Explanatory Note
(This note is not part of the Regulations)
Regulation 1(2) revokes the Value Added Tax (Electronic Communications) (Incentives) Regulations 2001 (S.I. 2001/759)(1).
Regulation 1(3) and the subsequent regulations amend the Value Added Tax Regulations 1995 (S.I. 1995/2518)(2).
Regulations 2 and 3 – VAT registration and register
Regulation 2(2) enables businesses to notify VAT registrability or VAT register information using functioning electronic communication systems specified by HM Customs and Excise. Mechanised acknowledgements forming part of a system are conclusive as to whether or when a notification is made using that system. Electronic notifications otherwise carry the ordinary consequences.
Regulation 2(1) aligns the registrability notification procedure for transferees of a going concern with the practice for other registrability notifications. Regulation 3 makes a typographical correction relating to liabilities following a transfer of a going concern.
Regulations 4, 5 and 6 - VAT returns and payment
Regulations 4(1) and 4(2) remove the requirement for an electronic VAT return system to mirror the paper forms. Regulation 4(2) also enables HM Customs and Excise to specify the circumstances in which a business may arrange for an intermediary to deliver an electronic return.
Regulations 4(5) and 5 enable HM Customs and Excise to allow extra time for paying VAT due, and for making VAT returns, depending on the electronic means of payment used.(3)
Regulation 6 substitutes new standard paper VAT returns.
Regulatory impact assessment
A full regulatory impact assessment of the effect that this instrument will have on the costs of businesses, charities or voluntary bodies is available from HM Customs and Excise, New King’s Beam House, 22 Upper Ground, London SE1 9PJ or http://www.hmce.gov.uk .
Regulations about incentive payment for making VAT returns by way of an electronic return system.
Implementing, in part, Articles 22.1, 22.4 and 22.5 of the Sixth Council Directive of 17th May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes – common system of value added tax: uniform basis of assessment (OJ No L 145, 13.6.77, p 1) (including the relevant amendments made by Article 2 of Council Directive 2002/38/EC of 7th May 2002 (OJ No L 128, 15.5.02, p 41)). A transposition note is available from HM Customs and Excise, New King’s Beam House, 22 Upper Ground, London SE1 9PJ or http://www.hmce.gov.uk .
Regulations 4(3), 4(4) and 4(5) make or also make consequential changes.