SCHEDULES

F1SCHEDULE 9ZAVAT on acquisitions in Northern Ireland from member States

PART 12Modification of other Acts

Finance Act 2008

78

(1)

Paragraph 11 of Schedule 36 to the Finance Act 2008 (information and inspection powers) has effect as if—

(a)

in sub-paragraph (1), after paragraph (a) there were inserted—

“(b)

premises are used in connection with the acquisition of goods from member States under taxable acquisitions and goods to be so acquired or documents relating to such goods are on those premises,”;

(b)

in sub-paragraph (2), in paragraph (c), after “taxable supplies” there were inserted “ , the acquisition of goods from member States under taxable acquisitions ”.

(2)

Paragraph 34 of that Schedule has effect as if—

(a)

in sub-paragraph (1), after paragraph (a) there were inserted—

“(b)

the acquisition of goods from a member State,”;

(b)

in sub-paragraph (4), after “Schedule 4” there were inserted “ and paragraph 3 of Schedule 9ZA ”.

(3)

Paragraph 1 of Schedule 41 to that Act has effect as if in the table there were inserted the following entries—

“Value added tax

Obligations under paragraphs 40 and 44(2) of Schedule 9ZA to VATA 1994 (obligations to notify liability to register and notify acquisition affecting exemption from registration).

Value added tax

Obligation under paragraph 50 of Schedule 9ZA to VATA 1994 (obligation to notify liability to register).

Value added tax

Obligation under regulations under paragraph 73(4) of Schedule 9ZA to VATA 1994 (obligation to give notification of acquisition of goods from a member State).”

(4)

For the purposes of paragraph 7 of that Schedule—

(a)

in a case of a failure to comply with an obligation under regulations under paragraph 73(4) of this Schedule, the “potential lost revenue” is the value added tax on the acquisition to which the failure relates (instead of as provided for by paragraph 7(6) of that Schedule), and

(b)

the “relevant period” in relation to a failure to comply with paragraph 44(2) of this Schedule is the period beginning on the date of the change or alteration concerned and ending on the date on which HMRC received notification of, or otherwise became fully aware of, that change or alteration.

(5)

In a case to which sub-paragraph (6) of paragraph 7 of that Schedule applies (whether as a result of sub-paragraph (3) of this paragraph or otherwise), the amount of the “potential lost revenue” as determined in accordance with that sub-paragraph is—

(a)

if the amount of the tax mentioned in that sub-paragraph includes tax on an acquisition of goods from a member State, to be reduced by the amount of any VAT which HMRC are satisfied has been paid on the supply in pursuance of which the goods were acquired under the law of that member State, and

(b)

if the amount of that tax includes tax chargeable as a result of paragraph 29 of Schedule 9ZB on a supply, to be reduced by the amount of any VAT which HMRC are satisfied has been paid on that supply under the law of a member State.