Value Added Tax Act 1983 (repealed 1.9.1994)

7 Reverse charge on supplies received from abroad. U.K.

(1) Subject to subsection (3) below, where relevant services are—

(a) supplied by a person who belongs in a country other than the United Kingdom; and

(b) received by a [F1 person (in this section referred to as “the recipient”)]who belongs in the United Kingdom for the purposes of any business carried on by him,

then all the same consequences shall follow under this Act (and particularly so much as charges tax on a supply and entitles a taxable person to credit for input tax) [F2 as if the recipient]had himself supplied the services in the United Kingdom in the course or furtherance of his business, and that supply were a taxable supply.

(2) In this section “relevant services” means services of any of the descriptions specified in Schedule 3 to this Act, not being services within any of the descriptions specified in Schedule 6 to this Act.

(3) Supplies which are treated as made by the [F3 recipient]taxable person under subsection (1) above are not to be taken into account as supplies made by him when determining [F4 any allowance]of input tax in his case under section 15(1) below.

(4) In applying subsection (1) above, the supply of services treated as made by the [F5 recipient]shall be assumed to have been made—

F6 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) at a time to be determined in accordance with regulations prescribing rules for attributing a time of supply in cases within that subsection.

(5) The Treasury may by order add to, or vary, Schedule 3 to this Act.

Textual Amendments

F1 Words substituted by Finance Act 1987 (c. 16, SIF 40:2), s. 19(2), Sch. 2 para. 1(a)

F2 Words substituted by Finance Act 1987 (c. 16, SIF 40:2), s. 19(2), Sch. 2 para. 1(b)

F3 Words substituted by Finance Act 1987 (c. 16, SIF 40:2), s. 19(2), Sch. 2 para. 1(c)

F4 Words substituted by Finance Act 1987 (c. 16, SIF 40:2), s. 19(2), Sch. 2 para. 1(d)

F5 Words substituted by Finance Act 1987 (c. 16, SIF 40:1), s. 19(2), Sch. 2 para. 1(c)

F6 S. 7(4)(a) repealed by Finance (No. 2) Act 1992 (c. 48), s. 82, Sch. 18 Pt.V (by the note at the end of Pt. V of Sch. 18 it is provided that the repeals in Pt. V come into force in accordance with s. 14(3) of that 1992 Act); S.I. 1992/1867, art. 3, Sch. Pt.I; S.I. 1992/2979, art. 4, Sch. Pt.II (with art. 5); S.I. 1992/3261, art. 3,Sch. (with art. 4).