Part I The charge to tax
Imposition and rate of VAT
1 Value added tax.
1
Value added tax shall be charged, in accordance with the provisions of this Act—
a
on the supply of goods or services in the United Kingdom (including anything treated as such a supply),
F52b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F99c
on the importation of goods into the United Kingdom,
and references in this Act to VAT are references to value added tax.
2
VAT on any supply of goods or services is a liability of the person making the supply and (subject to provisions about accounting and payment) becomes due at the time of supply.
F1803
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
2 Rate of VAT.
C141
Subject to the following provisions F199and to the provisions of section 29A of this section F1..., VAT shall be charged at the rate of F15720 per cent and shall be charged—
a
on the supply of goods or services, by reference to the value of the supply as determined under this Act; and
F72b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
on the importation of goods F190..., by reference to the value of the goods as determined under this Act.
F21A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F21B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F31C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
The Treasury may by order increase or decrease the rate of VAT for the time being in force F196under this section by such percentage thereof not exceeding 25 per cent. as may be specified in the order, but any such order F85that has not previously expired or been revoked shall cease to be in force at the expiration of a period of one year from the date on which it takes effect, unless continued in force by a further order under this subsection.
3
In relation to an order made under subsection (2) above to continue, vary or replace a previous order, the reference in that subsection to the rate for the time being in force F196under this section is a reference to the rate which would be in force if no order under that subsection had been made.
3 Taxable persons and registration.
1
A person is a taxable person for the purposes of this Act while he is, or is required to be, registered under this Act.
2
3
Persons registered under any of those Schedules F98and Part 8 and 9 of Schedule 9ZA shall be registered in a single register kept by the Commissioners for the purposes of this Act; and, accordingly, references in this Act to being registered under this Act are references to being registered under any of those Schedules F90or those Parts.
4
The Commissioners may by regulations make provision as to the inclusion and correction of information in that register with respect to the Schedule under which any person is registered.
F1033ASupplies of electronic, telecommunication and broadcasting services: special accounting schemes
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supply of goods or services in the United Kingdom
4 Scope of VAT on taxable supplies.
1
VAT shall be charged on any supply of goods or services made in the United Kingdom, where it is a taxable supply made by a taxable person in the course or furtherance of any business carried on by him.
2
A taxable supply is a supply of goods or services made in the United Kingdom other than an exempt supply.
C75 Meaning of supply: alteration by Treasury order.
1
Schedule 4 shall apply for determining what is, or is to be treated as, a supply of goods or a supply of services.
2
Subject to any provision made by that Schedule and to Treasury orders under subsections (3) to (6) below—
a
“supply” in this Act includes all forms of supply, but not anything done otherwise than for a consideration;
b
anything which is not a supply of goods but is done for a consideration (including, if so done, the granting, assignment or surrender of any right) is a supply of services.
3
The Treasury may by order provide with respect to any description of transaction—
a
that it is to be treated as a supply of goods and not as a supply of services; or
b
that it is to be treated as a supply of services and not as a supply of goods; or
c
that it is to be treated as neither a supply of goods nor a supply of services;
and without prejudice to the foregoing, such an order may provide that paragraph 5(4) of Schedule 4 is not to apply, in relation to goods of any prescribed description used or made available for use in prescribed circumstances, so as to make that a supply of services under that paragraph F169....
F563A
An order under subsection (3) may provide that paragraph 30 of Schedule 9ZB does not apply, in such circumstances as may be described in the order, so as to make a removal of assets a supply of goods under that paragraph.
4
Without prejudice to subsection (3) above, the Treasury may by order make provision for securing, with respect to services of any description specified in the order, that where—
a
a person carrying on a business does anything which is not a supply of services but would, if done for a consideration, be a supply of services of a description specified in the order; and
b
such other conditions as may be specified in the order are satisfied,
such services are treated for the purposes of this Act as being supplied by him in the course or furtherance of that business.
5
The Treasury may by order make provision for securing, subject to any exceptions provided for by or under the order, that where in such circumstances as may be specified in the order goods of a description so specified are taken possession of or produced by a person in the course or furtherance of a business carried on by him and—
a
are neither supplied to another person nor incorporated in other goods produced in the course or furtherance of that business; but
b
are used by him for the purpose of a business carried on by him,
the goods are treated for the purposes of this Act as being both supplied to him for the purpose of that business and supplied by him in the course or furtherance of it.
6
The Treasury may by order make provision for securing, with respect to services of any description specified in the order, that where—
a
a person, in the course or furtherance of a business carried on by him, does anything for the purpose of that business which is not a supply of services but would, if done for a consideration, be a supply of services of a description specified in the order; and
b
such other conditions as may be specified in the order are satisfied,
such services are treated for the purposes of this Act as being both supplied to him for the purpose of that business and supplied by him in the course or furtherance of it.
7
For the purposes of this section, where goods are manufactured or produced from any other goods, those other goods shall be treated as incorporated in the first-mentioned goods.
8
An order under subsection (4) or (6) above may provide for the method by which the value of any supply of services which is treated as taking place by virtue of the order is to be calculated.
5AF81Supplies of goods facilitated by online marketplaces: deemed supply
1
This section applies where—
a
a person (“P”) makes a taxable supply of goods in the course or furtherance of a business to another person (“R”),
b
that supply is facilitated by an online marketplace, and
F106c
one of the following applies—
i
the imported consignment condition is met, or
ii
the supply of goods to R does not involve those goods being imported, but P is established outside the United Kingdom.
F1441A
But this section does not apply in a case where P is established outside the United Kingdom and the imported consignment condition is not met if—
a
R is registered under this Act,
b
R has provided the operator of the online marketplace with R's VAT registration number, and
c
the operator of the online marketplace has provided P with that number and details of the supply before the end of the relevant period.
2
For the purposes of this Act—
a
P is to be treated as having supplied the goods to the operator of the online marketplace, and
b
the operator is to be treated as having supplied the goods to R in the course or furtherance of a business carried on by the operator.
3
The imported consignment condition is met where—
a
the supply of the goods to R involves those goods being imported,
b
the intrinsic value of the consignment of which the goods are part is not more than £135, and
c
the consignment of which the goods are part—
i
does not contain excepted goods, and
ii
is not a consignment in relation to which a postal operator established outside the United Kingdom has an obligation under an agreement with the Commissioners to pay any import VAT that is chargeable on the importation of that consignment into the United Kingdom.
4
For the purposes of subsection (3)(c)(i), “excepted goods” means goods of a class or description subject to any duty of excise whether or not those goods are in fact chargeable with that duty, and whether or not that duty has been paid on the goods.
5
The Commissioners may by regulationsF41—
a
specify the details that must be provided for the purposes of subsection (1A)(c);
b
substitute a different figure for a figure that is at any time specified in subsection (3)(b).
F1636
In this section—
“relevant period” means the period of 7 days beginning with the day on which the supply is treated as taking place under section 6 or such longer period as the Commissioners may allow in general or specific directions;
“VAT registration number” means the number allocated by the Commissioners to a person registered under this Act.
6 Time of supply.
1
2
Subject to subsections (4) to (14) below, a supply of goods shall be treated as taking place—
a
if the goods are to be removed, at the time of the removal;
b
if the goods are not to be removed, at the time when they are made available to the person to whom they are supplied;
c
if the goods (being sent or taken on approval or sale or return or similar terms) are removed before it is known whether a supply will take place, at the time when it becomes certain that the supply has taken place or, if sooner, 12 months after the removal.
3
Subject to subsections (4) to (14) below, a supply of services shall be treated as taking place at the time when the services are performed.
4
If, before the time applicable under subsection (2) or (3) above, the person making the supply issues a VAT invoice in respect of it or if, before the time applicable under subsection (2)(a) or (b) or (3) above, he receives a payment in respect of it, the supply shall, to the extent covered by the invoice or payment, be treated as taking place at the time the invoice is issued or the payment is received.
5
If, within 14 days after the time applicable under subsection (2) or (3) above, the person making the supply issues a VAT invoice in respect of it, then, unless he has notified the Commissioners in writing that he elects not to avail himself of this subsection, the supply shall (to the extent that it is not treated as taking place at the time mentioned in subsection (4) above) be treated as taking place at the time the invoice is issued.
6
The Commissioners may, at the request of a taxable person, direct that subsection (5) above shall apply in relation to supplies made by him (or such supplies made by him as may be specified in the direction) as if for the period of 14 days there were substituted such longer period as may be specified in the direction.
F677
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F678
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F689
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
The Commissioners may, at the request of a taxable person, by direction alter the time at which supplies made by him (or such supplies made by him as may be specified in the direction) are to be treated as taking place, either—
a
by directing those supplies to be treated as taking place—
i
at times or on dates determined by or by reference to the occurrence of some event described in the direction; or
ii
at times or on dates determined by or by reference to the time when some event so described would in the ordinary course of events occur,
the resulting times or dates being in every case earlier than would otherwise apply; or
b
by directing that, notwithstanding subsections (5) and (6) above, those supplies shall (to the extent that they are not treated as taking place at the time mentioned in subsection (4) above) be treated as taking place—
i
at the beginning of the relevant working period (as defined in his case in and for the purposes of the direction); or
ii
at the end of the relevant working period (as so defined).
