Value Added Tax Act 1994

SCHEDULES

F1 [F2 SCHEDULE A1 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Sch. A1 repealed (with effect in relation to supplies made, and acquisitions and importations taking place on or after 1.11.2001) by 2001 c. 9, ss. 99(3), 110, Sch. 33 Pt. III(1) Note 2

F2 Sch. A1 inserted (1.5.1995 with application as mentioned in s. 21(6) of the amending Act) by 1995 c. 4, s. 21(3)

Section 3(2).

SCHEDULE 1 U.K. Registration in respect of taxable supplies [F51 : UK establishment]

Textual Amendments

F51 Words in Sch. 1 heading inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 13

Liability to be registered U.K.

1 (1) Subject to sub-paragraphs (3) to (7) below, a person who makes taxable supplies but is not registered under this Act becomes liable to be registered under this Schedule— U.K.

(a) at the end of any month, if [F52 the person is UK-established and] the value of his taxable supplies in the period of one year then ending has exceeded [F53 £85,000]; or

(b) at any time, if [F54 the person is UK-established and] there are reasonable grounds for believing that the value of his taxable supplies in the period of 30 days then beginning will exceed [F55 £85,000].

(2) Where a business [F56 , or part of a business,] carried on by a taxable person is transferred to another person as a going concern[F57 , the transferee is UK-established at the time of the transfer and the transferee is not registered under this Act at that time], then, subject to sub-paragraphs (3) to (7) below, the transferee becomes liable to be registered under this Schedule at that time if—

(a) the value of his taxable supplies in the period of one year ending at the time of the transfer has exceeded [F58 £85,000]; or

(b) there are reasonable grounds for believing that the value of his taxable supplies in the period of 30 days beginning at the time of the transfer will exceed [F59 £85,000].

[F60 (2A) In determining the value of a person's supplies for the purposes of sub-paragraph (1)(a) or (2)(a), supplies are to be taken into account (subject to sub-paragraphs (3) to (7)) whether or not the person was UK-established when they were made.]

(3) A person does not become liable to be registered by virtue of sub-paragraph (1)(a) or (2)(a) above if the Commissioners are satisfied that the value of his taxable supplies in the period of one year beginning at the time at which, apart from this sub-paragraph, he would become liable to be registered will not exceed [F61 £83,000].

(4) In determining the value of a person’s supplies for the purposes of sub-paragraph (1)(a) or (2)(a) above, supplies made at a time when he was previously registered under this Act shall be disregarded if—

(a) his registration was cancelled otherwise than under paragraph 13(3) below, [F62 paragraph 11 of Schedule 1A]F63 ... [F64 or paragraph 6(2) of Schedule 3A], and

(b) the Commissioners are satisfied that before his registration was cancelled he had given them all the information they needed in order to determine whether to cancel the registration.

(5) A person shall be treated as having become liable to be registered under this Schedule at any time when he would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 13(3) below, [F65 paragraph 11 of Schedule 1A]F66 ... [F64 or paragraph 6(2) of Schedule 3A].

(6) A person shall not cease to be liable to be registered under this Schedule except in accordance with paragraph 2(5), 3 or 4 below.

(7) In determining the value of a person’s supplies for the purposes of sub-paragraph (1) or (2) above, supplies of goods or services that are capital assets of the business in the course or furtherance of which they are supplied F67 ... shall be disregarded.

(8) Where, apart from this sub-paragraph, an interest in, right over or licence to occupy any land would under sub-paragraph (7) above be disregarded for the purposes of sub-paragraph (1) or (2) above, it shall not be if it is supplied on a taxable supply which is not zero-rated.

[F68 (9) In determining the value of a person’s supplies for the purposes of sub-paragraph (1) or (2) above, supplies to which section 18B(4) (last F69 ... supply of goods before removal from fiscal warehousing) applies and supplies treated as made by him under section 18C(3) (self-supply of services on removal of goods from warehousing) shall be disregarded.]

[F70 (10) A person is “UK-established” if the person has a business establishment, or some other fixed establishment, in the United Kingdom in relation to a business carried on by the person.]

Textual Amendments

F52 Words in Sch. 1 para. 1(1)(a) inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 11(2)(a)

F53 Word in Sch. 1 para. 1(1)(a) substituted (1.4.2017) by The Value Added Tax (Increase of Registration Limits) Order 2017 (S.I. 2017/290), arts. 1, 3(a)

F54 Words in Sch. 1 para. 1(1)(b) inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 11(2)(b)

F55 Word in Sch. 1 para. 1(1)(b) substituted (1.4.2017) by The Value Added Tax (Increase of Registration Limits) Order 2017 (S.I. 2017/290), arts. 1, 3(a)

F56 Words in Sch. 1 para. 1(2) inserted (with effect in accordance with s. 100(10) of the amending Act) by Finance Act 2007 (c. 11), s. 100(8)

F57 Words in Sch. 1 para. 1(2) substituted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 11(3)

F58 Word in Sch. 1 para. 1(2)(a) substituted (1.4.2017) by The Value Added Tax (Increase of Registration Limits) Order 2017 (S.I. 2017/290), arts. 1, 3(a)

F59 Word in Sch. 1 para. 1(2)(b) substituted (1.4.2017) by The Value Added Tax (Increase of Registration Limits) Order 2017 (S.I. 2017/290), arts. 1, 3(a)

F60 Sch. 1 para. 1(2A) inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 11(4)

F61 Word in Sch. 1 para. 1(3) substituted (1.4.2017) by The Value Added Tax (Increase of Registration Limits) Order 2017 (S.I. 2017/290), arts. 1, 3(b)

F62 Words in Sch. 1 para. 1(4)(a) inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 11(5)

F63 Words in Sch. 1 para. 1(4)(a) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 81(2)(a) (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)

F64 Words in Sch. 1 para. 1(4)(a)(5) substituted (28.7.2000 with effect as mentioned in s. 136(10) of the amending Act) by 2000 c. 17, s. 136(6)(a)

F65 Words in Sch. 1 para. 1(5) inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 11(6)

F66 Words in Sch. 1 para. 1(5) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 81(2)(b) (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)

F67 Words in Sch. 1 para. 1(7) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 81(2)(c) (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)

F68 Sch. 1 para. 1(9) added (1.6.1996 with application to any acquisition of goods from another member State and any supply taking place on or after that day) by 1996 c. 8, ss. 25, 26, Sch. 3 para. 13; S.I. 1996/1249, art. 2

F69 Words in Sch. 1 para. 1(9) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 81(2)(d) (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)

F70 Sch. 1 para. 1(10) inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 11(7)

[F71 1A (1) Paragraph 2 below is for the purpose of preventing the maintenance or creation of any artificial separation of business activities carried on by two or more persons from resulting in an avoidance of VAT. U.K.

(2) In determining for the purposes of sub-paragraph (1) above whether any separation of business activities is artificial, regard shall be had to the extent to which the different persons carrying on those activities are closely bound to one another by financial, economic and organisational links.]

Textual Amendments

F71 Sch. 1 para. 1A inserted (19.3.1997) by 1997 c. 16, s. 31(1)

2 (1) Without prejudice to paragraph 1 above, if the Commissioners make a direction under this paragraph, the persons named in the direction shall be treated as a single taxable person carrying on the activities of a business described in the direction and that taxable person shall be liable to be registered under this Schedule with effect from the date of the direction or, if the direction so provides, from such later date as may be specified therein. U.K.

(2) The Commissioners shall not make a direction under this paragraph naming any person unless they are satisfied—

(a) that he is making or has made taxable supplies; and

(b) that the activities in the course of which he makes or made those taxable supplies form only part of certain activities F72 . . ., the other activities being carried on concurrently or previously (or both) by one or more other persons; and

(c) that, if all the taxable supplies of [F73 the business described in the direction] were taken into account, a person carrying on that business would at the time of the direction be liable to be registered by virtue of paragraph 1 above; F74 . . .

F74 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) A direction made under this paragraph shall be served on each of the persons named in it.

(4) Where, after a direction has been given under this paragraph specifying a description of business, it appears to the Commissioners that a person who was not named in that direction is making taxable supplies in the course of activities which should F75 . . . be regarded as part of the activities of that business, the Commissioners may make and serve on him a supplementary direction referring to the earlier direction and the description of business specified in it and adding that person’s name to those of the persons named in the earlier direction with effect from—

(a) the date on which he began to make those taxable supplies, or

(b) if it was later, the date with effect from which the single taxable person referred to in the earlier direction became liable to be registered under this Schedule.

(5) If, immediately before a direction (including a supplementary direction) is made under this paragraph, any person named in the direction is registered in respect of the taxable supplies made by him as mentioned in sub-paragraph (2) or (4) above, he shall cease to be liable to be so registered with effect from whichever is the later of—

(a) the date with effect from which the single taxable person concerned became liable to be registered; and

(b) the date of the direction.

(6) In relation to a business specified in a direction under this paragraph, the persons named in the direction, together with any person named in a supplementary direction relating to that business (being the persons who together are to be treated as the taxable person), are in sub-paragraphs (7) and (8) below referred to as “the constituent members”.

(7) Where a direction is made under this paragraph then, for the purposes of this Act—

(a) the taxable person carrying on the business specified in the direction shall be registerable in such name as the persons named in the direction may jointly nominate by notice in writing given to the Commissioners not later than 14 days after the date of the direction or, in default of such a nomination, in such name as may be specified in the direction;

(b) any supply of goods or services by or to one of the constituent members in the course of the activities of the taxable person shall be treated as a supply by or to that person;

F76 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) each of the constituent members shall be jointly and severally liable for any VAT due from the taxable person;

(e) without prejudice to paragraph (d) above, any failure by the taxable person to comply with any requirement imposed by or under this Act shall be treated as a failure by each of the constituent members severally; and

(f) subject to paragraphs (a) to (e) above, the constituent members shall be treated as a partnership carrying on the business of the taxable person and any question as to the scope of the activities of that business at any time shall be determined accordingly.

(8) If it appears to the Commissioners that any person who is one of the constituent members should no longer be regarded as such for the purposes of paragraphs (d) and (e) of sub-paragraph (7) above and they give notice to that effect, he shall not have any liability by virtue of those paragraphs for anything done after the date specified in that notice and, accordingly, on that date he shall be treated as having ceased to be a member of the partnership referred to in paragraph (f) of that sub-paragraph.

Textual Amendments

F72 Words in Sch. 1 para. 2(2)(b) repealed (19.3.1997 with effect in accordance with s. 39 of the repealing Act) by 1997 c. 16, ss. 31(2)(a)(4), 113, Sch. 18 Pt. IV(1) Note

F73 Words in Sch. 1 para. 2(c) substituted (19.3.1997) by 1997 c. 16, s. 31(2)(b)(4)

F74 Sch. 1 para. 2(2)(d) and word “and” immediately preceding it repealed (19.3.1997 with effect in accordance with s. 39 of the repealing Act) by 1997 c. 16, ss. 31(2)(c)(4), 113, Sch. 18 Pt. IV(1) Note

F75 Word in Sch. 1 para. 2(4) repealed (19.3.1997 with effect in accordance with s. 39 of the repealing Act) by 1997 c. 16, ss. 31(2)(4), 113, Sch. 18 Pt. IV(1) Note

F76 Sch. 1 para. 2(7)(c) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 81(3) (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)

3 U.K. A person who has become liable to be registered under this Schedule shall cease to be so liable at any time if the Commissioners are satisfied in relation to that time that he—

(a) has ceased to make taxable supplies; or

(b) is not at that time a person in relation to whom any of the conditions specified in paragraphs 1(1)(a) and (b) and (2)(a) and (b) above is satisfied[F77 ; or

(c) is not at that time UK-established (see paragraph 1(10)).]

Textual Amendments

F77 Sch. 1 para. 3(c) and word inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 12

4 (1) Subject to sub-paragraph (2) below, a person who has become liable to be registered under this Schedule shall cease to be so liable at any time after being registered if the Commissioners are satisfied that the value of his taxable supplies in the period of one year then beginning will not exceed [F78 £83,000]. U.K.

(2) A person shall not cease to be liable to be registered under this Schedule by virtue of sub-paragraph (1) above if the Commissioners are satisfied that the reason the value of his taxable supplies will not exceed [F79 £83,000] is that in the period in question he will cease making taxable supplies, or will suspend making them for a period of 30 days or more.

(3) In determining the value of a person’s supplies for the purposes of sub-paragraph (1) above, supplies of goods or services that are capital assets of the business in the course or furtherance of which they are supplied F80 ... shall be disregarded.

(4) Where, apart from this sub-paragraph, an interest in, right over or licence to occupy any land would under sub-paragraph (3) above be disregarded for the purposes of sub-paragraph (1) above, it shall not be if it is supplied on a taxable supply which is not zero-rated.

Textual Amendments

F78 Word in Sch. 1 para. 4(1) substituted (1.4.2017) by The Value Added Tax (Increase of Registration Limits) Order 2017 (S.I. 2017/290), arts. 1, 3(c)

F79 Word in Sch. 1 para. 4(2) substituted (1.4.2017) by The Value Added Tax (Increase of Registration Limits) Order 2017 (S.I. 2017/290), arts. 1, 3(c)

F80 Words in Sch. 1 para. 4(3) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 81(4) (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)

Notification of liability and registration U.K.

5 (1) A person who becomes liable to be registered by virtue of paragraph 1(1)(a) above shall notify the Commissioners of the liability within 30 days of the end of the relevant month. U.K.

(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the end of the month following the relevant month or from such earlier date as may be agreed between them and him.

(3) In this paragraph “the relevant month”, in relation to a person who becomes liable to be registered by virtue of paragraph 1(1)(a) above, means the month at the end of which he becomes liable to be so registered.

6 (1) A person who becomes liable to be registered by virtue of paragraph 1(1)(b) above shall notify the Commissioners of the liability before the end of the period by reference to which the liability arises. U.K.

(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the beginning of the period by reference to which the liability arises.

7 (1) A person who becomes liable to be registered by virtue of paragraph 1(2) above shall notify the Commissioners of the liability within 30 days of the time when the business is transferred. U.K.

(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the time when the business is transferred.

8 U.K. Where a person becomes liable to be registered by virtue of paragraph 1(1)(a) above and by virtue of paragraph 1(1)(b) or 1(2) above at the same time, the Commissioners shall register him in accordance with paragraph 6(2) or 7(2) above, as the case may be, rather than paragraph 5(2) above.

Entitlement to be registered U.K.

9 U.K. Where a person who is not liable to be registered under this Act and is not already so registered satisfies the Commissioners that he—

(a) makes taxable supplies; or

(b) is carrying on a business and intends to make such supplies in the course or furtherance of that business,

they shall, if he so requests, register him with effect from the day on which the request is made or from such earlier date as may be agreed between them and him.

10 (1) Where a person who is not liable to be registered under this Act and is not already so registered satisfies the Commissioners that he— U.K.

(a) makes supplies within sub-paragraph (2) below; or

(b) is carrying on a business and intends to make such supplies in the course or furtherance of that business,

and (in either case) is within sub-paragraph (3) below, they shall, if he so requests, register him with effect from the day on which the request is made or from such earlier date as may be agreed between them and him.

[F81 (2) A supply is within this sub-paragraph if—

(a) it is made outside the United Kingdom but would be a taxable supply if made in the United Kingdom; or

(b) it is specified for the purposes of subsection (2) of section 26 in an order made under paragraph (c) of that subsection.]

(3) A person is within this sub-paragraph if—

(a) he has a business establishment in the United Kingdom or his usual place of residence is in the United Kingdom; and

(b) he does not make and does not intend to make taxable supplies.

(4) For the purposes of this paragraph—

(a) a person carrying on a business through a branch or agency in the United Kingdom shall be treated as having a business establishment in the United Kingdom, and

(b) “usual place of residence”, in relation to a body corporate, means the place where it is legally constituted.

Textual Amendments

F81 Sch. 1 para. 10(2) substituted (19.3.1997) by 1997 c. 16, s. 32

Notification of end of liability or entitlement etc U.K.

11 U.K. A person registered under paragraph 5, 6 or 9 above who ceases to make or have the intention of making taxable supplies shall notify the Commissioners of that fact within 30 days of the day on which he does so unless he would, when he so ceases, be otherwise liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded.

12 U.K. A person registered under paragraph 10 above who—

(a) ceases to make or have the intention of making supplies within sub-paragraph (2) of that paragraph; or

(b) makes or forms the intention of making taxable supplies,

shall notify the Commissioners of that fact within 30 days of the day on which he does so unless, in the case of a person ceasing as mentioned in sub-paragraph (a) above, he would, when he so ceases, be otherwise liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded.

Cancellation of registration U.K.

13 (1) Subject to sub-paragraph (4) below, where a registered person satisfies the Commissioners that he is not liable to be registered under this Schedule, they shall, if he so requests, cancel his registration with effect from the day on which the request is made or from such later date as may be agreed between them and him. U.K.

(2) Subject to sub-paragraph (5) below, where the Commissioners are satisfied that a registered person has ceased to be registrable, they may cancel his registration with effect from the day on which he so ceased or from such later date as may be agreed between them and him.

(3) Where the Commissioners are satisfied that on the day on which a registered person was registered he was not registrable, they may cancel his registration with effect from that day.

(4) The Commissioners shall not under sub-paragraph (1) above cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement to be registered under this Act.

(5) The Commissioners shall not under sub-paragraph (2) above cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement, or entitled, to be registered under this Act.

(6) In determining for the purposes of sub-paragraph (4) or (5) above whether a person would be subject to a requirement, or entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when he is already registered or when he is so liable under any other provision shall be disregarded.

(7) In this paragraph, any reference to a registered person is a reference to a person who is registered under this Schedule.

F82 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F82 Sch. 1 para. 13(8) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 81(5) (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)

Exemption from registration U.K.

14 (1) Notwithstanding the preceding provisions of this Schedule, where a person who makes or intends to make taxable supplies satisfies the Commissioners that any such supply is zero-rated or would be zero-rated if he were a taxable person, they may, if he so requests and they think fit, exempt him from registration under this Schedule until it appears to them that the request should no longer be acted upon or is withdrawn. U.K.

(2) Where there is a material change in the nature of the supplies made by a person exempted under this paragraph from registration under this Schedule, he shall notify the Commissioners of the change—

(a) within 30 days of the date on which it occurred; or

(b) if no particular day is identifiable as the day on which it occurred, within 30 days of the end of the quarter in which it occurred.

(3) Where there is a material alteration in any quarter in the proportion of taxable supplies of such a person that are zero-rated, he shall notify the Commissioners of the alteration within 30 days of the end of the quarter.

Power to vary specified sums by order U.K.

15 U.K. The Treasury may by order substitute for any of the sums for the time being specified in this Schedule such greater sums as they think fit.

Supplementary U.K.

16 U.K. The value of a supply of goods or services shall be determined for the purposes of this Schedule on the basis that no VAT is chargeable on the supply.

17 U.K. Any notification required under this Schedule shall be made in such form [F83 and manner] and shall contain such particulars [F84 as may be specified in regulations or by the Commissioners in accordance with regulations.]

Textual Amendments

F83 Words in Sch. 1 para. 17 inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 29 para. 8(a)

F84 Words in Sch. 1 para. 17 substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 29 para. 8(b)

18 U.K. In this Schedule “registrable” means liable or entitled to be registered under this Schedule.

19 U.K. References in this Schedule to supplies are references to supplies made in the course or furtherance of a business.

[F85 SCHEDULE 1A U.K. Registration in respect of taxable supplies: non-uk establishment

Textual Amendments

F85 Sch. 1A inserted (with effect in accordance with Sch. 28 para. 19 of the amending Act) by Finance Act 2012 (c. 14), Sch. 28 para. 1

Liability to be registered U.K.

1 (1) A person becomes liable to be registered under this Schedule at any time if conditions A to D are met. U.K.

(2) Condition A is that—

(a) the person makes taxable supplies, or

(b) there are reasonable grounds for believing that the person will make taxable supplies in the period of 30 days then beginning.

(3) Condition B is that those supplies (or any of them) are or will be made in the course or furtherance of a business carried on by the person.

(4) Condition C is that the person has no business establishment, or other fixed establishment, in the United Kingdom in relation to any business carried on by the person.

(5) Condition D is that the person is not registered under this Act.

2 (1) A person does not become liable to be registered by virtue of paragraph 1(2)(b) if the reason for believing that taxable supplies will be made in the 30-day period mentioned there is that a business, or part of a business, carried on by a taxable person is to be transferred to the person as a going concern in that period. U.K.

(2) But if the transfer takes place, the transferee becomes liable to be registered under this Schedule at the time of the transfer if conditions A to D in paragraph 1 are met in relation to the transferee at that time.

(3) In determining for the purposes of sub-paragraph (2) whether condition B is met, the reference in paragraph 1(3) to a business is to be read as a reference to the business, or part of the business, that is transferred to the transferee.

3 U.K. A person is treated as having become liable to be registered under this Schedule at any time when the person would have become so liable under paragraph 1 or 2 but for any registration that is subsequently cancelled under—

(a) paragraph 11,

(b) paragraph 13(3) of Schedule 1,

F86 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) F87 ... or

(e) paragraph 6(2) of Schedule 3A.

Textual Amendments

F86 Sch. 1A para. 3(c) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 82(2) (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)

F87 Sch. 1A para. 3(d) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 82(2) (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)

4 (1) A person does not cease to be liable to be registered under this Schedule except in accordance with sub-paragraph (2). U.K.

(2) A person who has become liable to be registered under this Schedule ceases to be so liable at any time if the Commissioners are satisfied that—

(a) the person has ceased to make taxable supplies in the course or furtherance of a business carried on by the person, or

(b) the person is no longer a person in relation to whom condition C in paragraph 1 is met.

Notification of liability and registration U.K.

5 (1) A person who becomes liable to be registered by virtue of paragraph 1(2)(a) or 2(2) must notify the Commissioners of the liability before the end of the period of 30 days beginning with the day on which the liability arises. U.K.

(2) The Commissioners must register any such person (whether or not the person so notifies them) with effect from the beginning of the day on which the liability arises.

6 (1) A person who becomes liable to be registered by virtue of paragraph 1(2)(b) must notify the Commissioners of the liability before the end of the period by reference to which the liability arises. U.K.

(2) The Commissioners must register any such person (whether or not the person so notifies them) with effect from the beginning of the period by reference to which the liability arises.

Notification of end of liability U.K.

7 (1) A person registered under paragraph 5 or 6 who, on any day, ceases to make or have the intention of making taxable supplies in the course or furtherance of a business carried on by that person must notify the Commissioners of that fact within 30 days beginning with that day. U.K.

(2) But the person need not notify the Commissioners if on that day the person would otherwise be liable or entitled to be registered under this Act (disregarding for this purpose the person's registration under this Schedule and any enactment that prevents a person from being liable to be registered under different provisions at the same time).

Cancellation of registration U.K.

8 (1) The Commissioners must cancel a person's registration under this Schedule if— U.K.

(a) the person satisfies them that the person is not liable to be registered under this Schedule, and

(b) the person requests the cancellation.

(2) The cancellation is to be made with effect from—

(a) the day on which the request is made, or

(b) such later day as may be agreed between the Commissioners and the person.

(3) But the Commissioners must not cancel the registration with effect from any time unless they are satisfied that it is not a time when the person would be subject to a requirement to be registered under this Act.

9 (1) The Commissioners may cancel a person's registration under this Schedule if they are satisfied that the person has ceased to be liable to be registered under this Schedule. U.K.

(2) The cancellation is to be made with effect from—

(a) the day on which the person ceased to be so liable, or

(b) such later day as may be agreed between the Commissioners and the person.

(3) But the Commissioners must not cancel the registration with effect from any time unless they are satisfied that it is not a time when the person would be subject to a requirement, or entitled, to be registered under this Act.

10 U.K. In determining for the purposes of paragraphs 8 and 9 whether a time is a time when a person would be subject to a requirement, or entitled, to be registered under this Act, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when the person is already registered or when the person is so liable under any other provision must be disregarded.

11 (1) The Commissioners may cancel a person's registration under this Schedule if they are satisfied that the person was not liable to be registered under this Schedule on the day on which the person was registered. U.K.

(2) The cancellation is to be made with effect from the day on which the person was registered.

F88 12 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F88 Sch. 1A para. 12 omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 82(3) (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)

Exemption from registration U.K.

13 (1) The Commissioners may exempt a person from registration under this Schedule if the person satisfies them that the taxable supplies that the person makes or intends to make— U.K.

(a) are all zero-rated, or

(b) would all be zero-rated if the person were a taxable person.

(2) The power in sub-paragraph (1) is exercisable only if the person so requests and the Commissioners think fit.

(3) If there is a material change in the nature of the supplies made by a person exempted under this paragraph, the person must notify the Commissioners of the change—

(a) within 30 days beginning with the day on which the change occurred, or

(b) if no particular day is identifiable as that day, within 30 days of the end of the quarter in which the change occurred.

(4) If it appears to the Commissioners that a request under this paragraph should no longer be acted upon on or after any day or has been withdrawn on any day, they must register the person who made the request with effect from that day.

(5) A reference in this paragraph to supplies is to supplies made in the course or furtherance of a business carried on by the person.

Supplementary U.K.

14 U.K. Any notification required under this Schedule must be made in such form and manner and must contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.]

F89 SCHEDULE 2 U.K. Registration in respect of supplies from other member States

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F89 Sch. 2 omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 83 (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F90 SCHEDULE 3 U.K. Registration in respect of acquisitions from other member States

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F90 Sch. 3 omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 84 (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

[F91 SCHEDULE 3A U.K. Registration in respect of disposals of assets for which a VAT repayment is claimed

Textual Amendments

F91 Sch. 3A paras. 1-9 inserted (28.7.2000 with effect as mentioned in s. 136(10) of the amending Act) by 2000 c. 17, s. 136(8), Sch. 36

Liability to be registered U.K.

1 (1) A person who is not registered under this Act, and is not liable to be registered under [F92 Schedule 1 or 1A], becomes liable to be registered under this Schedule at any time— U.K.

(a) if he makes relevant supplies; or

(b) if there are reasonable grounds for believing that he will make such supplies in the period of 30 days then beginning.

(2) A person shall be treated as having become liable to be registered under this Schedule at any time when he would have become so liable under sub-paragraph (1) above but for any registration which is subsequently cancelled under paragraph 6(2) below, paragraph 13(3) of Schedule 1 [F93 or paragraph 11 of Schedule 1A].

(3) A person shall not cease to be liable to be registered under this Schedule except in accordance with paragraph 2 below.

Textual Amendments

F92 Words in Sch. 3A para. 1(1) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 85(a) (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)

F93 Words in Sch. 3A para. 1(2) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 85(b) (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)

2 U.K. A person who has become liable to be registered under this Schedule shall cease to be so liable at any time if the Commissioners are satisfied that he has ceased to make relevant supplies.

Notification of liability and registration U.K.

3 (1) A person who becomes liable to be registered by virtue of paragraph 1(1)(a) above shall notify the Commissioners of the liability before the end of the period of 30 days beginning with the day on which the liability arises. U.K.

(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the beginning of the day on which the liability arises.

4 (1) A person who becomes liable to be registered by virtue of paragraph 1(1)(b) above shall notify the Commissioners of the liability before the end of the period by reference to which the liability arises. U.K.

(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the beginning of the period by reference to which the liability arises.

Notification of end of liability U.K.

5 (1) Subject to sub-paragraph (2) below, a person registered under paragraph 3 or 4 above who ceases to make or have the intention of making relevant supplies shall notify the Commissioners of that fact within 30 days of the day on which he does so. U.K.

(2) Sub-paragraph (1) above does not apply if the person would, when he so ceases, be otherwise liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded.

Cancellation of registration U.K.

6 (1) Subject to sub-paragraph (3) below, where the Commissioners are satisfied that a registered person has ceased to be liable to be registered under this Schedule, they may cancel his registration with effect from the day on which he so ceased or from such later date as may be agreed between them and him. U.K.

(2) Where the Commissioners are satisfied that on the day on which a registered person was registered he was not registrable, they may cancel his registration with effect from that day.

(3) The Commissioners shall not under sub-paragraph (1) above cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement, or entitled, to be registered under this Act.

(4) In determining for the purposes of sub-paragraph (3) above whether a person would be subject to a requirement, or entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when he is already registered or when he is so liable under any other provision shall be disregarded.

Exemption from registration U.K.

7 (1) Notwithstanding the preceding provisions of this Schedule, where a person who makes or intends to make relevant supplies satisfies the Commissioners that any such supply is zero-rated or would be zero-rated if he were a taxable person, they may, if he so requests and they think fit, exempt him from registration under this Schedule. U.K.

(2) Where there is a material change in the nature of the supplies made by a person exempted under this paragraph from registration under this Schedule, he shall notify the Commissioners of the change—

(a) within 30 days of the date on which the change occurred; or

(b) if no particular date is identifiable as the day on which it occurred, within 30 days of the end of the quarter in which it occurred.

(3) Where there is a material alteration in any quarter in the proportion of relevant supplies of such a person that are zero-rated, he shall notify the Commissioners of the alteration within 30 days of the end of the quarter.

(4) If it appears to the Commissioners that a request under sub-paragraph (1) above should no longer have been acted upon on or after any day, or has been withdrawn on any day, they shall register the person who made the request with effect from that day.

Supplementary U.K.

8 U.K. Any notification required under this Schedule shall be made in such form [F94 and manner] and shall contain such particulars [F95 as may be specified in regulations or by the Commissioners in accordance with regulations.]

Textual Amendments

F94 Words in Sch. 3A para. 8 inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 29 para. 11(a)

F95 Words in Sch. 3A para. 8 substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 29 para. 11(b)

9 (1) For the purposes of this Schedule a supply of goods is a relevant supply where— U.K.

(a) the supply is a taxable supply;

(b) the goods are assets of the business in the course or furtherance of which they are supplied; and

(c) the person by whom they are supplied, or a predecessor of his, has received or claimed, or is intending to claim, a repayment of VAT on the supply to him, or the importation by him, of the goods or of anything comprised in them.

(2) In relation to any goods, a person is the predecessor of another for the purposes of this paragraph if—

(a) that other person is a person to whom he has transferred assets of his business by a transfer of that business, or part of it, as a going concern;

(b) those assets consisted of or included those goods; and

(c) the transfer of the assets is one falling by virtue of an order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services;

and the reference in this paragraph to a person’s predecessor includes references to the predecessors of his predecessor through any number of transfers.

(3) The reference in this paragraph to a repayment of VAT is a reference to such a repayment under a scheme embodied in regulations made under section 39. ]

F96 SCHEDULE 3B U.K. Electronic, telecommunication and broadcasting services: non-union scheme

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F96 Sch. 3B omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 86 (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), 14, 16, 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F97 SCHEDULE 3BA U.K. Electronic, telecommunication and broadcasting services: Union scheme

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F97 Sch. 3BA omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 87 (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), 15, 16, 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

Modifications etc. (not altering text)

C1 Sch. 3BA saving for effects of 2018 c. 22, Sch. 8 para. 87 (31.12.2020) by The Value Added Tax (Miscellaneous and Transitional Provisions, Amendment and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1495), regs. 1(2), 15, 16; S.I. 2020/1641, reg. 2, Sch.

Section 5.

SCHEDULE 4 U.K. Matters to be treated as supply of goods or services

Modifications etc. (not altering text)

C2 Sch. 4 applied (with modifications) (1.4.2009) by Finance Act 2008 (c. 9), s. 113(2), Sch. 36 para. 34(4) (with Sch. 36 para. 38); S.I. 2009/404, art. 2

1 (1) Any transfer of the whole property in goods is a supply of goods; but, subject to sub-paragraph (2) below, the transfer— U.K.

(a) of any undivided share of the property, or

(b) of the possession of goods,

is a supply of services.

(2) If the possession of goods is transferred—

(a) under an agreement for the sale of the goods, or

(b) under agreements which expressly contemplate that the property also will pass at some time in the future (determined by, or ascertainable from, the agreements but in any case not later than when the goods are fully paid for),

it is then in either case a supply of the goods.

F98 2 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F98 Sch. 4 para. 2 repealed (29.4.1996 with application to supplies made on or after 1.1.1996) by 1996 c. 8, ss. 29(4)(5), 205, Sch. 41 Pt. IV(2)

3 U.K. The supply of any form of power, heat, refrigeration [F99 or other cooling,] or ventilation is a supply of goods.

Textual Amendments

F99 Words in Sch. 4 para. 3 inserted (with effect in accordance with s. 20(3) of the amending Act) by Finance (No. 3) Act 2010 (c. 33), s. 20(2)

4 U.K. The grant, assignment or surrender of a major interest in land is a supply of goods.

5 (1) Subject to sub-paragraph (2) below, where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, that is a supply by him of goods. U.K.

(2) Sub-paragraph (1) above does not apply where the transfer or disposal is—

[F100 (a) a business gift the cost of which, together with the cost of any other business gifts made to the same person in the same year, was not more than £50.]

[F101 (b) the provision to a person, otherwise than for a consideration, of a sample of goods.]

[F102 (2ZA) In sub-paragraph (2) above—

• “business gift” means a gift of goods that is made in the course or furtherance of the business in question;

• “cost”, in relation to a gift of goods, means the cost to the donor of acquiring or, as the case may be, producing the goods;

• “the same year”, in relation to a gift, means any period of twelve months that includes the day on which the gift is made.]

[F103 (2A) For the purposes of determining the cost to the donor of acquiring or producing goods of which he has made a gift, where—

(a) the acquisition by the donor of the goods, or anything comprised in the goods, was by means of a transfer of a business, or a part of a business, as a going concern,

(b) the assets transferred by that transfer included those goods or that thing, and

(c) the transfer of those assets is one falling by virtue of an order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services,

the donor and his predecessor or, as the case may be, all of his predecessors shall be treated as if they were the same person.]

F104 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Where by or under the directions of a person carrying on a business goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, that is a supply of services.

F105 (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F106 (4A) Sub-paragraph (4) does not apply (despite paragraph 9(1)) to—

(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.]

(5) Neither sub-paragraph (1) nor [F107 sub-paragraph (4) above] shall require anything which a person carrying on a business does otherwise than for a consideration in relation to any goods to be treated as a supply except in a case where that person [F108 or any of his predecessors is a person who (disregarding this paragraph) has or will become] entitled—

[F109 (a) under sections 25 and 26, to credit for the whole or any part of the VAT on the supplyF110 ... or importation of those goods or of anything comprised in them; or

(b) under a scheme embodied in regulations made under section 39, to a repayment of VAT on the supply or importation of those goods or of anything comprised in them.]

[F111 (5A) In relation to any goods or anything comprised in any goods, a person is the predecessor of another for the purposes of this paragraph if—

(a) that other person is a person to whom he has transferred assets of his business by a transfer of that business, or a part of it, as a going concern;

(b) those assets consisted of or included those goods or that thing; and

(c) the transfer of the assets is one falling by virtue of an order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services;

and references in this paragraph to a person’s predecessors include references to the predecessors of his predecessors through any number of transfers.]

(6) Anything which is a supply of goods or services by virtue of sub-paragraph (1) or (4) above is to be treated as made in the course or furtherance of the business (if it would not otherwise be so treated); and in the case of a business carried on by an individual—

(a) sub-paragraph (1) above applies to any transfer or disposition of goods in favour of himself personally; and

(b) [F107 sub-paragraph (4) above] applies to goods used, or made available for use, by himself personally.

[F112 (7) The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (2)(a) above such sum, not being less than £10, as they think fit.]

Textual Amendments

F100 Sch. 4 para. 5(2)(a) substituted (with application in accordance with s. 21(4) of the amending Act) by Finance Act 2003 (c. 14), s. 21(2)

F101 Sch. 4 para. 5(2)(b) substituted (19.7.2011) by Finance Act 2011 (c. 11), s. 74(2)

F102 Sch. 4 para. 5(2ZA) inserted (with application in accordance with s. 21(4) of the amending Act) by Finance Act 2003 (c. 14), s. 21(3)

F103 Sch. 4 para. 5(2A) inserted (31.7.1998 with effect as mentioned in s. 21(6) of the amending Act) by 1998 c. 36, s. 21(3)(6)

F104 Sch. 4 para. 5(3) omitted (19.7.2011) by virtue of Finance Act 2011 (c. 11), s. 74(3)

F105 Sch. 4 para. 5(4A) repealed (1.9.2007) by Finance Act 2007 (c. 11), s. 99(2)(6), Sch. 27 Pt. 6(1)

F106 Sch. 4 para. 5(4A) inserted (with application in accordance with Sch. 8 para. 3(3)-(5) of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 8 para. 3(1)(2) (with Sch. 8 para. 4)

F107 Words in Sch. 4 para. 5(5)(6)(b) substituted (retrospectively) by 1995 c. 4, s. 33(3)(a)

F108 Words in Sch. 4 para. 5(5) substituted (31.7.1998 with effect as mentioned in s. 21(6) of the amending Act) by 1998 c. 36, s. 21(4)(6)

F109 Sch. 4 para. 5(5)(a)(b) substituted for words in Sch. 4 para. 5(5) (28.7.2000 with effect as mentioned in s. 136(10) of the amending Act) by 2000 c. 17, s. 136(9)

F110 Word in Sch. 4 para. 5(5)(a) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 88(2) (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)

F111 Sch. 4 para. 5A inserted (31.7.1998 with effect as mentioned in s. 21(6) of the amending Act) by 1998 c. 36, s. 21(5)(6)

F112 Sch. 4 para. 5(7) inserted (29.4.1996) by 1996 c. 8, s. 33(2)

Modifications etc. (not altering text)

C3 Sch. 4 para. 5(4) excluded by S.I. 1995/1268, art. 10A (as inserted (1.11.2007) by The Value Added Tax (Special Provisions) (Amendment) Order 2007 (S.I. 2007/2923), arts. 1, 3)

F113 6 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F113 Sch. 4 para. 6 omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 88(3) (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)

7 U.K. Where in the case of a business carried on by a taxable person goods forming part of the assets of the business are, under any power exercisable by another person, sold by the other in or towards satisfaction of a debt owed by the taxable person, they shall be deemed to be supplied by the taxable person in the course or furtherance of his business.

