F1SCHEDULE 3BSupply of electronic services in member States: special accounting scheme
Part 3 Understatements and overstatements of UKVAT
Understatement or overstatement of UK VAT in special scheme return
16
(1)
If the Commissioners consider that a person who is or has been a participant in the special scheme has submitted a special scheme return which understates his liability to UK VAT , they may give him a notice—
(a)
identifying the return in which they consider that the understatement was made,
(b)
specifying the amount by which they consider that the person’s liability to UK VAT has been understated, and
(c)
requesting him to pay that amount to the Controller within the period of 30 days beginning with the date on which the notice is given.
(2)
If the Commissioners consider that a person who is or has been a participant in the special scheme has submitted a special scheme return which overstates his liability to UK VAT , they may give him a notice—
(a)
identifying the return in which they consider that the overstatement was made, and
(b)
specifying the amount by which they consider that the person’s liability to UK VAT has been overstated.
(3)
Where the Commissioners give a person a notice under sub-paragraph (2) above, they are liable to pay him the amount specified in the notice.
(4)
No notice under this paragraph may be given more than 3 years after the end of the period for which the special scheme return in question was made.
(5)
In this Schedule, “ participant in the special scheme ” means a person who—
(a)
is registered under this Schedule, or
(b)
is identified under any provision of the law of another member State which implements Article 26c.
(6)
In this paragraph—
“ special scheme return ” means—
(a)
a special accounting return; or
(b)
a value added tax return submitted to the tax authorities of another member State;
“ UKVAT ” means VAT which a person is liable to pay (whether in the United Kingdom or another member State) in respect of qualifying supplies treated as made in the United Kingdom at a time when he is or was a participant in the special scheme;
“ value added tax return ”, in relation to another member State, means any value added tax return required to be submitted under any provision of the law of that member State which implements Article 26c(B)(5) of the 1977 VAT Directive.