11
Where goods are treated as supplied by an order under section 5(5), the supply is treated as taking place when they are appropriated to the use mentioned in that section.
12
Where there is a supply of goods by virtue only of paragraph 5(1) of Schedule 4, the supply is treated as taking place when the goods are transferred or disposed of as mentioned in that paragraph.
13
Where there is a supply of services by virtue only of paragraph 5(4) of Schedule 4, the supply is treated as taking place when the goods are appropriated to the use mentioned in that paragraph.
14
The Commissioners may by regulations make provision with respect to the time at which (notwithstanding F129subsections (2) to (6) and (11) to (13) above or section 55(4)) a supply is to be treated as taking place in cases where—
a
it is a supply of goods or services for a consideration the whole or part of which is determined or payable periodically, or from time to time, or at the end of any period, or
b
it is a supply of goods for a consideration the whole or part of which is determined at the time when the goods are appropriated for any purpose, or
c
there is a supply to which section 55 applies, or
d
there is a supply of services by virtue of paragraph 5(4) of Schedule 4 or an order under section 5(4);
and for any such case as is mentioned in this subsection the regulations may provide for goods or services to be treated as separately and successively supplied at prescribed times or intervals.
F614A
F33... this section and any regulations under this section or section 8(4) shall have effect subject to section 97A.
15
In this Act “VAT invoice” means such an invoice as is required under F110paragraph 2A of Schedule 11, or would be so required if the person to whom the supply is made were a person to whom such an invoice should be issued.
7Place of supply F183of goods.
1
2
Subject to the following provisions of this section, if the supply of any goods does not involve their removal from or to the United Kingdom they shall be treated as supplied in the United Kingdom if they are in the United Kingdom and otherwise shall be treated as supplied outside the United Kingdom.
3
Goods shall be treated—
a
as supplied in the United Kingdom where their supply involves their installation or assembly at a place in the United Kingdom to which they are removed; and
b
as supplied outside the United Kingdom where their supply involves their installation or assembly at a place outside the United Kingdom to which they are removed.
F864
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F865
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F355A
Goods whose place of supply is not determined under any of the preceding provisions of this section shall be treated as supplied outside the United Kingdom where the supply—
a
meets the imported consignment condition in section 5A; and
b
is deemed to be to the operator of an online marketplace.
5B
Goods whose place of supply is not determined under any of the preceding provisions of this section shall be treated as supplied in the United Kingdom where—
a
they are supplied by a person in the course or furtherance of a business carried on by that person;
b
the supply involves the goods being imported;
c
the intrinsic value of the consignment of which the goods are part is not more than £135; and
d
the consignment of which the goods are part—
i
does not contain goods of a class or description subject to any duty of excise whether or not those goods are in fact chargeable with that duty, and whether or not that duty has been paid on the goods; and
ii
is not a consignment in relation to which a postal operator established outside the United Kingdom has an obligation under an agreement with the Commissioners to pay any import VAT that is chargeable on the importation of that consignment into the United Kingdom.
6
Goods whose place of supply is not determined under any of the preceding provisions of this section shall be treated as supplied in the United Kingdom where—
a
their supply involves their being imported F107...; and
b
the person who supplies them is the person by whom, or under whose directions, they are so imported.
7
Goods whose place of supply is not determined under any of the preceding provisions of this section but whose supply involves their removal to or from the United Kingdom shall be treated—
a
as supplied in the United Kingdom where their supply involves their removal from the United Kingdom without also involving their previous removal to the United Kingdom; and
b
as supplied outside the United Kingdom in any other case.
8
For the purposes of the preceding provisions of this section, where goods, in the course of their removal from a place in the United Kingdom to another place in the United Kingdom, leave and re-enter the United Kingdom the removal shall not be treated as a removal from or to the United Kingdom.
F399
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1729A
The Commissioners may by regulations substitute a different figure for a figure that is at any time specified in subsection (5B)(c).
F17710
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
F11312
The Commissioners may by regulations provide that any rule for determining where a supply of goods is made is subject to such conditions relating to the notification of matters to the Commissioners, or such other conditions, as may be specified in the regulations.
7AAF89Reverse charge on goods supplied from abroad
1
This section applies where—
a
goods are supplied by a person (“A”) to another person (“B”),
b
B is registered under this Act,
c
the supply involves the goods being imported,
d
the intrinsic value of the consignment of which the goods are part is not more than £135, and
e
the consignment of which the goods are part—
i
does not contain goods of a class or description subject to any duty of excise whether or not those goods are in fact chargeable with that duty, and whether or not that duty has been paid on the goods, and
ii
is not a consignment in relation to which a postal operator established outside the United Kingdom has an obligation under an agreement with the Commissioners to pay any import VAT that is chargeable on the importation of that consignment into the United Kingdom.
2
This Act has effect as if, instead of there being a supply of the goods by A to B—
a
there were a supply of the goods by B in the course of furtherance of a business carried on by B, and
b
that supply were a taxable supply.
3
The Commissioners may by regulations substitute a different figure for a figure that is at any time specified in subsection (1)(d).
7AF44Place of supply of services
1
This section applies F151, subject to section 57A, for determining, for the purposes of this Act, the country in which services are supplied.
2
A supply of services is to be treated as made—
a
in a case in which the person to whom the services are supplied is a relevant business person, in the country in which the recipient belongs, and
b
otherwise, in the country in which the supplier belongs.
3
The place of supply of a right to services is the same as that in which the supply of the services would be treated as made if made by the supplier of the right to the recipient of the right (whether or not the right is exercised); and for this purpose a right to services includes any right, option or priority with respect to the supply of services and an interest deriving from a right to services.
F1014
For the purposes of this Act a person is a relevant business person in relation to a supply of services if—
a
the person carries on a business, and
b
the services are not received by the person wholly for private purposes,
whether or not the services are received in the course of business.
5
Subsection (2) has effect subject to Schedule 4A.
6
The Treasury may by order—
a
amend subsection (4),
b
amend Schedule 4A, or
c
otherwise make provision for exceptions from either or both of the paragraphs of subsection (2).
7
An order under subsection (6) may include incidental, supplemental, consequential and transitional provision.
8 Reverse charge on supplies received from abroad.
F551
Where services are supplied by a person who belongs in a country other than the United Kingdom in circumstances in which this subsection applies, this Act has effect as if (instead of there being a supply of the services by that person)—
a
there were a supply of the services by the recipient in the United Kingdom in the course or furtherance of a business carried on by the recipient, and
b
that supply were a taxable supply.
F552
Subsection (1) above applies if—
a
the recipient is a relevant business person who belongs in the United Kingdom, and
b
the place of supply of the services is inside the United Kingdom,
and, where the supply of the services is one to which any paragraph of Part 1 or 2 of Schedule 4A applies, the recipient is registered under this Act.
3
Supplies which are treated as made by the recipient under subsection (1) above are not to be taken into account as supplies made by him when determining any allowance of input tax in his case under section 26(1).
4
In applying subsection (1) above, the supply of services treated as made by the recipient shall be assumed to have been made at a time to be determined in accordance with regulations prescribing rules for attributing a time of supply in cases within that subsection.
F514A
Subsection (1) does not apply to services of any of the descriptions specified in Schedule 9.
5
The Treasury may by order F82amend subsection (4A) by altering the descriptions of services specified in that subsection.
F1876
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F87
8
Without prejudice to the generality of subsection (7) above, the provision that may be made under that subsection includes—
a
provision making such modifications of section 43(2A) to (2E) as the Treasury may think fit in connection with any F84amendment of subsection (4A); and
b
provision modifying the effect of any regulations under subsection (4) above in relation to any services added to F120that subsection.
F1829Place where supplier or recipient of services belongs.
1
This section has effect for determining for the purposes of section 7A (or Schedule 4A) or section 8, in relation to any supply of services, whether a person who is the supplier or recipient belongs in one country or another.
2
A person who is a relevant business person is to be treated as belonging in the relevant country.
3
In subsection (2) “the relevant country” means—
a
if the person has a business establishment, or some other fixed establishment, in a country (and none in any other country), that country,
b
if the person has a business establishment, or some other fixed establishment or establishments, in more than one country, the country in which the relevant establishment is, and
c
otherwise, the country in which the person's usual place of residence F71or permanent address is.
4
In subsection (3)(b) “relevant establishment” means whichever of the person's business establishment, or other fixed establishments, is most directly concerned with the supply.
5
A person who is not a relevant business person is to be treated as F73belonging—
a
in the country in which the person's usual place of residence or permanent address is (except in the case of a body corporate or other legal person);
b
in the case of a body corporate or other legal person, in the country in which the place where it is established is.
F1166
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9AF130Reverse charge on gas F50, electricity, heat or coolingF125...
1
This section applies if relevant goods are supplied—
a
by a person who is outside the United Kingdom,
b
to a person who is registered under this Act,
for the purposes of any business carried on by the recipient.
C8F1451A
This section also applies if relevant goods are supplied by a person (“A”) to another person (“B”) for the purposes of any business carried on by B and—
a
A is in Great Britain and B is registered under this Act and is identified for the purposes of VAT in Northern Ireland, or
b
A is in Northern Ireland and B is so registered but is not so identified.
2
The same consequences follow under this Act (and particularly so much as charges VAT on a supply and entitles a taxable person to credit for input tax) as if—
a
the recipient had himself supplied the relevant goods in the course or furtherance of his business, and
b
that supply were a taxable supply.