8 (1) Where a person ceases to be a taxable person, any goods then forming part of the assets of a business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless— U.K.

(a) the business is transferred as a going concern to another taxable person; or

(b) the business is carried on by another person who, under regulations made under section 46(4), is treated as a taxable person; or

(c) the VAT on the deemed supply would not be more than [F114 £1,000].

(2) This paragraph does not apply to any goods in the case of which the taxable person can show to the satisfaction of the Commissioners—

(a) that no credit for input tax has been allowed to him in respect of the supply of the goods [F115 or their importation into the United Kingdom];

(b) that the goods did not become his as part of the assets of a business [F116 , or part of a business,] which was transferred to him as a going concern by another taxable person; and

(c) that he has not obtained relief in respect of the goods under section 4 of the M2 Finance Act 1973.

(3) This paragraph does not apply where a person ceases to be a taxable person in consequence of having been certified under section 54.

(4) The Treasury may by order increase or further increase the sum specified in sub-paragraph (1)(c) above.

Textual Amendments

F114 Words in Sch. 4 para. 8(1)(c) substituted (1.4.2000) by S.I. 2000/266, art. 2

F115 Words in Sch. 4 para. 8(2)(a) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 88(4) (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)

F116 Words in Sch. 4 para. 8(2)(b) inserted (with effect in accordance with s. 100(10) of the amending Act) by Finance Act 2007 (c. 11), s. 100(9)

Marginal Citations

M2 1973 c. 51.

9 (1) Subject to sub-paragraphs (2) and (3) below, paragraphs 5 to 8 above have effect in relation to land forming part of the assets of, or held or used for the purposes of, a business as if it were goods forming part of the assets of, or held or used for the purposes of, a business. U.K.

(2) In the application of those paragraphs by virtue of sub-paragraph (1) above, references to transfer, disposition or sale shall have effect as references to the grant or assignment of any interest in, right over or licence to occupy the land concerned.

(3) Except in relation to—

(a) the grant or assignment of a major interest; or

(b) a grant or assignment otherwise than for a consideration,

in the application of paragraph 5(1) above by virtue of sub-paragraph (1) above the reference to a supply of goods shall have effect as a reference to a supply of services.

[F117 (4) In this paragraph “grant” includes surrender.]

Textual Amendments

F117 Sch. 4 para. 9(4) inserted (with effect in accordance with s. 99(7) of the amending Act) by Finance Act 2007 (c. 11), s. 99(3)

Section 7A

[F118 SCHEDULE 4A U.K. Place of supply of services: special rules

Textual Amendments

F118 Sch. 4A inserted (with effect in accordance with Sch. 36 para. 14(3) of the amending Act) by Finance Act 2009 (c. 10), Sch. 36 para. 11 (with Sch. 36 para. 19)

Part 1 U.K. General exceptions

Services relating to land U.K.

1 (1) A supply of services to which this paragraph applies is to be treated as made in the country in which the land in connection with which the supply is made is situated. U.K.

(2) This paragraph applies to—

(a) the grant, assignment or surrender of any interest in or right over land,

(b) the grant, assignment or surrender of a personal right to call for or be granted any interest in or right over land,

(c) the grant, assignment or surrender of a licence to occupy land or any other contractual right exercisable over or in relation to land (including the provision of holiday accommodation, seasonal pitches for caravans and facilities at caravan parks for persons for whom such pitches are provided and pitches for tents and camping facilities),

(d) the provision in an hotel, inn, boarding house or similar establishment of sleeping accommodation or of accommodation in rooms which are provided in conjunction with sleeping accommodation or for the purpose of a supply of catering,

(e) any works of construction, demolition, conversion, reconstruction, alteration, enlargement, repair or maintenance of a building or civil engineering work, and

(f) services such as are supplied by estate agents, auctioneers, architects, surveyors, engineers and others involved in matters relating to land.

(3) In sub-paragraph (2)(c) “holiday accommodation” includes any accommodation in a building, hut (including a beach hut or chalet), caravan, houseboat or tent which is advertised or held out as holiday accommodation or as suitable for holiday or leisure use.

(4) In sub-paragraph (2)(d) “similar establishment” includes premises in which there is provided furnished sleeping accommodation, whether with or without the provision of board or facilities for the preparation of food, which are used by, or held out as being suitable for use by, visitors or travellers.

Passenger transport U.K.

2 (1) A supply of services consisting of the transportation of passengers (or of any luggage or motor vehicles accompanying passengers) is to be treated as made in the country in which the transportation takes place, and (in a case where it takes place in more than one country) in proportion to the distances covered in each. U.K.

(2) For the purposes of sub-paragraph (1) transportation which takes place partly outside the territorial jurisdiction of a country is to be treated as taking place wholly in the country if—

(a) it takes place in the course of a journey between two points in the country (whether or not as part of a longer journey involving travel to or from another country), and

(b) the means of transport used does not (except in an emergency or involuntarily) stop, put in or land in another country in the course of the journey between those two points.

(3) For the purposes of sub-paragraph (1) a pleasure cruise is to be regarded as the transportation of passengers (so that services provided as part of a pleasure cruise are to be treated as supplied in the same place as the transportation of the passengers).

(4) In sub-paragraph (3) “pleasure cruise” includes a cruise wholly or partly for education or training.

Hiring of means of transport U.K.

3 (1) A supply of services consisting of the short-term hiring of a means of transport is to be treated as made in the country in which the means of transport is actually put at the disposal of the person by whom it is hired. U.K.

But this is subject to sub-paragraphs (3) and (4).

(2) For the purposes of this Schedule the hiring of a means of transport is “short-term” if it is hired for a continuous period not exceeding—

(a) if the means of transport is a vessel, 90 days, and

(b) otherwise, 30 days.

(3) Where—

(a) a supply of services consisting of the hiring of a means of transport would otherwise be treated as made in the United Kingdom, and

(b) the services are to any extent effectively used and enjoyed [F119 outside the United Kingdom],

the supply is to be treated to that extent as made [F120 outside the United Kingdom].

(4) Where—

(a) a supply of services consisting of the hiring of a means of transport would otherwise be treated as made [F121 outside the United Kingdom], and

(b) the services are to any extent effectively used and enjoyed in the United Kingdom,

the supply is to be treated to that extent as made in the United Kingdom.

Textual Amendments

F119 Words in Sch. 4A para. 3(3)(b) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(2)(a)(i) (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)

F120 Words in Sch. 4A para. 3(3) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(2)(a)(ii) (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)

F121 Words in Sch. 4A para. 3(4)(a) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(2)(b) (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)

Cultural, educational and entertainment services etc U.K.

F122 4 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F122 Sch. 4A para. 4 omitted (with effect in accordance with Sch. 36 para. 16 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 36 para. 15(2) (with Sch. 36 para. 19)

Restaurant and catering servicesF123 ... U.K.

Textual Amendments

F123 Word in Sch. 4A para. 5 cross-heading substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(3) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

[F124 5 U.K. A supply of restaurant or catering services is to be treated as made in the country in which the services are physically carried out.]

Textual Amendments

F124 Sch. 4A para. 5 substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(4) (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)

F125 ... U.K.

Textual Amendments

F125 Sch. 4A para. 6 and crossheading omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(5) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F125 6 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Hiring of goods U.K.

7 (1) Where— U.K.

(a) a supply of services consisting of the hiring of any goods other than a means of transport would otherwise be treated as made in the United Kingdom, and

(b) the services are to any extent effectively used and enjoyed [F126 outside the United Kingdom],

the supply is to be treated to that extent as made [F127 outside the United Kingdom].

(2) Where—

(a) a supply of services consisting of the hiring of any goods other than a means of transport would otherwise be treated as made [F128 outside the United Kingdom], and

(b) the services are to any extent effectively used and enjoyed in the United Kingdom,

the supply is to be treated to that extent as made in the United Kingdom.

Textual Amendments

F126 Words in Sch. 4A para. 7(1)(b) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(6)(a)(i) (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)

F127 Words in Sch. 4A para. 7(1) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(6)(a)(ii) (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)

F128 Words in Sch. 4A para. 7(2)(a) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(6)(b) (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)

F129 ...broadcasting services U.K.

Textual Amendments

F129 Words in Sch. 4A para. 8 heading omitted (with effect in accordance with art. 1(2) of the amending S.I.) by virtue of The Value Added Tax (Place of Supply of Services) (Telecommunication Services) Order 2017 (S.I. 2017/778), arts. 1(1), 2(a)

8 (1) This paragraph applies to a supply of services consisting of the provision of— U.K.

F130 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) radio or television broadcasting services.

F131 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Where—

(a) a supply of services to which this paragraph applies would otherwise be treated as made in the United Kingdom, and

(b) the services are to any extent effectively used and enjoyed [F132 outside the United Kingdom],

the supply is to be treated to that extent as made [F133 outside the United Kingdom].

(4) Where—

(a) a supply of services to which this paragraph applies would otherwise be treated as made [F134 outside the United Kingdom], and

(b) the services are to any extent effectively used and enjoyed in the United Kingdom,

the supply is to be treated to that extent as made in the United Kingdom.

Textual Amendments

F130 Sch. 4A para. 8(1)(a) omitted (with effect in accordance with art. 1(2) of the amending S.I.) by virtue of The Value Added Tax (Place of Supply of Services) (Telecommunication Services) Order 2017 (S.I. 2017/778), arts. 1(1), 2(b)

F131 Sch. 4A para. 8(2) omitted (with effect in accordance with art. 1(2) of the amending S.I.) by virtue of The Value Added Tax (Place of Supply of Services) (Telecommunication Services) Order 2017 (S.I. 2017/778), arts. 1(1), 2(c)

F132 Words in Sch. 4A para. 8(3)(b) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(7)(a)(i) (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)

F133 Words in Sch. 4A para. 8(3) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(7)(a)(ii) (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)

F134 Words in Sch. 4A para. 8(4)(a) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(7)(b) (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)

Part 2 U.K. Exceptions relating to supplies made to relevant business person

Electronically-supplied services U.K.

9 (1) Where— U.K.

(a) a supply of services consisting of the provision of electronically supplied services to a relevant business person would otherwise be treated as made in the United Kingdom, and

(b) the services are to any extent effectively used and enjoyed [F135 outside the United Kingdom],

the supply is to be treated to that extent as made [F136 outside the United Kingdom].

(2) Where—

(a) a supply of services consisting of the provision of electronically supplied services to a relevant business person would otherwise be treated as made [F137 outside the United Kingdom], and

(b) the services are to any extent effectively used and enjoyed in the United Kingdom,

the supply is to be treated to that extent as made in the United Kingdom.

(3) Examples of what are electronically supplied services for the purposes of this Schedule include—

(a) website supply, web-hosting and distance maintenance of programmes and equipment,

(b) the supply of software and the updating of software,

(c) the supply of images, text and information, and the making available of databases,

(d) the supply of music, films and games (including games of chance and gambling games),

(e) the supply of political, cultural, artistic, sporting, scientific, educational or entertainment broadcasts (including broadcasts of events), and

(f) the supply of distance teaching.

(4) But where the supplier of a service and the supplier's customer communicate via electronic mail, this does not of itself mean that the service provided is an electronically supplied service for the purposes of this Schedule.

Textual Amendments

F135 Words in Sch. 4A para. 9(1)(b) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(8)(a)(i) (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)

F136 Words in Sch. 4A para. 9(1) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(8)(a)(ii) (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)

F137 Words in Sch. 4A para. 9(2)(a) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(8)(b) (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)

[F138 Admission to cultural, educational and entertainment activities etc U.K.

Textual Amendments

F138 Sch. 4A para. 9A and cross-heading inserted (with effect in accordance with Sch. 36 para. 16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 36 para. 15(3) (with Sch. 36 para. 19)

9A (1) A supply to a relevant business person of services to which this paragraph applies is to be treated as made in the country in which the events in question actually take place. U.K.

(2) This paragraph applies to the provision of—

(a) services in respect of admission to cultural, artistic, sporting, scientific, educational, entertainment or similar events (including fairs and exhibitions), and

(b) ancillary services relating to admission to such events.]

[F139 Transport of goods U.K.

Textual Amendments

F139 Sch. 4A paras. 9B, 9C and cross-headings inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Place of Supply of Services) (Transport of Goods) Order 2012 (S.I. 2012/2787), arts. 1(1), 2(2)

9B U.K. Where—

(a) a supply of services to a relevant business person consisting of the transportation of goods would otherwise be treated as made in the United Kingdom, and

(b) the transportation takes place wholly [F140 outside the United Kingdom],

the supply is to be treated as made [F141 outside the United Kingdom].

Textual Amendments

F140 Words in Sch. 4A para. 9B(b) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(9)(a) (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)

F141 Words in Sch. 4A para. 9B substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(9)(b) (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)

Ancillary transport services U.K.

9C (1) Where— U.K.

(a) a supply of services to a relevant business person consisting of ancillary transport services would otherwise be treated as made in the United Kingdom, and

(b) the services are physically performed wholly [F142 outside the United Kingdom],

the supply is to be treated as made [F143 outside the United Kingdom].

(2) In sub-paragraph (1)(a) “ancillary transport services” means loading, unloading, handling and similar activities.]

Textual Amendments

F142 Words in Sch. 4A para. 9C(1)(b) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(10)(a) (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)

F143 Words in Sch. 4A para. 9C(1) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(10)(b) (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)

[F144 Repair services: contracts of insurance U.K.

Textual Amendments

F144 Sch. 4A para. 9D inserted (1.10.2016) by The Value Added Tax (Place of Supply of Services Exceptions Relating to Supplies Made to Relevant Business Person) Order 2016 (S.I. 2016/726), arts. 1(2), 2

9D. (1) This paragraph applies to a supply of services consisting of the repair of tangible movable property where— U.K.

(a) the supply is pursuant to a claim made under a contract of insurance, and

(b) the supply is made to a relevant business person who is not the person insured.

(2) Where—

(a) a supply of services to which this paragraph applies would otherwise be treated as made in the United Kingdom, and

(b) the services are effectively used and enjoyed [F145 outside the United Kingdom],

the supply is to be treated as made [F146 outside the United Kingdom].

(3) Where—

(a) a supply of services to which this paragraph applies would otherwise be treated as made [F147 outside the United Kingdom], and

(b) the services are effectively used and enjoyed in the United Kingdom,

the supply is to be treated as made in the United Kingdom.]

Textual Amendments

F145 Words in Sch. 4A para. 9D(2)(b) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(11)(a)(i) (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)

F146 Words in Sch. 4A para. 9D(2) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(11)(a)(ii) (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)

F147 Words in Sch. 4A para. 9D(3)(a) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(11)(b) (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)

[F148 Telecommunication services U.K.

Textual Amendments

F148 Sch. 4A para. 9E inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Place of Supply of Services) (Telecommunication Services) Order 2017 (S.I. 2017/778), arts. 1(1), 3

9E. (1) This paragraph applies to a supply of services to a relevant business person consisting of the provision of telecommunication services. U.K.

(2) In this Schedule “telecommunication services” means services relating to the transmission, emission or reception of signals, writing, images and sounds or information of any nature by wire, radio, optical or other electromagnetic systems, including—

(a) the related transfer or assignment of the right to use capacity for such transmission, emission or reception, and

(b) the provision of access to global information networks.

(3) Where—

(a) a supply of services to which this paragraph applies would otherwise be treated as made in the United Kingdom, and

(b) the services are to any extent effectively used and enjoyed [F149 outside the United Kingdom],

the supply is to be treated to that extent as made [F150 outside the United Kingdom].

(4) Where—

(a) a supply of services to which this paragraph applies would otherwise be treated as made [F151 outside the United Kingdom], and

(b) the services are to any extent effectively used and enjoyed in the United Kingdom,

the supply is to be treated to that extent as made in the United Kingdom.]

Textual Amendments

F149 Words in Sch. 4A para. 9E(3)(b) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(12)(a)(i) (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)

F150 Words in Sch. 4A para. 9E(3) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(12)(a)(ii) (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)

F151 Words in Sch. 4A para. 9E(4)(a) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(12)(b) (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)

Part 3 U.K. Exceptions relating to supplies not made to relevant business person

Intermediaries U.K.

10 (1) A supply of services to which this paragraph applies is to be treated as made in the same country as the supply to which it relates. U.K.

(2) This paragraph applies to a supply to a person who is not a relevant business person consisting of the making of arrangements for a supply by or to another person or of any other activity intended to facilitate the making of such a supply.

Transport of goodsF152 ... U.K.

Textual Amendments

F152 Word in Sch. 4A para. 11 cross-heading omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(13) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

11 (1) A supply of services to a person who is not a relevant business person consisting of the transportation of goods is to be treated as made in the country in which the transportation takes place, and (in a case where it takes place in more than one country) in proportion to the distances covered in each. U.K.

(2) For the purposes of sub-paragraph (1) transportation which takes place partly outside the territorial jurisdiction of a country is to be treated as taking place wholly in the country if—

(a) it takes place in the course of a journey between two points in the country (whether or not as part of a longer journey involving travel to or from another country), and

(b) the means of transport used does not (except in an emergency or involuntarily) stop, put in or land in another country in the course of the journey between those two points.

F153 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F153 Sch. 4A para. 11(3) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(14) (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)

F154 ... U.K.

Textual Amendments

F154 Sch. 4A para. 12 and crossheading omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(15) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F154 12 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Ancillary transport services U.K.

13 (1) A supply to a person who is not a relevant business person of ancillary transport services is to be treated as made where the services are physically performed. U.K.

(2) “Ancillary transport services” means loading, unloading handling and similar activities.

[F155 Long-term hiring of means of transport U.K.

Textual Amendments

F155 Sch. 4A para. 13A and cross-heading inserted (with effect in accordance with Sch. 36 para. 16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 36 para. 17 (with Sch. 36 para. 19)

13A (1) A supply to a person who is not a relevant business person (“the recipient”) of services consisting of the long-term hiring of a means of transport is to be treated as made in the country in which the recipient belongs. U.K.

But this is subject to sub-paragraph (2) and paragraph 3(3) and (4).

(2) A supply to a person who is not a relevant business person (“the recipient”) of services consisting of the long-term hiring of a pleasure boat which is actually put at the disposal of the recipient at the supplier's business establishment, or some other fixed establishment of the supplier, is to be treated as made in the country where the pleasure boat is actually put at the disposal of the recipient.

(3) For the purposes of this Schedule, the hiring of a means of transport is “long-term” if it is not short-term (as to the meaning of which see paragraph 3(2)).]

Valuation services etc U.K.

14 U.K. A supply to a person who is not a relevant business person of services consisting of the valuation of, or carrying out of work on, goods is to be treated as made where the services are physically performed.

[F156 Cultural, educational and entertainment services etc U.K.

Textual Amendments

F156 Sch. 4A para. 14A and cross-heading inserted (with effect in accordance with Sch. 36 para. 16 of the amending Act) by Finance Act 2009 (c. 10), Sch. 36 para. 15(4) (with Sch. 36 para. 19)

14A (1) A supply to a person who is not a relevant business person of services to which this paragraph applies is to be treated as made in the country in which the activities concerned actually take place. U.K.

(2) This paragraph applies to the provision of—

(a) services relating to cultural, artistic, sporting, scientific, educational, entertainment or similar activities (including fairs and exhibitions), and

(b) ancillary services relating to such activities, including services of organisers of such activities.]

[F157 Electronically supplied, telecommunication and broadcasting services] U.K.

Textual Amendments

F157 Sch. 4A para. 15 cross-heading substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Place of Supply of Services) (Exceptions Relating to Supplies Not Made to Relevant Business Person) Order 2014 (S.I. 2014/2726), arts. 1(2), 3(2)

[F158 15 (1) A supply to a person who is not a relevant business person of services to which this paragraph applies is to be treated as made in the country in which the recipient belongs (but see F159 ... paragraph 8). U.K.

(2) This paragraph applies to-

(a) electronically supplied services (as to the meaning of which see paragraph 9(3) and (4)),

(b) telecommunication services (as to the meaning of which see [F160 paragraph 9E(2)], and

(c) radio and television broadcasting services.]

F161 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F161 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F161 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F161 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F161 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F158 Sch. 4A para. 15 substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Place of Supply of Services) (Exceptions Relating to Supplies Not Made to Relevant Business Person) Order 2014 (S.I. 2014/2726), arts. 1(2), 3(1)

F159 Words in Sch. 4A para. 15(1) omitted (31.12.2020) by virtue of The Value Added Tax (Place of Supply of Services) (Supplies of Electronic, Telecommunication and Broadcasting Services) (Amendment and Revocation) (EU Exit) Order 2019 (S.I. 2019/404), arts. 2, 3(2); S.I. 2020/1641, reg. 2, Sch.

F160 Words in Sch. 4A para. 15(2)(b) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Place of Supply of Services) (Telecommunication Services) Order 2017 (S.I. 2017/778), arts. 1(1), 4

F161 Sch. 4A para. 15(3)-(7) omitted (31.12.2020) by virtue of The Value Added Tax (Place of Supply of Services) (Supplies of Electronic, Telecommunication and Broadcasting Services) (Amendment and Revocation) (EU Exit) Order 2019 (S.I. 2019/404), arts. 2, 3(3); S.I. 2020/1641, reg. 2, Sch.

Other services provided to recipient belonging outside [F162 United Kingdom and the Isle of Man] U.K.

Textual Amendments

F162 Words in Sch. 4A para. 16 cross-heading substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(16) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

16 (1) A supply consisting of the provision to a person (“the recipient”) who— U.K.

(a) is not a relevant business person, and

(b) belongs in a country [F163 other than the United Kingdom or the Isle of Man],

of services to which this paragraph applies is to be treated as made in the country in which the recipient belongs.

(2) This paragraph applies to—

(a) transfers and assignments of copyright, patents, licences, trademarks and similar rights,

(b) the acceptance of any obligation to refrain from pursuing or exercising (in whole or in part) any business activity or any rights within paragraph (a),

(c) advertising services,

(d) services of consultants, engineers, consultancy bureaux, lawyers, accountants, and similar services, data processing and provision of information, other than any services relating to land,

(e) banking, financial and insurance services (including reinsurance), other than the provision of safe deposit facilities,

[F164 (f) the provision of access to, or transmission or distribution through—

(i) a natural gas system [F165 in the United Kingdom] or any network connected to [F166 a natural gas system in the United Kingdom], or

(ii) an electricity system, or

(iii) a network through which heat or cooling is supplied,

and the provision of other directly linked services,]

(g) the supply of staff, [F167 and]

(h) the letting on hire of goods other than means of transport,

F168 (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F169 (j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F170 (k) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F163 Words in Sch. 4A para. 16(1)(b) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(17)(a) (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)

F164 Sch. 4A para. 16(2)(f) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Exceptions Relating to Supplies not Made to Relevant Business Person) Order 2010 (S.I. 2010/3017), arts. 1(2), 2

F165 Words in Sch. 4A para. 16(2)(f)(i) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(17)(b)(i) (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)

F166 Words in Sch. 4A para. 16(2)(f)(i) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 89(17)(b)(ii) (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)

F167 Word in Sch. 4A para. 16(2) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Place of Supply of Services) (Exceptions Relating to Supplies Not Made to Relevant Business Person) Order 2014 (S.I. 2014/2726), arts. 1(2), 4(b)

F168 Sch. 4A para. 16(2)(i) omitted (with effect in accordance with art. 1(2) of the amending S.I.) by virtue of The Value Added Tax (Place of Supply of Services) (Exceptions Relating to Supplies Not Made to Relevant Business Person) Order 2014 (S.I. 2014/2726), arts. 1(2), 4(a)

F169 Sch. 4A para. 16(2)(j) omitted (with effect in accordance with art. 1(2) of the amending S.I.) by virtue of The Value Added Tax (Place of Supply of Services) (Exceptions Relating to Supplies Not Made to Relevant Business Person) Order 2014 (S.I. 2014/2726), arts. 1(2), 4(a)

F170 Sch. 4A para. 16(2)(k) omitted (with effect in accordance with art. 1(2) of the amending S.I.) by virtue of The Value Added Tax (Place of Supply of Services) (Exceptions Relating to Supplies Not Made to Relevant Business Person) Order 2014 (S.I. 2014/2726), arts. 1(2), 4(a)

F171 SCHEDULE 4B U.K. Call-off stock arrangements

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F171 Sch. 4B omitted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by virtue of Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 2 para. 7(1) (with Sch. 2 para. 7(6)-(9)); S.I. 2020/1642, reg. 9

Section 8.

F172 SCHEDULE 5 U.K. Services supplied where received

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F172 Sch. 5 omitted (with effect in accordance with Sch. 36 para. 14(3) of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 36 para. 12 (with Sch. 36 para. 19)

Section 18B.

[F173 SCHEDULE 5A U.K. Goods Eligible to be Fiscally Warehoused

Textual Amendments

F173 Sch. 5A added (1.6.1996 with application to any acquisition of goods from another member State and any supply taking place on or after that day) by 1996 c. 8, ss. 25, 26, Sch. 3 para. 18; S.I. 1996/1249, art. 2

Description of goods	[F174 customs tariff (within the meaning of TCTA 2018) code]
Tin	8001
Copper	7402
	7403
	7405
	7408
Zinc	7901
Nickel	7502
Aluminium	7601
Lead	7801
Indium	ex 811291
	ex 811299
Cereals	1001 to 1005
	1006: unprocessed rice only
	1007 to 1008
Oil seeds and oleaginous fruit	1201 to 1207
Coconuts, Brazil nuts and cashew nuts	801
Other nuts	502
Olives	71120
Grains and seeds (including soya beans)	1201 to 1207
Coffee, not roasted	901 11 0
	901 12 0
Tea	902
Cocoa beans, whole or broken, raw or roasted	1801
Raw sugar	1701 11
	1701 12
Rubber, in primary forms or in plates, sheets or strip	4001
	4002
Wool	5101
Chemicals in bulk	Chapters 28 and 29
Mineral oils (including propane and butane; also including crude petroleum oils)	2709
	2710
	2711 12
	2711 13
Silver	7106
Platinum (palladium, rhodium)	7110 11 0
	7110 21 0
	7110 31 0
Potatoes	701
Vegetable oils and fats and their fractions, whether or not refined, but not chemically modified	1507 to 1515]

Textual Amendments

F174 Words in Sch. 5A substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 90 (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

Section 19.

SCHEDULE 6 U.K. Valuation: special cases

[F175 Part 1 U.K. Valuation of supplies of fuel for private use

Textual Amendments

F175 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

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

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.

Interpretation U.K.

C1 (1) For the purposes of this Part of this Schedule— U.K.

(a) any reference to an individual's own car is to be construed as including any car of which for the time being the individual has the use, other than a car allocated to the individual,

(b) subject to sub-paragraph (2), a car is at any time to be taken to be allocated to an individual if at that time it is made available (without any transfer of the property in it) either to the individual or to any other person, and is so made available by reason of the individual's employment and for private use, and

(c) fuel provided by an employer to an employee and fuel provided to any person for private use in a car which, by virtue of paragraph (b), is for the time being taken to be allocated to the employee is to be taken to be provided to the employee by reason of the employee's employment.

(2) For the purposes of this Part of this Schedule, in any prescribed accounting period a car is not regarded as allocated to an individual by reason of the individual's employment if—

(a) in that period it was made available to, and actually used by, more than one of the employees of one or more employers and, in the case of each of them, it—

(i) was made available to that employee by reason of the employment, but

(ii) was not in that period ordinarily used by any one of them to the exclusion of the others,

(b) in the case of each of the employees, any private use of the car made by the employee in that period was merely incidental to the employee's other use of it in that period, and

(c) in that period it was not normally kept overnight on or in the vicinity of any residential premises where any of the employees was residing, except while being kept overnight on premises occupied by the person making the car available to them.

(3) In this Part of this Schedule—

• “employment” includes any office, and related expressions are to be construed accordingly;

• “car” means a motor car as defined by paragraph 1A(4) and (5);

• “road fuel” means hydrocarbon oil as defined by the Hydrocarbon Oil Duties Act 1979 (see section 1(2) of that Act) on which duty has been or is required to be paid in accordance with that Act.

(4) The Treasury may, by order, amend the definition of “road fuel” in sub-paragraph (3).]

[F176 Part 2 U.K. Other Provisions]

Textual Amendments

F176 Sch. 6 renumbered as Sch. 6 Pt. 2 (with effect in accordance with Sch. 38 para. 7(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 38 para. 2

1 (1) Where— U.K.

(a) the value of a supply made by a taxable person for a consideration in money is (apart from this paragraph) less than its open market value, and

(b) the person making the supply and the person to whom it is made are connected, and

(c) if the supply is a taxable supply, the person to whom the supply is made is not entitled under sections 25 and 26 to credit for all the VAT on the supply,

the Commissioners may direct that the value of the supply shall be taken to be its open market value.

(2) A direction under this paragraph shall be given by notice in writing to the person making the supply, but no direction may be given more than 3 years after the time of the supply.

(3) A direction given to a person under this paragraph in respect of a supply made by him may include a direction that the value of any supply—

(a) which is made by him after the giving of the notice, or after such later date as may be specified in the notice, and

(b) as to which the conditions in paragraphs (a) to (c) of sub-paragraph (1) above are satisfied,

shall be taken to be its open market value.

(4) For the purposes of this paragraph any question whether a person is connected with another shall be determined in accordance with [F177 section 1122 of the Corporation Tax Act 2010].

(5) This paragraph does not apply to a supply to which paragraph [F178 8A or] 10 below applies.

Textual Amendments

F177 Words in Sch. 6 para. 1(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 285(b) (with Sch. 2)

F178 Words in Sch. 6 para. 1(5) inserted (with effect in accordance with s. 200(8) of the amending Act) by Finance Act 2012 (c. 14), s. 200(6)

[F179 1A (1) Where— U.K.

(a) the value of a supply made by a taxable person for a consideration is (apart from this sub-paragraph) less than its open market value,

(b) the taxable person is a motor manufacturer or motor dealer,

(c) the person to whom the supply is made is—

(i) an employee of the taxable person,

(ii) a person who, under the terms of his employment, provides services to the taxable person, or

(iii) a relative of a person falling within sub-paragraph (i) or (ii) above,

(d) the supply is a supply of services by virtue of sub-paragraph (4) of paragraph 5 of Schedule 4 (business goods put to private use etc),

(e) the goods mentioned in that sub-paragraph consist of a motor car (whether or not any particular motor car) that forms part of the stock in trade of the taxable person, and

(f) the supply is not one to which paragraph 1 above applies,

the Commissioners may direct that the value of the supply shall be taken to be its open market value.

(2) A direction under this paragraph shall be given by notice in writing to the person making the supply, but no direction may be given more than 3 years after the time of the supply.

(3) A direction given to a person under this paragraph in respect of a supply made by him may include a direction that the value of any supply—

(a) which is made by him after the giving of the notice, or after such later date as may be specified in the notice, and

(b) as to which the conditions in paragraphs (a) to (f) of sub-paragraph (1) above are satisfied,

shall be taken to be its open market value.

(4) In this paragraph—

• “motor car” means any motor vehicle of a kind normally used on public roads which has three or more wheels and either—

  (a)

  is constructed or adapted solely or mainly for the carriage of passengers, or

  (b)

  has to the rear of the driver’s seat roofed accommodation which is fitted with side windows or which is constructed or adapted for the fitting of side windows,

  but does not include any vehicle excluded by sub-paragraph (5) below;

• “motor dealer” means a person whose business consists in whole or in part of obtaining supplies of, F180 ... or importing, new or second-hand motor cars for resale with a view to making an overall profit on the sale of them (whether or not a profit is made on each sale);

• “motor manufacturer” means a person whose business consists in whole or in part of producing motor cars including producing motor cars by conversion of a vehicle (whether a motor car or not);

• “relative” means husband, wife, brother, sister, ancestor or lineal descendant;

• “stock in trade” means new or second-hand motor cars (other than second-hand motor cars which are not qualifying motor cars within sub-paragraph (6) below) which are—

  (a)

  [F181 produced by a motor manufacturer, or supplied to or imported by a motor dealer, for the purpose of resale, and

  (b)

  intended to be sold within 12 months of their production, supply or importation (as the case may require),]

  and such motor cars shall not cease to be stock in trade where they are temporarily put to a use in the motor manufacturer’s or, as the case may be, the motor dealer’s business which involves making them available for private use.

(5) The vehicles excluded by this sub-paragraph are—

(a) vehicles capable of accommodating only one person;

(b) vehicles which meet the requirements of Schedule 6 to the Road Vehicles (Construction and Use) Regulations 1986 and are capable of carrying twelve or more seated persons;

(c) vehicles of not less than three tonnes unladen weight (as defined in the Table to regulation 3(2) of the Road Vehicles (Construction and Use) Regulations 1986);

(d) vehicles constructed to carry a payload (the difference between—

(i) a vehicle’s kerb weight (as defined in the Table to regulation 3(2) of the Road Vehicles (Construction and Use) Regulations 1986), and

(ii) its maximum gross weight (as defined in that Table)),

of one tonne or more;

(e) caravans, ambulances and prison vans;

(f) vehicles constructed for a special purpose other than the carriage of persons and having no other accommodation for carrying persons than such as is incidental to that purpose.

(6) For the purposes of this paragraph a motor car is a “qualifying motor car”if—

(a) it has never been suppliedF182 ... or imported in circumstances in which the VAT on that supplyF183 ... or importation was wholly excluded from credit as input tax by virtue of an order under section 25(7) (as at 17th March 2004 see article 7 of the Value Added Tax (Input Tax) Order 1992); or

(b) a taxable person has elected under such an order for it to be treated as such.

(7) The Treasury may by order amend any of the definitions in this paragraph.]

Textual Amendments

F179 Sch. 6 para. 1A inserted (1.1.2005 with effect in accordance with s. 22(5) of the amending Act) by Finance Act 2004 (c. 12), s. 22(2); S.I. 2004/3104, art. 2; S.I. 2004/3104, art. 2

F180 Words in Sch. 6 para. 1A(4) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 91(2)(a)(i) (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)

F181 Words in Sch. 6 para. 1A(4) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 91(2)(a)(ii) (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)

F182 Words in Sch. 6 para. 1A(6)(a) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 91(2)(b)(i) (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)

F183 Word in Sch. 6 para. 1A(6)(a) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 91(2)(b)(ii) (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)

2 U.K. Where—

(a) the whole or part of a business carried on by a taxable person consists in supplying to a number of persons goods to be sold, whether by them or others, by retail, and

(b) those persons are not taxable persons,

the Commissioners may by notice in writing to the taxable person direct that the value of any such supply by him after the giving of the notice or after such later date as may be specified in the notice shall be taken to be its open market value on a sale by retail.

[F184 2A (1) This paragraph applies if— U.K.

(a) a taxable person (“P”) makes a supply of road fuel for a consideration,

(b) the recipient of the supply is—

(i) connected with P, or

(ii) an employee or partner of P or a person who is connected with such an employee or partner,

(c) the value of the supply would (in the absence of this paragraph) be less than its open market value, and

(d) the recipient of the supply is not entitled to credit for the whole of the input tax arising on the supply.

(2) The value of the supply is to be taken to be an amount equal to its open market value.

(3) For the purposes of this paragraph—

(a) “road fuel” means hydrocarbon oil as defined by the Hydrocarbon Oil Duties Act 1979 (see section 1(2) of that Act) on which duty has been or is required to be paid in accordance with that Act, and

(b) any question whether a person is connected with another is to be determined in accordance with section 1122 of the Corporation Tax Act 2010.

(4) The Treasury may, by order, amend the definition of “road fuel” in sub-paragraph (3)(a).]

Textual Amendments

F184 Sch. 6 para. 2A inserted (retrospective and with effect in accordance with Sch. 38 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 38 paras. 6, 8

3 (1) Where— U.K.

(a) any goods whose supply involves their removal to the United Kingdom—

(i) are charged in connection with their removal to the United Kingdom with a duty of excise; or

(ii) on that removal are subject, in accordance with any provision for the time being having effect for transitional purposes in connection with the accession of any State to the [F185 European Union], to any F186 ... agricultural levy of the [F185 European Union]; or

(b) the time of supply of any dutiable goods, or of any goods which comprise a mixture of dutiable goods and other goods, is determined under section 18(4) to be the duty point,

then the value of the supply shall be taken for the purposes of this Act to be the sum of its value apart from this paragraph and the amount, so far as not already included in that value, of the duty or, as the case may be, agricultural levy which has been or is to be paid in respect of the goods.

(2) In this paragraph “dutiable goods” and “duty point” have the same meanings as in section 18.

Textual Amendments

F185 Words in Act substituted (22.4.2011) by The Treaty of Lisbon (Changes in Terminology) Order 2011 (S.I. 2011/1043), arts. 2, 3, 4 (with arts. 3(2)(3), 4(2), 6(4)(5))

F186 Words in Sch. 6 para. 3(1)(a)(ii) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 91(3) (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)

[F187 4 (1) Sub-paragraph (2) applies where— U.K.

(a) goods or services are supplied for a consideration which is a price in money,

(b) the terms on which those goods or services are so supplied allow a discount for prompt payment of that price,

(c) payment of that price is not made by instalments, and

(d) payment of that price is made in accordance with those terms so that the discount is realised in relation to that payment.

(2) For the purposes of section 19 (value of supply of goods or services) the consideration is the discounted price paid.]

Textual Amendments

F187 Sch. 6 para. 4 substituted (with effect in accordance with s. 108(2)-(4) of the amending Act) by Finance Act 2014 (c. 26), s. 108(1)

F188 5 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F188 Sch. 6 para. 5 repealed (with application in accordance with Sch. 1 para. 4 of the amending Act) by Finance Act 2003 (c. 14), Sch. 1 para. 3, Sch. 43 Pt. 2

6 (1) Where there is a supply of goods by virtue of— U.K.

(a) a Treasury order under section 5(5); or

(b) paragraph 5(1) or 6 of Schedule 4 but otherwise than for a consideration); or

(c) paragraph 8 of that Schedule; F189 ...

F189 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

then, except where [F190 the person making the supply opts under paragraph A1(3) above for valuation on the flat-rate basis or] paragraph 10 below applies, the value of the supply shall be determined as follows.

