Finance Act 2002

24 Invoices U.K.

(1) In the Value Added Tax Act 1994 (c. 23) omit the following (which are superseded by the provision inserted by subsection (2))—

(a) subsection (9) of section 6 (time of supply);

(b) in paragraph 2 (VAT invoices etc) of Schedule 11 (administration, collection and enforcement)—

(i) in the heading, the words “, VAT invoices”;

(ii) in sub-paragraph (1), the words from “and may require” to the end;

(iii) sub-paragraphs (2) and (2A).

(2) After paragraph 2 of Schedule 11 to that Act insert—

“VAT invoices

2A (1) Regulations may require a taxable person supplying goods or services to provide an invoice (a “VAT invoice”) to the person supplied.

(2) A VAT invoice must give—

(a) such particulars as may be prescribed of the supply, the supplier and the person supplied;

(b) such an indication as may be prescribed of whether VAT is chargeable on the supply under this Act or the law of another member State;

(c) such particulars of any VAT that is so chargeable as may be prescribed.

(3) Regulations may confer power on the Commissioners to allow the requirements of any regulations as to the information to be given in a VAT invoice to be relaxed or dispensed with.

(4) Regulations may—

(a) provide that the VAT invoice that is required to be provided in connection with a particular description of supply must be provided within a prescribed time after the supply is treated as taking place, or at such time before the supply is treated as taking place as may be prescribed;

(b) allow for the invoice to be issued later than required by the regulations where it is issued in accordance with general or special directions given by the Commissioners.

(5) Regulations may—

(a) make provision about the manner in which a VAT invoice may be provided, including provision prescribing conditions that must be complied with in the case of an invoice issued by a third party on behalf of the supplier;

(b) prescribe conditions that must be complied with in the case of a VAT invoice that relates to more than one supply;

(c) make, in relation to a document that refers to a VAT invoice and is intended to amend it, such provision corresponding to that which may be made in relation to a VAT invoice as appears to the Commissioners to be appropriate.

(6) Regulations may confer power on the Commissioners to require a person who has received in the United Kingdom a VAT invoice that is (or part of which is) in a language other than English to provide them with an English translation of the invoice (or part).

(7) Regulations under this paragraph—

(a) may be framed so as to apply only in prescribed cases or only in relation to supplies made to persons of prescribed descriptions;

(b) may make different provision for different circumstances.

Self-billed invoices

2B (1) This paragraph applies where a taxable person provides to himself a document (a “self-billed invoice”) that purports to be a VAT invoice in respect of a supply of goods or services to him by another taxable person.

(2) Subject to compliance with such conditions as may be—

(a) prescribed,

(b) specified in a notice published by the Commissioners, or

(c) imposed in a particular case in accordance with regulations,

a self-billed invoice shall be treated as the VAT invoice required by regulations under paragraph 2A above to be provided by the supplier.

(3) For the purposes of section 6(4) (under which the time of supply can be determined by the prior issue of an invoice) a self-billed invoice shall not be treated as issued by the supplier.

(4) For the purposes of section 6(5) and (6) (under which the time of supply can be determined by the subsequent issue of an invoice) a self-billed invoice in relation to which the conditions mentioned in sub-paragraph (2) are complied with shall, subject to compliance with such further conditions as may be prescribed, be treated as issued by the supplier.

In such a case, any notice of election given or request made for the purposes of section 6(5) or (6) by the person providing the self-billed invoice shall be treated for those purposes as given or made by the supplier.

(5) Regulations under this paragraph—

(a) may be framed so as to apply only in prescribed cases or only in relation to supplies made to persons of prescribed descriptions;

(b) may make different provision for different circumstances.”.

(3) For paragraph 3 of that Schedule substitute—

“Electronic communication and storage of VAT invoices etc

3 (1) Regulations may prescribe, or provide for the Commissioners to impose in a particular case, conditions that must be complied with in relation to—

(a) the provision by electronic means of any item to which this paragraph applies;

(b) the preservation by electronic means of any such item or of information contained in any such item.

(2) The items to which this paragraph applies are—

(a) any VAT invoice;

(b) any document that refers to a VAT invoice and is intended to amend it;

(c) any invoice described in regulations made for the purposes of section 6(8)(b) or 12(1)(b).

(3) Regulations under this paragraph may make different provision for different circumstances.”.

(4) The following amendments to the Value Added Tax Act 1994 (c. 23) are consequential on other amendments made by this section—

(a) in section 6(15), for “paragraph 2(1)” substitute “ paragraph 2A ”;

(b) in section 83 (appeals), for paragraph (z) substitute—

“(z) any conditions imposed by the Commissioners in a particular case by virtue of paragraph 2B(2)(c) or 3(1) of Schedule 11”;

(c) in section 88 (supplies spanning change of rate etc)—

(i) in subsection (5), for “paragraph 2” substitute “ paragraph 2A ”;

(ii) in subsection (6), for “section 6(9) or paragraph 7 of Schedule 4” substitute “ paragraph 7 of Schedule 4 or paragraph 2B(4) of Schedule 11 ”.

(5) This section comes into force on such day as the Treasury may by order made by statutory instrument appoint, and different days may be appointed for different provisions or different purposes.

(6) An order under subsection (5) may contain such transitional provisions and savings as appear to the Treasury necessary or expedient in connection with the provisions brought into force.

Commencement Information

I1 S. 24 in force at 1.12.2003 by S.I. 2003/3043, art. 2