3
But supplies which are treated as made by the recipient under subsection (2) are not to be taken into account as supplies made by him when determining any allowance of input tax in his case under section 26(1).
4
In applying subsection (2) the supply of relevant goods treated as made by the recipient shall be assumed to have been made at a time to be determined in accordance with regulations prescribing rules for attributing a time of supply in cases to which this section applies.
F1505
Relevant goods” means—
a
F40aa
gas supplied through a natural gas system situated within Northern Ireland or the territory of a member State or any network connected to such a system,
b
electricity, and
c
heat or cooling supplied through a network.
6
Whether a person is outside the United Kingdom F96, in Great Britain or in Northern Ireland is to be determined in accordance with an order made by the Treasury.
Acquisition of goods from member States
F4610 Scope of VAT on acquisitions from member States.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F46C1511 Meaning of acquisition of goods from another member State.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4612 Time of acquisition.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4613 Place of acquisition.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4614 Acquisitions from persons belonging in other member States.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F198Goods supplied between the UK and member States under call-off stock arrangements
F19214ACall-off stock arrangements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F184 Importation of goods ...
Words in s. 15 cross-heading omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 12 (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)
C1715F30Meaning of “importation of goods” into the United Kingdom
1
This section determines for the purposes of this Act when, and by whom, goods are imported into the United Kingdom.
2
Goods are imported when they are declared for a Customs procedure under Part 1 of TCTA 2018.
3
But—
a
in the case of goods declared under TCTA 2018 for a storage procedure, a transit procedure or an inward processing procedure, the goods are imported when a liability to import duty is, or on the relevant assumptions would be, incurred in respect of them under section 4 of that Act, and
b
in the case of goods which are liable to forfeiture as a result of section 5(1) of, or paragraph 1(5) or 3(4) of Schedule 1 to, that Act (goods not presented to Customs or Customs declaration not made), the goods are imported when they become liable to forfeiture as a result of those provisions.
4
Each person who is, or on the relevant assumptions would be, liable to import duty in respect of goods imported into the United Kingdom is a person who has imported the goods.
5
For the purposes of this section “the relevant assumptions” are—
a
an assumption that a liability to import duty at a nil rate is replaced by a liability to import duty at a higher rate, and
b
an assumption that no relief from import duty is available.
6
If two or more persons are regarded as importing goods, those persons are jointly and severally liable to any VAT that is payable on the importation.
7
The preceding provisions of this section are to be ignored in reading any reference to importation or to an importer in anything applied for the purposes of this Act by section 16(1) or (2).
8
But subsection (7) does not apply so far as the context otherwise requires or provision to the contrary is contained in regulations under section 16(3).
C11C516F133Application of customs enactments
1
The provision made by or under—
a
the Customs and Excise Acts 1979 (as defined in the Management Act), and
b
the other enactments for the time being having effect generally in relation to duties of customs and excise charged by reference to the importation of goods into the United Kingdom,
apply (so far as relevant) in relation to any VAT chargeable on the importation of goods into the United Kingdom as they apply in relation to any duty of customs or excise.
C6C16C12C92
The provision made by section 1(4) for VAT on the importation of goods to be charged and payable as if it were import duty is to be taken as applying, in relation to any VAT chargeable on the importation of the goods, the provision made by or under Part 1 of TCTA 2018.
F11716APostal packets
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17 Free zone regulations.
1
This section applies in relation to VAT chargeable on the importation of goods F92...; and in this section “free zone” has the meaning given by section 100A(2) of the Management Act.
F972
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
The Commissioners may by regulations (“free zone regulations”) make provision with respect to the movement of goods into, and the removal of goods from, any free zone and the keeping, securing and treatment of goods which are within a free zone, and subject to any provision of the regulations, “free zone goods” means goods which are within a free zone.
4
Without prejudice to the generality of subsection (3), free zone regulations may make provision—
a
for enabling the Commissioners to allow goods to be removed from a free zone without payment of VAT in such circumstances and subject to such conditions as they may determine;
b
for determining where any VAT becomes payable in respect of goods which cease to be free zone goods—
i
the rates of any VAT applicable; and
ii
the time at which those goods cease to be free zone goods;
c
for determining for the purpose of enabling VAT to be charged in respect of free zone goods in a case where a person wishes to pay that VAT notwithstanding that the goods will continue to be free zone goods, the rate of VAT to be applied; and
d
permitting free zone goods to be destroyed without payment of VAT in such circumstances and subject to such conditions as the Commissioners may determine.
5
The Commissioners, with respect to free zone goods or the movement of goods into any free zone, may by regulations make provision—
a
for relief from the whole or part of any VAT chargeable on the importation of goods F69... in such circumstances as they may determine;
b
in place of, or in addition to, any provision made by section 6 or any other enactment, for determining the time when a supply of goods which are or have been free zone goods is to be treated as taking place for the purposes of the charge to VAT; and
c
as to the treatment, for the purposes of VAT, of goods which are manufactured or produced within a free zone from other goods or which have other goods incorporated in them while they are free zone goods.
Goods subject to a warehousing regime
18 Place and time of F152... supply.
F1341
A supply of goods which are subject to a warehousing regime is to be treated, for the purposes of this Act, as taking place outside the United Kingdom where —
a
those goods have been brought into the United Kingdom,
b
the material time of that supply is while those goods are subject to that regime and before the duty point, and
c
those goods are not mixed with any dutiable goods which were produced or manufactured in the United Kingdom.
F1481A
The Commissioners may by regulations prescribe circumstances in which subsection (1) above shall not apply.
2
Subsection (3) below applies where—
F93a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
any person makes a supply of—
i
any dutiable goods which were produced or manufactured in the United Kingdom F108...; or
ii
any goods comprising a mixture of goods falling within sub-paragraph (i) above and other goods.
3
Where this subsection applies and the material time for the F195... supply mentioned in subsection (2) above is while the goods in question are subject to a warehousing regime and before the duty point, that F195... supply shall be treated for the purposes of this Act as taking place outside the United Kingdom if the material time for any subsequent supply of those goods is also while the goods are subject to the warehousing regime and before the duty point.
4
Where the material time for any F179... supply of any goods in relation to which subsection (3) above applies is while the goods are subject to a warehousing regime and before the duty point but the F179... supply nevertheless falls, for the purposes of this Act, to be treated as taking place in the United Kingdom—
C13a
that F43... supply shall be treated for the purposes of this Act as taking place at the earlier of the following times, that is to say, the time when the goods are removed from the warehousing regime and the duty point; and
b
F64... any VAT payable on the supply shall be paid (subject to any regulations under subsection (5) below)—
i
at the time when the supply is treated as taking place under paragraph (a) above; and
ii
by the person by whom the goods are so removed or, as the case may be, together with the duty or agricultural levy, by the person who is required to pay the duty or levy.
F95
The Commissioners may by regulations make provision for enabling a taxable person to pay the VAT he is required to pay by virtue of paragraph (b) of subsection (4) above at a time later than that provided for by that paragraph.
5A
Regulations under subsection (5) above may in particular make provision for either or both of the following—
a
for the taxable person to pay the VAT together with the VAT chargeable on other supplies by him of goods and services;
b
for the taxable person to pay the VAT together with any duty of excise deferment of which has been granted to him under section 127A of the M1Customs and Excise Management Act 1979;
and they may make different provision for different descriptions of taxable person and for different descriptions of goods.
6
In this section—
“dutiable goods” means any goods which are subject—
“the duty point”, in relation to any goods, means—
- a
in the case of goods which are subject to a duty of excise, the time when the requirement to pay the duty on those goods takes effect; and
- b
in the case of goods which are not so subject, the time when F88import duty is incurred in respect of the goods or, as the case may be, F124the time a debt in respect of any levy as is mentioned in paragraph (b) of the definition of dutiable goods F126is incurred in respect of the goods;
- a
F146“free zone procedure” has the meaning given by the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 (S.I. 2018/1249) (see regulation 2(3)(b) of those Regulations);
“material time”—
- a
in relation to any F143... supply the time of which is determined in accordance with regulations under section 6(14) F143..., means such time as may be prescribed for the purpose of this section by those regulations;
- b
F54... and
- c
in relation to any other supply, means the time when the supply would be treated as taking place in accordance with subsection (2) of section 6 if paragraph (c) of that subsection were omitted;
- a
“warehouse” means any warehouse where goods may be stored in F94the United Kingdom without payment of any one or more of the following, that is to say—
- a
F62import duty;
- b
any agricultural levy of the F102European Union;
- c
VAT on the importation of the goods F83...;
- d
but does not include a warehouse so far as it is used for the storage of goods declared for a free zone procedure.
- a
7
References in this section to goods being subject to a warehousing regime is a reference to goods being kept in a warehouse or being transported between warehouses F131... without the payment F91... of any duty, levy or VAT; and references to the removal of goods from a warehousing regime shall be construed accordingly.
18AF10 Fiscal warehousing.
1
The Commissioners may, if it appears to them proper, upon application approve any registered person as a fiscal warehousekeeper; and such approval shall be subject to such conditions as they shall impose.
2
Subject to those conditions and to regulations made under section 18F such a person shall be entitled to keep a fiscal warehouse.