(2) The value of the supply shall be taken to be—

(a) such consideration in money as would be payable by the person making the supply if he were, at the time of the supply, to purchase goods identical in every respect (including age and condition) to the goods concerned; or

(b) where the value cannot be ascertained in accordance with paragraph (a) above, such consideration in money as would be payable by that person if he were, at that time, to purchase goods similar to, and of the same age and condition as, the goods concerned; or

(c) where the value can be ascertained in accordance with neither paragraph (a) nor paragraph (b) above, the cost of producing the goods concerned if they were produced at that time.

(3) For the purposes of sub-paragraph (2) above the amount of consideration in money that would be payable by any person if he were to purchase any goods shall be taken to be the amount that would be so payable after the deduction of any amount included in the purchase price in respect of VAT on the supply of the goods to that person.

Textual Amendments

F189 Sch. 6 para. 6(1)(d) and word omitted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by virtue of Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 2 para. 7(4) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

F190 Words in Sch. 6 para. 6(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. 3

7 [F191 (1)] Where there is a supply of services by virtue of— U.K.

(a) a Treasury order under section 5(4); or

(b) [F192 paragraph 5(4)] of Schedule 4 (but otherwise than for a consideration),

the value of the supply shall be taken to be the full cost to the taxable person of providing the services except where paragraph 10 below applies.

[F193 (2) Regulations may, in relation to a supply of services by virtue of paragraph 5(4) of Schedule 4 (but otherwise than for a consideration), make provision for determining how the full cost to the taxable person of providing the services is to be calculated.

(3) The regulations may, in particular, make provision for the calculation to be made by reference to any prescribed period.

(4) The regulations may make—

(a) different provision for different circumstances;

(b) such incidental, supplementary, consequential or transitional provision as the Commissioners think fit.]

Textual Amendments

F191 Sch. 6 para. 7 renumbered as Sch. 6 para. 7(1) (19.7.2007) by Finance Act 2007 (c. 11), s. 99(5)

F192 Words in Sch. 6 para. 7(b) substituted (retrospectively) by 1995 c. 4, s. 33(3)(b)

F193 Sch. 6 para. 7(2)-(4) inserted (19.7.2007) by Finance Act 2007 (c. 11), s. 99(5)

8 U.K. Where any supply of services is treated by virtue of section 8 [F194 , or any supply of goods is treated by virtue of section 9A,] as made by the person by whom they are received, the value of the supply shall be taken—

(a) in a case where the consideration for which the services [F195 or goods] were in fact supplied to him was a consideration in money, to be such amount as is equal to that consideration; and

(b) in a case where that consideration did not consist or not wholly consist of money, to be such amount in money as is equivalent to that consideration.

Textual Amendments

F194 Words in Sch. 6 para. 8 inserted (with effect in accordance with s. 5(2) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), s. 5(1)(a)

F195 Words in Sch. 6 para. 8 inserted (with effect in accordance with s. 5(2) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), s. 5(1)(b)

Modifications etc. (not altering text)

C4 Sch. 6 para. 8 modified (30.6.1997) by S.I. 1997/1523, arts. 7, 8

[F196 8A (1) This paragraph applies where— U.K.

(a) a supply (“the intra-group supply”) made by a member of a group (“the supplier”) to another member of the group is, by virtue of section 43(2A), excluded from the supplies disregarded under section 43(1)(a), and

(b) the representative member of the group satisfies the Commissioners as to the value of each bought-in supply.

(2) “Bought-in supply”, in relation to the intra-group supply, means a supply of services to the supplier to which section 43(2A)(c) to (e) refers, so far as that supply is used by the supplier for making the intra-group supply.

(3) The value of the intra-group supply shall be taken to be the total of the relevant amounts in relation to the bought-in supplies.

(4) The relevant amount in relation to a bought-in supply is the value of the bought-in supply, unless a direction is made under sub-paragraph (5).

(5) If the value of a bought-in supply is less than its open market value, the Commissioners may direct that the relevant amount in relation to that supply is its open market value.

(6) A direction under this paragraph must be given by notice in writing to the representative member, but no direction may be given more than 3 years after the time of the intra-group supply.

(7) The Treasury may by order vary the provision made by this Schedule about the value of supplies of the kind mentioned in sub-paragraph (1)(a).

(8) An order under sub-paragraph (7) may include incidental, supplemental, consequential or transitional provision (including provision amending section 43 or 83).]

Textual Amendments

F196 Sch. 6 para. 8A inserted (with effect in accordance with s. 200(8) of the amending Act) by Finance Act 2012 (c. 14), s. 200(7)

9 (1) This paragraph applies where a supply of services consists in the provision of accommodation falling within paragraph (d) of Item 1 of Group 1 in Schedule 9 and— U.K.

(a) that provision is made to an individual for a period exceeding 4 weeks; and

(b) throughout that period the accommodation is provided for the use of the individual either alone or together with one or more other persons who occupy the accommodation with him otherwise than at their own expense (whether incurred directly or indirectly).

(2) Where this paragraph applies—

(a) the value of so much of the supply as is in excess of 4 weeks shall be taken to be reduced to such part thereof as is attributable to facilities other than the right to occupy the accommodation; and

(b) that part shall be taken to be not less than 20 per cent.

10 (1) This paragraph applies to a supply of goods or services, whether or not for a consideration, which is made by an employer and consists of— U.K.

(a) the provision in the course of catering of food or beverages to his employees, or

(b) the provision of accommodation for his employees in a hotel, inn, boarding house or similar establishment.

(2) The value of a supply to which this paragraph applies shall be taken to be nil unless the supply is for a consideration consisting wholly or partly of money, and in that case its value shall be determined without regard to any consideration other than money.

11 (1) Subject to the following provisions of this paragraph, where— U.K.

(a) there is a supply of goods or services; and

(b) any sum relevant for determining the value of the supply is expressed in a currency other than sterling,

then, for the purpose of valuing the supply, that sum is to be converted into sterling at the market rate which, on the relevant day, would apply in the United Kingdom to a purchase with sterling by the person to whom they are supplied of that sum in the currency in question.

(2) Where the Commissioners have published a notice which, for the purposes of this paragraph, specifies—

(a) rates of exchange; or

(b) methods of determining rates of exchange,

a rate specified in or determined in accordance with the notice, as for the time being in force, shall apply (instead of the rate for which sub-paragraph (1) above provides) in the case of any supply by a person who opts, in such manner as may be allowed by the Commissioners, for the use of that rate in relation to that supply.

(3) An option for the purposes of sub-paragraph (2) above for the use of a particular rate or method of determining a rate—

(a) shall not be exercised by any person except in relation to all such supplies by him as are of a particular description or after a particular date; and

(b) shall not be withdrawn or varied except with the consent of the Commissioners and in such manner as they may require.

(4) In specifying a method of determining a rate of exchange a notice published by the Commissioners under sub-paragraph (2) above may allow a person to apply to the Commissioners for the use, for the purpose of valuing some or all of his supplies, of a rate of exchange which is different from any which would otherwise apply.

(5) On an application made in accordance with provision contained in a notice under sub-paragraph (4) above, the Commissioners may authorise the use with respect to the applicant of such a rate of exchange, in such circumstances, in relation to such supplies and subject to such conditions as they think fit.

(6) A notice published by the Commissioners for the purposes of this paragraph may be withdrawn or varied by a subsequent notice published by the Commissioners.

(7) The time by reference to which the appropriate rate of exchange is to be determined for the purpose of valuing any supply is the time when the supply takes place; and, accordingly, the day on which it takes place is the relevant day for the purposes of sub-paragraph (1) above.

12 U.K. Regulations may require that in prescribed circumstances there is to be taken into account, as constituting part of the consideration for the purposes of section 19(2) (where it would not otherwise be so taken into account), money paid in respect of the supply by persons other than those to whom the supply is made.

13 U.K. A direction under paragraph 1 or 2 above may be varied or withdrawn by the Commissioners by a further direction given by notice in writing.

F197 SCHEDULE 7 U.K. Valuation of acquisitions from other member states: special cases

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F197 Sch. 7 omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 92 (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F198 SCHEDULE 7A U.K. CHARGE AT REDUCED RATE

Textual Amendments

F198 Sch. 7A inserted (11.5.2001 with effect as mentioned in s. 99(7)(a) of the amending Act) by 2001 c. 9, s. 99(5)(7)(a), Sch. 31 Pt. 1 para. 1

Part 1 U.K. INDEX TO REDUCED-RATE SUPPLIES OF GOODS AND SERVICES

[F199 Cable-suspended passenger transport systems	Group 13]
[F200 Caravans	Group 12]
Children’s car seats....................	Group 5
[F201 Contraceptive products	Group 8]
[F202 Course of catering	Group 14]
Domestic fuel or power....................	Group 1
Energy-saving materials: installation....................	Group 2
Heating equipment, security goods and gas supplies: grant-funded installation or connection....................	Group 3
[F202 Holiday accommodation etc	Group 15]
[F203 Installation of mobility aids for the elderly	Group 10]
Renovation and alteration of dwellings....................	Group 7
Residential conversions....................	Group 6
[F202 Shows and certain other attractions	Group 16]
[F204 Smoking cessation products	Group 11]
[F205 Welfare advice or information	Group 9]
F206 . . .	F206 . . .

Textual Amendments

F199 Words in Sch. 7A Pt. 1 inserted (1.4.2013) by The Value Added Tax (Reduced Rate) (Cable-Suspended Passenger Transport Systems) Order 2013 (S.I. 2013/430), arts. 1, 2(2)

F200 Words in Sch. 7A Pt. 1 inserted (6.4.2013) by Finance Act 2012 (c. 14), Sch. 26 paras. 6(2), 7(2)

F201 Words in Sch. 7A Pt. 1 inserted (1.7.2006) by The Value Added Tax (Reduced Rate) Order 2006 (S.I. 2006/1472), arts. 1, 3(a)

F202 Words in Sch. 7A Pt. 1 inserted (temp.) (15.7.2020) by virtue of The Value Added Tax (Reduced Rate) (Hospitality and Tourism) (Coronavirus) Order 2020 (S.I. 2020/728), arts. 1, 3 (with art. 2)

F203 Words in Sch. 7A Pt. 1 inserted (1.7.2007 with effect in relation to supplies made on or after that date) by The Value Added Tax (Reduced Rate) Order 2007 (S.I. 2007/1601), arts. 1(1)(2), 3(a))

F204 Words in Sch. 7A Pt. 1 inserted (1.7.2007 with effect in relation to supplies made on or after that date but before 1.7.2008) by The Value Added Tax (Reduced Rate) Order 2007 (S.I. 2007/1601), arts. 1(1)(2), 3(b))

F205 Words in Sch. 7A Pt. 1 inserted (1.7.2006) by The Value Added Tax (Reduced Rate) Order 2006 (S.I. 2006/1472), arts. 1, 3(b)

F206 Words in Sch. 7A Pt. 1 omitted (with effect in accordance with s. 126(5)(6) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 126(2)(a)

Part 2 U.K. THE GROUPS

Modifications etc. (not altering text)

C5 Sch. 7A Pt. 2 modified (30.6.2008) by The Value Added Tax (Reduced Rate) (Smoking Cessation Products) Order 2008 (S.I. 2008/1410), arts. 1-3

Group 1 — Supplies of domestic fuel or power U.K.

ITEM NO.

1 U.K. Supplies for qualifying use of—

(a) coal, coke or other solid substances held out for sale solely as fuel;

(b) coal gas, water gas, producer gases or similar gases;

(c) petroleum gases, or other gaseous hydrocarbons, whether in a gaseous or liquid state;

(d) fuel oil, gas oil or kerosene; or

(e) electricity, heat or air-conditioning.

NOTES:

Matters included or not included in the supplies U.K.

1 (1) Item 1(a) shall be deemed to include combustible materials put up for sale for kindling fires but shall not include matches.

(2) Item 1(b) and (c) shall not include any road fuel gas (within the meaning of the Hydrocarbon Oil Duties Act 1979 (c. 5)) on which a duty of excise has been charged or is chargeable.

(3) Item 1(d) shall not include hydrocarbon oil on which a duty of excise has been or is to be charged without relief from, or rebate of, such duty by virtue of the provisions of the Hydrocarbon Oil Duties Act 1979 [F207 , unless the oil is—

(a) kerosene in respect of which a relevant declaration has been made under section 13AC(3) of that Act (use of rebated kerosene for private pleasure-flying); or

(b) oil in respect of which a relevant declaration has been made under section 14E(3) of that Act (use of rebated heavy oil for private pleasure craft)].

Textual Amendments

F207 Words in Sch. 7A Pt. 2 Group 1 Note 1(3) inserted (1.11.2008) by The Value Added Tax (Reduced Rate) (Supplies of Domestic Fuel or Power) Order 2008 (S.I. 2008/2676), arts. 1, 2

Meaning of “fuel oil”, “gas oil” and “kerosene” U.K.

2 (1) In this Group “fuel oil” means heavy oil which contains in solution an amount of asphaltenes of not less than 0.5 per cent. or which contains less than 0.5 per cent. but not less than 0.1 per cent. of asphaltenes and has a closed flash point not exceeding 150°C.

(2) In this Group “gas oil” means heavy oil of which not more than 50 per cent. by volume distils at a temperature not exceeding 240°C and of which more than 50 per cent. by volume distils at a temperature not exceeding 340°C.

(3) In this Group “kerosene” means heavy oil of which more than 50 per cent. by volume distils at a temperature not exceeding 240°C.

(4) In this paragraph “heavy oil” has the same meaning as in the Hydrocarbon Oil Duties Act 1979.

Meaning of “qualifying use” U.K.

3 In this Group “qualifying use” means—

(a) domestic use; or

(b) use by a charity otherwise than in the course or furtherance of a business.

Supplies only partly for qualifying use U.K.

4 For the purposes of this Group, where there is a supply of goods partly for qualifying use and partly not—

(a) if at least 60 per cent. of the goods are supplied for qualifying use, the whole supply shall be treated as a supply for qualifying use; and

(b) in any other case, an apportionment shall be made to determine the extent to which the supply is a supply for qualifying use.

Supplies deemed to be for domestic use U.K.

5 For the purposes of this Group the following supplies are always for domestic use—

(a) a supply of not more than one tonne of coal or coke held out for sale as domestic fuel;

(b) a supply of wood, peat or charcoal not intended for sale by the recipient;

(c) a supply to a person at any premises of piped gas (that is, gas within item 1(b), or petroleum gas in a gaseous state, provided through pipes) where the gas (together with any other piped gas provided to him at the premises by the same supplier) was not provided at a rate exceeding 150 therms a month or, if the supplier charges for the gas by reference to the number of kilowatt hours supplied, 4397 kilowatt hours a month;

(d) a supply of petroleum gas in a liquid state where the gas is supplied in cylinders the net weight of each of which is less than 50 kilogrammes and either the number of cylinders supplied is 20 or fewer or the gas is not intended for sale by the recipient;

(e) a supply of petroleum gas in a liquid state, otherwise than in cylinders, to a person at any premises at which he is not able to store more than two tonnes of such gas;

(f) a supply of not more than 2,300 litres of fuel oil, gas oil or kerosene;

(g) a supply of electricity to a person at any premises where the electricity (together with any other electricity provided to him at the premises by the same supplier) was not provided at a rate exceeding 1000 kilowatt hours a month.

Other supplies that are for domestic use U.K.

6 For the purposes of this Group supplies not within paragraph 5 are for domestic use if and only if the goods supplied are for use in—

(a) a building, or part of a building, that consists of a dwelling or number of dwellings;

(b) a building, or part of a building, used for a relevant residential purpose;

(c) self-catering holiday accommodation;

(d) a caravan; or

(e) a houseboat.

Interpretation of paragraph 6 U.K.

7 (1) For the purposes of this Group, “use for a relevant residential purpose” means use as—

(a) a home or other institution providing residential accommodation for children,

(b) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder,

(c) a hospice,

(d) residential accommodation for students or school pupils,

(e) residential accommodation for members of any of the armed forces,

(f) a monastery, nunnery or similar establishment, or

(g) an institution which is the sole or main residence of at least 90 per cent. of its residents,

except use as a hospital, a prison or similar institution or an hotel or inn or similar establishment.

(2) For the purposes of this Group “self-catering holiday accommodation” includes any accommodation advertised or held out as such.

(3) In paragraph 6 “houseboat” means a boat or other floating decked structure designed or adapted for use solely as a place of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion.

Group 2 — Installation of energy-saving materials U.K.

[F208 1 U.K. The supply of services of installing energy-saving materials in residential accommodation, where the energy-saving materials are not supplied by the person supplying the services.

Textual Amendments

F208 Sch. 7A Pt. 2 Group 2 Items 1-3 substituted for Items 1, 2 (1.10.2019) by The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (S.I. 2019/958), arts. 1(1), 3 (with art. 1(2))

2. U.K. The supply of services of installing energy-saving materials in residential accommodation, including the energy-saving materials installed, where—

(a) the supply is made to a qualifying person and the residential accommodation is the qualifying person’s sole or main residence,

(b) the supply is made to a relevant housing association, or

(c) the residential accommodation is a building, or part of a building, used solely for a relevant residential purpose.

Textual Amendments

F208 Sch. 7A Pt. 2 Group 2 Items 1-3 substituted for Items 1, 2 (1.10.2019) by The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (S.I. 2019/958), arts. 1(1), 3 (with art. 1(2))

3. U.K. The supply, in a case not falling within item 2, of services of installing energy-saving materials in residential accommodation, including the energy-saving materials installed (but see Note A1).]

Textual Amendments

F208 Sch. 7A Pt. 2 Group 2 Items 1-3 substituted for Items 1, 2 (1.10.2019) by The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (S.I. 2019/958), arts. 1(1), 3 (with art. 1(2))

NOTES:

Restriction on item 3 U.K.

[F209 A1. (1) Item 3 does not apply to a supply so far as relating to the energy-saving materials installed if the open market value of the supply of the materials exceeds 60% of the cost of the total supply to the person to whom it is made.

(2) In this Note, the reference to cost is to cost net of VAT.]

Textual Amendments

F209 Sch. 7A Pt. 2 Group 2 Note A1 inserted (1.10.2019) by The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (S.I. 2019/958), arts. 1(1), 4 (with art. 1(2))

Meaning of “energy-saving materials” U.K.

1 For the purposes of this Group “energy-saving materials” means any of the following—

(a) insulation for walls, floors, ceilings, roofs or lofts or for water tanks, pipes or other plumbing fittings;

(b) draught stripping for windows and doors;

(c) central heating system controls (including thermostatic radiator valves);

(d) hot water system controls;

(e) solar panels;

F210 (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F210 (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F211 (h) ground source heat pumps;]

[F212 (i) micro combined heat and power units. air source heat pumps;

(j) micro combined heat and power units;]

[F213 (k) boilers designed to be fuelled solely by wood, straw or similar vegetal matter.]

Textual Amendments

F210 Sch. 7A Pt. 2 Group 2 Note 1(f)(g) omitted (1.10.2019) by virtue of The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (S.I. 2019/958), arts. 1(1), 5 (with art. 1(2))

F211 Sch. 7A Pt. 2 Group 2 Note 1(h) inserted (1.6.2004) by The Value Added Tax (Reduced Rate) Order 2004 (S.I. 2004/777), arts. 1, 3

F212 Sch. 7A Pt. 2 Group 2 Note 1(i)(j) inserted (7.4.2005) by The Value Added Tax (Reduced Rate) Order 2005 (S.I. 2005/726, arts. 1, 3

F213 Sch. 7A Pt. 2 Group 2 Note 1(k) inserted (1.1.2006) by The Value Added Tax (Reduced Rate) (No. 2) Order 2005 (S.I. 2005/3329), arts. 1, 3

Meaning of “residential accommodation” U.K.

2 (1) For the purposes of this Group “residential accommodation” means—

(a) a building, or part of a building, that consists of a dwelling or a number of dwellings;

(b) a building, or part of a building, used for a relevant residential purpose;

(c) a caravan used as a place of permanent habitation; or

(d) a houseboat.

(2) For the purposes of this Group “use for a relevant residential purpose” has the same meaning as it has for the purposes of Group 1 (see paragraph 7(1) of the Notes to that Group).

(3) In sub-paragraph (1)(d) “houseboat” has the meaning given by paragraph 7(3) of the Notes to Group 1.

Meaning of “use for a relevant charitable purpose” U.K.

F214 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F214 Sch. 7A Pt. 2 Group 2 Note 3 omitted (with effect in accordance with s. 193(4) of the amending Act) by virtue of Finance Act 2013 (c. 29), s. 193(3)

Meaning of “qualifying person” U.K.

[F215 4. For the purposes of this Group “qualifying person” has the same meaning as it has for the purposes of Group 3 (see paragraph 6 of the Notes to that Group).

Textual Amendments

F215 Sch. 7A Pt. 2 Group 2 Notes 4, 5 inserted (1.10.2019) by The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (S.I. 2019/958), arts. 1(1), 6 (with art. 1(2))

Meaning of “relevant housing association” U.K.

5. For the purposes of this Group “relevant housing association” has the meaning given by Note (21) of Group 5 of Schedule 8 (zero-rating: construction of buildings etc.).]

Textual Amendments

F215 Sch. 7A Pt. 2 Group 2 Notes 4, 5 inserted (1.10.2019) by The Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019 (S.I. 2019/958), arts. 1(1), 6 (with art. 1(2))

Group 3 — Grant-funded installation of heating equipment or security goods or connection of gas supply U.K.

ITEM NO.

1 U.K. Supplies to a qualifying person of any services of installing heating appliances in the qualifying person’s sole or main residence.

2 U.K. Supplies of heating appliances made to a qualifying person by a person who installs those appliances in the qualifying person’s sole or main residence.

3 U.K. Supplies to a qualifying person of services of connecting, or reconnecting, a mains gas supply to the qualifying person’s sole or main residence.

4 U.K. Supplies of goods made to a qualifying person by a person connecting, or reconnecting, a mains gas supply to the qualifying person’s sole or main residence, being goods whose installation is necessary for the connection, or reconnection, of the mains gas supply.

5 U.K. Supplies to a qualifying person of services of installing, maintaining or repairing a central heating system in the qualifying person’s sole or main residence.

6 U.K. Supplies of goods made to a qualifying person by a person installing, maintaining or repairing a central heating system in the qualifying person’s sole or main residence, being goods whose installation is necessary for the installation, maintenance or repair of the central heating system.

7 U.K. Supplies consisting in the leasing of goods that form the whole or part of a central heating system installed in the sole or main residence of a qualifying person.

8 U.K. Supplies of goods that form the whole or part of a central heating system installed in a qualifying person’s sole or main residence and that, immediately before being supplied, were goods leased under arrangements such that the consideration for the supplies consisting in the leasing of the goods was, in whole or in part, funded by a grant made under a relevant scheme.

[F216 8A U.K. Supplies to a qualifying person of services of installing, maintaining or repairing a renewable source heating system in the qualifying person’s sole or main residence.

Textual Amendments

F216 Sch. 7A Pt. II Group 3 Item 8A, 8B inserted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 3(a)

8B U.K. Supplies of goods made to a qualifying person by a person installing, maintaining or repairing a renewable source heating system in the qualifying person’s sole or main residence, being goods whose installation is necessary for the installation, maintenance or repair of the system.]

Textual Amendments

F216 Sch. 7A Pt. II Group 3 Item 8A, 8B inserted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 3(a)

9 U.K. Supplies to a qualifying person of services of installing qualifying security goods in the qualifying person’s sole or main residence.

10 U.K. Supplies of qualifying security goods made to a qualifying person by a person who installs those goods in the qualifying person’s sole or main residence.

NOTES:

Supply only included so far as grant-funded U.K.

1 (1) Each of [F217 items 1 to 7 and 8A to 10] applies to a supply only to the extent that the consideration for the supply is, or is to be, funded by a grant made under a relevant scheme.

(2) Item 8 applies to a supply only to the extent that the consideration for the supply—

(a) is, or is to be, funded by a grant made under a relevant scheme; or

(b) is a payment becoming due only by reason of the termination (whether by the passage of time or otherwise) of the leasing of the goods in question.

Textual Amendments

F217 Words in Sch. 7A Pt. II Group 3 Note 1(1) substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 3(b)

Meaning of “relevant scheme” U.K.

2 (1) For the purposes of this Group a scheme is a “relevant scheme” if it is one which satisfies the conditions specified in this paragraph.

(2) The first condition is that the scheme has as one of its objectives the funding of the installation of energy-saving materials in the homes of any persons who are qualifying persons.

(3) The second condition is that the scheme disburses, whether directly or indirectly, its grants in whole or in part out of funds made available to it in order to achieve that objective—

(a) by the Secretary of State,

(b) by the Scottish Ministers,

(c) by the National Assembly for Wales,

(d) by a Minister (within the meaning given by section 7(3) of the Northern Ireland Act 1998 (c. 47)) or a Northern Ireland department,

F218 (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) under an arrangement approved by the Gas and Electricity Markets Authority,

(g) under an arrangement approved by the Director General of Electricity Supply for Northern Ireland, or

(h) by a local authority.

(4) The reference in sub-paragraph (3)(f) to an arrangement approved by the Gas and Electricity Markets Authority includes a reference to an arrangement approved by the Director General of Electricity Supply, or the Director General of Gas Supply, before the transfer (under the Utilities Act 2000 (c. 27)) of his functions to the Authority.

Textual Amendments

F218 Words in Sch. 7A omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 93 (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

Apportionment of grants that also cover other supplies U.K.

3 Where a grant is made under a relevant scheme in order—

(a) to fund a supply of a description to which any of items 1 to 10 applies (“the relevant supply”), and

(b) also to fund a supply to which none of those items applies (“the non-relevant supply”),

the proportion of the grant that is to be attributed, for the purposes of paragraph 1, to the relevant supply shall be the same proportion as the consideration reasonably attributable to that supply bears to the consideration for that supply and for the non-relevant supply.

Meaning of “heating appliances” U.K.

4 For the purposes of items 1 and 2 “heating appliances” means any of the following—

(a) gas-fired room heaters that are fitted with thermostatic controls;

(b) electric storage heaters;

(c) closed solid fuel fire cassettes;

(d) electric dual immersion water heaters with [F219 factory-insulated] hot water tanks;

(e) gas-fired boilers;

(f) oil-fired boilers;

(g) radiators.

Textual Amendments

F219 Words in Sch. 7A Pt. II Group 3 Note 4(d) substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 3(c)

Meaning of “central heating system” U.K.

[F220 4A For the purposes of items 5 to 8 “central heating system” includes a system which generates electricity.

Textual Amendments

F220 Sch. 7A Pt. II Group 3 Note 4A, 4B substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 3(d)

Meaning of “renewable source heating system” U.K.

4B For the purposes of items 8A and 8B “renewable source heating system” means a space or water heating system which uses energy from—

(a) renewable sources, including solar, wind and hydroelectric power, or

(b) near renewable resources, including ground and air heat.]

Textual Amendments

F220 Sch. 7A Pt. II Group 3 Note 4A, 4B substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 3(d)

Meaning of “qualifying security goods” U.K.

5 For the purposes of items 9 and 10 “qualifying security goods” means any of the following—

(a) locks or bolts for windows;

(b) locks, bolts or security chains for doors;

(c) spy holes;

(d) smoke alarms.

Meaning of “qualifying person” U.K.

6 (1) For the purposes of this Group, a person to whom a supply is made is “a qualifying person” if at the time of the supply he—

(a) is aged 60 or over; or

(b) is in receipt of one or more of the benefits mentioned in sub-paragraph (2).

(2) Those benefits are—

(a) council tax benefit under Part 7 of the Contributions and Benefits Act;

(b) disability living allowance under Part 3 of the Contributions and Benefits Act or Part 3 of the Northern Ireland Act;

(c) [F221 any element of child tax credit other than the family element, working tax credit,] housing benefit or income support under Part 7 of the Contributions and Benefits Act or Part 7 of the Northern Ireland Act;

(d) an income-based jobseeker’s allowance within the meaning of section 1(4) of the Jobseekers Act 1995 (c. 18) or Article 3(4) of the Jobseekers (Northern Ireland) Order 1995 (S.I. 1995/275 (N.I. 15));

(e) disablement pension under Part 5 of the Contributions and Benefits Act, or Part 5 of the Northern Ireland Act, that is payable at the increased rate provided for under section 104 (constant attendance allowance) of the Act concerned;

(f) war disablement pension under the Naval, Military and Air Forces Etc. (Disablement and Death) Service Pensions Order 1983 (S.I. 1983/883) that is payable at the increased rate provided for under article 14 (constant attendance allowance) or article 26A (mobility supplement) of that Order.

[F222 (g) personal independence payment under Part 4 of the Welfare Reform Act 2012 or the corresponding provision having effect in Northern Ireland;

(h) armed forces independence payment under a scheme established under section 1 of the Armed Forces (Pensions and Compensation) Act 2004.]

[F223 (i) universal credit under Part 1 of the Welfare Reform Act 2012 [F224 or Part 2 of the Welfare Reform (Northern Ireland) Order 2015].]

(3) In sub-paragraph (2)—

(a) “the Contributions and Benefits Act” means the Social Security Contributions and Benefits Act 1992 (c. 4); and

(b) “the Northern Ireland Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7).

Textual Amendments

F221 Words in Sch. 7A Pt. II Group 3 para. 6(2)(c) substituted (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 3 para. 48; S.I. 2003/962, art. 2(3)(d)(iii)

F222 Sch. 7A Pt. II Group 3 Note 6(2)(g)(h) inserted (8.4.2013) by The Value Added Tax (Independence Payment) Order 2013 (S.I. 2013/601), arts. 1, 2

F223 Sch. 7A Pt. II Group 3 Note 6(2)(i) inserted (29.4.2013) by The Universal Credit (Consequential, Supplementary, Incidental and Miscellaneous Provisions) Regulations 2013 (S.I. 2013/630), regs. 1(2), 9(2)

F224 Words in Sch. 7A Pt. II Group 3 Note (6)(2)(i) inserted (N.I.) (coming into force in accordance with reg. 1(1) of the amending Rule) by The Universal Credit (Consequential, Supplementary, Incidental and Miscellaneous Provisions) Regulations (Northern Ireland) 2016 (S.R. 2016/236), regs. 1(1), 5(2)

Group 4 — Women’s sanitary products U.K.

Textual Amendments

F225 Sch. 7A Pt. 2 Group 4 omitted (with effect in accordance with s. 126(5)(6) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 126(2)(b); S.I. 2020/1642, reg. 3

U.K.

F225 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F225 Sch. 7A Pt. 2 Group 4 omitted (with effect in accordance with s. 126(5)(6) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 126(2)(b); S.I. 2020/1642, reg. 3

Group 5 — Children’s car seats U.K.

ITEM NO.

1 U.K. Supplies of children’s car seats.

NOTES:

Meaning of “children’s car seats” U.K.

1 (1) For the purposes of this Group, the following are “children’s car seats”—

(a) a safety seat;

[F226 (aa) a related base unit for a safety seat;]

(b) the combination of a safety seat and a related wheeled framework;

(c) a booster seat;

(d) a booster cushion.

(2) In this Group “child” means a person aged under 14 years.

Textual Amendments

F226 Sch. 7A Pt. 2 Group 5 Note 1(1)(aa) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Reduced Rate) (Childrens Car Seats) Order 2009 (S.I. 2009/1359), arts 1(1), 3

Meaning of “safety seat” U.K.

2 In this Group “safety seat” means a seat—

(a) designed to be sat in by a child in a road vehicle,

[F227 (b) designed so that, when in use in a road vehicle, it can be restrained in one or more of the following ways—

(i) by a seat belt fitted in the vehicle, or

(ii) by belts, or anchorages, that form part of the seat being attached to the vehicle, or

(iii) by a related base unit, and]

(c) incorporating an integral harness, or integral impact shield, for restraining a child seated in it.

Textual Amendments

F227 Sch. 7A Pt. 2 Group 5 Note 2(b) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Reduced Rate) (Childrens Car Seats) Order 2009 (S.I. 2009/1359), arts. 1(1), 4

Meaning of “related base unit” U.K.

[F228 2A In this Group “related base unit” means a base unit which is designed solely for the purpose of attaching a safety seat securely in a road vehicle by means of anchorages that form part of the base unit and which, when in use in a road vehicle, can be restrained in one or more of the following ways—

(a) by a seat belt fitted in the vehicle, or

(b) by permanent anchorage points in the vehicle, or

(c) by belts attached to permanent anchorage points in the vehicle.]

Textual Amendments

F228 Sch. 7A Pt. 2 Group 5 Note 2A inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Reduced Rate) (Childrens Car Seats) Order 2009 (S.I. 2009/1359), arts. 1(1), 5

Meaning of “related wheeled framework” U.K.

3 For the purposes of this Group, a wheeled framework is “related” to a safety seat if the framework and the seat are each designed so that—

(a) when the seat is not in use in a road vehicle it can be attached to the framework, and

(b) when the seat is so attached, the combination of the seat and the framework can be used as a child’s pushchair.

Meaning of “booster seat” U.K.

4 In this Group “booster seat” means a seat designed—

(a) to be sat in by a child in a road vehicle, and

(b) so that, when in use in a road vehicle, it and a child seated in it can be restrained by a seat belt fitted in the vehicle.

Meaning of “booster cushion” U.K.

5 In this Group “booster cushion” means a cushion designed—

(a) to be sat on by a child in a road vehicle, and

(b) so that a child seated on it can be restrained by a seat belt fitted in the vehicle

Group 6 — Residential conversions U.K.

ITEM NO.

1 U.K. The supply, in the course of a qualifying conversion, of qualifying services related to the conversion.

2 U.K. The supply of building materials if—

(a) the materials are supplied by a person who, in the course of a qualifying conversion, is supplying qualifying services related to the conversion, and

(b) those services include the incorporation of the materials in the building concerned or its immediate site.

NOTES:

Supplies only partly within item 1 U.K.

1 (1) Sub-paragraph (2) applies where a supply of services is only in part a supply to which item 1 applies.

(2) The supply, to the extent that it is one to which item 1 applies, is to be taken to be a supply to which item 1 applies.

(3) An apportionment may be made to determine that extent.

Meaning of “qualifying conversion” U.K.

2 (1) A “qualifying conversion” means—

(a) a changed number of dwellings conversion (see paragraph 3);

(b) a house in multiple occupation conversion (see paragraph 5); or

(c) a special residential conversion (see paragraph 7).

(2) Sub-paragraph (1) is subject to paragraphs 9 and 10.

Meaning of “changed number of dwellings conversion” U.K.

3 (1) A “changed number of dwellings conversion” is—

(a) a conversion of premises consisting of a building where the conditions specified in this paragraph are satisfied, or

(b) a conversion of premises consisting of a part of a building where those conditions are satisfied.

(2) The first condition is that after the conversion the premises being converted contain a number of single household dwellings that is—

(a) different from the number (if any) that the premises contain before the conversion, and

(b) greater than, or equal to, one.

(3) The second condition is that there is no part of the premises being converted that is a part that after the conversion contains the same number of single household dwellings (whether zero, one or two or more) as before the conversion.

Meaning of “single household dwelling” and “multiple occupancy dwelling” U.K.

4 (1) For the purposes of this Group “single household dwelling” means a dwelling—

(a) that is designed for occupation by a single household, and

(b) in relation to which the conditions set out in sub-paragraph (3) are satisfied.

(2) For the purposes of this Group “multiple occupancy dwelling” means a dwelling—

(a) that is designed for occupation by persons not forming a single household, F229 . . .

[F230 (aa) that is not to any extent used for a relevant residential purpose, and]

(b) in relation to which the conditions set out in sub-paragraph (3) are satisfied.

(3) The conditions are—

(a) that the dwelling consists of self-contained living accommodation,

(b) that there is no provision for direct internal access from the dwelling to any other dwelling or part of a dwelling,

(c) that the separate use of the dwelling is not prohibited by the terms of any covenant, statutory planning consent or similar provision, and

(d) that the separate disposal of the dwelling is not prohibited by any such terms.

(4) For the purposes of this paragraph, a dwelling “is designed” for occupation of a particular kind if it is so designed—

(a) as a result of having been originally constructed for occupation of that kind and not having been subsequently adapted for occupation of any other kind, or

(b) as a result of adaptation.

Textual Amendments

F229 Word in Sch. 7A Pt. 2 Group 6 Note 4(2)(a) omitted (1.6.2002) by virtue of The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 4(a)(i)

F230 Sch. 7A Pt. 2 Group 6 Note 4(2)(aa) inserted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 4(a)(ii)

Meaning of “house in multiple occupation conversion” U.K.

5 (1) A “house in multiple occupation conversion” is—

(a) a conversion of premises consisting of a building where the condition specified in sub-paragraph (2) below is satisfied, or

(b) a conversion of premises consisting of a part of a building where that condition is satisfied.

(2) The condition is that—

[F231 (a) before the conversion the premises being converted do not contain any multiple occupancy dwellings,]

(b) after the conversion those premises contain only a multiple occupancy dwelling or two or more such dwellings, and

(c) the use to which those premises are intended to be put after the conversion is not to any extent use for a relevant residential purpose.

Textual Amendments

F231 Sch. 7A Pt. 2 Group 6 Note 5(2)(a) substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 4(b)

Meaning of “use for a relevant residential purpose” U.K.

6 For the purposes of this Group “use for a relevant residential purpose” means use as—

(a) a home or other institution providing residential accommodation for children,

(b) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder,

(c) a hospice,

(d) residential accommodation for students or school pupils,

(e) residential accommodation for members of any of the armed forces,

(f) a monastery, nunnery or similar establishment, or

(g) an institution which is the sole or main residence of at least 90 per cent. of its residents,

except use as a hospital, prison or similar institution or an hotel, inn or similar establishment.

Meaning of “special residential conversion” U.K.

7 (1) A “special residential conversion” is a conversion of premises consisting of—

(a) a building or two or more buildings,

(b) a part of a building or two or more parts of buildings, or

(c) a combination of—

(i) a building or two or more buildings, and

(ii) a part of a building or two or more parts of buildings,

where the conditions specified in this paragraph are satisfied.

