on giving directions

          1. 2. (1) The Commissioners shall not give a direction under this...

       3. Form of directions under Schedule

          1. 3. (1) The directions that may be given by the Commissioners...

       4. Time limit on directions

          1. 4. (1) A direction under this Schedule shall not be given...

       5. Manner of giving directions

          1. 5. (1) A direction under this Schedule relating to a supply...

       6. Assessment in consequence of a direction

          1. 6. (1) Subject to sub-paragraph (3) below, where—

       7. Interpretation of Schedule etc.

          1. 7. (1) References in this Schedule to being treated as a...

   16. SCHEDULE 10

       Buildings and land

       1. Residential and charitable buildings: change of use etc

          1. 1. (1) In this paragraph “relevant zero-rated supply” means a grant...

       2. Election to waive exemption

          1. 2. (1) Subject to sub-paragraphs (2), (3) and (3A) and paragraph...

          2. 3. (1) An election under paragraph 2 above shall have effect—...

          3. 3A. (1) This paragraph shall have effect for the construction of...

          4. 4. Buildings and land

       3. Developers of certain non-residential buildings etc.

          1. 5. (1) Paragraph 6 below shall apply— (a) on the first...

          2. 6. (1) Where this paragraph applies the interest in, right over...

          3. 7. (1) Where a developer is a tenant, lessee or licensee...

       4. General

          1. 8. Where the benefit of the consideration for the grant of...

          2. 9. Notes (1) to (6), (10), (12) and (19) to Group...

   17. SCHEDULE 10A

       Face-value vouchers

       1. Meaning of “face-value voucher” etc

          1. 1. (1) In this Schedule “ face-value voucher ” means a...

       2. Nature of supply

          1. 2. The issue of a face-value voucher, or any subsequent supply...

       3. Treatment of credit vouchers

          1. 3. (1) This paragraph applies to a face-value voucher issued by...

       4. Treatment of retailer vouchers

          1. 4. (1) This paragraph applies to a face-value voucher issued by...

       5. Treatment of postage stamps

          1. 5. The consideration for the supply of a face-value voucher that...

       6. Treatment of other kinds of face-value voucher

          1. 6. (1) This paragraph applies to a face-value voucher that is...

       7. Vouchers supplied free with other goods or services

          1. 7. Where— (a) a face-value voucher (other than a postage stamp)...

       8. Interpretation

          1. 8. (1) In this Schedule— “ credit voucher ” has the...

   18. SCHEDULE 11

       Administration, collection and enforcement

       1. General

          1. 1. The Commissioners for Her Majesty’s Revenue and Customs shall be...

       2. Accounting for VAT... and payment of VAT

          1. 2. (1) Regulations under this paragraph may require the keeping of...

       3. VAT invoices

          1. 2A. (1) Regulations may require a taxable person supplying goods or...

       4. Self-billed invoices

          1. 2B. (1) This paragraph applies where a taxable person provides to...

       5. Electronic communication and storage of VAT invoices etc

          1. 3. (1) Regulations may prescribe, or provide for the Commissioners to...

       6. Power to require security and production of evidence

          1. 4. (1) The Commissioners may, as a condition of allowing or...

       7. Recovery of VAT, etc

          1. 5. (1) VAT due from any person shall be recoverable as...

       8. Duty to keep records

          1. 6. (1) Every taxable person shall keep such records as the...

          2. 6A. (1) The Commissioners may direct any taxable person named in...

       9. Furnishing of information and production of documents

          1. 7. (1) The Commissioners may by regulations make provision for requiring...

       10. Power to take samples

           1. 8. (1) An authorised person, if it appears to him necessary...

       11. Power to require opening of gaming machines

           1. 9. An authorised person may at any reasonable time require a...

       12. Entry and search of premises and persons

           1. 10. (1) For the purpose of exercising any powers under this...

       13. Order for access to recorded information etc.

           1. 11. (1) Where, on an application by an authorised person, a...

       14. Procedure where documents etc. are removed

           1. 12. (1) An authorised person who removes anything in the exercise...

           2. 13. (1) Where, on an application made as mentioned in sub-paragraph...

       15. Evidence by certificate, etc

           1. 14. (1) A certificate of the Commissioners— (a) that a person...

   19. SCHEDULE 11A

       Disclosure of avoidance Schemes

       1. Interpretation

          1. 1. In this Schedule— “ designated scheme ” has the meaning...

       2. Obtaining a tax advantage

          1. 2. (1) For the purposes of this Schedule, a taxable person...

       3. Meaning of “non-deductible tax”

          1. 2A. (1) In this Schedule “ non-deductible tax ”, in relation...

       4. Designation by order of avoidance schemes

          1. 3. (1) If it appears to the Treasury—

       5. Designation by order of provisions included in or associated with avoidance schemes

          1. 4. (1) If it appears to the Treasury that a provision...

       6. Meaning of “notifiable scheme”

          1. 5. (1) For the purposes of this Schedule, a scheme is...

       7. Duty to notify Commissioners

          1. 6. (1) This paragraph applies in relation to a taxable person...

       8. Exemptions from duty to notify under paragraph 6

          1. 7. (1) Paragraph 6 does not apply to a taxable person...

       9. Power to exclude exemption

          1. 8. (1) The purpose of this paragraph is to prevent the...

       10. Voluntary notification of avoidance scheme that is not designated scheme

           1. 9. (1) Any person may, at any time, provide the Commissioners...

       11. Penalty for failure to notify use of notifiable scheme

           1. 10. (1) A person who fails to comply with paragraph 6...

       12. Amount of penalty

           1. 11. (1) Where the failure mentioned in paragraph 10(1) relates to...