3
“Fiscal warehouse” means such place in the United Kingdom in the occupation or under the control of the fiscal warehousekeeper, not being retail premises, as he shall notify to the Commissioners in writing; and such a place shall become a fiscal warehouse on receipt by the Commissioners of that notification or on the date stated in it as the date from which it is to have effect, whichever is the later, and, subject to subsection (6) below, shall remain a fiscal warehouse so long as it is in the occupation or under the control of the fiscal warehousekeeper or until he shall notify the Commissioners in writing that it is to cease to be a fiscal warehouse.
4
The Commissioners may in considering an application by a person to be a fiscal warehousekeeper take into account any matter which they consider relevant, and may without prejudice to the generality of that provision take into account all or any one or more of the following—
a
his record of compliance and ability to comply with the requirements of this Act and regulations made hereunder;
b
his record of compliance and ability to comply with the requirements of the customs and excise Acts F160... and regulations made thereunder;
F159c
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F159d
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
e
if the applicant is a company the records of compliance and ability to comply with the matters set out at F111(a) and (b) above of its directors, persons connected with its directors, its managing officers, any shadow directors or any of those persons, and, if it is a close company, the records of compliance and ability to comply with the matters set out at F111(a) and (b) above of the beneficial owners of the shares of the company or any of them; and
f
if the applicant is an individual the records of compliance and ability to comply with the matters set out at F31(a) and (b) above of any company of which he is or has been a director, managing officer or shadow director or, in the case of a close company, a shareholder or the beneficial owner of shares,
F109....
F324A
For the purposes of paragraphs (e) and (f) of subsection (4)—
a
a person is “connected” with a director if that person is the director's spouse or civil partner, or is a relative, or the spouse or civil partner of a relative, of the director or of the director's spouse or civil partner;
b
“managing officer” in relation to a body corporate, means any manager, secretary or other similar officer of the body corporate or any person purporting to act in any such capacity or as a director;
c
“shadow director” has the meaning given by section 251 of the Companies Act 2006;
d
“close company” has the meaning it has in the Corporation Tax Acts (see Chapter 2 of Part 10 of the Corporation Tax Act 2010).
5
Subject to subsection (6) below, a person approved under subsection (1) shall remain a fiscal warehousekeeper until he ceases to be a registered person or until he shall notify the Commissioners in writing that he is to cease to be a fiscal warehousekeeper.
6
The Commissioners may if they consider it appropriate from time to time—
a
impose conditions on a fiscal warehousekeeper in addition to those conditions, if any, which they imposed under subsection (1), and vary or revoke any conditions previously imposed;
b
withdraw approval of any person as a fiscal warehousekeeper, and
c
withdraw fiscal warehouse status from any premises.
7
Any application by or on behalf of a person to be a fiscal warehousekeeper shall be in writing in such form as the Commissioners may direct and shall be accompanied by such information as they shall require.
8
Any approval by the Commissioners under subsection (1) above, and any withdrawal of approval or other act by them under subsection (6) above, shall be notified by them to the fiscal warehousekeeper in writing and shall take effect on such notification being made or on any later date specified for the purpose in the notification.
9
Without prejudice to the provisions of section 43 concerning liability for VAT, in subsections (1) and (2) above “registered person” includes any F136person who under that section is for the time being treated as a member of a group.
18BF11 Fiscally warehoused goods: relief.
F1661
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
Subsections (3) and (4) below F26... apply where—
a
there is a supply of goods;
b
those goods are eligible goods;
c
either—
i
that supply takes place while the goods are subject to a fiscal warehousing regime; or
ii
after that supply but before the supply, if any, of those goods which next occurs, the person to whom the former supply is made causes the goods to be placed in a fiscal warehousing regime;
d
in a case falling within paragraph (c)(ii) above, the person to whom the supply is made gives the supplier, not later than the time of the supply, a certificate F174... that he will cause paragraph (c)(ii) to be satisfied; and
e
the supply is not a retail transaction.
F1892A
A certificate under subsection F38... (2)(d) must be in such form as may be specified by regulations or by the Commissioners in accordance with regulations.
3
The F154... supply in question shall be treated for the purposes of this Act as taking place outside the United Kingdom if any subsequent supply of those goods is while they are subject to the fiscal warehousing regime.
C104
Where subsection (3) does not apply and the F36... supply in question falls, for the purposes of this Act, to be treated as taking place in the United Kingdom, that F36... supply shall be treated for the purposes of this Act as taking place when the goods are removed from the fiscal warehousing regime.
F255
VAT is chargeable on a supply made by a person who is not a taxable person, but who would be were it not for paragraph 1(9) of Schedule 1, where—
a
subsection (4) applies to that supply, and
b
that supply is taxable and not zero-rated.
F706
In this section “eligible goods” means goods—
a
of a description falling within Schedule 5A,
b
in the case of imported goods—
i
upon which any import duty has been paid or deferred (by virtue of the customs and excise Acts or any subordinate legislation made under those Acts), and
ii
upon which any VAT chargeable under section 1(1)(c) has been paid, or deferred (by virtue of the customs and excise Acts or any subordinate legislation made under those Acts), and
c
in the case of goods subject to a duty of excise, upon which any excise duty has been paid or deferred under section 127A of the Management Act.
7
8
The Treasury may by order vary Schedule 5A by adding to or deleting from it any goods or varying any description of any goods.
18CF197Warehouses and fiscal warehouses: services.
1
Where—
a
a taxable person makes a supply of specified services;
b
those services are wholly performed on or in relation to goods while those goods are subject to a warehousing or fiscal warehousing regime;
c
(except where the services are the supply by an occupier of a warehouse or a fiscal warehousekeeper of warehousing or fiscally warehousing the goods) the person to whom the supply is made gives the supplier a certificate F104... that the services are so performed;
d
the supply of services would (apart from this section) be taxable and not zero-rated; and
e
the supplier issues to the person to whom the supply is made an invoice of such a description as the Commissioners may by regulations prescribe,
his supply shall be zero-rated.
F1931A
A certificate under subsection (1)(c) must be in such form as may be specified by regulations or by the Commissioners in accordance with regulations.
2
If a supply of services is zero-rated under subsection (1) above (“the zero-rated supply of services”) then, unless there is a supply of the goods in question the material time for which is—
a
while the goods are subject to a warehousing or fiscal warehousing regime, and
b
after the material time for the zero-rated supply of services,
subsection (3) below shall apply.
3
Where this subsection applies—
a
a supply of services identical to the zero-rated supply of services shall be treated for the purposes of this Act as being, at the time the goods are removed from the warehousing or fiscal warehousing regime or (if earlier) at the duty point, both made (for the purposes of his business) to the person to whom the zero-rated supply of services was actually made and made by him in the course or furtherance of his business,
b
that supply shall have the same value as the zero-rated supply of services,
c
that supply shall be a taxable (and not a zero-rated) supply, and
d
VAT shall be charged on that supply even if the person treated as making it is not a taxable person.
4
In this section “specified services” means—
a
services of an occupier of a warehouse or a fiscal warehousekeeper of keeping the goods in question in a warehousing or fiscal warehousing regime;
b
in relation to goods subject to a warehousing regime, services of carrying out on the goods operations which are permitted to be carried out under F118the customs and excise Acts or any subordinate legislation made under those Acts as the case may be; and
c
in relation to goods subject to a fiscal warehousing regime, services of carrying out on the goods any physical operations (other than any prohibited by regulations made under section 18F), for example, and without prejudice to the generality of the foregoing words, preservation and repacking operations.
18DF12 Removal from warehousing: accountability.
1
This section applies to any supply to which section 18B(4) or section 18C(3) applies (supply treated as taking place on removal or duty point) F132....
2
Any VAT payable on the supply F167... shall (subject to any regulations under subsection (3) below) be paid—
a
at the time when the supply F156... is treated as taking place under the section in question; and
b
by the person by whom the goods are removed or, as the case may be, together with the excise duty, by the person who is required to pay that duty.
3
The Commissioners may by regulations make provision for enabling a taxable person to pay the VAT he is required to pay by virtue of subsection (2) above at a time later than that provided by that subsection; and they may make different provisions for different descriptions of taxable persons and for different descriptions of goods and services.
18EF13 Deficiency in fiscally warehoused goods.
1
This section applies where goods have been subject to a fiscal warehousing regime and, before being lawfully removed from the fiscal warehouse, they are found to be missing or deficient.
2
In any case where this section applies, unless it is shown to the satisfaction of the Commissioners that the absence of or deficiency in the goods can be accounted for by natural waste or other legitimate cause, the Commissioners may require the fiscal warehousekeeper to pay immediately in respect of the missing goods or of the whole or any part of the deficiency, as they see fit, the VAT that would have been chargeable.
3
In subsection (2) “VAT that would have been chargeable” means VAT that would have been chargeable on a supply of the missing goods, or the amount of goods by which the goods are deficient, taking place at the time immediately before the absence arose or the deficiency occurred, if the value of that supply were the open market value; but where that time cannot be ascertained to the Commissioners’ satisfaction, that VAT shall be the greater of the amounts of VAT which would have been chargeable on a supply of those goods—
a
if the value of that supply were the highest open market value during the period (the relevant period) commencing when the goods were placed in the fiscal warehousing regime and ending when the absence or deficiency came to the notice of the Commissioners, or
b
if the rate of VAT chargeable on that supply were the highest rate chargeable on a supply of such goods during the relevant period and the value of that supply were the highest open market value while that rate prevailed.