[F232 (2) The first condition is that—

(a) the use to which the premises being converted were last put before the conversion was not to any extent use for a relevant residential purpose, and

(b) those premises are intended to be used solely for a relevant residential purpose after the conversion.]

(3) F233 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) F234 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) F235 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) The [F236 second] condition is that, where the relevant residential purpose [F237 for which the premises are intended to be used] is an institutional purpose, the premises being converted must be intended to form after the conversion the entirety of an institution used for that purpose.

(7) In sub-paragraph (6) “institutional purpose” means a purpose within paragraph 6(a) to (c), (f) or (g).

Textual Amendments

F232 Sch. 7A Pt. 2 Group 6 Note 7(2) substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 4(c)(i)

F233 Sch. 7A Pt. 2 Group 6 Note 7(3) omitted (1.6.2002) by virtue of The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 4(c)(ii)

F234 Sch. 7A Pt. 2 Group 6 Note 7(4) omitted (1.6.2002) by virtue of The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 4(c)(ii)

F235 Sch. 7A Pt. 2 Group 6 Note 7(5) omitted (1.6.2002) by virtue of The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 4(c)(ii)

F236 Word in Sch. 7A Pt. 2 Group 6 Note 7(6) substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 4(c)(iii)(a)

F237 Words in Sch. 7A Pt. 2 Group 6 Note 7(6) inserted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 4(c)(iii)(b)

Special residential conversions: reduced rate only for supplies made to intended user of converted accommodation U.K.

8 (1) This paragraph applies where the qualifying conversion concerned is a special residential conversion.

(2) Item 1 or 2 does not apply to a supply unless—

(a) it is made to a person who intends to use the premises being converted for the relevant residential purpose, and

(b) before it is made, the person to whom it is made has given to the person making it a certificate that satisfies the requirements in sub-paragraph (3).

(3) Those requirements are that the certificate—

(a) is in such form as may be specified in a notice published by the Commissioners, and

(b) states that the conversion is a special residential conversion.

(4) In sub-paragraph (2)(a) “the relevant residential purpose” means the purpose within paragraph 6 for which the premises being converted are intended to be used after the conversion.

“Qualifying conversion” includes related garage works U.K.

9 (1) A qualifying conversion includes any garage works related to the—

(a) changed number of dwellings conversion,

(b) house in multiple occupation conversion, or

(c) special residential conversion,

concerned.

(2) In this paragraph “garage works” means—

(a) the construction of a garage, or

(b) a conversion of a non-residential building, or of a non-residential part of a building, that results in a garage.

(3) For the purposes of sub-paragraph (1), garage works are “related” to a conversion if—

(a) they are carried out at the same time as the conversion, and

(b) the resulting garage is intended to be occupied with—

(i) where the conversion concerned is a changed number of dwellings conversion, a single household dwelling that will after the conversion be contained in the building, or part of a building, being converted,

(ii) where the conversion concerned is a house in multiple occupation conversion, a multiple occupancy dwelling that will after the conversion be contained in the building, or part of a building, being converted, or

(iii) where the conversion concerned is a special residential conversion, the institution or other accommodation resulting from the conversion.

(4) In sub-paragraph (2) “non-residential” means neither designed, nor adapted, for use—

(a) as a dwelling or two or more dwellings, or

(b) for a relevant residential purpose.

Conversion not “qualifying” if planning consent and building control approval not obtained U.K.

10 (1) A conversion is not a qualifying conversion if any statutory planning consent needed for the conversion has not been granted.

(2) A conversion is not a qualifying conversion if any statutory building control approval needed for the conversion has not been granted.

Meaning of “supply of qualifying services” U.K.

11 (1) In the case of a conversion of a building, “supply of qualifying services” means a supply of services that consists in—

(a) the carrying out of works to the fabric of the building, or

(b) the carrying out of works within the immediate site of the building that are in connection with—

(i) the means of providing water, power, heat or access to the building,

(ii) the means of providing drainage or security for the building, or

(iii) the provision of means of waste disposal for the building.

(2) In the case of a conversion of part of a building, “supply of qualifying services” means a supply of services that consists in—

(a) the carrying out of works to the fabric of the part, or

(b) the carrying out of works to the fabric of the building, or within the immediate site of the building, that are in connection with—

(i) the means of providing water, power, heat or access to the part,

(ii) the means of providing drainage or security for the part, or

(iii) the provision of means of waste disposal for the part.

(3) In this paragraph—

(a) references to the carrying out of works to the fabric of a building do not include the incorporation, or installation as fittings, in the building of any goods that are not building materials;

(b) references to the carrying out of works to the fabric of a part of a building do not include the incorporation, or installation as fittings, in the part of any goods that are not building materials.

Meaning of “building materials” U.K.

12 In this Group “building materials” has the meaning given by Notes (22) and (23) of Group 5 to Schedule 8 (zero-rating of construction and conversion of buildings).

Group 7 — [F238 RESIDENTIAL RENOVATIONS AND ALTERATIONS] U.K.

Textual Amendments

F238 Sch. 7A Pt. 2 Group 7 Title substituted (1.6.2002) by virtue of The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 5(a)

ITEM NO.

1 U.K. The supply, in the course of the renovation or alteration of [F239 qualifying residential premises], of qualifying services related to the renovation or alteration.

Textual Amendments

F239 Words in Sch. 7A Pt. 2 Group 7 Item 1 substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 5(b)

2 U.K. The supply of building materials if—

(a) the materials are supplied by a person who, in the course of the renovation or alteration of [F240 qualifying residential premises], is supplying qualifying services related to the renovation or alteration, and

(b) those services include the incorporation of the materials in [F241 the premises concerned or their immediate site].

NOTES:

Textual Amendments

F240 Words in Sch. 7A Pt. 2 Group 7 Item 2 substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 5(b)

F241 Words in Sch. 7A Pt. 2 Group 7 Item 2(b) substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 5(c)

Supplies only partly within item 1 U.K.

1 (1) Sub-paragraph (2) applies where a supply of services is only in part a supply to which item 1 applies.

(2) The supply, to the extent that it is one to which item 1 applies, is to be taken to be a supply to which item 1 applies.

(3) An apportionment may be made to determine that extent.

Meaning of “alteration” and “qualifying residential premises” U.K.

[F242 2  

(1) For the purposes of this Group—

• “alteration” includes extension;

• “qualifying residential premises” means—

  (a)

  a single household dwelling,

  (b)

  a multiple occupancy dwelling, or

  (c)

  a building, or part of a building, which, when it was last lived in, was used for a relevant residential purpose.

(2) Where a building, when it was last lived in, formed part of a relevant residential unit then, to the extent that it would not be so regarded otherwise, the building shall be treated as having been used for a relevant residential purpose.

(3) A building forms part of a relevant residential unit at any time when—

(a) it is one of a number of buildings on the same site, and

(b) the buildings are used together as a unit for a relevant residential purpose.

(4) The following expressions have the same meaning in this Group as they have in Group 6—

• “multiple occupancy dwelling”(paragraph 4(2) of the Notes to that Group);

• “single household dwelling”(paragraph 4(1) of the Notes);

• “use for a relevant residential purpose”(paragraph 6 of the Notes).]

Textual Amendments

F242 Sch. 7A Pt. 2 Group 7 Note 2 substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 5(d)

Items 1 and 2 only apply where [F243 premises have] been empty for at least [F244 2 years] U.K.

3 [F245 (1) Item 1 or 2 does not apply to a supply unless—

(a) the first empty home condition is satisfied, or

(b) if the premises are a single household dwelling, either of the empty home conditions is satisfied.]

[F246 (2) The first “empty home condition” is that neither—

(a) the premises concerned, nor

(b) where those premises are a building, or part of a building, which, when it was last lived in, formed part of a relevant residential unit, any of the other buildings that formed part of the unit,

have been lived in during the period of [F244 2 years] ending with the commencement of the relevant works.]

(3) The second “empty home condition” is that—

(a) the dwelling was not lived in during a period of at least [F244 2 years];

(b) the person, or one of the persons, whose beginning to live in the dwelling brought that period to an end was a person who (whether alone or jointly with another or others) acquired the dwelling at a time—

(i) no later than the end of that period, and

(ii) when the dwelling had been not lived in for at least [F244 2 years];

(c) no works by way of renovation or alteration were carried out to the dwelling during the period of [F244 2 years] ending with the acquisition;

(d) the supply is made to a person who is—

(i) the person, or one of the persons, whose beginning to live in the property brought to an end the period mentioned in paragraph (a), and

(ii) the person, or one of the persons, who acquired the dwelling as mentioned in paragraph (b); and

(e) the relevant works are carried out during the period of one year beginning with the day of the acquisition.

(4) In this paragraph “the relevant works” means—

(a) where the supply is of the description set out in item 1, the works that constitute the services supplied;

(b) where the supply is of the description set out in item 2, the works by which the materials concerned are incorporated in [F247 the premises concerned or their immediate site].

(5) In sub-paragraph (3), references to a person acquiring a dwelling are to that person having a major interest in the dwelling granted, or assigned, to him for a consideration.

Textual Amendments

F243 Words in Sch. 7A Pt. 2 Group 7 Note 3 heading substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 5(e)(i)

F244 Words in Sch. 7A Pt. 2 Group 7 Note 3 substituted (1.1.2008) by The Value Added Tax (Reduced Rate) (No. 2) Order 2007 (S.I. 2007/3448), arts. 1, 3, 4

F245 Sch. 7A Pt. 2 Group 7 Note 3(1) substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 5(e)(ii)

F246 Sch. 7A Pt. 2 Group 7 Note 3(2) substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 5(e)(iii)

F247 Words in Sch. 7A Pt. 2 Group 7 Note 3(4)(b) substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 5(e)(iv)

Items 1 and 2 apply to related garage works U.K.

[F248 3A  

(1) For the purposes of this Group a renovation or alteration of any premises includes any garage works related to the renovation or alteration.

(2) In this paragraph “garage works” means—

(a) the construction of a garage,

(b) the conversion of a building, or of a part of a building, that results in a garage, or

(c) the renovation or alteration of a garage.

(3) For the purposes of sub-paragraph (1), garage works are “related” to a renovation or alteration if—

(a) they are carried out at the same time as the renovation or alteration of the premises concerned, and

(b) the garage is intended to be occupied with the premises.]

Textual Amendments

F248 Sch 7A Pt. 2 Group 7 Note 3A inserted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 5(f)

Items 1 and 2 only apply if planning consent and building control approval obtained U.K.

4 (1) Item 1 or 2 does not apply to a supply unless any statutory planning consent needed for the renovation or alteration has been granted.

(2) Item 1 or 2 does not apply to a supply unless any statutory building control approval needed for the renovation or alteration has been granted.

Items 1 and 2 only apply if building used for relevant residential purpose is subsequently used solely for that purpose U.K.

[F249 4A  

(1) Item 1 or 2 does not apply to a supply if the premises in question are a building, or part of a building, which, when it was last lived in, was used for a relevant residential purpose unless—

(a) the building or part is intended to be used solely for such a purpose after the renovation or alteration, and

(b) before the supply is made the person to whom it is made has given to the person making it a certificate stating that intention.

(2) Where a number of buildings on the same site are—

(a) renovated or altered at the same time, and

(b) intended to be used together as a unit solely for a relevant residential purpose,

then each of those buildings, to the extent that it would not be so regarded otherwise, shall be treated as intended for use solely for a relevant residential purpose.]

Textual Amendments

F249 Sch. 7A Pt. 2 Group 7 Note 4A inserted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 5(g)

Meaning of “supply of qualifying services” U.K.

5 (1) “Supply of qualifying services” means a supply of services that consists in—

(a) the carrying out of works to the fabric of the [F250 premises], or

(b) the carrying out of works within the immediate site of the [F250 premises] that are in connection with—

(i) the means of providing water, power, heat or access to the [F250 premises],

(ii) the means of providing drainage or security for the [F250 premises], or

(iii) the provision of means of waste disposal for the [F250 premises].

(2) In sub-paragraph (1)(a), the reference to the carrying out of works to the fabric of the [F250 premises] does not include the incorporation, or installation as fittings, in the [F250 premises] of any goods that are not building materials.

Textual Amendments

F250 Word in Sch. 7A Pt. 2 Group 7 Note 5 substituted (1.6.2002) by The Value Added Tax (Reduced Rate) Order 2002 (S.I. 2002/1100), art. 5(h)

Meaning of “building materials” U.K.

6 In this Group “building materials” has the meaning given by Notes (22) and (23) of Group 5 to Schedule 8 (zero-rating of construction and conversion of buildings).

[F251 Group 8— CONTRACEPTIVE PRODUCTS U.K.

Textual Amendments

F251 Sch. 7A Pt. 2 Groups 8, 9 inserted (1.7.2006) by The Value Added Tax (Reduced Rate) Order 2006 (S.I. 2006/1472), arts. 1, 4, Sch.

ITEM NO.

1 U.K. Supplies of contraceptive products, other than relevant exempt supplies.

NOTES:

Meaning of “contraceptive products”

1

In this Group “contraceptive product” means any product designed for the purposes of human contraception, but does not include any product designed for the purpose of monitoring fertility.

Meaning of “relevant exempt supplies”

2

In this Group “relevant exempt supplies” means supplies which fall within item 4 of Group 7 of Schedule 9 (exempt supplies of goods in any hospital etc. in connection with medical or surgical treatment etc.).

Group 9— WELFARE ADVICE OR INFORMATION U.K.

ITEM NO.

1 U.K. Supplies of welfare advice or information by—

(a) a charity, or

(b) a state-regulated private welfare institution or agency.

NOTES:

Meaning of “welfare advice or information”

1

In this Group “welfare advice or information” means advice or information which directly relates to—

(a)

the physical or mental welfare of elderly, sick, distressed or disabled persons, or

(b)

the care or protection of children and young persons.

Meaning of “state-regulated”

2

For the purposes of this Group “state-regulated” has the same meaning as in Group 7 (health and welfare) of Schedule 9 (see Note (8) of that Group).

Meaning of “state-regulated”

3

Item 1 does not include—

(a)

supplies that would be exempt by virtue of Group 6 of Schedule 9 (education) if they were made by an eligible body within the meaning of that Group,

(b)

supplies of goods, unless the goods are supplied wholly or almost wholly for the purpose of conveying the advice or information, or

(c)

supplies of advice or information provided solely for the benefit of a particular individual or according to his personal circumstances.]

[F252 Group 10 – INSTALLATION OF MOBILITY AIDS FOR THE ELDERLY U.K.

Textual Amendments

F252 Sch. 7A Pt. 2 Group 10 inserted (1.7.2007 with effect in relation to supplies made on or after that date) by The Value Added Tax (Reduced Rate) Order 2007 (S.I. 2007/1601), arts. 1(1)(2), 4

ITEM NO.

1 U.K. The supply of services of installing mobility aids for use in domestic accommodation by a person who, at the time of the supply, is aged 60 or over.

2. U.K. The supply of mobility aids by a person installing them for use in domestic accommodation by a person who, at the time of the supply, is aged 60 or over.

NOTES:

Meaning of “mobility aids”

1

For the purposes of this Group “mobility aids” means any of the following—

(a)

grab rails;

(b)

ramps;

(c)

stair lifts;

(d)

bath lifts;

(e)

built-in shower seats or showers containing built-in shower seats;

(f)

walk-in baths fitted with sealable doors.

Meaning of “domestic accommodation”

2

For the purposes of this Group “domestic accommodation” means a building, or part of a building, that consists of a dwelling or a number of dwellings.]

[F253 Group 11 — SMOKING CESSATION PRODUCTS U.K.

Textual Amendments

F253 Sch. 7A Pt. 2 Group 11 inserted (1.7.2007 with effect in relation to supplies made on or after that date but before 1.7.2008) by The Value Added Tax (Reduced Rate) Order 2007 (S.I. 2007/1601), arts. 1(1)(3), 5

ITEM NO.

1. U.K. Supplies of pharmaceutical products designed to help people to stop smoking tobacco.]

[F254 GROUP 12 U.K. CARAVANS

Textual Amendments

F254 Sch. 7A Pt. 2 Group 12 inserted (6.4.2013) by Finance Act 2012 (c. 14), Sch. 26 paras. 6(3), 7(2)

Item No U.K.

1 Supplies of caravans which exceed the limits of size of a trailer for the time being permitted to be towed on roads by a motor vehicle having a maximum gross weight of 3,500 kilogrammes.

2 U.K. The supply of such services as are described in paragraph 1(1) or 5(4) of Schedule 4 in respect of a caravan within item 1.

NOTE: This Group does not include—

(a)

removable contents other than goods of a kind mentioned in item 4 of Group 5 of Schedule 8, or

(b)

the supply of accommodation in a caravan.]

[F255 GROUP 13 U.K. CABLE-SUSPENDED PASSENGER TRANSPORT SYSTEMS

Textual Amendments

F255 Sch. 7A Pt. 2 Group 13 inserted (1.4.2013) by The Value Added Tax (Reduced Rate) (Cable-Suspended Passenger Transport Systems) Order 2013 (S.I. 2013/430), arts. 1, 2(3)

Item No.

1 U.K. Transport of passengers by means of a cable-suspended chair, bar, gondola or similar vehicle designed or adapted to carry not more than 9 passengers.

NOTES:

Supplies not within item 1

1

Item 1 does not include the transport of passengers to, from or within—

(i)

a place of entertainment, recreation or amusement; or

(ii)

a place of cultural, scientific, historical or similar interest,

by the person, or a person connected with that person, who supplies a right of admission to, or a right to use facilities at, such a place.

2

For the purposes of Note 1 any question as to whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010.]

[F256 Group 14 — Course of Catering U.K.

Textual Amendments

F256 Sch. 7A Pt. 2 Groups 14-16 inserted (temp.) (15.7.2020) by virtue of The Value Added Tax (Reduced Rate) (Hospitality and Tourism) (Coronavirus) Order 2020 (S.I. 2020/728), arts. 1, 4 (with art. 2)

Item No

1 U.K. Supplies in the course of catering of—

(a) any food or drink for consumption on the premises on which it is supplied, or

(b) any hot food or hot drink for consumption off those premises,

NOTES

(1)

Note (3A) to Group 1 (Food) of Schedule 8 applies in relation to this Group as it applies in relation to Note (3) in that Group.

(2)

Notes (3B) to (3D) to Group 1 (Food) of Schedule 8 apply in relation to this Group as they apply in relation to that Group.

(3)

“Alcoholic beverage” means a beverage within Item 3 in the list of excepted items in Group 1 of Schedule 8.

Group 15 — Holiday accommodation etc U.K.

Item No

1 U.K. Any supply which, because it falls within paragraph (d), (e) so far as the supply consists of the grant of a licence to occupy holiday accommodation, (f) or (g) of Item 1 in Group 1 (Land) of Schedule 9, is not an exempt supply by virtue of that Item.

Group 16 — Shows and certain other attractions U.K.

Item No

1 U.K. Supplies of a right of admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas and exhibitions and similar cultural events and facilities but excluding any supplies that are exempt supplies by virtue of Items 1 or 2 in Group 13 of Schedule 9.]

Section 30.

SCHEDULE 8 U.K. Zero-rating

Part I U.K. Index to zero-rated supplies of goods and services

Subject matter	Group Number	1983 Group Number
Bank notes	Group 11	Group 13
Books etc.	Group 3	Group 3
Caravans and houseboats	Group 9	Group 11
Charities etc.	Group 15	Group 16
Clothing and footwear	Group 16	Group 17
Construction of buildings etc.	Group 5	Group 8
Drugs, medicines, aids for the [F257 disabled] etc.	Group 12	Group 14
F258 ...	F258 . . .
F259 . . .	F259 . . .
Food	Group 1	Group 1
Gold	Group 10	Group 12
Imports, exports etc.	Group 13	Group 15
International services	Group 7	Group 9
[F260 Online marketplaces (deemed supply)	Group 21]
[F261 Personal protective equipment (coronavirus)	Group 20]
Protected buildings	Group 6	Group 8A
Sewerage services and water	Group 2	Group 2
Talking books for the blind and [F262 disabled] and wireless sets for the blind	Group 4	Group 4
F263 . . .	F263 . . .	F263 . . .
Transport	Group 8	Group 10
[F264 Women's sanitary products	Group 19]

Textual Amendments

F257 Word in Sch. 8 Pt. I substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 5(a)

F258 Words in Sch. 8 Pt. I omitted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Emissions Allowances) Order 2010 (S.I. 2010/2549), arts. 1(2), 2(2)

F259 Words in Sch. 8 Pt. I omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(2) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F260 Words in Sch. 8 Pt. I inserted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 3 para. 16(2) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

F261 Words in Sch. 8 Pt. I inserted (1.5.2020) by The Value Added Tax (Zero Rate for Personal Protective Equipment) (Coronavirus) Order 2020 (S.I. 2020/458), arts. 1, 3

F262 Word in Sch. 8 Pt. I substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 5(b)

F263 Sch. 8 Pt. I: entry relating to “tax-free shops” deleted (1.7.1999) by S.I. 1999/1642, art. 2(a)

F264 Words in Sch. 8 Pt. I inserted (with effect in accordance with s. 126(5)(6) of the amending Act) by Finance Act 2016 (c. 24), s. 126(3); S.I. 2020/1642, reg. 3

F265 F266 F267 Part II U.K. The Groups

Textual Amendments

F265 Sch. 8 Pt. 2 Group 19 inserted (with effect in accordance with s. 126(5)(6) of the amending Act) by Finance Act 2016 (c. 24), s. 126(4); S.I. 2020/1642, reg. 3

F266 Sch. 8 Pt. II Group 21 inserted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 3 para. 16(3) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

F267 Words in Sch. 8 Pt. II substituted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 2 para. 8 (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

Modifications etc. (not altering text)

C6 Sch. 8 Group 12 Note (2D)(i) is revoked (7.12.15) as it appears in the inserting provision (S.I. 2009/2972, art. 6) by The National Health Service (General Medical Services Contracts) Regulations 2015 (S.I. 2015/1862), regs. 1(2), 98, Sch. 5 Table

C7 Sch. 8 Pt. II modified (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by 2018 c. 22, Sch. 7 para. 158(6) (as inserted by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 1 para. 10(6) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9)

Group 1— Food U.K.

The supply of anything comprised in the general items set out below, except—

(a) a supply in the course of catering; and

(b) a supply of anything comprised in any of the excepted items set out below, unless it is also comprised in any of the items overriding the exceptions set out below which relates to that excepted item.

General items U.K.

Item No. U.K.

1 Food of a kind used for human consumption.

2 U.K. Animal feeding stuffs.

3 U.K. Seeds or other means of propagation of plants comprised in item 1 or 2.

4 U.K. Live animals of a kind generally used as, or yielding or producing, food for human consumption.

Excepted items U.K.

Item No. U.K.

1 Ice cream, ice lollies, frozen yogurt, water ices and similar frozen products, and prepared mixes and powders for making such products.

2 U.K. Confectionery, not including cakes or biscuits other than biscuits wholly or partly covered with chocolate or some product similar in taste and appearance.

3 U.K. Beverages chargeable with any duty of excise specifically charged on spirits, beer, wine or made-wine and preparations thereof.

4 U.K. Other beverages (including fruit juices and bottled waters) and syrups, concentrates, essences, powders, crystals or other products for the preparation of beverages.

[F268 4A U.K. Sports drinks that are advertised or marketed as products designed to enhance physical performance, accelerate recovery after exercise or build bulk, and other similar drinks, including (in either case) syrups, concentrates, essences, powders, crystals or other products for the preparation of such drinks.]

Textual Amendments

F268 Sch. 8 Pt. II Group 1 excepted item 4A inserted (1.10.2012) by Finance Act 2012 (c. 14), Sch. 26 paras. 2(2), 7(1)

5 U.K. Any of the following when packaged for human consumption without further preparation, namely, potato crisps, potato sticks, potato puffs, and similar products made from the potato, or from potato flour, or from potato starch, and savoury food products obtained by the swelling of cereals or cereal products; and salted or roasted nuts other than nuts in shell.

6 U.K. Pet foods, canned, packaged or prepared; packaged foods (not being pet foods) for birds other than poultry or game; and biscuits and meal for cats and dogs.

7 U.K. Goods described in items 1, 2 and 3 of the general items which are canned, bottled, packaged or prepared for use—

(a) in the domestic brewing of any beer;

(b) in the domestic making of any cider or perry;

(c) in the domestic production of any wine or made-wine.

Items overriding the exceptions U.K.

Item No. U.K.

1 Yoghurt unsuitable for immediate consumption when frozen.

2 U.K. Drained cherries.

3 U.K. Candied peels.

4 U.K. Tea, mateg, herbal teas and similar products, and preparations and extracts thereof.

5 U.K. Cocoa, coffee and chicory and other roasted coffee substitutes, and preparations and extracts thereof.

6 U.K. Milk and preparations and extracts thereof.

7 U.K. Preparations and extracts of meat, yeast or egg.

Notes: U.K.

(1) “Food” includes drink.

(2) “Animal” includes bird, fish, crustacean and mollusc.

(3) A supply of anything in the course of catering includes—

(a) any supply of it for consumption on the premises on which it is supplied; and

(b) any supply of hot food for consumption off those premises;

F269 ...

[F270 (3A) For the purposes of Note (3), in the case of any supplier, the premises on which food is supplied include any area set aside for the consumption of food by that supplier's customers, whether or not the area may also be used by the customers of other suppliers.

(3B) “Hot food” means food which (or any part of which) is hot at the time it is provided to the customer and—

(a) has been heated for the purposes of enabling it to be consumed hot,

(b) has been heated to order,

(c) has been kept hot after being heated,

(d) is provided to a customer in packaging that retains heat (whether or not the packaging was primarily designed for that purpose) or in any other packaging that is specifically designed for hot food, or

(e) is advertised or marketed in a way that indicates that it is supplied hot.

(3C) For the purposes of Note (3B)—

(a) something is “hot” if it is at a temperature above the ambient air temperature, and

(b) something is “kept hot” after being heated if the supplier stores it in an environment which provides, applies or retains heat, or takes other steps to ensure it remains hot or to slow down the natural cooling process.

(3D) In Notes (3B) and (3C), references to food being heated include references to it being cooked or reheated.]

(4) Item 1 of the items overriding the exceptions relates to item 1 of the excepted items.

(5) Items 2 and 3 of the items overriding the exceptions relate to item 2 of the excepted items; and for the purposes of item 2 of the excepted items “confectionery” includes chocolates, sweets and biscuits; drained, glaceg or crystallised fruits; and any item of sweetened prepared food which is normally eaten with the fingers.

(6) [F271 Items 4 to 7] of the items overriding the exceptions relate to item 4 of the excepted items.

(7) Any supply described in this Group shall include a supply of services described in paragraph 1(1) of Schedule 4.

Textual Amendments

F269 Words in Sch. 8 Pt. II Group 1 Note (3) omitted (1.10.2012) by Finance Act 2012 (c. 14), Sch. 26 paras. 2(3), 7(1)

F270 Sch. 8 Pt. II Group 1 Notes (3A)-(3D) inserted (1.10.2012) by Finance Act 2012 (c. 14), Sch. 26 paras. 2(4), 7(1)

F271 Words in Sch. 8 Pt. II Group 1 Note 6 substituted (retrospectively) by 1999 c. 16, s. 14

Group 2— Sewerage services and water U.K.

Item No. U.K.

1 Services of—

(a) reception, disposal or treatment of foul water or sewage in bulk, and

(b) emptying of cesspools, septic tanks or similar receptacles which are used otherwise than in connection with the carrying on in the course of a business of a relevant industrial activity.

2 U.K. The supply, for use otherwise than in connection with the carrying on in the course of a business of a relevant industrial activity, of water other than—

(a) distilled water, deionised water and water of similar purity, F272 . . .

(b) water comprised in any of the excepted items set out in Group 1.

[F273 and

(c) water which has been heated so that it is supplied at a temperature higher than that at which it was before it was heated.]

Note: “Relevant industrial activity” means any activity described in any of Divisions 1 to 5 of the 1980 edition of the publication prepared by the Central Statistical Office and known as the Standard Industrial Classification.

Textual Amendments

F272 Word in Sch. 8 Pt. II Group 2 item 2 para.(a) omitted (26.6.1996) by virtue of S.I. 1996/1661, arts. 1, 2(a)

F273 Sch. 8 Pt. II Group 2 item 2 para.(c) inserted (26.6.1996) by S.I. 1996/1661, arts. 1, 2(b)

Group 3— Books, etc. U.K.

Item No. U.K.

1 Books, booklets, brochures, pamphlets and leaflets.

2 U.K. Newspapers, journals and periodicals.

3 U.K. Children’s picture books and painting books.

4 U.K. Music (printed, duplicated or manuscript).

5 U.K. Maps, charts and topographical plans.

6 U.K. Covers, cases and other articles supplied with items 1 to 5 and not separately accounted for.

[F274 7. U.K. The publications listed in Items 1 to 3 when supplied electronically, but excluding publications which—

(a) are wholly or predominantly devoted to advertising, or

(b) consist wholly or predominantly of audio or video content.]

Textual Amendments

F274 Sch. 8 Pt. II Group 3 Item 7 inserted (1.5.2020) by The Value Added Tax (Extension of Zero-Rating to Electronically Supplied Books etc.) (Coronavirus) Order 2020 (S.I. 2020/459), arts. 1, 3

[F275 Notes] U.K.

[F276 (1) Items 1 to 7 do not include plans or drawings for industrial, architectural, engineering, commercial or similar purposes.

(1A) Items 1 to 6 include the supply of the services described in paragraph 1(1) of Schedule 4 in respect of goods comprised in the items.]

[F277 (2) Items 1 to 6 do not include goods in circumstances where—

(a) the supply of the goods is connected with a supply of services, and

(b) those connected supplies are made by different suppliers.

[F278 (2A) Item 7 does not include services in circumstances where—

(a) the supply of the services is connected with a supply of goods or services; and

(b) those connected supplies are made by different suppliers.]

(3) For the purposes of [F279 Notes (2) and (2A)] [F280 two supplies are connected with each other] if, had those two supplies been made by a single supplier—

(a) they would have been treated as a single supply F281 ..., and

(b) that single supply would have been a taxable supply (other than a zero-rated supply) or an exempt supply.]

Textual Amendments

F275 Words in Sch. 8 Pt. II Group 3 Notes substituted (with effect in accordance with s. 75(4) of the amending Act) by Finance Act 2011 (c. 11), s. 75(2)

F276 Sch. 8 Pt. II Group 3 Notes (1)(1A) substituted for Sch. 8 Pt. II Group 3 Note (1) (1.5.2020) by The Value Added Tax (Extension of Zero-Rating to Electronically Supplied Books etc.) (Coronavirus) Order 2020 (S.I. 2020/459), arts. 1, 4

F277 Sch. 8 Pt. II Group 3 Notes (2)(3) inserted (with effect in accordance with s. 75(4) of the amending Act) by Finance Act 2011 (c. 11), s. 75(3)

F278 Sch. 8 Pt. II Group 3 Note (2A) inserted (1.5.2020) by The Value Added Tax (Extension of Zero-Rating to Electronically Supplied Books etc.) (Coronavirus) Order 2020 (S.I. 2020/459), arts. 1, 5

F279 Words in Sch. 8 Pt. II Note (3) substituted (1.5.2020) by The Value Added Tax (Extension of Zero-Rating to Electronically Supplied Books etc.) (Coronavirus) Order 2020 (S.I. 2020/459), arts. 1, 6(a)

F280 Words in Sch. 8 Pt. II Note (3) substituted (1.5.2020) by The Value Added Tax (Extension of Zero-Rating to Electronically Supplied Books etc.) (Coronavirus) Order 2020 (S.I. 2020/459), arts. 1, 6(b)

F281 Words in Sch. 8 Pt. II Note (3)(a) omitted (1.5.2020) by virtue of The Value Added Tax (Extension of Zero-Rating to Electronically Supplied Books etc.) (Coronavirus) Order 2020 (S.I. 2020/459), arts. 1, 6(c)

Group 4— Talking books for the blind and [F282 disabled] and wireless sets for the blind U.K.

Textual Amendments

F282 Word in Sch. 8 Pt. II Group 4 heading substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 6(b)

Item No. U.K.

1 The supply to the Royal National Institute for the Blind, the National Listening Library or other similar charities of—

(a) magnetic tape specially adapted for the recording and reproduction of speech for the blind or severely [F283 disabled];

(b) apparatus designed or specially adapted for the making on a magnetic tape, by way of the transfer of recorded speech from another magnetic tape, of a recording described in paragraph (f) below;

(c) apparatus designed or specially adapted for transfer to magnetic tapes of a recording made by apparatus described in paragraph (b) above;

(d) apparatus for re-winding magnetic tape described in paragraph (f) below;

(e) apparatus designed or specially adapted for the reproduction from recorded magnetic tape of speech for the blind or severely [F283 disabled] which is not available for use otherwise than by the blind or severely [F283 disabled];

(f) magnetic tape upon which has been recorded speech for the blind or severely [F283 disabled], such recording being suitable for reproduction only in the apparatus mentioned in paragraph (e) above;

(g) apparatus solely for the making on a magnetic tape of a sound recording which is for use by the blind or severely [F283 disabled];

(h) parts and accessories (other than a magnetic tape for use with apparatus described in paragraph (g) above) for goods comprised in paragraphs (a) to (g) above;

(i) the supply of a service of repair or maintenance of any goods comprised in paragraphs (a) to (h) above.

Textual Amendments

F283 Word in Sch. 8 Pt. II Group 4 item 1 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 6(a)

2 U.K. The supply to a charity of—

(a) wireless receiving sets; or

(b) apparatus solely for the making and reproduction of a sound recording on a magnetic tape permanently contained in a cassette,

being goods solely for gratuitous loan to the blind.

Note: The supply mentioned in items 1 and 2 includes the letting on hire of goods comprised in the items.

[F284 GROUP 5-CONSTRUCTION OF BUILDINGS, ETC.] U.K.

Textual Amendments

F284 Sch. 8 Pt. II Group 5 substituted (1.3.1995) by S.I. 1995/280, arts. 1, 2

Item No. U.K.

[F285 1 The first grant by a person—

(a) constructing a building—

(i) designed as a dwelling or number of dwellings; or

(ii) intended for use solely for a relevant residential or a relevant charitable purpose; or

(b) converting a non-residential building or a non-residential part of a building into a building designed as a dwelling or number of dwellings or a building intended for use solely for a relevant residential purpose,

of a major interest in, or in any part of, the building, dwelling or its site.]

Textual Amendments

F285 Sch. 8 Pt. II Group 5 substituted (1.3.1995) by S.I. 1995/280, arts. 1, 2

[F286 2 U.K. The supply in the course of the construction of—

(a) a building designed as a dwelling or number of dwellings or intended for use solely for a relevant residential purpose or a relevant charitable purpose; or

(b) any civil engineering work necessary for the development of a permanent park for residential caravans,

of any services related to the construction other than the services of an architect, surveyor or any person acting as a consultant or in a supervisory capacity.]

Textual Amendments

F286 Sch. 8 Pt. II Group 5 substituted (1.3.1995) by S.I. 1995/280, arts. 1, 2

[F287 3 U.K. The supply to a [F288 relevant housing association] in the course of conversion of a non-residential building or a non-residential part of a building into—

(a) a building or part of a building designed as a dwelling or number of dwellings; or

(b) a building or part of a building intended for use solely for a relevant residential purpose,

of any services related to the conversion other than the services of an architect, surveyor or any person acting as a consultant or in a supervisory capacity.]

Textual Amendments

F287 Sch. 8 Pt. II Group 5 substituted (1.3.1995) by S.I. 1995/280, arts. 1, 2

F288 Words in Sch. 8 Pt. II Group 5 item 3 substituted (1.3.1997) by S.I. 1997/50, arts. 1, 2

[F289 4 U.K. The supply of building materials to a person to whom the supplier is supplying services within item 2 or 3 of this Group which include the incorporation of the materials into the building (or its site) in question.]

Textual Amendments

F289 Sch. 8 Pt. II Group 5 substituted (1.3.1995) by S.I. 1995/280, arts. 1, 2

[F290 Notes: U.K.

(1) “Grant” includes an assignment or surrender.

(2) A building is designed as a dwelling or a number of dwellings where in relation to each dwelling the following conditions are satisfied—

(a) the dwelling consists of self-contained living accommodation;

(b) there is no provision for direct internal access from the dwelling to any other dwelling or part of a dwelling;

(c) the separate use, or disposal of the dwelling is not prohibited by the term of any covenant, statutory planning consent or similar provision; and

(d) statutory planning consent has been granted in respect of that dwelling and its construction or conversion has been carried out in accordance with that consent.

(3) The construction of, or conversion of a non-residential building to, a building designed as a dwelling or a number of dwellings includes the construction of, or conversion of a non-residential building to, a garage provided that—

(a) the dwelling and the garage are constructed or converted at the same time; and

(b) the garage is intended to be occupied with the dwelling or one of the dwellings.

( 4 ) Use for a relevant residential purpose means use as—

(a) a home or other institution providing residential accommodation for children;

(b) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder;

(c) a hospice;

(d) residential accommodation for students or school pupils;

(e) residential accommodation for members of any of the armed forces;

(f) a monastery, nunnery or similar establishment; or

(g) an institution which is the sole or main residence of at least 90 per cent. of its residents,

except use as a hospital, prison or similar institution or an hotel, inn or similar establishment.

(5) Where a number of buildings are—

(a) constructed at the same time and on the same site; and

(b) are intended to be used together as a unit solely for a relevant residential purpose;

then each of those buildings, to the extent that they would not be so regarded but for this Note, are to be treated as intended for use solely for a relevant residential purpose.

(6) Use for a relevant charitable purpose means use by a charity in either or both the following ways, namely—

(a) otherwise than in the course or furtherance of a business;

(b) as a village hall or similarly in providing social or recreational facilities for a local community.