       13. Penalty assessments

           1. 12. (1) Where any person is liable under paragraph 10 to...

       14. Penalty assessments

           1. 13. Regulations under this Schedule— (a) may make different provision for...

   20. SCHEDULE 12

       Constitution and procedure of tribunals

       1. Establishment of tribunals

          1. 1. (1) There shall continue to be tribunals for England and...

       2. The President

          1. 2. (1) There shall continue to be a President of VAT...

          2. 3. (1) The President may resign his office at any time...

       3. Sittings of tribunals

          1. 4. (1) Such number of VAT tribunals shall be established as...

       4. Composition of tribunals

          1. 5. (1) A VAT tribunal shall consist of a chairman sitting...

       5. Membership of tribunals

          1. 6. For each sitting of a VAT tribunal the chairman shall...

          2. 7. (1) There shall be a panel of chairmen and a...

       6. Exemption from jury service

          1. 8. No member of a VAT tribunal shall be compelled to...

       7. Rules of procedure

          1. 9. The Lord Chancellor after consultation with the Lord Advocate may...

          2. 10. (1) A person who fails to comply with a direction...

   21. SCHEDULE 13

       Transitional provisions and savings

       1. General provisions (1) The continuity of the law relating to VAT shall...

          1. General provisions

             1. 1. (1) The continuity of the law relating to VAT shall...

          2. Validity of subordinate legislation

             1. 2. So far as this Act re-enacts any provision contained in...

          3. Provisions related to the introduction of VAT

             1. 3. Where a vehicle in respect of which purchase tax was...

          4. Supply in accordance with pre-21.4.75 arrangements

             1. 4. Where there were in force immediately before 21st April 1975...

          5. President, chairmen etc of tribunals

             1. 5. (1) Any appointment to a panel of chairmen of the...

          6. Overseas suppliers accounting through their customers

             1. 6. Notwithstanding the repeal by this Act of section 32B of...

          7. Supplies of fuel and power for domestic or charity use

             1. 7. Transitional provisions and savings

          8. Group 4A Fuel and power for domestic or charity use

             1. 1. Item No.

             2. Notes:

             3. Zero-rated supplies of goods and services

                1. 8. (1) A supply of services made after the commencement of...

             4. Bad debt relief

                1. 9. Transitional provisions and savings

             5. Supplies during construction of buildings and works

                1. 10. (1) Nothing in paragraphs 5 and 6 of Schedule 10...

             6. Offences and Penalties

                1. 11. Where an offence for the continuation of which a penalty...

                2. 12. Part IV of this Act, except section 72, shall not...

                3. 13. (1) Section 72 shall have effect in relation to any...

                4. 14. (1) The provisions of this paragraph have effect in relation...

                5. 15. (1) Section 63 does not apply in relation to returns...

                6. 16. (1) In relation to any prescribed accounting period beginning before...

                7. 17. Section 70 shall not apply in relation to any penalty...

                8. 18. Section 74 shall not apply in relation to prescribed accounting...

             7. Importation of goods

                1. 19. Nothing in this Act shall prejudice the effect of the...

             8. Assessments

                1. 20. An assessment may be made under section 73 in relation...

             9. Set-off of credits

                1. 21. Section 81 shall have effect in relation to amounts becoming...

             10. VAT tribunals

                 1. 22. (1) Without prejudice to paragraph 1 above, section 83 applies...

             11. Isle of Man

                 1. 23. Nothing in paragraph 7 of Schedule 14 shall affect the...

   22. SCHEDULE 14

       Consequential amendments

       1. Diplomatic Privileges Act 1964 c.81

          1. 1. In section 2(5A) of the Diplomatic Privileges Act 1964 for...

       2. Commonwealth Secretariat Act 1966 c.10

          1. 2. In paragraph 10(1A) of the Commonwealth Secretariat Act 1966 for...

       3. Consular Relations Act 1968 c.18

          1. 3. In section 1(8A) of the Consular Relations Act 1968 for...

       4. International Organisations Act 1968 c.48

          1. 4. In paragraph 19(c) of Schedule 1 to the International Organisations...

       5. Diplomatic and other Privileges Act 1971 c.64

          1. 5. In section 1(5) of the Diplomatic and other Privileges Act...

       6. Customs and Excise Management Act 1979 c.2

          1. 6. In section 1(1) of the Customs and Excise Management Act...

       7. Isle of Man Act 1979 c.58

          1. 7. (1) In section 1(1)(d) of the Isle of Man Act...

       8. Insolvency Act 1986 c.45

          1. 8. Consequential amendments

       9. Bankruptcy (Scotland) Act 1985 c.66

          1. 9. In paragraph 8(2) of Schedule 3 to the Bankruptcy (Scotland)...

       10. Income and Corporation Taxes Act 1988 c.1

           1. 10. (1) The Income and Corporation Taxes Act 1988 shall be...

       11. Capital Allowances Act 1990 c.1

           1. 11. Consequential amendments

       12. Tribunals and Inquiries Act 1992 c.53

           1. 12. In Parts I and II of Schedule 1 to the...

       13. Finance Act 1994 c.9

           1. 13. In section 7 of the Finance Act 1994—

       14. Vehicle Excise and Registration Act 1994 c.22

           1. 14. In paragraph 23 of Schedule 2 to the Vehicle Excise...

   23. SCHEDULE 15

       Repeals

       1. Acts of Parliament

       2. Statutory Instruments

   24. TABLE OF DERIVATIONS

       1. 1. Notes:

       2. 2. The following abbreviations are used in the Table:—

       3. Acts of Parliament

       4. Subordinate legislation