4
This section has effect without prejudice to any penalty incurred under any other provision of this Act or regulations made under it.
18FF14 Sections 18A to 18E: supplementary.
1
In sections 18A to 18E and this section—
F162“the customs and excise Acts” has the same meaning as in the Management Act;
“duty point” has the meaning given by section 18(6);
“eligible goods” has the meaning given by section 18B(6);
“fiscal warehouse” means a place notified to the Commissioners under section 18A(3) and from which such status has not been withdrawn;
“fiscal warehousekeeper” means a person approved under section 18A(1);
“material time”—
- a
in relation to any F79... supply the time of which is determined in accordance with regulations under section 6(14) F79..., means such time as may be prescribed for the purpose of this section by those regulations;
- b
F155...
- c
in relation to any other supply of goods, means the time when the supply would be treated as taking place in accordance with subsection (2) of section 6 if paragraph (c) of that subsection were omitted; and
- d
in relation to any other supply of services, means the time when the services are performed;
- a
“warehouse”, except in the expression “fiscal warehouse”, has the meaning given by section 18(6);
F66...
2
Any reference in sections 18A to 18E or this section to goods being subject to a fiscal warehousing regime is, subject to any regulations made under subsection (8)(e) below, a reference to eligible goods being kept in a fiscal warehouse or being transferred between fiscal warehouses in accordance with such regulations; and any reference to the removal of goods from a fiscal warehousing regime shall be construed accordingly.
3
Subject to subsection (2) above, any reference in sections 18C and 18D to goods being subject to a warehousing regime or to the removal of goods from a warehousing regime shall have the same meaning as in section 18(7).
4
Where as a result of an operation on eligible goods subject to a fiscal warehousing regime they change their nature but the resulting goods are also eligible goods, the provisions of sections 18B to 18E and this section shall apply as if the resulting goods were the original goods.
5
Where as a result of an operation on eligible goods subject to a fiscal warehousing regime they cease to be eligible goods, on their ceasing to be so sections 18B to 18E shall apply as if they had at that time been removed from the fiscal warehousing regime; and for that purpose the proprietor of the goods shall be treated as if he were the person removing them.
6
Where—
a
any person ceases to be a fiscal warehousekeeper; or
b
any premises cease to have fiscal warehouse status,
sections 18B to 18E and this section shall apply as if the goods of which he is the fiscal warehousekeeper, or the goods in the fiscal warehouse, as the case may be, had at that time been removed from the fiscal warehousing regime; and for that purpose the proprietor of the goods shall be treated as if he were the person removing them.
7
The Commissioners may make regulations governing the deposit, keeping, securing and treatment of goods in a fiscal warehouse, and the removal of goods from a fiscal warehouse.
8
Regulations may, without prejudice to the generality of subsection (7) above, include provisions—
a
in relation to—
i
goods which are, have been or are to be subject to a fiscal warehousing regime,
ii
other goods which are, have been or are to be kept in fiscal warehouses,
iii
fiscal warehouse premises, and
iv
fiscal warehousekeepers and their businesses,
as to the keeping, preservation and production of records and the furnishing of returns and information by fiscal warehousekeepers and any other persons;
b
requiring goods deposited in a fiscal warehouse to be produced to or made available for inspection by an authorised person on request by him;
c
prohibiting the carrying out on fiscally warehoused goods of such operations as they may prescribe;
d
regulating the transfer of goods from one fiscal warehouse to another;
e
concerning goods which, though kept in a fiscal warehouse, are not eligible goods or are not intended by a relevant person to be goods in respect of which reliefs are to be enjoyed under sections 18A to 18E and this section;
f
prohibiting the fiscal warehousekeeper from allowing goods to be removed from the fiscal warehousing regime without payment of any VAT payable under section 18D on or by reference to that removal and, if in breach of that prohibition he allows goods to be so removed, making him liable for the VAT jointly and severally with the remover,
and may contain such incidental or supplementary provisions as the Commissioners think necessary or expedient.
9
Regulations may make different provision for different cases, including different provision for different fiscal warehousekeepers or descriptions of fiscal warehousekeeper, for fiscal warehouses of different descriptions or for goods of different classes or descriptions or of the same class or description in different circumstances.
Determination of value
19 Value of supply of goods or services.
1
For the purposes of this Act the value of any supply of goods or services shall, except as otherwise provided by or under this Act, be determined in accordance with this section and Schedule 6, and for those purposes subsections (2) to (4) below have effect subject to that Schedule.
2
If the supply is for a consideration in money its value shall be taken to be such amount as, with the addition of the VAT chargeable, is equal to the consideration.
3
If the supply is for a consideration not consisting or not wholly consisting of money, its value shall be taken to be such amount in money as, with the addition of the VAT chargeable, is equivalent to the consideration.
4
Where a supply of any goods or services is not the only matter to which a consideration in money relates, the supply shall be deemed to be for such part of the consideration as is properly attributable to it.
C15
For the purposes of this Act the open market value of a supply of goods or services shall be taken to be the amount that would fall to be taken as its value under subsection (2) above if the supply were for such consideration in money as would be payable by a person standing in no such relationship with any person as would affect that consideration.
F2720 Valuation of acquisitions from other member States.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21 Value of imported goods.
F1231
For the purposes of this Act, the value of imported goods is (subject to subsections (2) to (4)) their value as if determined under TCTA 2018 for the purposes of import duty (whether or not the goods are subject to import duty).
2
For the purposes of this Act the value of any goods imported F194... shall F186(subject to subsection (2A) below) be taken to include the following so far as they are not already included in that value in accordance with the rules mentioned in subsection (1) above, that is to say—
a
all taxes, duties and other charges levied either outside or, by reason of importation, within the United Kingdom (except VAT); F15...
F16b
all incidental expenses, such as commission, packing, transport and insurance costs, up to the goods’ first destination in the United Kingdom; and
c
and in this subsection “the goods’ first destination” means the place mentioned on the consignment note or any other document by means of which the goods are imported into the United Kingdom, or in the absence of such documentation it means the place of the first transfer of cargo in the United Kingdom.
F1612A
Where—
a
any goods falling within subsection (5) below are sold by auction at a time when they are subject to F87the temporary admission procedure under Part 1 of TCTA 2018, and
b
arrangements made by or on behalf of the purchaser of the goods following the sale by auction result in the importation of the goods F74...,
the value of the goods shall not be taken for the purposes of this Act to include, in relation to that importation, any commission or premium payable to the auctioneer in connection with the sale of the goods.
F372B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Subject to subsection (2) above, where—
a
goods are imported F100... for a consideration which is or includes a price in money payable as on the transfer of property;
b
the terms on which those goods are so imported allow a discount for prompt payment of that price;
c
those terms do not include provision for payment of that price by instalments; and
d
payment of that price is made in accordance with those terms so that the discount falls to be allowed,
the value of the goods shall be taken for the purposes of this Act to be reduced by the amount of the discount.
F174
F195
The goods that fall within this subsection are—
a
any work of art;
b
any antique, not falling within paragraph (a) above or (c) below, that is more than one hundred years old;
c
any collection or collector’s piece that is of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic, numismatic or philatelic interest.
6
In this section “work of art” means, subject to subsections (6A) and (6B) below—
a
any mounted or unmounted painting, drawing, collage, decorative plaque or similar picture that was executed by hand;
b
any original engraving, lithograph or other print which—
i
was produced from one or more plates executed by hand by an individual who executed them without using any mechanical or photomechanical process; and
ii
either is the only one produced from the plate or plates or is comprised in a limited edition;
c
any original sculpture or statuary, in any material;
d
any sculpture cast which—
i
was produced by or under the supervision of the individual who made the mould or became entitled to it by succession on the death of that individual; and
ii
either is the only cast produced from the mould or is comprised in a limited edition;
e
any tapestry or other hanging which—
i
was made by hand from an original design; and
ii
either is the only one made from the design or is comprised in a limited edition;
f
any ceramic executed by an individual and signed by him;
g
any enamel on copper which—
i
was executed by hand;
ii
is signed either by the person who executed it or by someone on behalf of the studio where it was executed;
iii
either is the only one made from the design in question or is comprised in a limited edition; and
iv
is not comprised in an article of jewellery or an article of a kind produced by goldsmiths or silversmiths;
h
any mounted or unmounted photograph which—
i
was printed by or under the supervision of the photographer;
ii
is signed by him; and
iii
either is the only print made from the exposure in question or is comprised in a limited edition;
6A
The following do not fall within subsection (5) above by virtue of subsection (6)(a) above, that is to say—
a
any technical drawing, map or plan;
b
any picture comprised in a manufactured article that has been hand-decorated; or
c
anything in the nature of scenery, including a backcloth.