[F291 (7) For the purposes of item 1(b), and for the purposes of these Notes so far as having effect for the purposes of item 1(b), a building or part of a building is “non-residential” if—

(a) it is neither designed, nor adapted, for use—

(i) as a dwelling or number of dwellings, or

(ii) for a relevant residential purpose; or

(b) it is designed, or adapted, for such use but—

(i) it was constructed more than 10 years before the grant of the major interest;

and

(ii) no part of it has, in the period of 10 years immediately preceding the grant, been used as a dwelling or for a relevant residential purpose.

(7A) For the purposes of item 3, and for the purposes of these Notes so far as having effect for the purposes of item 3, a building or part of a building is “non-residential” if—

(a) it is neither designed, nor adapted, for use—

(i) as a dwelling or number of dwellings, or

(ii) for a relevant residential purpose; or

(b) it is designed, or adapted, for such use but—

(i) it was constructed more than 10 years before the commencement of the works of conversion, and

(ii) no part of it has, in the period of 10 years immediately preceding the commencement of those works, been used as a dwelling or for a relevant residential purpose, and

(iii) no part of it is being so used.]

(8) References to a non-residential building or a non-residential part of a building do not include a reference to a garage occupied together with a dwelling.

(9) The conversion, other than to a building designed for a relevant residential purpose, of a non-residential part of a building which already contains a residential part is not included within items 1(b) or 3 unless the result of that conversion is to create an additional dwelling or dwellings.

(10) Where—

(a) part of a building that is constructed is designed as a dwelling or number of dwellings or is intended for use solely for a relevant residential purpose or relevant charitable purpose (and part is not); or

(b) part of a building that is converted is designed as a dwelling or number of dwellings or is used solely for a relevant residential purpose (and part is not)—

then in the case of—

(i) a grant or other supply relating only to the part so designed or intended for that use (or its site) shall be treated as relating to a building so designed or intended for such use;

(ii) a grant or other supply relating only to the part neither so designed nor intended for such use (or its site) shall not be so treated; and

(iii) any other grant or other supply relating to, or to any part of, the building (or its site), an apportionment shall be made to determine the extent to which it is to be so treated.

(11) Where, a service falling within the description in items 2 or 3 is supplied in part in relation to the construction or conversion of a building and in part for other purposes, an apportionment may be made to determine the extent to which the supply is to be treated as falling within items 2 or 3.

(12) Where all or part of a building is intended for use solely for a relevant residential purpose or a relevant charitable purpose—

(a) a supply relating to the building (or any part of it) shall not be taken for the purposes of items 2 and 4 as relating to a building intended for such use unless it is made to a person who intends to use the building (or part) for such a purpose; and

(b) a grant or other supply relating to the building (or any part of it) shall not be taken as relating to a building intended for such use unless before it is made the person to whom it is made has given to the person making it a certificate in such form as may be specified in a notice published by the Commissioners stating that the grant or other supply (or a specified part of it) so relates.

(13) The grant of an interest in, or in any part of—

(a) a building designed as a dwelling or number of dwellings; or

(b) the site of such a building,

is not within item 1 if—

(i) the interest granted is such that the grantee is not entitled to reside in the building or part, throughout the year; or

(ii) residence there throughout the year, or the use of the building or part as the grantee’s principal private residence, is prevented by the terms of a covenant, statutory planning consent or similar permission.

(14) Where the major interest referred to in item 1 is a tenancy or lease—

(a) if a premium is payable, the grant falls within that item only to the extent that it is made for consideration in the form of the premium; and

(b) if a premium is not payable, the grant falls within that item only to the extent that it is made for consideration in the form of the first payment of rent due under the tenancy or lease.

(15) The reference in item 2(b) of this Group to the construction of a civil engineering work does not include a reference to the conversion, reconstruction, alteration or enlargement of a work.

(16) For the purpose of this Group, the construction of a building does not include—

(a) the conversion, reconstruction or alteration of an existing building; or

(b) any enlargement of, or extension to, an existing building except to the extent the enlargement or extension creates an additional dwelling or dwellings; or

(c) subject to Note (17) below, the construction of an annexe to an existing building.

(17) Note 16(c) above shall not apply [F292 where the whole or a part of an annexe is intended for use solely for a relevant charitable purpose and]—

(a) [F293 the annexe] is capable of functioning independently from the existing building; and

(b) the only access or where there is more than one means of access, the main access to:

(i) the annexe is not via the existing building; and

(ii) the existing building is not via the annexe.

(18) A building only ceases to be an existing building when:

(a) demolished completely to ground level; or

(b) the part remaining above ground level consists of no more than a single facade or where a corner site, a double facade, the retention of which is a condition or requirement of statutory planning consent or similar permission.

(19) A caravan is not a residential caravan if residence in it throughout the year is prevented by the terms of a covenant, statutory planning consent or similar permission.

(20) Item 2 and Item 3 do not include the supply of services described in paragraph 1(1) or 5(4) of Schedule 4.

[F294 (21) In item 3 “relevant housing association” means–

[F295 (za) a private registered provider of social housing,]

(a) a registered social landlord within the meaning of Part I of the Housing Act 1996 [F296 (Welsh registered social landlords)],

[F297 (b) a registered social landlord within the meaning of the Housing (Scotland) Act 2010 (asp 17) which is either—

(i) a society registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 (c.12), or

(ii) a company within the meaning of the Companies Act 2006 (c.46), or]

(c) a registered housing association within the meaning of Part II of the Housing (Northern Ireland) Order 1992 F298 (Northern Irish registered housing associations).]

(22) “Building materials”, in relation to any description of building, means goods of a description ordinarily incorporated by builders in a building of that description, (or its site), but does not include—

(a) finished or prefabricated furniture, other than furniture designed to be fitted in kitchens;

(b) materials for the construction of fitted furniture, other than kitchen furniture;

(c) electrical or gas appliances, unless the appliance is an appliance which is—

(i) designed to heat space or water (or both) or to provide ventilation, air cooling, air purification, or dust extraction; or

(ii) intended for use in a building designed as a number of dwellings and is a door-entry system, a waste disposal unit or a machine for compacting waste; or

(iii) a burglar alarm, a fire alarm, or fire safety equipment or designed solely for the purpose of enabling aid to be summoned in an emergency; or

(iv) a lift or hoist;

(d) carpets or carpeting material.

(23) For the purposes of Note (22) above the incorporation of goods in a building includes their installation as fittings.

(24) Section 30(3) does not apply to goods forming part of a description of supply in this Group.]

Textual Amendments

F290 Sch. 8 Pt. II Group 5 substituted (1.3.1995) by S.I. 1995/280, arts. 1, 2

F291 Sch. 8 Pt. II Group 5 Notes (7)(7A) substituted for Sch. 8 Group 5 Note (7) (1.8.2001) by S.I. 2001/2305, arts. 2, 3

F292 Words in Sch. 8 Pt. II Group 5 Note (17) substituted (1.6.2002) by The Value Added Tax (Construction of Buildings) Order 2002 (S.I. 2002/1101), art. 2(a)

F293 Words in Sch. 8 Pt. II Group 5 Note (17)(a) substituted (1.6.2002) by The Value Added Tax (Construction of Buildings) Order 2002 (S.I. 2002/1101), art. 2(b)

F294 Sch. 8 Pt. II Group 5 Note (21) substituted (1.3.1997) by S.I. 1997/50, arts. 1, 2

F295 Sch. 8 Pt. II Group 5 Note 21(za) inserted (1.4.2010) by The Value Added Tax (Construction of Buildings) Order 2010 (S.I. 2010/486), arts. 1, 2(1)(a)

F296 Words in Sch. 8 Pt. II Group 5 Note (21)(a) inserted (1.4.2010) by The Value Added Tax (Construction of Buildings) Order 2010 (S.I. 2010/486), arts. 1, 2(1)(b)

F297 Sch. 8 Pt. II Group 5 Note (21)(b) substituted (1.4.2012) by The Housing (Scotland) Act 2010 (Consequential Provisions and Modifications) Order 2012 (S.I. 2012/700), art. 1(3), Sch. para. 5(2)

F298 S.I. 1992/1725 (N.I.15).

Modifications etc. (not altering text)

C8 Sch. 8 Pt. II Group 5 Notes (4)-(6) applied (28.11.2002) S.I. 1995/2518, reg. 84(8) (as inserted by The Value Added Tax (Amendment) (No. 3) Regulations 2002 (S.I. 2002/2918), reg. 4)

C9 Sch. 8 Pt. II Group 5 Notes (4)-(6) applied (28.11.2002) S.I. 1995/2518, reg. 84(8) (as inserted by The Value Added Tax (Amendment) (No. 3) Regulations 2002 (S.I. 2002/2918), reg. 4)

C10 Sch. 8 Pt. II Group 5 Notes (4)-(6) applied (28.11.2002) S.I. 1995/2518, reg. 84(8) (as inserted by The Value Added Tax (Amendment) (No. 3) Regulations 2002 (S.I. 2002/2918), reg. 4)

C11 Sch. 8 Pt. II Group 5 Note (7A) applied (1.8.2001) by S.I. 2001/2305, art. 4

C12 Sch. 8 Pt. II Group 5 Note 21 modified (temp.) (1.4.2010) by The Value Added Tax (Construction of Buildings) Order 2010 (S.I. 2010/486), arts. 1, 2(2)

F299 [GROUP 6—PROTECTED BUILDINGS] U.K.

Textual Amendments

F299 Sch. 8 Pt. II Group 6 substituted (1.3.1995) by S.I. 1995/283, arts. 1, 2

Item No. U.K.

F300 [ 1 The first grant by a person substantially reconstructing a protected building, of a major interest in, or in any part of, the building or its site.]

Textual Amendments

F300 Sch. 8 Pt. II Group 6 substituted (1.3.1995) by S.I. 1995/283, arts. 1, 2

F301 2 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F301 Sch. 8 Pt. II Group 6 item 2 omitted (with effect in accordance with Sch. 26 para. 7(3)-(10) of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 26 paras. 3(2), 7(3)

F302 3 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F302 Sch. 8 Pt. II Group 6 item 3 omitted (with effect in accordance with Sch. 26 para. 7(3)-(10) of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 26 paras. 3(2), 7(3)

[F303 Notes: U.K.

(1) “Protected building” means a building which is designed to remain as or become a dwelling or number of dwellings (as defined in Note (2) below) or is intended for use solely for a relevant residential purpose or a relevant charitable purpose after the reconstruction or alteration and which, in either case, is—

(a) a listed building within the meaning of—

(i) the Planning (Listed Buildings and Conservation Areas) Act 1990 F304 ; or

(ii) [F305 the Planning (Listed Buildings and Conservation Areas) (Scotland) Act 1997]; or

(iii) the [F306 Planning (Northern Ireland) Order 1991]F307 [F306 Planning Act (Northern Ireland) 2011]; or

(b) a scheduled monument, within the meaning of—

(i) the Ancient Monuments and Archaeological Areas Act 1979; or

(ii) [F308 the Historic Monuments and Archaeological Objects (Northern Ireland) Order 1995].

(2) A building is designed to remain as or become a dwelling or number of dwellings where in relation to each dwelling the following conditions are satisfied—

(a) the dwelling consists of self-contained living accommodation;

(b) there is no provision for direct internal access from the dwelling to any other dwelling or part of a dwelling;

(c) the separate use, or disposal of the dwelling is not prohibited by the terms of any convenants, statutory planning consent or similar provision,

and includes a garage (occupied together with a dwelling) either constructed at the same time as the building or where the building has been sustantially reconstructed at the same time as that reconstruction.

(3) Notes (1), (4), (6), [F309 and (12) to (14)] of Group 5 apply in relation to this Group as they apply in relation to that Group but subject to any appropriate modifications.

[F310 (4) For the purposes of item 1, a protected building is not to be regarded as substantially reconstructed unless, when the reconstruction is completed, the reconstructed building incorporates no more of the original building (that is to say, the building as it was before the reconstruction began) than the external walls, together with other external features of architectural or historic interest.]

(5) Where part of a protected building that is substantially reconstructed is designed to remain as or become a dwelling or a number of dwellings or is intended for use solely for a relevant residential or relevant charitable purpose (and part is not)—

(a) a grant F311 ... relating only to the part so designed or intended for such use (or its site) shall be treateed as relating to a building so designed or intended for such use;

(b) a grant F311 ...relating only to the part neither so designed nor intended for such use (or its site) shall not be so treated; and

(c) in the case of any other grant F311 ... relating to, or to any part of, the building (or its site), an apportionment shall be made to determine the extent to which it is to be so treated.

F312 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F312 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F312 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F312 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F312 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F312 (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F303 Sch. 8 Pt. II Group 6 substituted (1.3.1995) by S.I. 1995/283, arts. 1, 2

F304 1990 c. 9

F305 Words in Sch. 8 Pt. II Group 6 Note (1)(a)(ii) substituted (27.5.1997) by 1997 c. 11, ss. 4, 6(2), Sch. 2 para. 57(a)

F306 Words in Sch. 8 Pt. II Group 6 Note (1)(a)(iii) substituted (N.I.) (13.2.2015 for specified purposes, 1.4.2015 in so far as not already in force) by Planning Act (Northern-Ireland) 2011 (c. 25), s. 254(1)(2), Sch. 6 para. 68(a) (with s. 211); S.R. 2015/49, arts. 2, 3, Sch. 1 (with Sch. 2) (as amended (16.3.2016) by S.R. 2016/159, art. 2)

F307 S.I. 1991/1220 (N.I.11).

F308 Words in Sch. 8 Pt. II Group 6 Note (1)(b)(ii) substituted (N.I.) (29.8.1995) by S.I. 1995/1625 (N.I. 9), arts. 1(2), 45(1), Sch. 3 para. 4(1)

F309 Words in Sch. 8 Pt. II Group 6 Note (3) substituted (with effect in accordance with Sch. 26 para. 7(3)-(10) of the amending Act) by Finance Act 2012 (c. 14), Sch. 26 paras. 3(3), 7(3)

F310 Sch. 8 Pt. II Group 6 Note (4) substituted (with effect in accordance with Sch. 26 para. 7(3)-(10) of the amending Act) by Finance Act 2012 (c. 14), Sch. 26 paras. 3(4), 7(3)

F311 Words in Sch. 8 Pt. II Group 6 Note (5) omitted (with effect in accordance with Sch. 26 para. 7(3)-(10) of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 26 paras. 3(5), 7(3)

F312 Sch. 8 Pt. II Group 6 Notes (6)-(11) omitted (with effect in accordance with Sch. 26 para. 7(3)-(10) of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 26 paras. 3(6), 7(3)

Modifications etc. (not altering text)

C13 Sch. 8 Pt. II Group 6 Notes applied (17.7.2012) by Finance Act 2012 (c. 14), Sch. 27 para. 3(2)

Group 7— International services U.K.

Item No. U.K.

1 The supply of services of work carried out on goods which, for that purpose, have been obtained F313 ... in, or imported into, [F314 the United Kingdom] and which are intended to be, and in fact are, subsequently exported F315 ...—

(a) by or on behalf of the supplier; or

(b) where the recipient of the services belongs in a place outside the [F316 United Kingdom], by or on behalf of the recipient.

Textual Amendments

F313 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(3)(a)(i) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F314 Words in Sch. 8 Pt. II substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(3)(a)(ii) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F315 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(3)(a)(iii) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F316 Words in Sch. 8 Pt. II substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(3)(b) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

2 U.K. The supply of services consisting of the making of arrangements for—

(a) the export of any goods F317 ...;

(b) a supply of services of the description specified in item 1 of this Group; or

(c) any supply of services which is made outside the [F318 United Kingdom].

Note: This Group does not include any services of a description specified in Group 2 or Group 5 of Schedule 9.

Textual Amendments

F317 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(3)(c)(i) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F318 Words in Sch. 8 Pt. II substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(3)(c)(ii) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

Group 8— Transport U.K.

[F319 1 U.K. The supply, repair or maintenance of a qualifying ship or the modification or conversion of any such ship provided that when so modified or converted it will remain a qualifying ship.]

Textual Amendments

F319 Sch. 8 Pt. II Group 8 item 1 substituted (1.1.1996) by S.I. 1995/3039, arts. 1, 2(a)

[F320 2 U.K. The supply, repair or maintenance of a qualifying aircraft or the modification or conversion of any such aircraft provided that when so modified or converted it will remain a qualifying aircraft.]

Textual Amendments

F320 Sch. 8 Pt. II Group 8 item 2 substituted (1.1.1996) by S.I. 1995/3039, arts. 1, 2(b)

[F321 2A U.K. The supply of parts and equipment, of a kind ordinarily installed or incorporated in, and to be installed, or incorporated in,—

(a) the propulsion, navigation or communication systems; or

(b) the general structure,

of a qualifying ship or, as the case may be, aircraft.]

Textual Amendments

F321 Sch. 8 Pt. II Group 8 item 2A inserted (1.1.1996) by S.I. 1995/3039, arts. 1, 2(c)

[F322 2B U.K. The supply of life jackets, life rafts, smoke hoods and similar safety equipment for use in a qualifying ship or, as the case may be, aircraft.]

Textual Amendments

F322 Sch. 8 Pt. II Group 8 item 2B inserted (1.1.1996) by S.I. 1995/3039, arts. 1, 2(c)

3 (a) The supply to and repair or maintenance for a charity providing rescue or assistance at sea of— U.K.

(i) any lifeboat;

(ii) carriage equipment designed solely for the launching and recovery of lifeboats;

(iii) tractors for the sole use of the launching and recovery of lifeboats;

(iv) winches and hauling equipment for the sole use of the recovery of lifeboats.

(b) The construction, modification, repair or maintenance for a charity providing rescue or assistance at sea of slipways used solely for the launching and recovery of lifeboats.

(c) The supply of spare parts or accessories to a charity providing rescue or assistance at sea for use in or with goods comprised in paragraph (a) above or slipways comprised in paragraph (b) above.

[F323 (d) The supply to a charity providing rescue or assistance at sea of equipment that is to be installed, incorporated or used in a lifeboat and is of a kind ordinarily installed, incorporated or used in a lifeboat.]

[F324 (e) The supply of fuel to a charity providing rescue or assistance at sea where the fuel is for use in a lifeboat.]

Textual Amendments

F323 Sch. 8 Pt. II Group 8 item 3(d) inserted (1.4.2002) by The Value Added Tax (Equipment in Lifeboats) Order 2002 (S.I. 2002/456), art. 2(a)

F324 Sch. 8 Pt. II Group 8 Item 3(e) inserted (1.8.2006) by The Value Added Tax (Lifeboats) Order 2006 (S.I. 2006/1750), arts. 1, 2

4 U.K. Transport of passengers—

(a) in any vehicleF325 ... designed or adapted to carry not less than [F326 10] passengers;

(b) by [F327 a universal service provider];

(c) on any scheduled flight; or

(d) from a place within to a place outside the United Kingdom or vice versa, to the extent that those services are supplied in the United Kingdom.

Textual Amendments

F325 Words in Sch. 8 omitted (31.12.2020) by virtue of The Value Added Tax (Miscellaneous Amendments to Acts of Parliament) (EU Exit) Regulations 2020 (S.I. 2020/1312), regs. 1, 4; S.I. 2020/1641, reg. 2, Sch.

F326 Word in Sch. 8 Pt. II Group 8 item 4(a) substituted (1.4.2001 with effect as mentioned in art. 1 of the amending S.I.) by S.I. 2001/753, art. 2

F327 Words in Sch. 8 Pt. II Group 8 item 4 substituted (with effect in accordance with s. 22(4) of the amending Act) by Finance (No. 3) Act 2010 (c. 33), s. 22(1)(a)

5 U.K. The transport of goods from a place within to a place outside the [F328 United Kingdom] or vice versa, to the extent that those services are supplied within the United Kingdom.

Textual Amendments

F328 Words in Sch. 8 Pt. II substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(4)(a) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

[F329 6 U.K.   Any services provided for—

(a) the handling of ships, aircraft or railway vehicles—

(i) in a port, customs and excise airport or international railway area, or

(ii) outside the United Kingdom;

(b) the handling or storage—

(i) in a port,

(ii) on land adjacent to a port,

(iii) in a customs and excise airport,

(iv) in an international railway area, or

(v) in a temporary storage facility,

of goods carried in a ship, aircraft or railway vehicle.]

Textual Amendments

F329 Words in Sch. 8 substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to Acts of Parliament) (EU Exit) Regulations 2020 (S.I. 2020/1312), regs. 1, 5; S.I. 2020/1641, reg. 2, Sch.

[F330 6ZA   Any services provided in an airport that is not a customs and excise airport for—

(a) the handling of an aircraft, or

(b) the handling or storage of goods carried in an aircraft,

provided that the aircraft is of a type mentioned in paragraph (b)(i) of Note (A1).]

Textual Amendments

F330 Sch. 8 Group 8 Item 6ZA inserted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to Acts of Parliament) (EU Exit) Regulations 2020 (S.I. 2020/1312), regs. 1, 6; S.I. 2020/1641, reg. 2, Sch.

[F331 6A U.K. Air navigation services.]

Textual Amendments

F331 Sch. 8 Pt. II Group 8 item 6A inserted (1.4.1995) by S.I. 1995/653, arts. 1, 3

7 U.K. Pilotage services.

8 U.K. Salvage or towage services.

9 U.K. Any services supplied for or in connection with the surveying of any ship or aircraft or the classification of any ship or aircraft for the purposes of any register.

10 U.K. The making of arrangements for—

(a) the supply of, or of space in, any ship or aircraft; F332 . . .

(b) the supply of any service included in [F333 items 1 and 2, 3 to 9 and 11].

[F334 (c) the supply of any goods of a description falling within items 2A or 2B [F335 , or paragraph (d) of item 3.]]

Textual Amendments

F332 Word in Sch. 8 Pt. II Group 8 item 10(a) deleted (1.1.1996) by S.I. 1995/3039, arts. 1, 2(d)(i)

F333 Words in Sch. 8 Pt. II Group 8 item 10(b) substituted (1.1.1996) by S.I. 1995/3039, arts. 1, 2(d)(ii)

F334 Sch. 8 Pt. II Group 8 item 10(c) inserted (1.1.1996) by S.I. 1995/3039, arts. 1, 2(d)(iii)

F335 Words in Sch. 8 Pt. II Group 8 item 10(c) inserted (1.4.2002) by The Value Added Tax (Equipment in Lifeboats) Order 2002 (S.I. 2002/456), art. 2(b)

11 U.K. The supply—

(a) of services consisting of

[F336 (i) the transport of goods to or from a place—

(a) from which they are to be exported, or

(b) to which they have been imported,

(ii) the handling or storage of those goods at that place, or

(iii) the handling or storage of those goods in connection with their transport to or from that place, or]

(b) to a person who receives the supply for the purpose of a business carried on by him and who belongs outside the United Kingdom, of services of a description specified in paragraph (a) of item 6, [F337 item 6A,] item 9 or paragraph (a) of item 10 of this Group.

Textual Amendments

F336 Words in Sch. 8 Pt. II substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(4)(b) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F337 Words in Sch. 8 Pt. II Group 8 item 11(b) inserted (1.4.1995) by S.I. 1995/653, arts. 1, 4

[F338 12 U.K. The supply of a designated travel service to be enjoyed outside the United Kingdom, to the extent to which the supply is so enjoyed.]

Textual Amendments

F338 Words in Sch. 8 substituted (31.12.2020) by The Value Added Tax (Tour Operators) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/73), regs. 1, 6; S.I. 2020/1641, reg. 2, Sch.

F339 13 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F339 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(4)(d) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

Notes: U.K.

[F340 (A1) In this Group—

(a) a “qualifying ship”is any ship of a gross tonnage of not less than 15 tons which is neither designed nor adapted for use for recreation or pleasure; and

[F341 (b) a “qualifying aircraft” is any aircraft which —

(i) is used by an airline operating for reward chiefly on international routes, or

(ii) is used by a State institution and meets the condition in Note (B1).]]

[F342 (B1) The condition is that the aircraft—

(a) is of a weight of not less than 8,000 kilograms, and

(b) is neither designed nor adapted for use for recreation or pleasure.

(C1) In Note (A1)(b)—

• “airline” means an undertaking which provides services for the carriage by air of passengers or cargo (or both);

• F343 ...]

(1) In items 1 and 2 the supply of a [F344 qualifying] ship or, as the case may be, aircraft includes the supply of services under a charter of that ship or aircraft except where the services supplied under such a charter consist wholly of any one or more of the following—

(a) transport of passengers;

(b) accommodation;

(c) entertainment;

(d) education;

being services wholly performed in the United Kingdom.

(2) Items 1, 2 [F345 , 2A, 2B] and 3 include the letting on hire of the goods specified in the items.

[F346 (2A) Items 2A and 2B do not include the supply of parts and equipment to a Government department [F347 or any part of the Scottish Administration] unless—

(a) they are installed or incorporated in the course of a supply which is treated as being made in the course or furtherance of a business carried on by the department; or

(b) the parts and equipment are to be installed or incorporated in ships or aircraft used for the purpose of providing rescue or assistance at sea.]

(3) Item 3 shall not apply unless, before the supply is made, the recipient of the supply gives to the person making the supply a certificate stating—

(a) the name and address of the recipient;

(b) that the supply is of a description specified in item 3 of this Group.

(4) “Lifeboat” means any vessel used or to be used solely for rescue or assistance at sea.

[F348 (4ZA) “Vehicle” has the same meaning as in the Management Act.]

[F349 (4A) Item 4 does not include the transport of passengers-—

(a) in any vehicle to, from or within-—

(i) a place of entertainment, recreation or amusement; or

(ii) a place of cultural, scientific, historical or similar interest,

by the person, or a person connected with him, who supplies a right of admission to, or a right to use facilities at, such a place;

(b) in any motor vehicle between a car park (or land adjacent thereto) and an airport passenger terminal (or land adjacent thereto) by the person, or a person connected with him, who supplies facilities for the parking of vehicles in that car park; or

(c) in an aircraft where the flight is advertised or held out to be for the purpose of—

(i) providing entertainment, recreation or amusement; or

(ii) the experience of flying, or the experience of flying in that particular aircraft,

and not primarily for the purpose of transporting passengers from one place to another.

(4B) For the purposes of Note (4A) any question whether a person is connected with another shall be determined in accordance with [F350 section 1122 of the Corporation Tax Act 2010].

(4C) In Note (4A)(b) “motor vehicle” means a mechanically propelled vehicle intended or adapted for use on the roads.]

[F351 (4D) Item 4(a) includes the transport of passengers in a vehicle—

(a) which is designed, or substantially and permanently adapted, for the safe carriage of a person in a wheelchair or two or more such persons, and

(b) which, if it were not so designed or adapted, would be capable of carrying no less than 10 persons.]

[F352 (4E) “Universal service provider” means a person who provides a universal postal service (within the meaning of [F353 Part 3 of the Postal Services Act 2011]), or part of such a service, in the United Kingdom.]

(5) Item 6 does not include the letting on hire of goods.

[F354 (6) In Item 6—

(a) “port” and “temporary storage facility” have the same meanings as in the Management Act;

(b) “international railway area” means—

(i) any place which may be designated as a railway customs area by virtue of section 26(1ZB) of the Management Act, or

(ii) such other place relating to international rail travel as may be specified in a notice published by the Commissioners;

(c) “railway vehicle” has the same meaning as in section 83 of the Railways Act 1993.]

[F355 (6ZA) “Customs and excise airport” has the same meaning as in the Management Act.]

[F356 (6A) “Air navigation services” has the same meaning as in the Civil Aviation Act 1982 F357 .]

(7) Except for the purposes of item 11, paragraph (a) of item 6, [F358 item 6A,.] item 9 and paragraph (a) of item 10 [F359 only include supplies of services where the ships or aircraft referred to in those paragraphs are qualifying ships or, as the case may be, aircraft.].

(8) “Designated travel service” has the same meaning as in the M3 Value Added Tax (Tour Operators) Order 1987.

F360 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F340 Sch. 8 Pt. II Group 8 Note (A1) inserted (1.1.1996) by S.I. 1995/3039, arts. 1, 2(e)

F341 Sch. 8 Pt. II Group 8 Note (A1)(b) substituted (with effect in accordance with s. 21(4) of the amending Act) by Finance (No. 3) Act 2010 (c. 33), s. 21(2)

F342 Sch. 8 Pt. II Group 8 Note (B1)(C1) inserted (with effect in accordance with s. 21(4) of the amending Act) by Finance (No. 3) Act 2010 (c. 33), s. 21(3)

F343 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(4)(e) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F344 Word in Sch. 8 Pt. II Group 8 Note (1) inserted (1.1.1996) by S.I. 1995/3039, arts. 1, 2(f)

F345 Words in Sch. 8 Pt. II Group 8 Note (2) inserted (1.1.1996) by S.I. 1995/3039, arts. 1, 2(g)

F346 Sch. 8 Pt. II Group 8 Note (2A) inserted (1.1.1996) by S.I. 1995/3039, arts. 1, 2(h)

F347 Words in Sch. 8 Pt. II Group 8 Note (2A) inserted (1.7.1999) by S.I. 1999/1820, arts. 1(2), 4, Sch. 2 Pt. I para. 114(3); S.I. 1998/3178, art. 3

F348 Sch. 8 Group 8 Note 4ZA inserted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to Acts of Parliament) (EU Exit) Regulations 2020 (S.I. 2020/1312), regs. 1, 7; S.I. 2020/1641, reg. 2, Sch.

F349 Sch. 8 Pt. II Group 8 Notes (4A)-(4C) inserted (1.4.1995) by S.I. 1994/3014, arts. 1, 3

F350 Words in Sch. 8 Pt. II Group 8 Note (4B) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 285(d) (with Sch. 2)

F351 Sch. 8 Pt. II Group 8 Note (4D) inserted (1.4.2001 with effect as mentioned in art. 1 of the amending S.I.) by S.I. 2001/753, art. 3

F352 Sch. 8 Pt. II Group 8 Note (4E) inserted (with effect in accordance with s. 22(4) of the amending Act) by Finance (No. 3) Act 2010 (c. 33), s. 22(1)(b)

F353 Words in Sch. 8 Pt. II Group 8 Note (4E) substituted (1.10.2011) by The Postal Services Act 2011 (Consequential Modifications and Amendments) Order 2011 (S.I. 2011/2085), art. 1(2), Sch. 1 para. 28(2)

F354 Words in Sch. 8 substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to Acts of Parliament) (EU Exit) Regulations 2020 (S.I. 2020/1312), regs. 1, 8; S.I. 2020/1641, reg. 2, Sch.

F355 Sch. 8 Group 8 Note 6ZA inserted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to Acts of Parliament) (EU Exit) Regulations 2020 (S.I. 2020/1312), regs. 1, 9; S.I. 2020/1641, reg. 2, Sch.

F356 Sch. 8 Pt. II Group 8 Note (6A) inserted (1.4.1995) by S.I. 1995/653, arts. 1, 5

F357 1982 c.16. Air navigation services are defined in section 105(1).

F358 Words in Sch. 8 Pt. II Group 8 Note (7) inserted (1.4.1995) by S.I. 1995/653, arts. 1, 6

F359 Words in Sch. 8 Pt. II Group 8 Note (7) substituted (1.1.1996) by S.I. 1995/3039, arts. 1, 2(i)

F360 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(4)(f) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

Marginal Citations

M3 S.I.1987/1086

Group 9— Caravans and houseboats U.K.

Item No. U.K.

[F361 1 Caravans which exceed the limits of size of a trailer for the time being permitted to be towed on roads by a motor vehicle having a maximum gross weight of 3,500 kilogrammes and which—

(a) were manufactured to standard BS 3632:2005 [F362 or BS 3632:2015] approved by the British Standards Institution, or

(b) are second hand, were manufactured to a previous version of standard BS 3632 approved by that Institution and were occupied before 6 April 2013.]

Textual Amendments

F361 Sch. 8 Pt. II Group 9 item 1 substituted (6.4.2013) by Finance Act 2012 (c. 14), Sch. 26 paras. 4(2), 7(2)

F362 Words in Sch. 8 Pt. II Group 9 item 1 inserted (2.12.2015) by The Value Added Tax (Caravans) Order 2015 (S.I. 2015/1949), arts. 1, 2(2)

2 U.K. Houseboats being boats or other floating decked structures designed or adapted for use solely as places of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion.

3 U.K. The supply of such services as are described in paragraph 1(1) or [F363 5(4)] of Schedule 4 in respect of a caravan comprised in item 1 or a houseboat comprised in item 2.

Textual Amendments

F363 Word in Sch. 8 Pt. II Group 9 item 3 substituted (6.4.2013) by Finance Act 2012 (c. 14), Sch. 26 paras. 4(3), 7(2)

Note: U.K.

This Group does not include—

(a) removable contents other than goods of a kind mentioned in [F364 item 4] of Group 5; or

(b) the supply of accommodation in a caravan or houseboat.

Textual Amendments

F364 Words in Sch. 8 Pt. II Group 9 Note substituted (6.4.2013) by Finance Act 2012 (c. 14), Sch. 26 paras. 4(4), 7(2)

Group 10— Gold U.K.

Item No. U.K.

1 The supply, by a Central Bank to another Central Bank or a member of the London Gold Market, of gold held in the United Kingdom.

2 U.K. The supply, by a member of the London Gold Market to a Central Bank, of gold held in the United Kingdom.

Notes: U.K.

(1) “Gold” includes gold coins.

(2) Section 30(3) does not apply to goods forming part of a description of supply in this Group.

(3) Items 1 and 2 include—

(a) the granting of a right to acquire a quantity of gold; and

(b) any supply described in those items which by virtue of paragraph 1 of Schedule 4 is a supply of services.

Group 11— Bank notes U.K.

Item No. U.K.

1 The issue by a bank of a note payable to bearer on demand.

Group 12— Drugs, medicines, aids for the [F365 disabled], etc. U.K.

Textual Amendments

F365 Word in Sch. 8 Pt. II Group 12 heading substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(c)

Item No. U.K.

[F366 1 The supply of any qualifying goods dispensed to an individual for that individual’s personal use on the prescription of an appropriate practitioner where the dispensing is—

(a) by a registered pharmacist, or

(b) in accordance with a requirement or authorisation under a relevant provision.]

Textual Amendments

F366 Sch. 8 Pt. II Group 12 item 1 substituted for items 1, 1A (with effect in accordance with art. 1 of the amending S.I.) by The Value Added Tax (Drugs and Medicines) Order 2009 (S.I. 2009/2972), arts. 1, 3

F366 1A U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F366 Sch. 8 Pt. II Group 12 item 1 substituted for items 1, 1A (with effect in accordance with art. 1 of the amending S.I.) by The Value Added Tax (Drugs and Medicines) Order 2009 (S.I. 2009/2972), arts. 1, 3

2 U.K. The supply to a [F367 disabled] person for domestic or his personal use, or to a charity for making available to [F367 disabled] persons by sale or otherwise, for domestic or their personal use, of—

(a) medical or surgical appliances designed solely for the relief of a severe abnormality or severe injury;

(b) electrically or mechanically adjustable beds designed for invalids;

(c) commode chairs, commode stools, devices incorporating a bidet jet and warm air drier and frames or other devices for sitting over or rising from a sanitary appliance;

(d) chair lifts or stair lifts designed for use in connection with invalid wheelchairs;

(e) hoists and lifters designed for use by invalids;

(f) motor vehicles designed or substantially and permanently adapted for the carriage of a person in a wheelchair or on a stretcher and of no more than [F368 11] other persons;

(g) equipment and appliances not included in paragraphs (a) to (f) above designed solely for use by a [F367 disabled] person;

(h) parts and accessories designed solely for use in or with goods described in paragraphs (a) to (g) above;

(i) boats designed or substantially and permanently adapted for use by [F367 disabled] persons.

Textual Amendments

F367 Word in Sch. 8 Pt. II Group 12 items 2-19 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

F368 Word in Sch. 8 Pt. II Group 12 item 2(f) substituted (1.4.2001 with effect as mentioned in art. 1 of the amending S.I.) by S.I. 2001/754, art. 2

[F369 2A (1) The supply of a motor vehicle (other than a motor vehicle capable of carrying more than 12 persons including the driver) to a person (“P”) if— U.K.

(a) the motor vehicle is a qualifying motor vehicle by virtue of paragraph (2) or (3),

(b) P is a disabled person to whom paragraph (4) applies, and

(c) the vehicle is supplied for domestic or P's personal use.

(2) A motor vehicle is a “qualifying motor vehicle” by virtue of this paragraph if it is designed to enable a person to whom paragraph (4) applies to travel in it.

(3) A motor vehicle is a “qualifying motor vehicle” by virtue of this paragraph if—

(a) it has been substantially and permanently adapted to enable a person to whom paragraph (4) applies to travel in it, and

(b) the adaptation is necessary to enable P to travel in it.

(4) This paragraph applies to a disabled person—

(a) who usually uses a wheelchair, or

(b) who is usually carried on a stretcher.

Textual Amendments

F369 Sch. 8 Pt. II Group 12 items (2A)(2B) substituted for Sch. 8 Pt. II Group 12 items (2A) (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 1(2)

2B (1) The supply of a qualifying motor vehicle (other than a motor vehicle capable of carrying more than 12 persons including the driver) to a charity for making available, by sale or otherwise to a person to whom paragraph (3) applies, for domestic or the person's personal use. U.K.

(2) A motor vehicle is a “qualifying motor vehicle” for the purposes of this item if it is designed or substantially and permanently adapted to enable a disabled person to whom paragraph (3) applies to travel in it.

(3) This paragraph applies to a disabled person—

(a) who usually uses a wheelchair, or

(b) who is usually carried on a stretcher.]

Textual Amendments

F369 Sch. 8 Pt. II Group 12 items (2A)(2B) substituted for Sch. 8 Pt. II Group 12 items (2A) (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 1(2)

3 U.K. The supply to a [F367 disabled] person of services of adapting goods to suit his condition.

Textual Amendments

F367 Word in Sch. 8 Pt. II Group 12 items 2-19 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

4 U.K. The supply to a charity of services of adapting goods to suit the condition of a [F367 disabled] person to whom the goods are to be made available, by sale or otherwise, by the charity.

Textual Amendments

F367 Word in Sch. 8 Pt. II Group 12 items 2-19 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

5 U.K. The supply to a [F367 disabled] person or to a charity of a service of repair or maintenance of any goods specified in item 2, [F370 2A,] 6, 18 or 19 and supplied as described in that item.

