Value Added Tax Act 1994

[F1 [F2 16A (1) Sub-paragraphs (2) to (4) make modifications of sections 73 and 76 which— U.K.

(a) have effect for the purposes of this Schedule, and

(b) are in addition to any other modifications of those sections made by this Schedule.

(2) Section 73 has effect as if the following were inserted after subsection (3) of that section—

“(3A) Where a person has failed to make an amendment or notification that the person is required to make under paragraph 16K of Schedule 3B in respect of an increase in the consideration for a UK supply (as defined in paragraph 16K(7)), the Commissioners may assess the amount of VAT due from the person as a result of the increase to the best of their judgement and notify it to the person.

(3B) An assessment under subsection (3A)—

(a) is of VAT due for the tax period mentioned in paragraph 16K(1)(a) of Schedule 3B;

(b) must be made within the time limits provided for in section 77, and must not be made after the later of—

(i) 2 years after the end of the tax period referred to in paragraph 16K(1)(a);

(ii) one year after evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge.

(3C) Subject to section 77, where further evidence such as is mentioned in subsection (3B)(b)(ii) comes to the Commissioners' knowledge after they have made an assessment under subsection (3A), another assessment may be made under that subsection, in addition to any earlier assessment.”

(3) The reference in section 73(9) to subsection (1) of that section is taken to include a reference to section 73(3A) (as inserted by sub-paragraph (2)).

(4) Section 76 (assessment of amounts due by way of interest etc) is to be read as if the reference in subsection (5) of that section to section 73(1) included a reference to section 73(3A) (as inserted by sub-paragraph (2)).]]

Textual Amendments

F1 Sch. 3B inserted (with effect in accordance with s. 23(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 2 para. 4

F2 Sch. 3B Pt. 3 substituted (with effect in accordance with Sch. 22 paras. 23, 25 of the amending Act) by Finance Act 2014 (c. 26), Sch. 22 para. 8