6B
An item comprised in a limited edition shall be taken to be so comprised for the purposes of subsection (6)(d) to (h) above only if—
a
in the case of sculpture casts—
i
the edition is limited so that the number produced from the same mould does not exceed eight; or
ii
the edition comprises a limited edition of nine or more casts made before 1st January 1989 which the Commissioners have directed should be treated, in the exceptional circumstances of the case, as a limited edition for the purposes of subsection (6)(d) above;
b
in the case of tapestries and hangings, the edition is limited so that the number produced from the same design does not exceed eight;
c
in the case of enamels on copper—
i
the edition is limited so that the number produced from the same design does not exceed eight; and
ii
each of the enamels in the edition is numbered and is signed as mentioned in subsection (6)(g)(ii) above;
d
in the case of photographs—
i
the edition is limited so that the number produced from the same exposure does not exceed thirty; and
ii
each of the prints in the edition is numbered and is signed as mentioned in subsection (6)(h)(ii) above.
6C
For the purposes of this section a collector’s piece is of philatelic interest if—
a
it is a postage or revenue stamp, a postmark, a first-day cover or an item of pre-stamped stationery; and
b
it is franked or (if unfranked) it is not legal tender and is not intended for use as such.
6D
Subsection (4) above does not apply in the case of F48imported goods if—
a
the whole of the VAT chargeable on their importation falls to be relieved by virtue of an order under section 37(1); or
b
they were exported from the United Kingdom during the period of twelve months ending with the date of their importation F61in circumstances where the exportation and subsequent importation were effected to obtain the benefit of that subsection.
7
An order under section 2(2) may contain provision making such alteration of the percentage for the time being specified in subsection (4) above as the Treasury consider appropriate in consequence of any increase or decrease by that order of the rate of VAT.
F2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23F142Value of supplies involving relevant machine games
1
If a person plays a relevant machine game, then for the purposes of VAT the amount paid by the person is to be treated as consideration for a supply of services to that person.
2
“Relevant machine game” is defined in section 23A.
3
The value to be taken as the value of supplies made by a person (“the supplier”) in the circumstances mentioned in subsection (1) in any period is to be determined as if the consideration for the supplies were reduced by an amount equal to X.
4
X is the amount (if any) paid out in that period by way of winnings in respect of relevant machine games made available by the supplier (whether the games were played in the same period or an earlier one).
5
X does not include any winnings paid out to the supplier or a person acting on the supplier's behalf.
6
Inserting a token into a machine on which a relevant machine game is played is to be treated for the purposes of subsection (1) as the payment of an amount equal to that for which the token can be obtained.
7
Providing a specified kind of token by way of winnings is to be treated for the purposes of subsection (4) as the payment out of an amount by way of winnings equal to the value of the token.
8
A specified kind of token is—
a
a token that can be inserted into the same machine to enable games to be played on the machine, or
b
a token that is not of such a kind but can be exchanged for money.
9
The value of a specified kind of token is—
a
for a token within subsection (8)(a), an amount equal to that for which the token can be obtained, and
b
for a token within subsection (8)(b), an amount equal to that for which the token can be exchanged.
10
If it is not reasonably practicable to attribute payments and winnings to relevant machine games or to apportion them between relevant machine games and other games or other activities, any attribution or apportionment is to be done on a just and reasonable basis.
11
For the purposes of this section, a person plays a game if the person participates in the game—
a
whether or not there are other participants in the game, and
b
whether or not a computer generates images or data taken to represent the actions of other participants in the game.
23AMeaning of “relevant machine game”
1
A “relevant machine game” is a game (whether of skill or chance or both) that—
a
is played on a machine for a prize, and
b
is not excluded by subsection (2).
2
A game is excluded by this subsection if—
a
takings and payouts in respect of it are taken into account in determining any charge to machine games duty,
b
it involves betting on future real events,
c
bingo duty is charged on the playing of it or would be so charged but for paragraphs 1 to 5 of Schedule 3 to the Betting and Gaming Duties Act 1981 (exemptions from bingo duty),
d
lottery duty is charged on the taking of a ticket or chance in it or would be so charged but for an express exception,
e
it is a real game of chance and playing it amounts to dutiable gaming for the purposes of section 10 of the Finance Act 1997 or would do so but for subsection (3), (3B) or (4) of that section, or
f
playing it amounts to remote gaming within the meaning of F191section 154(1) of the Finance Act 2014 (meaning of remote gaming).
3
In this section—
“game” does not include a sport;
“machine” means any apparatus that uses or applies mechanical power, electrical power or both;
“prize”, in relation to a game, does not include the opportunity to play the game again;
“real game of chance” means a game of chance (within the meaning of F127Part 3 of the Finance Act 2014 (see section 188(1)(b))) that is non-virtual.
4
The Treasury may by order amend this section.
Payment of VAT by taxable persons
24 Input tax and output tax.
1
Subject to the following provisions of this section, “input tax”, in relation to a taxable person, means the following tax, that is to say—
a
VAT on the supply to him of any goods or services;
b
F185...; and
c
VAT paid or payable by him on the importation of any goods F42...,
being (in each case) goods or services used or to be used for the purpose of any business carried on or to be carried on by him.
2
Subject to the following provisions of this section, “output tax”, in relation to a taxable person, means VAT on supplies which he makes F76....
F1753
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
The Treasury may by order provide with respect to any description of goods or services that, where goods or services of that description are supplied to a person who is not a taxable person, they shall, in such circumstances as may be specified in the order, be treated for the purposes of subsections (1) and (2) above as supplied to such other person as may be determined in accordance with the order.
5
Where goods or services supplied to a taxable personF171... or goods imported by a taxable person F105... are used or to be used partly for the purposes of a business carried on or to be carried on by him and partly for other purposes F128—
a
VAT on suppliesF173... and importations shall be apportioned so that so much as is referable to the taxable person's business purposes is counted as that person's input tax, and
b
the remainder of that VAT (“the non-business VAT”) shall count as that person's input tax only to the extent (if any) provided for by regulations under subsection (6)(e).
F1225A
For the purposes of subsections (1) and (5), a relevant asset held for the purposes of a business carried on or to be carried on by a taxable person is not, in any circumstances, to be regarded as used or to be used for the purposes of the business if, and to the extent that, it is used or to be used for that person's private use or the private use of that person's staff.
5B
In subsection (5A) “relevant asset” means—
a
any interest in land,
b
any building or part of a building,
c
any civil engineering work or part of such a work,
d
any goods incorporated or to be incorporated in a building or civil engineering work (whether by being installed as fixtures or fittings or otherwise),
e
any ship, boat or other vessel, or
f
any aircraft.
6
Regulations may provide—
a
for VAT on the supply of goods or services to a taxable personF119... and VAT paid or payable by a taxable person on the importation of goods F153... to be treated as his input tax only if and to the extent that the charge to VAT is evidenced and quantified by reference to such documents F28or other information as may be specified in the regulations or the Commissioners may direct either generally or in particular cases or classes of cases;
b
for a taxable person to count as his input tax, in such circumstances, to such extent and subject to such conditions as may be prescribed, VAT on the supply to him of goods or services F138... or paid by him on the importation of goods F158... notwithstanding that he was not a taxable person at the time of the supplyF57... or payment;
c
for a taxable person that is a body corporate to count as its input tax, in such circumstances, to such extent and subject to such conditions as may be prescribed, VAT on the supplyF115... or importation of goods before the company’s incorporation for appropriation to the company or its business or on the supply of services before that time for its benefit or in connection with its incorporation;
d
in the case of a person who has been, but is no longer, a taxable person, for him to be paid by the Commissioners the amount of any VAT on a supply of services made to him for the purposes of the business carried on by him when he was a taxable person.
F147e
in cases where an apportionment is made under subsection (5), for the non-business VAT to be counted as the taxable person's input tax for the purposes of any provision made by or under section 26 in such circumstances, to such extent and subject to such conditions as may be prescribed.
F1816A
Regulations under subsection (6) may contain such supplementary, incidental, consequential and transitional provisions as appear to the Commissioners to be necessary or expedient.
F457
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25 Payment by reference to accounting periods and credit for input tax against output tax.
1
A taxable person shall—
a
in respect of supplies made by him, F34...
F34b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
account for and pay VAT by reference to such periods (in this Act referred to as “prescribed accounting periods”) at such time and in such manner as may be determined by or under regulations and regulations may make different provision for different circumstances.
2
Subject to the provisions of this section, he is entitled at the end of each prescribed accounting period to credit for so much of his input tax as is allowable under section 26, and then to deduct that amount from any output tax that is due from him.
3
If either no output tax is due at the end of the period, or the amount of the credit exceeds that of the output tax then, subject to subsections (4) and (5) below, the amount of the credit or, as the case may be, the amount of the excess shall be paid to the taxable person by the Commissioners; and an amount which is due under this subsection is referred to in this Act as a “VAT credit”.
4
The whole or any part of the credit may, subject to and in accordance with regulations, be held over to be credited in and for a subsequent period; and the regulations may allow for it to be so held over either on the taxable person’s own application or in accordance with general or special directions given by the Commissioners from time to time.
5
Where at the end of any period a VAT credit is due to a taxable person who has failed to submit returns for any earlier period as required by this Act, the Commissioners may withhold payment of the credit until he has complied with that requirement.
C46
A deduction under subsection (2) above and payment of a VAT credit shall not be made or paid except on a claim made in such manner and at such time as may be determined by or under regulations; and, in the case of a person who has made no taxable supplies in the period concerned or any previous period, payment of a VAT credit shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to repayment in specified circumstances.