Textual Amendments

F367 Word in Sch. 8 Pt. II Group 12 items 2-19 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

F370 Word in Sch. 8 Pt. II Group 12 item 5 inserted (1.4.2001 with effect as mentioned in art. 1 of the amending S.I.) by S.I. 2001/754, art. 4

6 U.K. The supply of goods in connection with a supply described in item 3, 4 or 5.

7 U.K. The supply to a [F367 disabled] person or to a charity of services necessarily performed in the installation of equipment or appliances (including parts and accessories therefor) specified in item 2 and supplied as described in that item.

Textual Amendments

F367 Word in Sch. 8 Pt. II Group 12 items 2-19 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

8 U.K. The supply to a [F367 disabled] person of a service of constructing ramps or widening doorways or passages for the purpose of facilitating his entry to or movement within his private residence.

Textual Amendments

F367 Word in Sch. 8 Pt. II Group 12 items 2-19 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

9 U.K. The supply to a charity of a service described in item 8 for the purpose of facilitating a [F367 disabled] person’s entry to or movement within any building.

Textual Amendments

F367 Word in Sch. 8 Pt. II Group 12 items 2-19 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

10 U.K. The supply to a [F367 disabled] person of a service of providing, extending or adapting a bathroom, washroom or lavatory in his private residence where such provision, extension or adaptation is necessary by reason of his condition.

Textual Amendments

F367 Word in Sch. 8 Pt. II Group 12 items 2-19 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

[F371 11 U.K. The supply to a charity of a service of providing, extending or adapting a bathroom, washroom or lavatory for use by [F367 disabled] persons—

(a) in residential accommodation, or

(b) in a day-centre where at least 20 per cent. of the individuals using the centre are [F367 disabled] persons,

where such provision, extension or adaptation is necessary by reason of the condition of the [F367 disabled] persons.]

Textual Amendments

F367 Word in Sch. 8 Pt. II Group 12 items 2-19 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

F371 Sch. 8 Pt. II Group 12 item 11 substituted (1.4.2000) by S.I. 2000/805, art. 3

12 U.K. The supply to a charity of a service of providing, extending or adapting a washroom or lavatory for use by [F367 disabled] persons in a building, or any part of a building, used principally by a charity for charitable purposes where such provision, extension or adaptation is necessary to facilitate the use of the washroom or lavatory by [F367 disabled] persons.

Textual Amendments

F367 Word in Sch. 8 Pt. II Group 12 items 2-19 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

13 U.K. The supply of goods in connection with a supply described in items 8, 9, 10 or 11.

14 U.K. The letting on hire of a motor vehicle for a period of not less than 3 years to a [F367 disabled] person in receipt of a disability living allowance by virtue of entitlement to the mobility component[F372 , of a personal independence payment by virtue of entitlement to the mobility component, of an armed forces independence payment] or of mobility supplement where the lessor’s business consists predominantly of the provision of motor vehicles to such persons.

Textual Amendments

F367 Word in Sch. 8 Pt. II Group 12 items 2-19 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

F372 Words in Sch. 8 Pt. II Group 12 item 14 inserted (8.4.2013) by The Value Added Tax (Independence Payment) Order 2013 (S.I. 2013/601), arts. 1, 3(a)

15 U.K. The sale of a motor vehicle which had been let on hire in the circumstances described in item 14, where such sale constitutes the first supply of the vehicle after the end of the period of such letting.

16 U.K. The supply to a [F367 disabled] person of services necessarily performed in the installation of a lift for the purpose of facilitating his movement between floors within his private residence.

Textual Amendments

F367 Word in Sch. 8 Pt. II Group 12 items 2-19 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

17 U.K. The supply to a charity providing a permanent or temporary residence or day-centre for [F367 disabled] persons of services necessarily performed in the installation of a lift for the purpose of facilitating the movement of [F367 disabled] persons between floors within that building.

Textual Amendments

F367 Word in Sch. 8 Pt. II Group 12 items 2-19 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

18 U.K. The supply of goods in connection with a supply described in item 16 or 17.

19 U.K. The supply to a [F367 disabled] person for domestic or his personal use, or to a charity for making available to [F367 disabled] persons by sale or otherwise for domestic or their personal use, of an alarm system designed to be capable of operation by a [F367 disabled] person, and to enable him to alert directly a specified person or a control centre.

Textual Amendments

F367 Word in Sch. 8 Pt. II Group 12 items 2-19 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

20 U.K. The supply of services necessarily performed by a control centre in receiving and responding to calls from an alarm system specified in item 19.

Notes: U.K.

(1) Section 30(3) does not apply to goods forming part of a description of supply in item 1 F373 ..., nor to other goods forming part of a description of supply in this Group, except where those other goods are F374 ... imported F375 ... by a [F376 disabled] person for domestic or his personal use, or by a charity for making available to [F376 disabled] persons, by sale or otherwise, for domestic or their personal use.

F377 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F378 (2A) In [F379 item 1], “qualifying goods” means any goods designed or adapted for use in connection with any medical or surgical treatment except—

(a) hearing aids;

(b) dentures; and

(c) spectacles and contact lenses.]

[F380 (2B) In item 1 “appropriate practitioner” means—

(a) a registered medical practitioner;

(b) a person registered in the dentists’ register under the Dentists Act 1984;

[F381 (ba) an approved country health professional within the meaning given by regulation 213 of the Human Medicines Regulations 2012;]

(c) a community practitioner nurse prescriber;

[F382 (ca) an EEA health professional within the meaning given by regulation 213 of the Human Medicines Regulations 2012;]

(d) a nurse independent prescriber;

(e) an optometrist independent prescriber;

(f) a pharmacist independent prescriber;

[F383 (fa) a physiotherapist independent prescriber;

(fb) a podiatrist independent prescriber;]

(g) a supplementary prescriber.

• For the purposes of this Note “community practitioner nurse prescriber”, “nurse independent prescriber”, “optometrist independent prescriber”, “pharmacist independent prescriber” [F384 , “physiotherapist independent prescriber”, “podiatrist independent prescriber”] and “supplementary prescriber” have the meanings given in [F385 regulation 8(1) of the Human Medicines Regulations 2012].

(2C) In item 1 “registered pharmacist” means a person who is—

(a) registered in the Register of Pharmacists maintained under the Pharmacists and Pharmacy Technicians Order 2007, or

(b) registered in the register of pharmaceutical chemists kept under the Pharmacy (Northern Ireland) Order 1976.

(2D) In item 1 “relevant provision” means—

(a) article 57 of the Health and Personal Social Services (Northern Ireland) Order 1972;

(b) regulation 20 of the National Health Service (Pharmaceutical Services) Regulations 1992;

(c) regulation 12 of the Pharmaceutical Services Regulations (Northern Ireland) 1997;

(d) paragraph 44 of Schedule 5 to the National Health Service (General Medical Services Contracts) (Scotland) Regulations 2004;

(e) paragraph 15 of Schedule 1 to the National Health Service (Primary Medical Services Section 17C Agreements) (Scotland) Regulations 2004;

(f) paragraphs 47 and 49 of Schedule 6 to the National Health Service (General Medical Services Contracts) Regulations 2004;

(g) paragraph 44 of Schedule 5 to the Health and Personal Social Services (General Medical Services Contracts) Regulations (Northern Ireland) 2004;

(h) paragraphs 46, 48 and 49 of Schedule 5 to the National Health Service (Personal Medical Services Agreements) Regulations 2004;

(i) paragraph 47 of Schedule 6 to the National Health Service (General Medical Services Contracts) (Wales) Regulations 2004;

(j) regulation 60 of the National Health Service (Pharmaceutical Services) Regulations 2005.]

[F386 (3) Any person who is chronically sick or disabled is “disabled” for the purposes of this Group.]

(4) Item 2 shall not include hearing aids (except hearing aids designed for the auditory training of deaf children), dentures, spectacles and contact lenses but shall be deemed to include—

(a) clothing, footwear and wigs;

(b) invalid wheelchairs, and invalid carriages F387 . . .; and

(c) renal haemodialysis units, oxygen concentrators, artificial respirators and other similar apparatus.

(5) The supplies described in items 1 F388 ... and [F389 , 2 and 2A] include supplies of services of letting on hire of the goods respectively comprised in those items.

[F390 (5A) In item 1 the reference to personal use does not include any use which is, or involves, a use by or in relation to an individual while that individual, for the purposes of being provided (whether or not by the person making the supply) with medical or surgical treatment, or with any form of care—

(a) is an in-patient or resident in a relevant institution which is a hospital or nursing home; or

(b) is attending at the premises of a relevant institution which is a hospital or nursing home.

(5B) Subject to Notes (5C) and (5D), in item 2 the reference to domestic or personal use does not include any use which is, or involves, a use by or in relation to a [F391 disabled] person while that person, for the purposes of being provided (whether or not by the person making the supply) with medical or surgical treatment, or with any form of care—

(a) is an in-patient or resident in a relevant institution; or

(b) is attending at the premises of a relevant institution.

(5C) Note (5B) does not apply for the purpose of determining whether any of the following supplies falls within item 2, that is to say—

(a) a supply to a charity;

(b) a supply by a person mentioned in any of paragraphs (a) to (g) of Note (5H) of an invalid wheelchair or invalid carriage;

(c) a supply by a person so mentioned of any parts or accessories designed solely for use in or with an invalid wheelchair or invalid carriage.

(5D) Note (5B) applies for the purpose of determining whether a supply of goods by a person not mentioned in any of paragraphs (a) to (g) of Note (5H) falls within item 2 only if those goods are—

(a) goods falling within paragraph (a) of that item;

(b) incontinence products and wound dressings; or

(c) parts and accessories designed solely for use in or with goods falling within paragraph (a) of this Note.

(5E) Subject to Note (5F), item 2 does not include—

(a) a supply made in accordance with any agreement, arrangement or understanding (whether or not legally enforceable) to which any of the persons mentioned in paragraphs (a) to (g) of Note (5H) is or has been a party otherwise than as the supplier; or

(b) any supply the whole or any part of the consideration for which is provided (whether directly or indirectly) by a person so mentioned.

(5F) A supply to a [F391 disabled] person of an invalid wheelchair or invalid carriage is excluded from item 2 by Note (5E) only if—

(a) that Note applies in relation to that supply by reference to a person falling within paragraph (g) of Note (5H); or

(b) the whole of the consideration for the supply is provided (whether directly or indirectly) by a person falling within any of paragraphs (a) to (f) of Note (5H).

(5G) In Notes (4), (5C) and (5F), the references to an invalid wheelchair and to an invalid carriage do not include references to any mechanically propelled vehicle which is intended or adapted for use on roads.

(5H) The persons referred to in Notes (5C) to (5F) are—

[F392 (a) [F393 the National Health Service Commissioning Board or a] or Special Health Authority in England;

(aa) a Health Authority, Special Health Authority or Local Health Board in Wales;]

(b) a Health Board or Special Health Board in Scotland;

[F394 (c) the Regional Health and Social Care Board established under section 7 of the Health and Social Care (Reform) Act (Northern Ireland) 2009 or a Local Commissioning Group in Northern Ireland appointed under section 9 of that Act;]

(d) the Common Services Agency for the Scottish Health Service, [F395 the Regional Business Services Organisation established under section 14 of the Health and Social Care (Reform) Act (Northern Ireland) 2009] and [F396 the Isle of Man Department of Health and Social Care];

(e) a National Health Service trust established under [F397 the National Health Service Act 2006 or the National Health Service (Wales) Act 2006] F398 or the National Health Service (Scotland) Act 1978 F399 ;

[F400 (eaa) an NHS foundation trust;]

[F401 (ea) a clinical commissioning group established under section 14D of the National Health Service Act 2006;]

[F402 (f) a Health and Social Care trust established under the Health and Personal Social Services (Northern Ireland) Order 1991; or]

(g) any person not falling within any of paragraphs (a) to (f) above who is engaged in the carrying on of any activity in respect of which a relevant institution is required to be approved, licensed or registered or as the case may be, would be so required if not exempt.

(5I) In Notes (5A), (5B) and (5H), “relevant institution” means any institution (whether a hospital, nursing home or other institution) which provides care or medical or surgical treatment and is either—

(a) approved, licensed or registered in accordance with the provisions of any enactment or Northern Ireland legislation; or

(b) exempted by or under the provisions of any enactment or Northern Ireland legislation from any requirement to be approved, licensed or registered;,

and in this Note the references to the provisions of any enactment or Northern Ireland legislation include references only to provisions which, so far as relating to England, Wales, Scotland or Northern Ireland, have the same effect in every locality within that part of the United Kingdom.]

[F403 (5J) For the purposes of item 11 “residential accommodation” means—

(a) a residential home, or

(b) self-contained living accommodation,

provided as a residence (whether on a permanent or temporary basis or both) for [F391 disabled] persons, but does not include an inn, hotel, boarding house or similar establishment or accommodation in any such type of establishment.

(5K) In this Group “washroom” means a room that contains a lavatory or washbasin (or both) but does not contain a bath or a shower or cooking, sleeping or laundry facilities.]

F404 (5L) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F405 (5M) For the purposes of Notes (5N) to (5S), the supply of a motor vehicle is a “relevant supply” if it is a supply of goods (which is made in the United Kingdom).

(5N) In the case of a relevant supply of a motor vehicle to a disabled person (“the new supply”), items 2(f) and 2A do not apply if, in the period of 3 years ending with the day on which the motor vehicle is made available to the disabled person—

(a) a reckonable zero-rated supply of another motor vehicle has been made to that person, or

(b) that person has made a F406 ... reckonable zero-rated importation, of another motor vehicle.

(5O) If a relevant supply of a motor vehicle is made to a disabled person and—

(a) any reckonable zero-rated supply of another motor vehicle has previously been made to the person, or

(b) any reckonable zero-rated F407 ... importation of another motor vehicle has previously been made by the person,

the reckonable zero-rated supply or (as the case may be) reckonable zero-rated importation F408 ... is treated for the purposes of Note (5N) as not having been made if either of the conditions in Note (5P) is met.

(5P) The conditions mentioned in Note (5O) are that—

(a) at the time of the new supply (see Note (5N)) the motor vehicle mentioned in Note (5O)(a) or (b) is unavailable for the disabled person's use because—

(i) it has been stolen, or

(ii) it has been destroyed or damaged beyond repair (accidentally, or otherwise in circumstances beyond the disabled person's control), or

(b) the Commissioners are satisfied that (at the time of the new supply) the motor vehicle mentioned in Note (5O)(a) or (b) has ceased to be suitable for the disabled person's use because of changes in the person's condition.

(5Q) In the case of a relevant supply of a motor vehicle to a disabled person, items 2(f) and 2A cannot apply unless the supplier—

(a) gives to the Commissioners, before the end of the period of 12 months beginning with the day on which the supply is made, any information and supporting documentary evidence that may be specified in a notice published by them, and

(b) in doing so complies with any requirements as to method set out in the notice.

(5R) In the case of a relevant supply of a motor vehicle to a disabled person, items 2(f) and 2A cannot apply unless, before the supply is made, the person making the supply has been given a certificate in the required form which—

(a) states that the supply will not fall within Note (5N), and

(b) sets out any other matters, and is accompanied by any supporting documentary evidence, that may be required under a notice published by the Commissioners for the purposes of this Note.

(5S) The information that may be required under Note (5Q)(a) includes—

(a) the name and address of the disabled person and details of the person's disability, and

(b) any other information that may be relevant for the purposes of that Note,

(and the matters that may be required under Note (5R)(b) include any information that may be required for the purposes of Note (5Q)).

(5T) In Notes (5N) to (5S)—

• “in the required form” means complying with any requirements as to form that may be specified in a notice published by the Commissioners;

• F409 ...

• “reckonable zero-rated importation”, in relation to a motor vehicle, means an importation of the vehicle F410 ... in a case where—

  (a)

  VAT is not chargeable on the importation as a result of item 2(f) or 2A, and

  (b)

  the importation takes place on or after 1 April 2017;

• “reckonable zero-rated supply”, in relation to a motor vehicle, means a supply of the vehicle which—

  (a)

  is a supply of goods,

  (b)

  is zero-rated as a result of item 2(f) or 2A, and

  (c)

  is made on or after 1 April 2017.

(5U) In items 2A and 2B references to design, or adaptation, of a motor vehicle to enable a person (or a person of any description) to travel in it are to be read as including a reference to design or, as the case may be, adaptation of the motor vehicle to enable the person (or persons of that description) to drive it.]

(6) Item 14 applies only—

(a) where the vehicle is unused at the commencement of the period of letting; and

(b) where the consideration for the letting consists wholly or partly of sums paid to the lessor by [F411 the Department for Work and Pensions] or the Ministry of Defence on behalf of the lessee in respect of the mobility component of the disability living allowance[F412 , the mobility component of the personal independence payment, armed forces independence payment] or mobility supplement to which he is entitled.

(7) In item 14—

(a) “disability living allowance” is a disability living allowance within the meaning of section 71 of the M4 Social Security Contributions and Benefits Act 1992, or section 71 of the M5 Social Security Contributions and Benefits (Northern Ireland) Act 1992; F413 ...

[F414 (aa) “personal independence payment” means a personal independence payment under Part 4 of the Welfare Reform Act 2012 or the corresponding provision having effect in Northern Ireland;

(ab) “armed forces independence payment” means an armed forces independence payment under a scheme established under section 1 of the Armed Forces (Pensions and Compensation) Act 2004; and]

(b) “mobility supplement” is a mobility supplement within the meaning of Article 26A of the M6 Naval, Military and Air Forces etc. (Disablement and Death Service Pensions Order 1983, Article 25A of the M7 Personal Injuries (Civilians) Scheme 1983, Article 3 of the M8 Motor Vehicles (Exemption from Vehicles Excise Duty) Order 1985 or Article 3 of the M9 Motor Vehicles (Exemption from Vehicles Excise Duty) (Northern Ireland) Order 1985.

(8) Where in item 3 or 4 the goods are adapted in accordance with that item prior to their supply to the [F391 disabled] person or the charity, an apportionment shall be made to determine the supply of services which falls within item 3 or 4.

(9) In item 19 or 20, a specified person or control centre is a person or centre who or which—

(a) is appointed to receive directly calls activated by an alarm system described in that item, and

(b) retains information about the [F391 disabled] person to assist him in the event of illness, injury or similar emergency.

Textual Amendments

F373 Words in Sch. 8 Pt. II Group 12 Note (1) omitted (with effect in accordance with art. 1 of the amending S.I.) by virtue of The Value Added Tax (Drugs and Medicines) Order 2009 (S.I. 2009/2972), arts. 1, 4

F374 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(5)(a)(i) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F375 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(5)(a)(ii) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F376 Word in Sch. 8 Pt. II Group 12 Note (1) substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

F377 Sch. 8 Pt. II Group 12 Note (2) omitted (3.12.2007) by virtue of The European Qualifications (Health and Social Care Professions) Regulations 2007 (S.I. 2007/3101), regs. 1(2), 65(a)

F378 Sch. 8 Group 12 Note (2A) inserted (1.1.1998) by S.I. 1998/2744, art. 5

F379 Words in Sch. 8 Pt. II Group 12 Note (2A) substituted (with effect in accordance with art. 1 of the amending S.I.) by The Value Added Tax (Drugs and Medicines) Order 2009 (S.I. 2009/2972), arts. 1, 5

F380 Sch. 8 Pt. II Group 12 Notes (2B)-(2D) inserted (with effect in accordance with art. 1 of the amending S.I.) by The Value Added Tax (Drugs and Medicines) Order 2009 (S.I. 2009/2972), arts. 1, 6

F381 Words in Sch. 8 inserted (with effect in accordance with art. 1(3)(b) of the amending S.I.) by The Value Added Tax (Drugs and Medicines) Order 2020 (S.I. 2020/250), arts. 1(3)(a), 3 (with art. 1(2))

F382 Sch. 8 Pt. II Group 12 Note (2B)(ca) inserted (with effect in accordance with art. 1(2)(b) of the amending S.I.) by The Value Added Tax (Drugs and Medicines) Order 2020 (S.I. 2020/250), arts. 1(2)(a), 2 (with art. 1(2))

F383 Sch. 8 Pt. II Group 12 Note (2B)(fa)(fb) inserted (21.5.2014) by The Value Added Tax (Drugs and Medicines) Order 2014 (S.I. 2014/1111), arts. 1(2), 2(a) (with art. 1(2))

F384 Words in Sch. 8 Pt. II Group 12 Note (2B) inserted (21.5.2014) by The Value Added Tax (Drugs and Medicines) Order 2014 (S.I. 2014/1111), arts. 1(2), 2(b) (with art. 1(2))

F385 Words in Sch. 8 Pt. II Group 12 Note (2B) substituted (14.8.2012) by The Human Medicines Regulations 2012 (S.I. 2012/1916), reg. 1(2), Sch. 34 para. 42(a) (with Sch. 32)

F386 Sch. 8 Pt. II Group 12 Note (3) substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(b)

F387 Words in Sch. 8 Pt. II Group 12 Note (4)(b) deleted (1.1.1998) by S.I. 1997/2744, arts. 1, 6

F388 Word in Sch. 8 Pt. II Group 12 Note (5) omitted (with effect in accordance with art. 1 of the amending S.I.) by virtue of The Value Added Tax (Drugs and Medicines) Order 2009 (S.I. 2009/2972), arts. 1, 7

F389 Sch. 8 Pt. II Group 12 Note (5): Words “and 2” deleted and words “, 2 and 2A” inserted (1.4.2001 with effect as mentioned in art. 1 of the amending S.I.) by S.I. 2001/754, art. 5

F390 Sch. 8 Pt. II Group 12 Notes (5A)-(5I) inserted (1.1.1998) by S.I. 1997/2744, arts. 1, 7

F391 Word in Sch. 8 Pt. II Group 12 Notes (5B)-(9) substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 7(a)

F392 Sch. 8 Pt. II Group 12 Note (5H)(a)(aa) substituted for Sch. 8 Pt. 2 Group 12 Note (5H)(a) (5.12.2002) by The Value Added Tax (Drugs, Medicines, Aids for the Handicapped and Charities Etc) Order 2002 (S.I. 2002/2813), art. 3

F393 Words in Sch. 8 Pt. II Group 12 Note (5H)(a) substituted (28.6.2016) by The Value Added Tax (Drugs, Medicines, Aids and Charities, etc.) Order 2016 (S.I. 2016/620), arts. 1, 2(2)(a)

F394 Sch. 8 Pt. II Group 12 Note (5H)(c) substituted (28.6.2016) by The Value Added Tax (Drugs, Medicines, Aids and Charities, etc.) Order 2016 (S.I. 2016/620), arts. 1, 2(2)(b)

F395 Words in Sch. 8 Pt. II Group 12 Note (5H)(d) substituted (28.6.2016) by The Value Added Tax (Drugs, Medicines, Aids and Charities, etc.) Order 2016 (S.I. 2016/620), arts. 1, 2(2)(c)(i)

F396 Words in Sch. 8 Pt. II Group 12 Note (5H)(d) substituted (28.6.2016) by The Value Added Tax (Drugs, Medicines, Aids and Charities, etc.) Order 2016 (S.I. 2016/620), arts. 1, 2(2)(c)(ii)

F397 Words in Sch. 8 Pt. II Group 12 Note (5H) substituted (1.3.2007) by National Health Service (Consequential Provisions) Act 2006 (c. 43), s. 8(2), Sch. 1 para. 174(a) (with Sch. 3 Pt. 1)

F398 1990 c.19.

F399 1978 c.29.

F400 Sch. 8 Pt. II Group 12 Note (5H)(eaa) inserted (1.4.2004) by Health and Social Care (Community Health and Standards) Act 2003 (c. 43), s. 199(1)(4), Sch. 4 para. 98; S.I. 2004/759, art. 2

F401 Sch. 8 Pt. II Group 12 Note (5H)(ea) substituted (28.6.2016) by The Value Added Tax (Drugs, Medicines, Aids and Charities, etc.) Order 2016 (S.I. 2016/620), arts. 1, 2(2)(d)

F402 Sch. 8 Pt. II Group 12 Note (5H)(f) substituted (28.6.2016) by The Value Added Tax (Drugs, Medicines, Aids and Charities, etc.) Order 2016 (S.I. 2016/620), arts. 1, 2(2)(e)

F403 Sch. 8 Pt. II Group 12 Notes (5J)(5K) inserted (1.4.2000) by S.I. 2000/805, art. 4

F404 Sch. 8 Pt. II Group 12 Notes (5L) omitted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by virtue of Finance Act 2017 (c. 10), Sch. 7 para. 2(a)

F405 Sch. 8 Pt. II Group 12 Notes (5M)-(5U) inserted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 2(b)

F406 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(5)(b) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F407 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(5)(c)(i) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F408 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(5)(c)(ii) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F409 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(5)(d)(i) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F410 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(5)(d)(ii) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F411 Words in Sch. 8 Pt. II Group 12 Note (6)(b) substituted (27.6.2002) by The Secretaries of State for Education and Skills and for Work and Pensions Order 2002 (S.I. 2002/1397), art. 12, Sch. para. 11

F412 Words in Sch. 8 Pt. II Group 12 Note (6)(b) inserted (8.4.2013) by The Value Added Tax (Independence Payment) Order 2013 (S.I. 2013/601), arts. 1, 3(b)

F413 Word in Sch. 8 Pt. II Group 12 Note (7)(a) omitted (8.4.2013) by virtue of The Value Added Tax (Independence Payment) Order 2013 (S.I. 2013/601), arts. 1, 3(c)

F414 Sch. 8 Pt. II Group 12 Note (7)(aa)(ab) inserted (8.4.2013) by The Value Added Tax (Independence Payment) Order 2013 (S.I. 2013/601), arts. 1, 3(c)

Modifications etc. (not altering text)

C14 Sch. 8 Pt. II Group 12 Note (2D)(j) modified (E.) (1.9.2012) by The National Health Service (Pharmaceutical Services) Regulations 2012 (S.I. 2012/1909), reg. 1, Sch. 7 para. 15

Marginal Citations

M4 1992 c. 4.

M5 1992 c. 7.

M6 S.I.1983/883.

M7 S.I.1983/686.

M8 S.I.1985/722.

M9 S.I.1985/723.

Group 13— Imports, exports etc. U.K.

Item No. U.K.

[F415 1 The supply of imported goods before a Customs declaration has been made under Part 1 of TCTA 2018 in respect of those goods where the supplier and the purchaser of the goods have agreed that the purchaser will make the Customs declaration.]

Textual Amendments

F415 Words in Sch. 8 Pt. II substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(6)(a) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

2 U.K. The supply to or by an overseas authority, overseas body or overseas trader, charged with the management of any defence project which is the subject of an international collaboration arrangement or under direct contract with any government or government-sponsored international body participating in a defence project under such an arrangement, of goods or services in the course of giving effect to that arrangement.

3 U.K. The supply to an overseas authority, overseas body or overseas trader of jigs, patterns, templates, dies, punches and similar machine tools used in the United Kingdom solely for the manufacture of goods for export F416 ....

Textual Amendments

F416 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(6)(b) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

Notes: U.K.

(1) An “international collaboration arrangement” means any arrangement which—

(a) is made between the United Kingdom Government and the government of one or more other countries, or any government-sponsored international body for collaboration in a joint project of research, development or production; and

(b) includes provision for participating governments to relieve the cost of the project from taxation.

(2) “Overseas authority” means any country other than the United Kingdom or any part of or place in such a country or the government of any such country, part or place.

(3) “Overseas body” means a body established outside the United Kingdom.

(4) “Overseas trader” means a person who carries on a business and has his principal place of business outside the United Kingdom.

(5) Item 3 does not apply where the overseas authority, overseas body or overseas trader is a taxable personF417 ....

Textual Amendments

F417 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(6)(c) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F418 Group 14— Tax-free shops U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F418 Sch. 8 Pt. II Group 14 deleted (1.7.1999) by S.I. 1999/1642, art. 2(b)

Group 15— Charities etc. U.K.

[F420 1 U.K. The sale, or letting on hire, by a charity of any goods donated to it for—

(a) sale,

(b) letting,

(c) sale or letting,

(d) sale or export,

(e) letting or export, or

(f) sale, letting or export.]

Textual Amendments

F420 Sch. 8 Pt. II Group 15 items 1, 1A, 2 substituted for items 1, 2 (1.4.2000) by S.I. 2000/805, art. 6

F421 1A U.K. The sale, or letting on hire, by a taxable person of any goods donated to him for—

(a) sale,

(b) letting,

(c) sale or letting,

(d) sale or export,

(e) letting or export, or

(f) sale, letting or export,

if he is a profits-to-charity person in respect of the goods.

Textual Amendments

F421 Sch. 8 Pt. II Group 15 items 1, 1A, 2 substituted for items 1, 2 (1.4.2000) by S.I. 2000/805, art. 6

[F422 2 U.K. The donation of any goods for any one or more of the following purposes—

(a) sale by a charity or a taxable person who is a profits-to-charity person in respect of the goods;

(b) export by a charity or such a taxable person;

(c) letting by a charity or such a taxable person.]

Textual Amendments

F422 Sch. 8 Pt. II Group 15 items 1, 1A, 2 substituted for items 1, 2 (1.4.2000) by S.I. 2000/805, art. 6

3 U.K. The export of any goods by a charity F423 ....

Textual Amendments

F423 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(7) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

4 U.K. The supply of any relevant goods for donation to a nominated eligible body where the goods are purchased with funds provided by a charity or from voluntary contributions.

5 U.K. The supply of any relevant goods to an eligible body which pays for them with funds provided by a charity or from voluntary contributions or to an eligible body which is a charitable institution providing care or medical or surgical treatment for [F424 disabled] persons.

Textual Amendments

F424 Word in Sch. 8 Pt. II Group 15 item 5 substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 8(a)

6 U.K. Repair and maintenance of relevant goods owned by an eligible body.

7 U.K. The supply of goods in connection with the supply described in item 6.

[F425 8 U.K. The supply to a charity of a right to promulgate an advertisement by means of a medium of communication with the public.]

Textual Amendments

F425 Sch. 8 Pt. II Group 15 items 8-8C substituted for item 8 (1.4.2000) by S.I. 2000/805, art. 7

F426 8A U.K. A supply to a charity that consists in the promulgation of an advertisement by means of such a medium.

Textual Amendments

F426 Sch. 8 Pt. II Group 15 items 8-8C substituted for item 8 (1.4.2000) by S.I. 2000/805, art. 7

F427 8B U.K. The supply to a charity of services of design or production of an advertisement that is, or was intended to be, promulgated by means of such a medium.

Textual Amendments

F427 Sch. 8 Pt. II Group 15 items 8-8C substituted for item 8 (1.4.2000) by S.I. 2000/805, art. 7

F428 8C U.K. The supply to a charity of goods closely related to a supply within item 8B.

Textual Amendments

F428 Sch. 8 Pt. II Group 15 items 8-8C substituted for item 8 (1.4.2000) by S.I. 2000/805, art. 7

9 U.K. The supply to a charity, providing care or medical or surgical treatment for human beings or animals, or engaging in medical or veterinary research, of a medicinal product [F429 or veterinary medicinal product] where the supply is solely for use by the charity in such care, treatment or research.

Textual Amendments

F429 Words in Sch. 8 Pt. II Group 15 item 9 inserted (1.10.2006) by The Veterinary Medicines Regulations 2006 (S.I. 2006/2407), reg. 1, Sch. 9 para. 10(a) (with regs. 2(4), 3)

10 U.K. The supply to a charity of a substance directly used for synthesis or testing in the course of medical or veterinary research.

Notes: U.K.

[F430 (1) Item 1 or 1A does not apply unless the sale or letting—

(a) takes place as a result of the goods having been made available—

(i) to two or more specified persons, or

(ii) to the general public,

for purchase or hire (whether so made available in a shop or elsewhere), and

(b) does not take place as a result of any arrangements (whether legally binding or not) relating to the goods and entered into, before the goods were made so available, by—

(i) each of the parties to the sale or letting, or

(ii) the donor of the goods and either or both of those parties.

(1A) For the purposes of items 1, 1A and 2, goods are donated for letting only if they are donated for—

(a) letting, and

(b) re-letting after the end of any first or subsequent letting, and

(c) all or any of—

(i) sale,

(ii) export, or

(iii) disposal as waste,

if not, or when no longer, used for letting.

(1B) Items 1 and 1A do not include (and shall be treated as having not included) any sale, or letting on hire, of particular donated goods if the goods, at any time after they are donated but before they are sold, exported or disposed of as waste, are whilst unlet used for any purpose other than, or in addition to, that of being available for purchase, hire or export.

(1C) In Note (1) “specified person” means a person who—

(a) is [F431 disabled], or

(b) is entitled to any one or more of the specified benefits, or

(c) is both [F431 disabled] and so entitled.

(1D) For the purposes of Note (1C) the specified benefits are—

(a) income support under Part VII of the Social Security Contributions and Benefits Act 1992 F432 or Part VII of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 F433 ;

(b) housing benefit under Part VII of the Social Security Contributions and Benefits Act 1992 or Part VII of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;

(c) council tax benefit under Part VII of the Social Security Contributions and Benefits Act 1992;

(d) an income-based jobseeker’s allowance within the meaning of section 1(4) of the Jobseekers Act 1995 F434 or article 3(4) of the Jobseekers (Northern Ireland) Order 1995 F435 ;

[F436 (e) any element of child tax credit other than the family element; F437 ...

(f) working tax credit.] [F438 and

(g) universal credit under Part 1 of the Welfare Reform Act 2012 [F439 or Part 2 of the Welfare Reform (Northern Ireland) Order 2015].]

(1E) For the purposes of items 1A and 2 a taxable person is a “profits-to-charity” person in respect of any goods if—

(a) he has agreed in writing (whether or not contained in a deed) to transfer to a charity his profits from supplies and lettings of the goods, or

(b) his profits from supplies and lettings of the goods are otherwise payable to a charity.

(1F) In items 1, 1A and 2, and any Notes relating to any of those items, “goods” means goods (and, in particular, does not include anything that is not goods even though provision made by or under an enactment provides for a supply of that thing to be, or be treated as, a supply of goods).]

(2) “Animals” includes any species of the animal kingdom.

(3) “Relevant goods” means—

(a) medical, scientific, computer, video, sterilising, laboratory or refrigeration equipment for use in medical or veterinary research, training, diagnosis or treatment;

(b) ambulances;

(c) parts or accessories for use in or with goods described in paragraph (a) or (b) above;

(d) goods of a kind described in item 2 of Group 12 of this Schedule;

(e) motor vehicles (other than vehicles with more than 50 seats) designed or substantially and permanently adapted for the safe carriage of a [F431 disabled] person in a wheelchair provided that—

(i) in the case of vehicles with more than 16 but fewer than 27 seats, the number of persons for which such provision shall exist shall be at least 2;

(ii) in the case of vehicles with more than 26 but fewer than 37 seats, the number of persons for which such provision shall exist shall be at least 3;

(iii) in the case of vehicles with more than 36 but fewer than 47 seats, the number of persons for which such provision shall exist shall be at least 4;

(iv) in the case of vehicles with more than 46 seats, the number of persons for which such provision shall exist shall be at least 5;

(v) there is either a fitted electrically or hydraulically operated lift or, in the case of vehicles with fewer than 17 seats, a fitted ramp to provide access for a passenger in a wheelchair;

(f) motor vehicles (with more than 6 but fewer than 51 seats) for use by an eligible body providing care for blind, deaf, mentally [F431 disabled] or terminally sick persons mainly to transport such persons;

(g) telecommunication, aural, visual, light enhancing or heat detecting equipment (not being equipment ordinarily supplied for private or recreational use) solely for use for the purpose of rescue or first aid services undertaken by a charitable institution providing such services.

(4) “Eligible body” means—

[F440 (a) [F441 the National Health Service Commissioning Board or a] or Special Health Authority in England;

(aa) a Health Authority, Special Health Authority or Local Health Board in Wales;]

(b) a Health Board in Scotland;

[F442 (c) the Regional Health and Social Care Board established under section 7 of the Health and Social Care (Reform) Act (Northern Ireland) 2009 or a Local Commissioning Group in Northern Ireland appointed under section 9 of that Act;]

(d) a hospital whose activities are not carried on for profit;

(e) a research institution whose activities are not carried on for profit;

(f) a charitable institution providing care or medical or surgical treatment for [F431 disabled] persons;

(g) the Common Services Agency for the Scottish Health Service, [F443 the Regional Business Services Organisation established under section 14 of the Health and Social Care (Reform) Act (Northern Ireland) 2009] or the [F444 the Isle of Man Department of Health and Social Care];

(h) a charitable institution providing rescue or first-aid services;

(i) a National Health Service trust established under Part I of the M12 National Health Service and Community Care Act 1990 or the M13 National Health Service (Scotland) Act 1978.

[F445 (j) a clinical commissioning group established under section 14D of the National Health Service Act 2006;]

[F446 (4A) Subject to Note (5B), a charitable institution shall not be regarded as providing care or medical or surgical treatment for [F431 disabled] persons unless—

(a) it provides care or medical or surgical treatment in a relevant establishment; and

(b) the majority of the persons who receive care or medical or surgical treatment in that establishment are [F431 disabled] persons.

(4B) “Relevant establishment” means—

(a) a day-centre, other than a day-centre which exists primarily as a place for activities that are social or recreational or both; or

(b) an institution which is—

(i) approved, licensed or registered in accordance with the provisions of any enactment or Northern Ireland legislation; or

(ii) exempted by or under the provisions of any enactment or Northern Ireland legislation from any requirement to be approved, licensed or registered;

and in paragraph (b) above the references to the provisions of any enactment or Northern Ireland legislation are references only to provisions which, so far as relating to England, Wales, Scotland or Northern Ireland, have the same effect in every locality within that part of the United Kingdom.]

[F447 (5) Any person who is chronically sick or disabled is “disabled” for the purposes of this Group.]

[F448 (5A) Subject to Note (5B), items 4 to 7 do not apply where the eligible body falls within Note (4)(f) unless the relevant goods are or are to be used in a relevant establishment in which that body provides care or medical or surgical treatment to persons the majority of whom are [F449 disabled].

