Value Added Tax Act 1994

[F1 Option for valuation on flat-rate basis U.K.

Textual Amendments

F1 Sch. 6 Pt. 1 inserted (with effect in accordance with Sch. 38 para. 7(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 38 para. 2

A1 (1) This paragraph applies if, in a prescribed accounting period, supplies of goods by a taxable person (“P”) arise by virtue of paragraph 5(1) of Schedule 4 (but otherwise than for a consideration) where road fuel which is or has previously been supplied to or imported or manufactured by P in the course of P's business is provided for, or appropriated to, private use. U.K.

(2) For this purpose “road fuel is provided for, or appropriated to, private use” if—

(a) it is provided or to be provided by P—

(i) to an individual for private use in the individual's own car or a car allocated to the individual, and

(ii) by reason of the individual's employment,

(b) where P is an individual, it is appropriated or to be appropriated by P for private use in P's own car, or

(c) where P is a partnership, it is provided or to be provided to any of the individual partners for private use in that partner's own car.

(3) P may opt for all supplies of goods within sub-paragraph (1) made by P in the prescribed accounting period to be valued on the flat-rate basis.

(4) On the flat-rate basis, the value of all supplies made to any one individual in respect of any one car is that determined in accordance with an order under paragraph B1.

B1 (1) The Treasury must, by order, make provision about the valuation of supplies on the flat-rate basis. U.K.

(2) In particular, an order under this paragraph must—

(a) set out a table (“the base valuation table”) by reference to which the value of supplies is to be determined until such time as the base valuation table is replaced under paragraph (b),

(b) provide that at regular intervals—

(i) the amounts specified in the base valuation table are to be revalorised by the Commissioners in accordance with the order, and

(ii) a table (an “updated valuation table”) containing the revalorised amounts is to take effect (and replace any existing table) in accordance with the order, and

(c) require the Commissioners to publish any updated valuation table before it takes effect, together with a statement specifying the date from which it has effect.

(3) An order under this paragraph may provide for the base valuation table and any updated valuation table to be implemented or supplemented by either or both of the following—

(a) rules set out in the order which explain how the value is to be determined by reference to any table;

(b) notes set out in the order with respect to the interpretation or application of any table or any rules or notes.

(4) Rules or notes may make different provision for different circumstances or cases.]