7
The Treasury may by order provide, in relation to such supplies F29... and importations as the order may specify, that VAT charged on them is to be excluded from any credit under this section; and—
a
any such provision may be framed by reference to the description of goods or services supplied or goods F140... imported, the person by whom they are supplied F140... or imported or to whom they are supplied, the purposes for which they are supplied F140... or imported, or any circumstances whatsoever; and
b
such an order may contain provision for consequential relief from output tax.
C226 Input tax allowable under section 25.
1
The amount of input tax for which a taxable person is entitled to credit at the end of any period shall be so much of the input tax for the period (that is input tax on supplies F165... and importations in the period) as is allowable by or under regulations as being attributable to supplies within subsection (2) below.
2
The supplies within this subsection are the following supplies made or to be made by the taxable person in the course or furtherance of his business—
a
taxable supplies;
b
supplies outside the United Kingdom which would be taxable supplies if made in the United Kingdom;
c
such other supplies outside the United Kingdom and such exempt supplies as the Treasury may by order specify for the purposes of this subsection.
3
The Commissioners shall make regulations for securing a fair and reasonable attribution of input tax to supplies within subsection (2) above, and any such regulations may provide for—
a
determining a proportion by reference to which input tax for any prescribed accounting period is to be provisionally attributed to those supplies;
b
adjusting, in accordance with a proportion determined in like manner for any longer period comprising two or more prescribed accounting periods or parts thereof, the provisional attribution for any of those periods;
c
the making of payments in respect of input tax, by the Commissioners to a taxable person (or a person who has been a taxable person) or by a taxable person (or a person who has been a taxable person) to the Commissioners, in cases where events prove inaccurate an estimate on the basis of which an attribution was made; and
d
preventing input tax on a supply which, under or by virtue of any provision of this Act, a person makes to himself from being allowable as attributable to that supply.
4
Regulations under subsection (3) above may make different provision for different circumstances and, in particular (but without prejudice to the generality of that subsection) for different descriptions of goods or services; and may contain such incidentalF176, supplementary, consequential and transitional provisions as appear to the Commissioners necessary or expedient.
26AF24 Disallowance of input tax where consideration not paid
1
Where—
a
a person has become entitled to credit for any input tax, and
b
the consideration for the supply to which that input tax relates, or any part of it, is unpaid at the end of the period of 6 months following the relevant date,
he shall be taken, as from the end of that period, not to have been entitled to credit for input tax in respect of the VAT that is referable to the unpaid consideration or part.
F751A
Subsection (1) is subject to section 26AA (disapplication of disallowance under section 26A in insolvency).
2
For the purposes of subsection (1) above “the relevant date”, in relation to any sum representing consideration for a supply, is—
a
the date of the supply, or
b
if later, the date on which the sum became payable.
3
Regulations may make such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient for the purposes of this section.
4
Regulations under this section may in particular—
a
make provision for restoring the whole or any part of an entitlement to credit for input tax where there is a payment after the end of the period mentioned in subsection (1) above;
b
make rules for ascertaining whether anything paid is to be taken as paid by way of consideration for a particular supply;
c
make rules dealing with particular cases, such as those involving payment of part of the consideration or mutual debts.
5
Regulations under this section may make different provision for different circumstances.
6
Section 6 shall apply for determining the time when a supply is to be treated as taking place for the purposes of construing this section.
26AAF53Disapplication of disallowance under section 26A in insolvency
1
Section 26A(1) does not apply to a person in relation to credit for input tax which relates to a supply where—
a
at the time of the supply, no insolvency procedure had effect in relation to the person,
b
at any time during the relevant period, an insolvency procedure had effect in relation to that person (“the insolvent person”), and
c
the Commissioners have been notified in writing of the matter mentioned in paragraph (b) by or on behalf of a person authorised to deal with the insolvent person’s affairs.
2
But where the insolvency procedure mentioned in subsection (1)(b) is a bankruptcy order, award of sequestration, protected trust deed or voluntary arrangement and that bankruptcy order is annulled, that award of sequestration is recalled or that protected trust deed or voluntary arrangement has come to an end prematurely—
a
the disapplication of section 26A(1) by subsection (1) above ceases to have effect, and
b
the person to which the bankruptcy order, award of sequestration, protected trust deed or voluntary arrangement relates is to be taken for the purposes of section 26A(1) as not being entitled to the credit for the input tax concerned as from whichever is the later of—
i
the end of the relevant period, and
ii
the date on which the bankruptcy order was annulled, the award of sequestration recalled or the protected trust deed or voluntary arrangement has come to an end prematurely.
3
Where the person mentioned in section 26A(1) is entitled as a member of a partnership to credit for input tax this section has effect as if—
a
the references in subsections (1)(a) and (b) to “the person” and “that person” were references to the partnership,
b
the reference in subsection (1)(c) to “the insolvent person’s affairs” were a reference to the insolvent partnership’s affairs, and
c
the reference in subsection (2)(b) to “the person”, in connection with a bankruptcy order or a voluntary arrangement, were a reference to the person who is a member of the partnership to which the bankruptcy order or voluntary arrangement relates.
4
Subsection (1) does not apply where the insolvency procedure referred to in subsection (1)(b) has effect as part of, or as a consequence of, arrangements where the main purpose, or one of the main purposes, of those arrangements is to obtain a tax advantage by the operation of this section.
5
Regulations may make such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient for the purposes of this section.
6
For the purposes of this section “the relevant period”, in relation to a supply, is the period beginning immediately after the supply took place and ending six months after—
a
the date of that supply, or
b
if later, the date on which the relevant part of the consideration for the supply is payable.
7
For the purposes of subsection (6) the relevant part of the consideration is the part of the consideration referable to the credit for input tax which would (ignoring the effect of this section) be disallowed under section 26A(1).
C38
For the purposes of this section an insolvency procedure has effect in relation to a person at a time when any of the following apply—
a
a bankruptcy order has been made under Chapter 1 of Part 9 of the Insolvency Act 1986 in relation to that person and has not been annulled,
b
a warrant has been granted for a petition for sequestration to be served on that person which has resulted in the sequestration of that person’s estate or an award of sequestration has been made on an application by that person, in both cases under section 22 of the Bankruptcy (Scotland) Act 2016, and in either case the award of sequestration has not been recalled,
c
a bankruptcy order has been made under Chapter 1 of Part 9 of the Insolvency (Northern Ireland) Order 1989 in relation to that person and has not been annulled,
d
where that person is a company registered under the Companies Act 2006 in England and Wales or Scotland or an unregistered company as defined in section 220 of the Insolvency Act 1986 which is deemed to be registered in England and Wales or Scotland under section 221 of that Act, a petition has been presented to the court which has resulted in a winding-up order being made under Chapter 6 of Part 4 or Part 5 of the Insolvency Act 1986 in relation to that person and that person has not been dissolved or that winding-up order has not been stayed or sisted,
e
where that person is a company registered under the Companies Act 2006 in Northern Ireland, or an unregistered company as defined in article 184 of the Insolvency (Northern Ireland) Order 1989 which is deemed to be registered in Northern Ireland under article 185 of that Order, a petition has been presented to the court which has resulted in a winding-up order being made under Part 5 or Part 6 of the Insolvency (Northern Ireland) Order 1989 and that person has not been dissolved or that winding-up order has not been stayed,
f
that person is in administration for the purposes of Schedule B1 to the Insolvency Act 1986 or Schedule B1 to the Insolvency (Northern Ireland) Order 1989,
g
an appointment of an administrative receiver is in force in relation to that person disregarding any temporary vacancy in the office of receiver,
h
an appointment of a liquidator is in force as a consequence of a creditors’ voluntary winding up under Chapter 4 of Part 4 of the Insolvency Act 1986 or Chapter 4 of Part 5 of the Insolvency (Northern Ireland) Order 1989 in relation to that person disregarding any temporary vacancy in the office of liquidator,
i
a voluntary arrangement has been approved in accordance with Part 1 or Part 8 of the Insolvency Act 1986 or Part 2 or Chapter 2 of Part 8 of the Insolvency (Northern Ireland) Order 1989 in relation to that person and that voluntary arrangement has not come to an end prematurely,
j
a county court administration order has been made under Part 6 of the County Courts Act 1984 or Part 6 of the Judgments Enforcement (Northern Ireland) Order 1981 in relation to that person and has not ceased to take effect,
k
a compromise or arrangement sanctioned by the court and delivered to the registrar in accordance with section 899 of the Companies Act 2006 is in place in relation to that person,
F59ka
a compromise or arrangement sanctioned by the court and delivered to the registrar or (as the case may be) published in the Gazette in accordance with section 901F of the Companies Act 2006 is in place in relation to that person,
l
that person’s estate is vested in any other person as that person’s trustee under a trust deed and that trust deed has become a protected trust deed,
m
that person has died and an insolvency administration order has been made which has not been discharged in respect of that person’s estate in accordance with an order under section 421 of the Insolvency Act 1986 or article 365 of the Insolvency (Northern Ireland) Order 1989 or that person’s estate has been sequestrated under section 22 of the Bankruptcy (Scotland) Act 2016 and the award of sequestration has not been recalled,
n
a voluntary arrangement has been approved in accordance with Part 1 of the Insolvency Act 1986 as applied by Part 2 of the Insolvent Partnerships Order 1994 or Part 2 of the Insolvency (Northern Ireland) Order 1989 as applied by Part 2 of the Insolvent Partnerships Order (Northern Ireland) 1995 in relation to that person and that voluntary arrangement has not come to an end prematurely,
o
an appointment of a liquidator is in force as a consequence of a creditors’ voluntary winding up under Chapter 4 of Part 4 of the Insolvency Act 1986 as applied by Parts 4 and 5 of the Insolvent Partnerships Order 1994, or Chapter 4 of Part 5 of the Insolvency (Northern Ireland) Order 1989 as applied by Part 4 of the Insolvent Partnerships Order (Northern Ireland) 1995 in relation to that person disregarding any temporary vacancy in the office of liquidator,
p
that person is in administration for the purposes of Schedule B1 to the Insolvency Act 1986 as applied by Part 3 of the Insolvent Partnerships Order 1994 or Schedule B1 to the Insolvency (Northern Ireland) Order 1989 as applied by Part 3 of the Insolvent Partnerships Order (Northern Ireland) 1995,
q
a voluntary arrangement has been approved in accordance with Part 1 of the Insolvency Act 1986 as applied by Part 4 of the Limited Liability Partnerships Regulations 2001 or Part 2 of the Insolvency (Northern Ireland) Order 1989 as applied by Part 4 of the Limited Liability Partnerships Regulations (Northern Ireland) 2004 in relation to that person and that voluntary arrangement has not come to an end prematurely,
r
an appointment of a liquidator is in force as a consequence of a creditors’ voluntary winding up under Chapter 4 of Part 4 of the Insolvency Act 1986 as applied by Part 4 of the Limited Liability Partnerships Regulations 2001 or Chapter 4 of Part 5 of the Insolvency (Northern Ireland) Order 1989 as applied by Part 4 of the Limited Liability Partnerships Regulations (Northern Ireland) 2004 in relation to that person disregarding any temporary vacancy in the office of liquidator,
s
that person is in administration for the purposes of Schedule B1 to the Insolvency Act 1986 as applied by Part 4 of the Limited Liability Partnerships Regulations 2001 or Schedule B1 to the Insolvency (Northern Ireland) Order 1989 as applied by Part 4 of the Limited Liability Partnerships Regulations (Northern Ireland) 2004.