(5B) Nothing in Note (4A) or (5A) shall prevent a supply from falling within items 4 to 7 where—

(a) the eligible body provides medical care to [F449 disabled] persons in their own homes;

(b) the relevant goods fall within Note (3)(a) or are parts or accessories for use in or with goods described in Note (3)(a); and

(c) those goods are or are to be used in or in connection with the provision of that care.]

(6) Item 4 does not apply where the donee of the goods is not a charity and has contributed in whole or in part to the funds for the purchase of the goods.

(7) Item 5 does not apply where the body to whom the goods are supplied is not a charity and has contributed in whole or in part to the funds for the purchase of the goods.

(8) Items 6 and 7 do not apply unless—

(a) the supply is paid for with funds which have been provided by a charity or from voluntary contributions, and

(b) in a case where the owner of the goods repaired or maintained is not a charity, it has not contributed in whole or in part to those funds.

(9) Items 4 and 5 include the letting on hire of relevant goods; accordingly in items 4, 5 and 6 and the notes relating thereto, references to the purchase or ownership of goods shall be deemed to include references respectively to their hiring and possession.

(10) Item 5 includes computer services by way of the provision of computer software solely for use in medical research, diagnosis or treatment.

[F450 (10A) Neither of items 8 and 8A includes a supply where any of the members of the public (whether individuals or other persons) who are reached through the medium are selected by or on behalf of the charity.

For this purpose “selected” includes selected by address (whether postal address or telephone number, e-mail address or other address for electronic communications purposes) or at random.

(10B) None of items 8 to 8C includes a supply used to create, or contribute to, a website that is the charity’s own.

For this purpose a website is a charity’s own even though hosted by another person.

(10C) Neither of items 8B and 8C includes a supply to a charity that is used directly by the charity to design or produce an advertisement.]

(11) In item 9—

[F451 (a) “medicinal product” has the meaning assigned to it by regulation 2(1) of the Human Medicines Regulations 2012;]

F452 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F452 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F453 (d) “veterinary medicinal product” has the meaning assigned to it by regulation 2 of the Veterinary Medicines Regulations 2006.]

(12) In items 9 and 10 “substance” and “ingredient” have the meanings assigned to them by section 132 of the Medicines Act 1968.

Textual Amendments

F430 Sch. 8 Pt. II Group 15 Notes (1)-(1F) substituted for Note (1) (1.4.2000) by S.I. 2000/805, art. 8

F431 Word in Sch. 8 Pt. II Group 15 Notes (1C)-(4A) substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 8(a)

F432 1992 c. 4.

F433 1992 c. 7.

F434 1995 c. 18; definition amended by paragraph 2(4)(a) of Schedule 7 to the Welfare Reform and Pensions Act 1999 (c. 30).

F435 S.I. 1995/2705 (N.I. 15); definition amended by the Welfare Reform and Pensions (Northern Ireland) Order 1999 (S.I. 1999/3147 (N.I. 11)).

F436 Sch. 8 Pt. II Group 15 Note (1D)(e)(f) substituted (6.4.2003) by Tax Credits Act 2002 (c. 21), s. 61, Sch. 3 para. 49; S.I. 2003/962, art. 2(3)(d)(iii)

F437 Word in Sch. 8 Pt. II Group 15 Note (1D)(e) omitted (29.4.2013) by virtue of The Universal Credit (Consequential, Supplementary, Incidental and Miscellaneous Provisions) Regulations 2013 (S.I. 2013/630), regs. 1(2), 9(3)(a)

F438 Sch. 8 Pt. II Group 15 Note (1D)(g) and word inserted (29.4.2013) by The Universal Credit (Consequential, Supplementary, Incidental and Miscellaneous Provisions) Regulations 2013 (S.I. 2013/630), regs. 1(2), 9(3)(b)

F439 Words in Sch. 8 Pt. II Group 15 Note (1D) inserted (N.I.) (coming into force in accordance with reg. 1(1) of the amending Rule) by The Universal Credit (Consequential, Supplementary, Incidental and Miscellaneous Provisions) Regulations (Northern Ireland) 2016 (S.R. 2016/236), regs. 1(1), 5(3)

F440 Sch. 8 Pt. II Group 15 Notes (4)(a)(aa) substituted (5.12.2002) for Note (4)(a) by The Value Added Tax (Drugs, Medicines, Aids for the Handicapped and Charities Etc) Order 2002 (S.I.2002/2813), art. 4

F441 Words in Sch. 8 Pt. II Group 15 Note (4)(a) substituted (28.6.2016) by The Value Added Tax (Drugs, Medicines, Aids and Charities, etc.) Order 2016 (S.I. 2016/620), arts. 1, 2(3)(a)

F442 Sch. 8 Pt. II Group 15 Note (4)(c) substituted (28.6.2016) by The Value Added Tax (Drugs, Medicines, Aids and Charities, etc.) Order 2016 (S.I. 2016/620), arts. 1, 2(3)(b)

F443 Words in Sch. 8 Pt. II Group 15 Note (4)(g) substituted (28.6.2016) by The Value Added Tax (Drugs, Medicines, Aids and Charities, etc.) Order 2016 (S.I. 2016/620), arts. 1, 2(3)(c)(i)

F444 Words in Sch. 8 Pt. II Group 15 Note (4)(g) substituted (28.6.2016) by The Value Added Tax (Drugs, Medicines, Aids and Charities, etc.) Order 2016 (S.I. 2016/620), arts. 1, 2(3)(c)(ii)

F445 Sch. 8 Pt. II Group 15 Note (4)(j) substituted (28.6.2016) by The Value Added Tax (Drugs, Medicines, Aids and Charities, etc.) Order 2016 (S.I. 2016/620), arts. 1, 2(3)(d)

F446 Sch. 8 Pt. II Group 15 Notes (4A)(4B) inserted (19.3.1997 with effect as mentioned in s. 34(3) of the amending Act) by S.I. 1997 c. 16, s. 34(1)(3)

F447 Sch. 8 Pt. II Group 15 Note (5) substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 8(b)

F448 Sch. 8 Pt. II Group 15 Note (5A)(5B) inserted (19.3.1997 with effect as mentioned in s. 34(3) of the amending Act) by S.I. 1997 c. 16, s. 34(2)(3)

F449 Word in Sch. 8 Pt. II Group 15 Notes (5A)(5B) substituted (with effect in accordance with Sch. 7 para. 9 of the amending Act) by Finance Act 2017 (c. 10), Sch. 7 para. 8(a)

F450 Sch. 8 Pt. II Group 15 Notes (10A)-(10C) inserted (1.4.2000) by S.I. 2000/805, art. 9

F451 Sch. 8 Pt. II Group 15 Note (11)(a) substituted (14.8.2012) by The Human Medicines Regulations 2012 (S.I. 2012/1916), reg. 1(2), Sch. 34 para. 42(b)(i) (with Sch. 32)

F452 Sch. 8 Pt. II Group 15 Note (11)(b)(c) omitted (14.8.2012) by virtue of The Human Medicines Regulations 2012 (S.I. 2012/1916), reg. 1(2), Sch. 34 para. 42(b)(ii) (with Sch. 32)

F453 Sch. 8 Pt. II Group 15 Note 11(d) added (1.10.2006) by The Veterinary Medicines Regulations 2006 (S.I. 2006/2407), reg. 1, Sch. 9 para. 10(b)(ii) (with regs. 2(4), 3)

Marginal Citations

M12 1990 c. 19.

M13 1978 c. 29.

Group 16— Clothing and footwear U.K.

Item No. U.K.

1 Articles designed as clothing or footwear for young children and not suitable for older persons.

2 U.K. The supply to a person for use otherwise than by employees of his of protective boots and helmets for industrial use.

3 U.K. Protective helmets for wear by a person driving or riding a motor bicycle [F454 or riding a pedal cycle].

Textual Amendments

F454 Words in Sch. 8 Pt. II Group 16 item 3 inserted (1.4.2001 with effect as mentioned in art. 1 of the amending S.I.) by S.I. 2001/732, art. 3

Notes: U.K.

(1) “Clothing” includes hats and other headgear.

(2) Item 1 does not include articles of clothing made wholly or partly of fur skin, except—

(a) headgear;

(b) gloves;

(c) buttons, belts and buckles;

(d) any garment merely trimmed with fur skin unless the trimming has an area greater than one-fifth of the area of the outside material or, in the case of a new garment, represents a cost to the manufacturer greater than the cost to him of the other components.

(3) “Fur skin” means any skin with fur, hair or wool attached except—

(a) rabbit skin;

(b) woolled sheep or lamb skin; and

(c) the skin, if neither tanned nor dressed, of bovine cattle (including buffalo), equine animals, goats or kids (other than Yemen, Mongolian and Tibetan goats or kids), swine (including peccary), chamois, gazelles, deer or dogs.

(4) [F455 Item 2 applies only where the goods to which it refers are—]

(a) goods which—

(i) are manufactured to standards approved by the British Standards Institution; and

(ii) bear a marking indicating compliance with the specification relating to such goods; or

(b) goods which—

[F456 (i) are manufactured to standards which satisfy the requirements of regulation 8(2) of the Personal Protective Equipment Regulations 2002, and

(ii) bear the mark of conformity required by that regulation.]

[F457 (4A) Item 3 does not apply to a protective helmet unless—

(a) it is of a type that on 30th June 2000 is prescribed by regulations made under section 17 of the Road Traffic Act 1988 F458 (types of helmet recommended as affording protection to persons on or in motor cycles from injury in the event of accident); or

(b) it is of a type that—

[F459 (i) is manufactured to standards which satisfy the requirements of regulation 8(2) of the Personal Protective Equipment Regulations 2002, and

(ii) bears the mark of conformity required by that regulation.]]

(5) Items 1, 2 and 3 include the supply of the services described in paragraphs 1(1) and [F460 5(4)] of Schedule 4 in respect of goods comprised in the items, but, in the case of goods comprised in item 2, only if the goods are for use otherwise than by employees of the person to whom the services are supplied.

Textual Amendments

F455 Words in Sch. 8 Pt. II Group 16 Note (4) substituted (30.6.2000) by S.I. 2000/1517, art. 3

F456 Words in Sch. 8 Pt. II substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(8)(a) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F457 Sch. 8 Pt. II Group 16 Note (4A) substituted (1.4.2001 with effect as mentioned in art. 1 of the amending S.I.) by S.I. 2001/732, art. 6

F458 1988 c. 52, the current standards are laid down by the Secretary of State for the Environment, Transport and the Regions in the Motor Cycles (Protective Helmets) Regulations 1998 (S.I. 1998/1807) as amended by the Motor Cycles (Protective Helmets) (Amendment) Regulations 2000 (S.I. 2000/1488).

F459 Words in Sch. 8 Pt. II substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(8)(b) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F460 Words in Sch. 8 Pt. II Group 16 Note (5) substituted (30.6.2000) by S.I. 2000/1517, art. 5

GROUP 17—EMISSIONS ALLOWANCES U.K.

F461 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F461 Sch. 8 Pt. II Group 17 omitted (with effect in accordance with art. 1(2) of the amending S.I.) by virtue of The Value Added Tax (Emissions Allowances) Order 2010 (S.I. 2010/2549), arts. 1(2), 2(3)

F462 ... U.K.

Textual Amendments

F462 Words in Sch. 8 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 94(9) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F462 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F265 Group 19 - women's sanitary products U.K.

Item No. U.K.

1 The supply of women's sanitary products.

NOTES

(1) In this Group “women's sanitary products” means women's sanitary products of any of the following descriptions—

(a) subject to Note (2), products that are designed, and marketed, as being solely for use for absorbing, or otherwise collecting, lochia or menstrual flow;

(b) panty liners, other than panty liners that are designed as being primarily for use as incontinence products;

(c) sanitary belts.

(2) Note (1)(a) does not include protective briefs or any other form of clothing.]

[F463 Group 20—Personal Protective Equipment (Coronavirus) U.K.

Textual Amendments

F463 Sch. 8 Pt. 2 Group 20 inserted (1.5.2020) by The Value Added Tax (Zero Rate for Personal Protective Equipment) (Coronavirus) Order 2020 (S.I. 2020/458), arts. 1, 4

Item No. U.K.

1. The supply of equipment to provide protection from infection where the supply is made in the period beginning with 1st May 2020 and ending with [F464 31st October 2020].

NOTES

(1) In this Group “equipment to provide protection from infection” means personal protective equipment recommended for use in connection with protection from infection with coronavirus in guidance published by Public Health England on 24th April 2020 titled “Guidance, COVID-19 personal protective equipment (PPE)” namely—

(a) disposable gloves,

(b) disposable plastic aprons,

(c) disposable fluid-resistant coveralls or gowns,

(d) surgical masks (including fluid-resistant type IIR surgical masks),

(e) filtering face piece respirators, and

(f) eye and face protection (including single or reusable full face visors or goggles).

(2) Item 1 does not include—

(a) any of the supplies described in Group 12 or Group 15 of this Schedule, or

(b) any of the supplies that would be exempt by virtue of Group 7 of Schedule 9.

(3) In this Group “coronavirus” means severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2).]

Textual Amendments

F464 Words in Sch. 8 Pt. 2 Group 20 substituted (30.7.2020) by The Value Added Tax (Zero Rate for Personal Protective Equipment) (Extension) (Coronavirus) Order 2020 (S.I. 2020/698), arts. 1, 3

[F266 GROUP 21 U.K. ONLINE MARKETPLACES (DEEMED SUPPLY)

Item No. U.K.

1 U.K. A supply by a person established outside the United Kingdom that is deemed to be a supply to an operator of an online marketplace by virtue of section 5A, provided that the supply does not involve the goods being imported for the purposes of that section.]

Sections 8 and 31.

SCHEDULE 9 U.K. Exemptions

Part I U.K. Index to exempt supplies of goods and services

[F465 Betting, gaming, dutiable machine games and lotteries]	Group 4
Burial and cremation	Group 8
[F466 Cultural services etc]	[F466 Group 13]
Education	Group 6
Finance	Group 5
Fund raising events by charities and other qualifying bodies	Group 12
Health and welfare	Group 7
Insurance	Group 2
[F467 Investment gold]	[F467 Group 15]
Land	Group 1
Postal services	Group 3
Sport, sports competitions and physical education	Group 10
[F468 Supplies of goods where input tax cannot be recovered]	[F468 Group 14]
[F469 Supplies of services by groups involving cost sharing]	[F469 Group 16]
[F470 Subscriptions to trade unions, professional and other public interest bodies]	[F470 Group 9]
Works of art etc	Group 11

Textual Amendments

F465 Words in Sch. 9 Pt. I Index substituted (with effect in accordance with Sch. 24 para. 66(4) of the amending Act) by Finance Act 2012 (c. 14), Sch. 24 para. 64(5)(b)

F466 Sch. 9 Pt. I: entry inserted (1.12.1999) by S.I. 1999/2834, art. 3(b)

F467 Sch. 9 Pt. I: entry inserted (1.1.2000) by S.I. 1999/3116, art. 2(2)

F468 Sch. 9 Pt. I: entry inserted (1.3.2000) by S.I. 1999/2833, art. 2(2)

F469 Sch. 9 Pt. I: entry inserted (17.7.2012) by Finance Act 2012 (c. 14), s. 197(1)

F470 Sch. 9 Pt. I: entry substituted (1.12.1999) by S.I. 1999/2834, art. 3(a)

Part II U.K. The Groups

Modifications etc. (not altering text)

C15 Sch. 9 Pt. 2 applied by S.I. 1995/2518, reg. 84(5) (as substituted (with effect in accordance with reg. 1(3) of the amending S.I.) by Value Added Tax (Amendment) (No.2) Regulations 2003 (S.I. 2003/1069), regs. 1(1), 9)

Group 1— Land U.K.

Item No. U.K.

1 The grant of any interest in or right over land or of any licence to occupy land, or, in relation to land in Scotland, any personal right to call for or be granted any such interest or right, other than—

(a) the grant of the fee simple in—

(i) a building which has not been completed and which is neither designed as a dwelling or number of dwellings nor intended for use solely for a relevant residential purpose or a relevant charitable purpose;

(ii) a new building which is neither designed as a dwelling or number of dwellings nor intended for use solely for a relevant residential purpose or a relevant charitable purpose after the grant;

(iii) a civil engineering work which has not been completed;

(iv) a new civil engineering work;

F471 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) the grant of any interest, right or licence consisting of a right to take game or fish unless at the time of the grant the grantor grants to the grantee the fee simple of the land over which the right to take game or fish is exercisable;

(d) the provision in an hotel, inn, boarding house or similar establishment of sleeping accommodation or of accommodation in rooms which are provided in conjunction with sleeping accommodation or for the purpose of a supply of catering;

(e) the grant of any interest in, right over or licence to occupy holiday accommodation;

(f) the provision of seasonal pitches for caravans, and the grant of facilities at caravan parks to persons for whom such pitches are provided;

(g) the provision of pitches for tents or of camping facilities;

(h) the grant of facilities for parking a vehicle;

(j) the grant of any right to fell and remove standing timber;

(k) the grant of facilities for housing, or storage of, an aircraft or for mooring, or storage of, a ship, boat or other vessel;

[F472 (ka) the grant of facilities for the self storage of goods;]

(l) the grant of any right to occupy a box, seat or other accommodation at a sports ground, theatre, concert hall or other place of entertainment;

(m) the grant of facilities for playing any sport or participating in any physical recreation; F473 ...

[F474 (ma) the grant of facilities to a person who uses the facilities wholly or mainly to supply hairdressing services; and]

(n) the grant of any right, including—

(i) an equitable right,

(ii) a right under an option or right of pre-emption, or

(iii) in relation to land in Scotland, a personal right,

to call for or be granted an interest or right which would fall within any of paragraphs (a) or (c) to [F475 (ma)] above.

Textual Amendments

F471 Sch. 9 Pt. II Group 1 item 1 para. (b) repealed (with effect in accordance with art. 1(3) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2008 (S.I. 2008/1146), arts. 1(1), 4(1) (with Sch. 2)

F472 Sch. 9 Pt. II Group 1 item 1(ka) inserted (1.10.2012) by Finance Act 2012 (c. 14), Sch. 26 paras. 5(2), 7(1)

F473 Word in Sch. 9 Pt. II Group 1 item 1(m) omitted (1.10.2012) by virtue of Finance Act 2012 (c. 14), Sch. 26 paras. 5(3), 7(1)

F474 Sch. 9 Pt. II Group 1 item 1(ma) inserted (1.10.2012) by Finance Act 2012 (c. 14), Sch. 26 paras. 5(3), 7(1)

F475 Word in Sch. 9 Pt. II Group 1 item 1(n) substituted (1.10.2012) by Finance Act 2012 (c. 14), Sch. 26 paras. 5(4), 7(1)

Notes: U.K.

[F476 (1) “Grant” includes an assignment or surrender and the supply made by the person to whom an interest is surrendered when there is a reverse surrender.]

[F477 (1A) A “reverse surrender” is one in which the person to whom the interest is surrendered is paid by the person by whom the interest is being surrendered to accept the surrender.]

(2) A building shall be taken to be completed when an architect issues a certificate of practical completion in relation to it or it is first fully occupied, whichever happens first; and a civil engineering work shall be taken to be completed when an engineer issues a certificate of completion in relation to it or it is first fully used, whichever happens first.

(3) [F478 Notes (2) to (10) and (12)] to Group 5 of Schedule 8 apply in relation to this Group as they apply in relation to that Group.

(4) A building or civil engineering work is new if it was completed less than three years before the grant.

(5) Subject to Note (6), the grant of the fee simple in a building or work completed before 1st April 1989 is not excluded from this Group by paragraph (a)(ii) or (iv).

(6) Note (5) does not apply where the grant is the first grant of the fee simple made on or after 1st April 1989 and the building was not fully occupied, or the work not fully used, before that date.

F479 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) Where a grant of an interest in, right over or licence to occupy land includes a valuable right to take game or fish, an apportionment shall be made to determine the supply falling outside this Group by virtue of paragraph (c).

(9) “Similar establishment” includes premises in which there is provided furnished sleeping accommodation, whether with or without the provision of board or facilities for the preparation of food, which are used by or held out as being suitable for use by visitors or travellers.

(10) “Houseboat” includes a houseboat within the meaning of Group 9 of Schedule 8.

(11) Paragraph (e) includes—

(a) any grant excluded from item 1 of Group 5 of Schedule 8 by [F480 Note (13)] in that Group;

(b) any supply made pursuant to a tenancy, lease or licence under which the grantee is or has been permitted to erect and occupy holiday accommodation.

(12) Paragraph (e) does not include a grant in respect of a building or part which is not a new building of—

(a) the fee simple, or

(b) a tenancy, lease or licence to the extent that the grant is made for a consideration in the form of a premium.

(13) “Holiday accommodation” includes any accommodation in a building, hut (including a beach hut or chalet), caravan, houseboat or tent which is advertised or held out as holiday accommodation or as suitable for holiday or leisure use, but excludes any accommodation within paragraph (d).

[F481 (14) A seasonal pitch for a caravan is—

(a) a pitch on a holiday site other than an employee pitch, or

(b) a non-residential pitch on any other site.

(14A) In this Note and in Note (14)—

• “employee pitch” means a pitch occupied by an employee of the site operator as that person’s principal place of residence during the period of occupancy;

• “holiday site” means a site or part of a site which is operated as a holiday or leisure site;

• “non-residential pitch” means a pitch which—

  (a)

  is provided for less than a year, or

  (b)

  is provided for a year or more and is subject to an occupation restriction,

  and which is not intended to be used as the occupant’s principal place of residence during the period of occupancy;

• “occupation restriction” means any covenant, statutory planning consent or similar permission, the terms of which prevent the person to whom the pitch is provided from occupying it by living in a caravan at all times throughout the period for which the pitch is provided.]

(15) “Mooring” includes anchoring or berthing.

[F482 (15A) In paragraph (ka)—

• “facilities for the self storage of goods” means the use of a relevant structure for the storage of goods by the person (or persons) to whom the grant of facilities is made, and

• “goods” does not include live animals.

(15B) For the purposes of Note (15A), use by a person with the permission of the person (or any of the persons) to whom the grant of facilities is made counts as use by the person (or persons) to whom that grant is made.

(15C) A grant of facilities for the self storage of goods does not fall within paragraph (ka) if—

(a) the person making the grant (“P”)—

(i) is doing so in circumstances where the relevant structure used is, or forms part of, a relevant capital item, and

(ii) is connected with any person who uses that relevant structure for the self storage of goods,

(b) the grant is made to a charity which uses the relevant structure solely otherwise than in the course of a business, or

(c) in a case where the relevant structure is part of a building, its use for the storage of goods by the person (or persons) to whom the grant is made is ancillary to other use of the building by that person (or those persons).

(15D) In Notes (15A) and (15C) “relevant structure” means the whole or part of—

(a) a container or other structure that is fully enclosed, or

(b) a unit or building.

(15E) In Note (15C)(a)(i) “relevant capital item” means a capital item which—

(a) is subject to adjustments of input tax deduction by P under regulations made under section 26(3), and

(b) has not yet reached the end of its prescribed period of adjustment.]

(16) Paragraph (m) shall not apply where the grant of the facilities is for—

(a) a continuous period of use exceeding 24 hours; or

(b) a series of 10 or more periods, whether or not exceeding 24 hours in total, where the following conditions are satisfied—

(i) each period is in respect of the same activity carried on at the same place;

(ii) the interval between each period is not less than one day and not more than 14 days;

(iii) consideration is payable by reference to the whole series and is evidenced by written agreement;

(iv) the grantee has exclusive use of the facilities; and

(v) the grantee is a school, a club, an association or an organisation representing affiliated clubs or constituent associations.

[F483 (17) Paragraph (ma) does not apply to a grant of facilities which provides for the exclusive use, by the person to whom the grant is made, of a whole building, a whole floor, a separate room or a clearly defined area, unless the person making the grant or a person connected with that person provides or makes available (directly or indirectly) services related to hairdressing for use by the person to whom the grant is made.

(18) For the purposes of Note (17)—

(a) “services related to hairdressing” means the services of a hairdresser's assistant or cashier, the booking of appointments, the laundering of towels, the cleaning of the facilities subject to the grant, the making of refreshments and other similar services typically used in connection with hairdressing, but does not include the provision of utilities or the cleaning of shared areas in a building, and

(b) it does not matter if the services related to hairdressing are shared with other persons.

(19) For the purposes of Notes (15C) and (17) any question whether a person is connected with any other person is to be determined in accordance with section 1122 of the Corporation Tax Act 2010 (connected person).]

Textual Amendments

F476 Sch. 9 Pt. II Group 1 Note (1) substituted (1.3.1995) by S.I. 1995/282, arts. 1, 3

F477 Sch. 9 Pt. II Group 1 Note (1A) inserted (1.3.1995) by S.I. 1995/282, arts. 1, 4

F478 Words in Sch. 9 Pt. II Group 1 Note (3) substituted (1.3.1995) by S.I. 1995/282, arts. 1, 5

F479 Sch. 9 Pt. II Group 1 Note (7) repealed (with effect in accordance with art. 1(3) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2008 (S.I. 2008/1146), arts. 1(1), 4(2) (with Sch. 2)

F480 Words in Sch. 9 Pt. II Group 1 Note (11)(a) substituted (1.3.1995) by S.I. 1995/282, arts. 1, 7

F481 Sch. 9 Pt. II Group 1 Notes (14)(14A) substituted for Sch. 9 Pt. II Group 1 Note (14) (1.3.2012) by The Value Added Tax (Land Exemption) Order 2012 (S.I. 2012/58), arts. 2, 3

F482 Sch. 9 Pt. II Group 1 Notes (15A)-(15E) inserted (1.10.2012) by Finance Act 2012 (c. 14), Sch. 26 paras. 5(5), 7(1)

F483 Sch. 9 Pt. II Group 1 Notes (17)-(19) inserted (1.10.2012) by Finance Act 2012 (c. 14), Sch. 26 paras. 5(6), 7(1)

Modifications etc. (not altering text)

C16 Sch. 9 Pt. 2 Group 1 Note (2)(4) applied (28.11.2002) by S.I. 1995/2518, reg. 84(6) (as inserted by The Value Added Tax (Amendment) (No. 3) Regulations 2002 (S.I. 2002/2918), reg. 4)

[F484 Group 2 — Insurance] U.K.

Textual Amendments

F484 Sch. 9 Pt. 2 Group 2 substituted (19.3.1997 with effect as mentioned in s. 38(2) of the amending Act) by 1997 c. 16, s. 38(1)(2)

[F485 1 U.K. Insurance transactions and reinsurance transactions.]

Textual Amendments

F485 Sch. 9 Pt. 2 Group 2 item 1 substituted for Sch. 9 Pt. 2 Group 2 items 1-3 (1.1.2005) by The Value Added Tax (Insurance) Order 2004 (S.I. 2004/3083), arts. 1, 3

F486 4 U.K. The provision by an insurance broker or insurance agent of any of the services of an insurance intermediary in a case in which those services—

(a) are related (whether or not [F487 a contract of insurance] [F488 or reinsurance] is finally concluded) to [F489 an insurance transaction or a reinsurance transaction]; and

(b) are provided by that broker or agent in the course of his acting in an intermediary capacity.

Textual Amendments

F486 Sch. 9 Pt. II Group 2 substituted (19.3.1997 with effect as mentioned in s. 38(2) of the amending Act) by 1997 c. 16, s. 38(1)(2)

F487 Words in Sch. 9 Group 2 item 4(a) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 347(4)

F488 Words in in Sch. 9 Pt. 2 Group 2 item 4 inserted (1.1.2005) by The Value Added Tax (Insurance) Order 2004 (S.I. 2004/3083), arts. 1, 4(a)

F489 Words in Sch. 9 Pt. 2 Group 2 item 4 substituted (1.1.2005) by The Value Added Tax (Insurance) Order 2004 (S.I. 2004/3083), arts. 1, 4(b)

F490 Notes: U.K.

F491 (A1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F491 (B1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F491 (C1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1) For the purposes of item 4 services are services of an insurance intermediary if they fall within any of the following paragraphs—

(a) the bringing together, with a view to the insurance or reinsurance of risks, of—

(i) persons who are or may be seeking insurance or reinsurance, and

(ii) persons who provide insurance or reinsurance;

(b) the carrying out of work preparatory to the conclusion of contracts of insurance or reinsurance;

(c) the provision of assistance in the administration and performance of such contracts, including the handling of claims;

(d) the collection of premiums.

(2) For the purposes of item 4 an insurance broker or insurance agent is acting “in an intermediary capacity” wherever he is acting as an intermediary, or one of the intermediaries, between—

(a) a person who provides [F492 insurance or reinsurance], and

(b) a person who is or may be seeking insurance or reinsurance or is an insured person.

(3) Where—

(a) a person (“the supplier”) makes a supply of goods or services to another (“the customer”),

(b) the supply of the goods or services is a taxable supply and is not a zero-rated supply,

(c) a transaction under which insurance is to be or may be arranged for the customer is entered into in connection with the supply of the goods or services,

(d) a supply of services which are related (whether or not a contract of insurance is finally concluded) to the provision of insurance in pursuance of that transaction is made by—

(i) the person by whom the supply of the goods or services is made, or

(ii) a person who is connected with that person and, in connection with the provision of that insurance, deals directly with the customer,

and

(e) the related services do not consist in the handling of claims under the contract for that insurance,

those related services do not fall within item 4 unless the relevant requirements are fulfilled.

(4) For the purposes of Note (3) the relevant requirements are—

(a) that a document containing the statements specified in Note (5) is prepared;

(b) that the matters that must be stated in the document have been disclosed to the customer at or before the time when the transaction mentioned in Note (3)(c) is entered into; and

(c) that there is compliance with all such requirements (if any) as to—

(i) the preparation and form of the document,

(ii) the manner of disclosing to the customer the matters that must be stated in the document, and

(iii) the delivery of a copy of the document to the customer,

as may be set out in a notice that has been published by the Commissioners and has not been withdrawn.

(5) The statements referred to in Note (4) are—

(a) a statement setting out the amount of the premium under any contract of insurance that is to be or may be entered into in pursuance of the transaction in question; and

(b) a statement setting out every amount that the customer is, is to be or has been required to pay, otherwise than by way of such a premium, in connection with that transaction or anything that is to be, may be or has been done in pursuance of that transaction.

(6) For the purposes of Note (3) any question whether a person is connected with another shall be determined in accordance with [F493 section 1122 of the Corporation Tax Act 2010].

(7) Item 4 does not include—

(a) the supply of any market research, product design, advertising, promotional or similar services; or

(b) the collection, collation and provision of information for use in connection with market research, product design, advertising, promotional or similar activities.

(8) Item 4 does not include the supply of any valuation or inspection services.

(9) Item 4 does not include the supply of any services by loss adjusters, average adjusters, motor assessors, surveyors or other experts except where—

(a) the services consist in the handling of a claim under a contract of insurance or reinsurance;

(b) the person handling the claim is authorised when doing so to act on behalf of the insurer or reinsurer; and

(c) that person’s authority so to act includes written authority to determine whether to accept or reject the claim and, where accepting it in whole or in part, to settle the amount to be paid on the claim.

(10) Item 4 does not include the supply of any services which—

(a) are supplied in pursuance of a contract of insurance or reinsurance or of any arrangements made in connection with such a contract; and

(b) are so supplied either—

(i) instead of the payment of the whole or any part of any indemnity for which the contract provides, or

(ii) for the purpose, in any other manner, of satisfying any claim under that contract, whether in whole or in part.

Textual Amendments

F490 Sch. 9 Pt. II group 2 substituted (19.3.1997 with effect as mentioned in s. 38(2) of the amending Act) by 1997 c. 16, s. 38(1)(2)

F491 Words in Sch. 9 Pt. 2 Group 2 omitted (1.1.2005) by virtue of The Value Added Tax (Insurance) Order 2004 (S.I. 2004/3083), arts. 1, 5

F492 Words in Sch. 9 Pt. 2 Group 2 substituted (1.1.2005) by The Value Added Tax (Insurance) Order 2004 (S.I. 2004/3083), arts. 1, 6

F493 Words in Sch. 9 Pt. 2 Group 2 note (6) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 285(e)(i) (with Sch. 2)

[F494 Group 3— Postal services U.K.

Textual Amendments

F494 Sch. 9 Pt. II Group 3 substituted (with effect in accordance with s. 22(4) of the amending Act) by Finance (No. 3) Act 2010 (c. 33), s. 22(2)

Item No U.K.

1 The supply of public postal services by a universal service provider.

2 The supply of goods by a universal service provider which is incidental to the supply of public postal services by that provider.

Notes: U.K.

F495 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Subject to the following Notes, “public postal services”, in relation to a universal service provider, means any postal services which the provider is required to provide in the discharge of [F496 a specified condition].

(3) Public postal services include postal services which a universal service provider provides to allow a person access to the provider's [F497 postal network (within the meaning of section 38 of the Postal Services Act 2011) and which are required to be provided by a specified condition].

(4) Services are not “public postal services” if—

(a) the price is not controlled by or under [F498 a specified condition], or

(b) any of the other terms on which the services are provided are freely negotiated.

(5) But Note (4) does not apply if [F499 a specified condition] requires the universal service provider to make the services available to persons generally—

(a) where the price is not controlled by or under [F500 the condition], at the same price, or

(b) where terms are freely negotiated as mentioned in Note (4)(b), on those terms.

[F501 (6) In this Group “specified condition” means a designated USP condition, a USP access condition or a transitory condition under paragraph 5 of Schedule 9 to the Postal Services Act 2011 which is imposed only on a universal service provider.

(7) Any expression which is used in this Group and in Part 3 of the Postal Services Act 2011 has the same meaning in this Group as in that Part.]]

Textual Amendments

F495 Sch. 9 Pt. II Group 3 Note (1) repealed (1.10.2011) by The Postal Services Act 2011 (Consequential Modifications and Amendments) Order 2011 (S.I. 2011/2085), art. 1(2), Sch. 1 para. 28(3)(a), Sch. 2

F496 Words in Sch. 9 Pt. II Group 3 Note (2) substituted (1.10.2011) by The Postal Services Act 2011 (Consequential Modifications and Amendments) Order 2011 (S.I. 2011/2085), art. 1(2), Sch. 1 para. 28(3)(b)

F497 Words in Sch. 9 Pt. II Group 3 Note (3) substituted (1.10.2011) by The Postal Services Act 2011 (Consequential Modifications and Amendments) Order 2011 (S.I. 2011/2085), art. 1(2), Sch. 1 para. 28(3)(c)

F498 Words in Sch. 9 Pt. II Group 3 Note (4)(a) substituted (1.10.2011) by The Postal Services Act 2011 (Consequential Modifications and Amendments) Order 2011 (S.I. 2011/2085), art. 1(2), Sch. 1 para. 28(3)(d)

F499 Words in Sch. 9 Pt. II Group 3 Note (5) substituted (1.10.2011) by The Postal Services Act 2011 (Consequential Modifications and Amendments) Order 2011 (S.I. 2011/2085), art. 1(2), Sch. 1 para. 28(3)(e)(i)

F500 Words in Sch. 9 Pt. II Group 3 Note (5)(a) substituted (1.10.2011) by The Postal Services Act 2011 (Consequential Modifications and Amendments) Order 2011 (S.I. 2011/2085), art. 1(2), Sch. 1 para. 28(3)(e)(ii)

F501 Sch. 9 Pt. II Group 3 Notes (6)(7) substituted for Sch. 9 Pt. II Group 3 Note (6) (1.10.2011) by The Postal Services Act 2011 (Consequential Modifications and Amendments) Order 2011 (S.I. 2011/2085), art. 1(2), Sch. 1 para. 28(3)(f)

Group 4— Betting, gaming [F502 , dutiable machine games] and lotteries U.K.

Textual Amendments

F502 Words in Sch. 9 Pt. II Group 4 heading inserted (with effect in accordance with Sch. 24 para. 66(4) of the amending Act) by Finance Act 2012 (c. 14), Sch. 24 para. 64(5)(a)

Item No. U.K.

1 The provision of any facilities for the placing of bets [F503 or for the playing of any games of chance for a prize].

Textual Amendments

F503 Words in Sch. 9 Pt. II Group 4 item 1 substituted (1.11.2006) by The Value Added Tax (Betting, Gaming and Lotteries) Order 2006 (S.I. 2006/2685), arts. 1, 2(a)

[F504 1A U.K. The provision of any facilities for the playing of dutiable machine games (as defined in Part 1 of Schedule 24 to the Finance Act 2012) but only to the extent that—

(a) the facilities are used to play such games, and

(b) the takings and payouts in respect of those games are taken into account in determining the charge to machine games duty.]

Textual Amendments

F504 Sch. 9 Pt. II Group 4 item 1A inserted (with effect in accordance with Sch. 24 para. 66(4) of the amending Act) by Finance Act 2012 (c. 14), Sch. 24 para. 64(2)

2 U.K. The granting of a right to take part in a lottery.

Notes: U.K.

(1) [F505 Items 1 and 1A do] not include—

(a) admission to any premises; or

F506 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) the provision by a club of such facilities to its members as are available to them on payment of their subscription but without further charge; F507 ...

F507 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F508 (1A) Item 1 does not apply to the provision of facilities to the extent that the facilities are used to play a relevant machine game (as defined in section 23A).]

[F509 (2) ”Game of chance”—

(a) includes—

(i) a game that involves both an element of chance and an element of skill,

(ii) a game that involves an element of chance that can be eliminated by superlative skill, and

(iii) a game that is presented as involving an element of chance, but

(b) does not include a sport.

(3) A person plays a game of chance if he participates in a game of chance—

(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.

(4) ”Prize” does not include the opportunity to play the game again.]

