The Value Added Tax (Imported Goods) Relief (Amendment) (No. 2) Order 1988

Explanatory Note

(This note is not part of the Order)

This Order further amends the Value Added Tax (Imported Goods) Relief Order 1984 which provides for relief from value added tax chargeable on the permanent importation of certain goods into the United Kingdom. The amendments give effect to Council Directive 88/331/EEC which amends Council Directive 83/181/EEC. Comparable provisions for relief from customs duty are conferred by Council Regulation (EEC) No. 918/83 which is similarly amended by Council Regulation (EEC) No. 1315/88.

Schedule 2 of the 1984 Order, which applies to goods of specified descriptions imported in conjunction with specified activities, is amended by Articles 4 to 8. Schedule 2 is divided into 11 Groups. Items within these Groups are interpreted in accordance with notes and where goods are described by reference to a use or purpose, relief is conditional upon the goods being put to such use or the purpose being fulfilled.

Article 4 amends Group 3 (promotion of trade). The existing relief for printed advertising matter (item 3) is extended in relation to services offered by a person established in another member State.

Article 5 amends Group 5 (health). A new relief (item 10) is introduced for reference substances, approved by the World Health Organisation, imported for certain purposes.

Article 6 amends Group 7 (printed matter, etc). New reliefs (items 18 and 19) are introduced for official publications and electoral matter.

Article 7 amends Group 8 (articles sent for miscellaneous purposes). The existing relief for consignments of goods not exceeding £7 in value (item 8) is no longer restricted to consignments sent by post. A new relief (item 9) is introduced for certain awards, trophies and souvenirs sent for distribution free of charge to overseas residents at certain events.

Article 8 amends Group 10 (transport). The existing relief for fuel contained in the standard tanks of vehicles (part item 1) is extended to fuel contained in the standard tanks of special containers. The existing relief for lubricants contained in vehicles (remainder of item 1) becomes new item 3. Existing items 3 and 4 become new items 4 and 5 and their wording is amended to conform more closely with the words of Directive 83/181/EEC. The definitions in the Notes to this Group are amended and expanded.