9
In this section—
“administrative receiver” means an administrative receiver within the meaning of section 251 of the Insolvency Act 1986 or article 5(1) of the Insolvency (Northern Ireland) Order 1989;
“protected trust deed” has the same meaning as in the Bankruptcy (Scotland) Act 2016;
“tax advantage” has the same meaning as in Schedule 11A; and
“trust deed” has the same meaning as in the Bankruptcy (Scotland) Act 2016.
10
In this section a voluntary arrangement comes to an end prematurely if it would be regarded as having come to an end prematurely under—
a
section 7B or section 262C of the Insolvency Act 1986; or
b
article 20B or article 236C of the Insolvency (Northern Ireland) Order 1989.
11
Section 6 applies for determining the time when a supply is to be treated as taking place for the purposes of construing this section.
26ABF112Adjustment of output tax in respect of supplies under section 55A
1
This section applies if—
a
a person is, as a result of section 26A, taken not to have been entitled to any credit for input tax in respect of any supply, and
b
the supply is one in respect of which the person is required under section 55A(6) to account for and pay VAT.
2
The person is entitled to make an adjustment to the amount of VAT which he is so required to account for and pay.
3
The amount of the adjustment is to be equal to the amount of the credit for the input tax to which the person is taken not to be entitled.
4
Regulations may make such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient for the purposes of this section.
5
Regulations under this section may in particular—
a
make provision for the manner in which, and the period for which, the adjustment is to be given effect,
b
require the adjustment to be evidenced and quantified by reference to such records and other documents as may be specified by or under the regulations,
c
require the person entitled to the adjustment to keep, for such period and in such form and manner as may be so specified, those records and documents,
d
make provision for readjustments if any credit for input tax is restored under section 26A.
6
Regulations under this section may make different provision for different circumstances.
26BF23 Flat-rate scheme
1
The Commissioners may by regulations make provision under which, where a taxable person so elects, the amount of his liability to VAT in respect of his relevant supplies in any prescribed accounting period shall be the appropriate percentage of his relevant turnover for that period.
A person whose liability to VAT is to any extent determined as mentioned above is referred to in this section as participating in the flat-rate scheme.
2
For the purposes of this section—
a
a person’s “relevant supplies” are all supplies made by him except supplies made at such times or of such descriptions as may be specified in the regulations;
b
the “appropriate percentage” is the percentage so specified for the category of business carried on by the person in question;
c
a person’s “relevant turnover” is the total of—
i
the value of those of his relevant supplies that are taxable supplies, together with the VAT chargeable on them, and
ii
the value of those of his relevant supplies that are exempt supplies.
3
The regulations may designate certain categories of business as categories in relation to which the references in subsection (1) above to liability to VAT are to be read as references to entitlement to credit for VAT.
4
The regulations may provide for persons to be eligible to participate in the flat-rate scheme only in such cases and subject to such conditions and exceptions as may be specified in, or determined by or under, the regulations.
5
Subject to such exceptions as the regulations may provide for, a participant in the flat-rate scheme shall not be entitled to credit for input tax.
This is without prejudice to subsection (3) above.
6
The regulations may—
a
provide for the appropriate percentage to be determined by reference to the category of business that a person is expected, on reasonable grounds, to carry on in a particular period;
b
provide, in such circumstances as may be prescribed, for different percentages to apply in relation to different parts of the same prescribed accounting period;
c
make provision for determining the category of business to be regarded as carried on by a person carrying on businesses in more than one category.
7
The regulations may provide for the following matters to be determined in accordance with notices published by the Commissioners—
a
when supplies are to be treated as taking place for the purposes of ascertaining a person’s relevant turnover for a particular period;
b
the method of calculating any adjustments that fall to be made in accordance with the regulations in a case where a person begins or ceases to participate in the flat-rate scheme.
8
The regulations may make provision enabling the Commissioners—
a
to authorise a person to participate in the flat-rate scheme with effect from—
i
a day before the date of his election to participate, or
ii
a day that is not earlier than that date but is before the date of the authorisation;
b
to direct that a person shall cease to be a participant in the scheme with effect from a day before the date of the direction.
The day mentioned in paragraph (a)(i) above may be a day before the date on which the regulations come into force.
9
Regulations under this section—
a
may make different provision for different circumstances;
b
may make such incidental, supplemental, consequential or transitional provision as the Commissioners think fit, including provision disapplying or applying with modifications any provision contained in or made under this Act.
27 Goods imported for private purposes.
1
Where goods are imported by a taxable person F77... and—
a
at the time of importation they belong wholly or partly to another person; and
b
the purposes for which they are to be used include private purposes either of himself or of the other,
VAT paid or payable by the taxable person on the importation of the goods shall not be regarded as input tax to be deducted or credited under section 25; but he may make a separate claim to the Commissioners for it to be repaid.
2
The Commissioners shall allow the claim if they are satisfied that to disallow it would result, in effect, in a double charge to VAT; and where they allow it they shall do so only to the extent necessary to avoid the double charge.
3
In considering a claim under this section, the Commissioners shall have regard to the circumstances of the importation and, so far as appearing to them to be relevant, things done with, or occurring in relation to, the goods at any subsequent time.
4
Any amount allowed by the Commissioners on the claim shall be paid by them to the taxable person.
5
The reference above to a person’s private purposes is to purposes which are not those of any business carried on by him.
28 Payments on account of VAT.
1
The Treasury may make an order under this section if they consider it desirable to do so in the interests of the national economy.
2
An order under this section may provide that a taxable person of a description specified in the order shall be under a duty—
a
to pay, on account of any VAT he may become liable to pay in respect of a prescribed accounting period, amounts determined in accordance with the order, and
b
to do so at such times as are so determined.
F212AA
An order under this section may provide for the matters with respect to which an appeal under section 83 lies to a tribunal to include such decisions of the Commissioners under that or any other order under this section as may be specified in the order.
F222A
The Commissioners may give directions, to persons who are or may become liable by virtue of any order under this section to make payments on account of VAT, about the manner in which they are to make such payments; and where such a direction has been given to any person and has not subsequently been withdrawn, any duty of that person by virtue of such an order to make such a payment shall have effect as if it included a requirement for the payment to be made in the manner directed.
3
Where an order is made under this section, the Commissioners may make regulations containing such supplementary, incidental or consequential provisions as appear to the Commissioners to be necessary or expedient.
4
A provision of an order or regulations under this section may be made in such way as the Treasury or, as the case may be, the Commissioners think fit (whether by amending provisions of or made under the enactments relating to VAT or otherwise).
5
An order or regulations under this section may make different provision for different circumstances.
29 Invoices provided by recipients of goods or services.
Where—
a
a taxable person (“the recipient”) provides a document to himself which purports to be an invoice in respect of a taxable supply of goods or services to him by another taxable person; and
b
that document understates the VAT chargeable on the supply,
the Commissioners may, by notice served on the recipient and on the supplier, elect that the amount of VAT understated by the document shall be regarded for all purposes as VAT due from the recipient and not from the supplier.
S. 14A and cross-heading inserted (22.7.2020) by Finance Act 2020 (c. 14), s. 80(2)