F510 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F510 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F510 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F510 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F510 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F510 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F510 (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F505 Words in Sch. 9 Pt. II Group 4 Note (1) substituted (with effect in accordance with Sch. 24 para. 66(4) of the amending Act) by Finance Act 2012 (c. 14), Sch. 24 para. 64(3)(a)

F506 Sch. 9 Pt. II Group 4 Note (1)(b) omitted (retrospective to 27.4.2009) by virtue of Finance Act 2009 (c. 10), s. 113(2)(6)

F507 Sch. 9 Pt. II Group 4 Note (1)(d) and word omitted (with effect in accordance with Sch. 24 para. 66(4) of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 24 para. 64(3)(b)

F508 Sch. 9 Pt. II Group 4 Note (1A) inserted (with effect in accordance with Sch. 24 para. 66(4) of the amending Act) by Finance Act 2012 (c. 14), Sch. 24 para. 64(4)

F509 Sch. 9 Pt. II Group 4 Notes (2)-(4) substituted for Notes (2)-(8) (1.11.2006) by The Value Added Tax (Betting, Gaming and Lotteries) Order 2006 (S.I. 2006/2685), arts. 1, 2(c)

F510 Sch. 9 Pt. II Group 4 Notes (5)-(11) omitted (retrospective to 27.4.2009) by virtue of Finance Act 2009 (c. 10), s. 113(3)(6)

Group 5— Finance U.K.

Item No. U.K.

1 The issue, transfer or receipt of, or any dealing with, money, any security for money or any note or order for the payment of money.

2 U.K. The making of any advance or the granting of any credit.

[F511 2A U.K. The management of credit by the person granting it.]

Textual Amendments

F511 Sch. 9 Pt. II Group 5 Item 2A inserted (with application in accordance with art. 1 of the amending S.I.) by Value Added Tax (Finance) (No.2) Order 2003 (S.I. 2003/1569), art. 2(a)

3 U.K. The provision of the facility of instalment credit finance in a hire-purchase, conditional sale or credit sale agreement for which facility a separate charge is made and disclosed to the recipient of the supply of goods.

4 U.K. The provision of administrative arrangements and documentation and the transfer of title to the goods in connection with the supply described in item 3 if the total consideration therefor is specified in the agreement and does not exceed £10.

[F512 5 U.K. The provision of intermediary services in relation to any transaction comprised in item 1, 2, 3, 4 or 6 (whether or not any such transaction is finally concluded) by a person acting in an intermediary capacity.

Textual Amendments

F512 Sch. 9 Pt. II Group 5 Item 5, 5A substituted (10.3.1999) for Item 5 by S.I. 1999/594, art. 3

5A U.K. The underwriting of an issue within item 1 or any transaction within item 6.]

Textual Amendments

F512 Sch. 9 Pt. II Group 5 Item 5, 5A substituted (10.3.1999) for Item 5 by S.I. 1999/594, art. 3

6 U.K. The issue, transfer or receipt of, or any dealing with, any security or secondary security being—

(a) shares, stocks, bonds, notes (other than promissory notes), debentures, debenture stock or shares in an oil royalty; or

(b) any document relating to money, in any currency, which has been deposited with the issuer or some other person, being a document which recognises an obligation to pay a stated amount to bearer or to order, with or without interest, and being a document by the delivery of which, with or without endorsement, the right to receive that stated amount, with or without interest, is transferable; or

(c) any bill, note or other obligation of the Treasury or of a Government in any part of the world, being a document by the delivery of which, with or without endorsement, title is transferable, and not being an obligation which is or has been legal tender in any part of the world; or

(d) any letter of allotment or rights, any warrant conferring an option to acquire a security included in this item, any renounceable or scrip certificates, rights coupons, coupons representing dividends or interest on such a security, bond mandates or other documents conferring or containing evidence of title to or rights in respect of such a security; or

(e) units or other documents conferring rights under any trust established for the purpose, or having the effect of providing, for persons having funds available for investment, facilities for the participation by them as beneficiaries under the trust, in any profits or income arising from the acquisition, holding, management or disposal of any property whatsoever.

F513 7 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F513 Sch. 9 Pt. II Group 5 Item 7 omitted (10.3.1999) by virtue of S.I. 1999/594, art. 4

8 U.K. The operation of any current, deposit or savings account.

[F514 9 U.K. The management of—

(a) an authorised open-ended investment company; or

[F515 (aa) an authorised contractual scheme; or]

(b) an authorised unit trust scheme; or

(c) a Gibraltar collective investment scheme that is not an umbrella scheme; or

(d) a sub-fund of any other Gibraltar collective investment scheme; or

(e) an individually recognised overseas scheme that is not an umbrella scheme; or

(f) a sub-fund of any other individually recognised overseas scheme; or

F516 (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F516 (h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F517 (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F517 (j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F518 (k) a qualifying pension fund.]]

Textual Amendments

F514 Sch. 9 Pt. II Group 5 Item 9 substituted (1.10.2008) by The Value Added Tax (Finance) (No. 2) Order 2008 (S.I. 2008/2547), arts. 1(2)(b), 3(2)

F515 Sch. 9 Pt. II Group 5 Item 9(aa) inserted (28.6.2013) by The Value Added Tax (Finance) Order 2013 (S.I. 2013/1402), arts. 1, 2(2)

F516 Sch. 9 Pt. II Group 5 Item 9(g)(h) omitted (22.7.2013) by virtue of The Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773), reg. 1, Sch. 1 para. 40(a)

F517 Words in Sch. 9 Pt. II omitted (31.12.2020) by virtue of The Value Added Tax (Miscellaneous Amendments and Transitional Provisions) (EU Exit) Regulations 2019 (S.I. 2019/1214), regs. 1, 2(2); S.I. 2020/1641, reg. 2, Sch.

F518 Sch. 9 Pt. II Group 5 Item 9(k) and word inserted (1.4.2020) by The Value Added Tax (Finance) Order 2020 (S.I. 2020/209), arts. 1, 3

[F519 10 U.K. The management of a closed-ended collective investment undertaking.]

Textual Amendments

F519 Sch. 9 Pt. II Group 5 Item 10 substituted (1.10.2008) by The Value Added Tax (Finance) (No. 2) Order 2008 (S.I. 2008/2547), arts. 1(2)(b), 3(3)

Notes: U.K.

(1) Item 1 does not include anything included in item 6.

[F520 (1A) Item 1 does not include a supply of services which is preparatory to the carrying out of a transaction falling within that item.]

(2) This Group does not include the supply of a coin or a banknote as a collectors’ piece or as an investment article.

F521 (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F522 (2B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Item 2 includes the supply of credit by a person, in connection with a supply of goods or services by him, for which a separate charge is made and disclosed to the recipient of the supply of goods or services.

(4) This Group includes any supply by a person carrying on a credit card, charge card or similar payment card operation made in connection with that operation to a person who accepts the card used in the operation when presented to him in payment for goods or services.

[F523 (5) For the purposes of item 5 “intermediary services” consist of bringing together, with a view to the provision of financial services—

(a) persons who are or may be seeking to receive financial services, and

(b) persons who provide financial services,

together with (in the case of financial services falling within item 1, 2, 3 or 4) the performance of work preparatory to the conclusion of contracts for the provision of those financial services, but do not include the supply of any market research, product design, advertising, promotional or similar services or the collection, collation and provision of information in connection with such activities.

(5A) For the purposes of item 5 a person is “acting in an intermediary capacity” wherever he is acting as an intermediary, or one of the intermediaries, between—

(a) a person who provides financial services, and

(b) a person who is or may be seeking to receive financial services

F524 ...

(5B) For the purposes of notes 5 and 5A “financial services” means the carrying out of any transaction falling within item 1, 2, 3, 4 or 6.]

[F525 (6) For the purposes of this Group—

• “authorised open-ended investment company”[F526 , “authorised contractual scheme”] and “authorised unit trust scheme” have the meaning given in section 237(3) of the Financial Services and Markets Act 2000;

• “closed-ended collective investment undertaking” means an undertaking in relation to which the following conditions are satisfied—

  (a)

  its sole object is the investment of capital, raised from the public F527 ...; and

  (b)

  it manages its assets on the principle of spreading investment risk; and

  (c)

  all of its ordinary shares (of each class if there is more than one) or equivalent units are included in the official list maintained by the [F528 Financial Conduct Authority] pursuant to section 74(1) of the Financial Services and Markets Act 2000; and

  (d)

  all of its ordinary shares (of each class if there is more than one) or equivalent units are admitted to trading on a regulated market situated or operating in the United Kingdom;

• “collective investment scheme” has the meaning given in section 235 of the Financial Services and Markets Act 2000;

• “Gibraltar collective investment scheme” means—

  (a)

  a collective investment scheme to which section 264 of the Financial Services and Markets Act 2000 applies pursuant to an order made under section 409(1)(d) of that Act; F529 ...

  (b)

  F529 ...

• “individually recognised overseas scheme” means a collective investment scheme declared by the [F528 Financial Conduct Authority] to be a recognised scheme pursuant to section 272 of the Financial Services and Markets Act 2000;

• [F530 “pension member” means, in relation to a qualifying pension fund, a person to or in respect of whom retirement benefits are to be paid from the fund;]

• [F530 “qualifying pension fund” means a pension fund in relation to which all of the following conditions are satisfied—

  (a)

  it is solely funded, whether directly or indirectly, by pension members;

  (b)

  the pension members bear the investment risk;

  (c)

  the fund contains the pooled contributions of more than one pension member;

  (d)

  the risk borne by the pension members is spread over a range of investments; and

  (e)

  the fund is established in the United Kingdom F531 ...;]

• F532 ...

• F533 ...

• “regulated market” has the meaning given in section 103(1) of the Financial Services and Markets Act 2000;

• “sub-fund” means a separate part of the property of an umbrella scheme that is pooled separately;

• “umbrella scheme” means a collective investment scheme under which the contributions of the participants in the scheme and the profits or income out of which payments are to be made to them are pooled separately in relation to separate parts of the scheme property.]

[F534 (6A) A collective investment scheme, or sub-fund, that is not for the time being marketed in the United Kingdom is to be treated as not falling within item 9(c) [F535 to (f)] if—

(a) it has never been marketed in the United Kingdom, or

(b) less than 5% of its shares or units are held by, or on behalf of, investors who are in the United Kingdom.]

[F536 (6B) For the purposes of Note (6), a pension fund is funded indirectly where contributions are made by a third party on behalf of a pension member.]

F537 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F538 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F539 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F540 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F520 Sch. 9 Pt. II Group 5 Note (1A) inserted (10.3.1999) by S.I. 1999/594, art. 5

F521 Sch. 9 Pt. II Group 5 Note (2A) omitted (with application in accordance with art. 1 of the amending S.I.) by virtue of Value Added Tax (Finance) (No.2) Order 2003 (S.I. 2003/1569), art. 2(d)

F522 Sch. 9 Pt. II Group 5 Note (2B) omitted (with application in accordance with art. 1 of the amending S.I.) by virtue of Value Added Tax (Finance) Order 2003 (S.I. 2003/1568), art. 2

F523 Sch. 9 Pt. II Group 5 Notes (5)(5A)(5B) substituted (10.3.1999) for Note (5) by S.I. 1999/594, art. 7

F524 Words in Sch. 9 Pt. II Group 5 Note (5A) omitted (with application in accordance with art. 1 of the amending S.I.) by virtue of Value Added Tax (Finance) (No.2) Order 2003 (S.I. 2003/1569), art. 2(e)

F525 Sch. 9 Pt. II Group 5 Note (6) substituted (1.10.2008) by The Value Added Tax (Finance) (No. 2) Order 2008 (S.I. 2008/2547), arts. 1(2)(b), 3(4)

F526 Words in Sch. 9 Pt. II Group 15 Note (6) inserted (28.6.2013) by The Value Added Tax (Finance) Order 2013 (S.I. 2013/1402), arts. 1, 2(3)

F527 Words in Sch. 9 Pt. II Group 5 Note (6) omitted (1.4.2020) by virtue of The Value Added Tax (Finance) Order 2020 (S.I. 2020/209), arts. 1, 4(a)

F528 Words in Sch. 9 Pt. II substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 81 (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F529 Words in Sch. 9 Pt. II omitted (31.12.2020) by virtue of The Value Added Tax (Miscellaneous Amendments and Transitional Provisions) (EU Exit) Regulations 2019 (S.I. 2019/1214), regs. 1, 2(3)(a); S.I. 2020/1641, reg. 2, Sch.

F530 Words in Sch. 9 Pt. II Group 5 Note (6) inserted (1.4.2020) by The Value Added Tax (Finance) Order 2020 (S.I. 2020/209), arts. 1, 4(b)

F531 Words in Sch. 9 omitted (31.12.2020) by virtue of The Value Added Tax (Miscellaneous Amendments to Acts of Parliament) (EU Exit) Regulations 2020 (S.I. 2020/1312), regs. 1, 10; S.I. 2020/1641, reg. 2, Sch.

F532 Words in Sch. 9 Pt. II Group 5 Note (6) omitted (22.7.2013) by virtue of The Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773), reg. 1, Sch. 1 para. 40(b)

F533 Words in Sch. 9 Pt. II omitted (31.12.2020) by virtue of The Value Added Tax (Miscellaneous Amendments and Transitional Provisions) (EU Exit) Regulations 2019 (S.I. 2019/1214), regs. 1, 2(3)(b); S.I. 2020/1641, reg. 2, Sch.

F534 Sch. 9 Pt. II Group 5 Note (6A) inserted (1.10.2008) by The Value Added Tax (Finance) (No. 2) Order 2008 (S.I. 2008/2547), arts. 1(2)(b), 3(5)

F535 Words in Sch. 9 Pt. II substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments and Transitional Provisions) (EU Exit) Regulations 2019 (S.I. 2019/1214), regs. 1, 2(4); S.I. 2020/1641, reg. 2, Sch.

F536 Sch. 9 Pt. II Group 5 Note (6B) inserted (1.4.2020) by The Value Added Tax (Finance) Order 2020 (S.I. 2020/209), arts. 1, 5

F537 Sch. 9 Pt. II Group 5 Note (7) omitted (with application in accordance with art. 1 of the amending S.I.) by virtue of Value Added Tax (Finance) (No.2) Order 2003 (S.I. 2003/1569), art. 2(g)

F538 Sch. 9 Pt. II Group 5 Note (8) omitted (1.10.2008) by virtue of The Value Added Tax (Finance) (No. 2) Order 2008 (S.I. 2008/2547), arts. 1(2)(b), 3(6)

F539 Sch. 9 Pt. II Group 5 Note (9) omitted (with application in accordance with art. 1 of the amending S.I.) by virtue of Value Added Tax (Finance) (No.2) Order 2003 (S.I. 2003/1569), art. 2(i)

F540 Sch. 9 Pt. II Group 5 Note (10) omitted (1.10.2008) by virtue of The Value Added Tax (Finance) (No. 2) Order 2008 (S.I. 2008/2547), arts. 1(2)(b), 3(6)

Group 6— Education U.K.

Item No. U.K.

1 The provision by an eligible body of—

(a) education;

(b) F541 ... or

(c) vocational training.

Textual Amendments

F541 Sch. 9 Pt. II item 1(b) omitted (1.8.2013) by virtue of The Value Added Tax (Education) Order 2013 (S.I. 2013/1897), arts. 1(2), 2 (with art. 1(2)(3))

2 U.K. The supply of private tuition, in a subject ordinarily taught in a school or university, by an individual teacher acting independently of an employer.

3 U.K. The provision of examination services—

(a) by or to an eligible body; or

(b) to a person receiving education or vocational training which is—

(i) exempt by virtue of items 1, 2 [F542 , 5 or 5A]; or

(ii) provided otherwise than in the course or furtherance of a business.

Textual Amendments

F542 Words in Sch. 9 Group 6 item 3(b)(i) substituted (28.7.2000 for certain purposes otherwise 1.4.2001) by 2000 c. 21, s. 149, Sch. 9 para. 47(2); S.I. 2001/654, art. 2(2), Sch. Pt. II (with art. 3)

4 U.K. The supply of any goods or services (other than examination services) which are closely related to a supply of a description falling within item 1 (the principal supply) by or to the eligible body making the principal supply provided—

(a) the goods or services are for the direct use of the pupil, student or trainee (as the case may be) receiving the principal supply; and

(b) where the supply is to the eligible body making the principal supply, it is made by another eligible body.

5 U.K. The provision of vocational training, and the supply of any goods or services essential thereto by the person providing the vocational training, to the extent that the consideration payable is ultimately a charge to funds provided pursuant to arrangements made under section 2 of the M14 Employment and Training Act 1973, section 1A of the M15 Employment and Training Act (Northern Ireland) 1950 or section 2 of the M16 Enterprise and New Towns (Scotland) Act 1990.

Marginal Citations

M14 1973 c.50.

M15 1950 c. 29 (N.I).

M16 1990 c. 35.

[F543 5A U.K. The provision of education or vocational training and the supply, by the person providing that education or training, of any goods or services essential to that provision, to the extent that the consideration payable is ultimately a charge to funds provided by

[F544 (a) F545 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) F546 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)] the [F547 National Assembly for Wales] under F548 ... Part II of the Learning and Skills Act 2000.]

Textual Amendments

F543 Sch. 9 Group 6 item 5A inserted (28.7.2000 for certain purposes otherwise 1.4.2001) by 2000 c. 21, s. 149, Sch. 9 para. 47(3); S.I. 2001/654, art. 2(2), Sch. Pt. II (with art. 3)

F544 Words in Sch. 9 Pt. 2 Group 6 item 5A substituted (1.4.2010) by The Apprenticeships, Skills, Children and Learning Act 2009 (Consequential Amendments) (England and Wales) Order 2010 (S.I. 2010/1080), art. 1(2)(a)(b), Sch. 1 para. 26(a) (with art. 2(3))

F545 Sch. 9 Pt. II Group 6 item 5A(a) omitted (1.4.2012) by virtue of Education Act 2011 (c. 21), s. 82(3), Sch. 16 para. 9(2)(a); S.I. 2012/924, art. 2

F546 Sch. 9 Pt. II Group 6 item 5A(b) omitted (26.5.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(3)(g), Sch. 14 para. 41(2)

F547 Words in Sch. 9 Pt. 2 Group 6 item 5A substituted (1.4.2006) by The National Council for Education and Training for Wales (Transfer of Functions to the National Assembly for Wales and Abolition) Order 2005 (S.I. 2005/3238), art. 1(1), Sch. 1 para. 30 (with art. 7)

F548 Words in Sch. 9 Pt. 2 Group 6 item 5A repealed (1.4.2010) by The Apprenticeships, Skills, Children and Learning Act 2009 (Consequential Amendments) (England and Wales) Order 2010 (S.I. 2010/1080), art. 1(2)(a)(b), Sch. 1 para. 26(b), Sch. 2 Pt. 1 (with art. 2(3))

[F549 5B U.K. The provision of education or vocational training and the supply, by the person providing that education or training, of any goods or services essential to that provision, to persons who are—

(a) aged under 19,

(b) aged 19 or over, in respect of education or training begun by them when they were aged under 19,

[F550 (ba) aged 19 or over and for whom an EHC plan is maintained,]

(c) aged 19 or over but under 25 and subject to learning difficulty assessment, or

(d) aged 25 or over, in respect of education or training begun by them when they were within paragraph [F551 (ba) or] (c),

to the extent that the consideration payable is ultimately a charge to funds provided by the Secretary of State.]

Textual Amendments

F549 Sch. 9 Pt. II Group 6 item 5B inserted (1.4.2012) by Education Act 2011 (c. 21), s. 82(3), Sch. 16 para. 9(3); S.I. 2012/924, art. 2

F550 Sch. 9 Pt. II Group 6 item 5B(ba) inserted (1.9.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 3 para. 66(2)(a); S.I. 2014/889, art. 7(a)

F551 Words in Sch. 9 Pt. II Group 6 item 5B(d) inserted (1.9.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 3 para. 66(2)(b); S.I. 2014/889, art. 7(a)

[F552 5C U.K. The provision of education or vocational training and the supply, by the person providing that education or training, of any goods or services essential to that provision, to persons who are aged 19 or over, to the extent that the consideration payable is ultimately a charge to funds provided by the Secretary of State in exercise of functions under Part 4 of the Apprenticeships, Skills, Children and Learning Act 2009.]

Textual Amendments

F552 Sch. 9 Pt. II Group 6 item 5C inserted (26.5.2015) by Deregulation Act 2015 (c. 20), s. 115(3)(g), Sch. 14 para. 41(3)

6 U.K. The provision of facilities by—

(a) a youth club or an association of youth clubs to its members; or

(b) an association of youth clubs to members of a youth club which is a member of that association.

Notes: U.K.

(1) For the purposes of this Group an “eligible body” is—

(a) a school within the meaning of [F553 the Education Act 1996], the M17 Education (Scotland) Act 1980, the M18 Education and Libraries (Northern Ireland) Order 1986 or the M19 Education Reform (Northern Ireland) Order 1989, which is—

(i) provisionally or finally registered or deemed to be registered as a school within the meaning of the aforesaid legislation in a register of independent schools; or

(ii) a school in respect of which of which grants are made by the Secretary of State to the proprietor or managers; or

(iii) [F554 a community, foundation or voluntary school within the meaning of the school Standards and Framework Act 1998, a special school within the meaning of section 337 of the Education Act 1996][F555 or a maintained school within the meaning of] the M20 Education and Libraries (Northern Ireland) Order 1986; or

(iv) a public school within the meaning of section 135(1) of the Education (Scotland) Act 1980; or

F556 (v) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(vi) [F557 a self-governing school within the meaning of section 1(3) of the M21 Self-Governing Schools (Scotland) Act 1989; or]

F558 (vii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(viii) a grant-maintained integrated school within the meaning of Article 65 of the Education Reform (Northern Ireland) Order 1989;

(b) a United Kingdom university, and any college, institution, school or hall of such a university;

(c) an institution—

(i) falling within section 91(3)(a) [F559 , (b) or (c)] or section 91(5)[F560 (za),] (b) or (c) of the M22 Further and Higher Education Act 1992; or

(ii) which is a designated institution as defined in section 44(2) of the M23 Further and Higher Education (Scotland) Act 1992; or

(iii) managed by a board of management as defined in section 36(1) of the Further and Higher Education (Scotland) Act 1992; or

(iv) to which grants are paid by the Department of Education for Northern Ireland under Article 66(2) of the M24 Education and Libraries (Northern Ireland) Order 1986; [F561 or

(v) managed by a governing body established under the Further Education (Northern Ireland) Order 1997;]

(d) a public body of a description in Note (5) to Group 7 below;

[F562 (e) a body which—

(i) is precluded from distributing and does not distribute any profit it makes; and

(ii) applies any profits made from supplies of a description within this Group to the continuance or improvement of such supplies;]

[F563 (f) a body not falling within paragraphs (a) to (e) above which provides the teaching of English as a foreign language.]

(2) A supply by a body, which is an eligible body only by virtue of falling within Note [F564 1(f)], shall not fall within this Group insofar as it consists of the provision of anything other than the teaching of English as a foreign language.

[F565 (3) “Vocational training” means—

training, re-training or the provision of work experience for—

(a) any trade, profession or employment; or

(b) any voluntary work connected with—

(i) education, health, safety, or welfare; or

(ii) the carrying out of activities of a charitable nature.]

(4) “Examination services” include the setting and marking of examinations, the setting of educational or training standards, the making of assessments and other services provided with a view to ensuring educational and training standards are maintained.

(5) For the purposes of item 5 a supply of any goods or services shall not be taken to be essential to the provision of vocational training unless the goods or services in question are provided directly to the trainee.

[F566 (5A) For the purposes of [F567 items 5A [F568 to 5C]]a supply of any goods or services shall not be taken to be essential to the provision of education or vocational training unless—

(a) in the case of the provision of education, the goods or services are provided directly to the person receiving the education;

(b) in the case of the provision of vocational training, the goods or services are provided directly to the person receiving the training.]

[F569 (5B) In item 5B, [F570 “EHC plan” and] “subject to learning difficulty assessment” [F570 have the same meanings] as in the Education Act 1996.]

(6) For the purposes of item 6 a club is a “youth club” if—

(a) it is established to promote the social, physical, educational or spiritual development of its members;

(b) its members are mainly under 21 years of age; and

(c) it satisfies the requirements of Note (l)(f)(i) and (ii).

Textual Amendments

F553 Words in Sch. 9 Group 6 Note (1)(a) substituted (1.11.1996) by 1996 c. 56, ss. 582(1), 583(2), Sch. 37 Pt. I para. 125(a)

F554 Words in Sch. 9 Group 6 Note (1)(a)(iii) substituted (1.9.1999) by 1998 c. 31, s. 140(1), Sch. 30 para. 51(a) (with ss. 138(9), 144(6)); S.I. 1999/2323, art. 2(1), Sch.

F555 Words in Sch. 9 Group 6 Note (1)(a)(iii) substituted (1.11.1996) by 1996 c. 56, ss. 582(1), 583(2), Sch. 37 Pt. I para. 125(b)

F556 Sch. 9 Group 6 Note (1)(a)(v) repealed (1.9.1999) by 1998 c. 31, s. 140(1)(3), Sch. 30 para. 51(b), Sch. 31 (with ss. 138(9), 144(6)); S.I. 1999/2323, art. 2(1), Sch.

F557 Sch. 9 Pt. 2 Group 6 Note (1)(a)(vi) (S.) repealed (31.12.2004) by Standards in Scotland’s Schools etc. Act 2000 (asp 6), s. 61(2), sch. 3; S.S.I. 2004/528, art. 2(b)

F558 Sch. 9 Group 6 Note (1)(a)(vii) repealed (1.9.1999) by 1998 c. 31, s. 140(1)(3), Sch. 30 para. 51(b), Sch. 31 (with ss. 138(9), 144(6)); S.I. 1999/2323, art. 2(1), Sch.

F559 Words in Sch. 9 Pt. 2 Group 6 Note (1)(c)(i) substituted (1.4.2010) by The Apprenticeships, Skills, Children and Learning Act 2009 (Consequential Amendments) (England and Wales) Order 2010 (S.I. 2010/1080), art. 1(2)(a), Sch. 1 para. 94 (with art. 2(3))

F560 Word in Sch. 9 Pt. 2 Group 6 note (1)(c)(i) inserted (1.8.2019) by The Higher Education and Research Act 2017 (Further Implementation etc.) Regulations 2019 (S.I. 2019/1027), regs. 1, 5

F561 Sch. 9 Group 6 Note 1(c)(v) and preceding word inserted (1.4.1998) by S.I. 1997/ 1772 (N.I. 15), art. 25, Sch. 4; S.R. 1998/82, art. 2

F562 Sch. 9 Group 6 Note (1)(e) substituted (1.1.1995) by S.I. 1994/2969, arts. 1, 3

F563 Sch. 9 Group 6 Note (1)(f) substituted (1.1.1995) by S.I. 1994/2969, arts. 1, 4

F564 Words in Sch. 9 Group 6 Note (2) substituted (1.1.1995) by S.I. 1994/2969, arts. 1, 5

F565 Words in Sch. 9 Group 6 Note (3) substituted (1.1.1995) by S.I. 1994/2969, arts. 1, 6

F566 Sch. 9 Group 6 Note (5A) inserted (28.7.2000 for certain purposes otherwise 1.4.2001) by 2000 c. 21, s. 149, Sch. 9 para. 47(4); S.I. 2001/654, art. 2(2), Sch. Pt. II (with art. 3)

F567 Words in Sch. 9 Pt. II Group 6 Note (5A) substituted (1.4.2012) by Education Act 2011 (c. 21), s. 82(3), Sch. 16 para. 9(4); S.I. 2012/924, art. 2

F568 Words in Sch. 9 Pt. II Group 6 Note (5A) substituted (26.5.2015) by Deregulation Act 2015 (c. 20), s. 115(3)(g), Sch. 14 para. 41(4)

F569 Sch. 9 Pt. II Group 6 Note (5B) inserted (1.4.2012) by Education Act 2011 (c. 21), s. 82(3), Sch. 16 para. 9(5); S.I. 2012/924, art. 2

F570 Words in Sch. 9 Pt. II Group 6 Note (5B) inserted and substituted (1.9.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 3 para. 66(3); S.I. 2014/889, art. 7(a)

Marginal Citations

M17 1980 c. 44.

M18 S.I.1986/594 (N.I.3).

M19 S.I.1989/2406 (N.I.20).

M20 S.I.1986/594 (N.I.3).

M21 1989 c. 39.

M22 1992 c. 13.

M23 1992 c. 37.

M24 S.I.1986/594 (N.I.3).

Group 7— Health and welfare U.K.

Item No. U.K.

1 The supply of services [F571 consisting in the provision of medical care] by a person registered or enrolled in any of the following—

(a) the register of medical practitioners F572 ...;

(b) either of the registers of ophthalmic opticians or the register of dispensing opticians kept under the M25 Opticians Act 1989 or either of the lists kept under section 9 of that Act of bodies corporate carrying on business as ophthalmic opticians or as dispensing opticians;

(c) [F573 the register kept under [F574 the Health Professions Order 2001]] ;

[F575 (ca) the register of osteopaths maintained in accordance with the provisions of the Osteopaths Act 1993 F576 ;]

[F577 (cb) the register of chiropractors maintained in accordance with the provisions of the Chiropractors Act 1994 M26 ;]

(d) [F578 the register of qualified [F579 nurses, midwives and nursing associates] maintained under article 5 of the Nursing and Midwifery Order 2001];

F580 (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F571 Words in Sch. 9 Pt. II Group 7 item 1 inserted (1.5.2007) by The Value Added Tax (Health and Welfare) Order 2007 (S.I. 2007/206), arts. 1, 3

F572 Words in Sch. 9 Pt. II Group 7 omitted (coming into force in accordance with art. 1(2)(3) of the amending S.I.) by virtue of The Medical Act 1983 (Amendment) and Miscellaneous Amendments Order 2006 (S.I. 2006/1914), arts. 1(2), 75(2)(a)

F573 Words in Sch. 9 Pt. 2 Group 7 item 1(c) substituted (coming into force in accordance with art. 1(2)(3) of the amending S.I.) by The Health Professions Order 2001 (S.I. 2002/254), art. 48, Sch. 4 para. 6 (with art. 3(19))

F574 Words in Sch. 9 Pt. II substituted (2.12.2019) by Children and Social Work Act 2017 (c. 16), s. 70(2), Sch. 5 para. 47(f); S.I. 2019/1436, reg. 2(s)

F575 Sch. 9 Group 7 item 1(ca) inserted (12.6.1998) by S.I. 1998/1294, arts. 1, 2

F576 1993 c.21; this Act was amended by Schedule 2 to the Chiropractors Act 1994 (c.17).

F577 Sch. 9 Pt. 2 Group 7 item 1 (cb) inserted (29.6.1999) by S.I. 1999/1575, art. 2

F578 Sch. 9 Pt. 2 Group 7 item 1: words "the register of qualified nurses and midwives maintained under article 5 of the Nursing and Midwifery Order 2001" substituted for Sch. 9 Pt. II Group 7 item 1(d) (coming into force in accordance with art. 1(2)(3) of the amending S.I.) by virtue of The Nursing and Midwifery Order 2001 (S.I. 2002/253), art. 54, Sch. 5 para. 12 (with art. 3(18))

F579 Words in Sch. 9 Pt. II substituted (28.1.2019) by The Nursing and Midwifery (Amendment) Order 2018 (S.I. 2018/838), art. 1(3), Sch. 3 para. 2

F580 Sch. 9 Pt. II Group 7 item 1(e) repealed (1.4.2010) by Health and Social Care Act 2008 (c. 14), s. 170(3)(4), Sch. 15 Pt. 2; S.I. 2010/708, art. 4(2)(d)

Marginal Citations

M25 1989 c. 44.

M26 1994 c. 17.

2 U.K. [F581 The supply of any services consisting in the provision of medical care, or the supply of dental prostheses, by]—

(a) a person registered in the dentists’ register;

[F582 (b) a person registered in the dental care professionals register established under section 36B of the Dentists Act 1984;] F583 ...

F583 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F581 Words in Sch. 9 Pt. II Group 7 item 2 substituted (1.5.2007) by The Value Added Tax (Health and Welfare) Order 2007 (S.I. 2007/206), arts. 1, 4(a)

F582 Sch. 9 Group 7 item 2(b) substituted (with effect in accordance with art. 1(4)-(7) of the amending S.I.) by The Dentists Act 1984 (Amendment) Order 2005 (S.I. 2005/2011), Sch. 6 para. 3 (with Sch. 7) (with transitional provisions in S.I. 2006/1671)

F583 Sch. 9 Pt. II Group 7 item 2(c) and word omitted (1.5.2007) by virtue of The Value Added Tax (Health and Welfare) Order 2007 (S.I. 2007/206), arts. 1, 4(b)

[F584 2A U.K. The supply of any services or dental prostheses by a dental technician.]

Textual Amendments

F584 Sch. 9 Pt. II Group 7 item 2A inserted (1.5.2007) by The Value Added Tax (Health and Welfare) Order 2007 (S.I. 2007/206), arts. 1, 5

3 U.K. The supply of any services [F585 consisting in the provision of medical care] by a person registered in [F586 the register maintained under article 19 of the Pharmacy Order 2010 or in the register of pharmaceutical chemists kept under] the M27 Pharmacy (Northern Ireland) Order 1976.

Textual Amendments

F585 Words in Sch. 9 Pt. II Group 7 item 3 inserted (1.5.2007) by The Value Added Tax (Health and Welfare) Order 2007 (S.I. 2007/206), arts. 1, 6

F586 Words in Sch. 9 Pt. II Group 7 item 3 substituted (27.9.2010) by The Pharmacy Order 2010 (S.I. 2010/231), art. 1(5), Sch. 4 para. 5(3); S.I. 2010/1621, art. 2(1), Sch.

Marginal Citations

M27 S.I.1976/1213 (N.I. 22)9.

4 U.K. The provision of care or medical or surgical treatment and, in connection with it, the supply of any goods, in any hospital [F587 or state-regulated institution].

Textual Amendments

F587 Words in Sch. 9 Pt. 2 Group 7 Item 4 substituted (21.3.2002) by The Value Added Tax (Health and Welfare) Order 2002 (S.I. 2002/762), art. 3

5 U.K. The provision of a deputy for a person registered in the register of medical practitioners F588 ....

Textual Amendments

F588 Words in Sch. 9 Pt. II Group 7 omitted (coming into force in accordance with art. 1(2)(3) of the amending S.I.) by virtue of The Medical Act 1983 (Amendment) and Miscellaneous Amendments Order 2006 (S.I. 2006/1914), arts. 1(2), 75(2)(b)

6 U.K. Human blood.

7 U.K. Products for therapeutic purposes, derived from human blood.

8 U.K. Human (including foetal) organs or tissue for diagnostic or therapeutic purposes or medical research.

[F589 9 U.K. The supply by—

(a) a charity,

(b) a state-regulated private welfare institution [F590 or agency], or

(c) a public body,

of welfare services and of goods supplied in connection with those welfare services.]

Textual Amendments

F589 Sch. 9 Pt. 2 Group 7 Item 9 substituted (21.3.2002) by The Value Added Tax (Health and Welfare) Order 2002 (S.I. 2002/762), art. 4

F590 Words in Sch. 9 Pt. 2 Group 7 Item 9(b) inserted (31.1.2003) by Value Added Tax (Health and Welfare) Order 2003 (S.I. 2003/24), arts. 1, 2, 3

10 U.K. The supply, otherwise than for profit, of goods and services incidental to the provision of spiritual welfare by a religious community to a resident member of that community in return for a subscription or other consideration paid as a condition of membership.

11 U.K. The supply of transport services for sick or injured persons in vehicles specially designed for that purpose.

Notes: U.K.

(1) Item 1 does not include the letting on hire of goods except where the letting is in connection with a supply of other services comprised in the item.

(2) Paragraphs (a) to (d) of item 1 and paragraphs (a) and (b) of item 2 include supplies of services made by a person who is not registered or enrolled in any of the registers or rolls specified in those paragraphs where the services are wholly performed or directly supervised by a person who is so registered or enrolled.

F591 (2ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F592 (2A) Item 3 includes supplies of services made by a person who is not registered in either of the registers specified in that item where the services are wholly performed by a person who is so registered.]

(3) Item 3 does not include the letting on hire of goods.

F593 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In item 9 “public body” means—

(a) a Government department within the meaning of section 41(6);

(b) a local authority;

(c) a body which acts under any enactment or instrument for public purposes and not for its own profit and which performs functions similar to those of a Government department or local authority.

[F594 (6) In item 9 “welfare services” means services which are directly connected with—

(a) the provision of care, treatment or instruction designed to promote the physical or mental welfare of elderly, sick, distressed or disabled persons,

(b) the care or protection of children and young persons, or

(c) the provision of spiritual welfare by a religious institution as part of a course of instruction or a retreat, not being a course or a retreat designed primarily to provide recreation or a holiday,

and, in the case of services supplied by a state-regulated private welfare institution, includes only those services in respect of which the institution is so regulated.]

(7) Item 9 does not include the supply of accommodation or catering except where it is ancillary to the provision of care, treatment or instruction.

[F595 (8) In this Group “state-regulated” means approved, licensed, registered or exempted from registration by any Minister or other authority pursuant to a provision of a public general Act, other than a provision that is capable of being brought into effect at different times in relation to different local authority areas.

Here “Act” means—

(a)

an Act of Parliament;

(b)

an Act of the Scottish Parliament;

(c)

an Act of the Northern Ireland Assembly;

(d)

an Order in Council under Schedule 1 to the Northern Ireland Act 1974 F596 ;

(e)

a Measure of the Northern Ireland Assembly established under section 1 of the Northern Ireland Assembly Act 1973 F597 ;

(f)

an Order in Council under section 1(3) of the Northern Ireland (Temporary Provisions) Act 1972 F598 ;

(g)

an Act of the Parliament of Northern Ireland.]

Textual Amendments

F591 Sch. 9 Pt. II Group 7 Note (2ZA) omitted (2.12.2019) by virtue of Children and Social Work Act 2017 (c. 16), s. 70(2), Sch. 5 para. 5; S.I. 2019/1436, reg. 2(s)

F592 Sch. 9 group 7 Note (2A) inserted (1.1.1997) by S.I. 1996/2949, arts. 1, 2

F593 Sch. 9 Pt. II Group 7 Note (4) omitted (3.12.2007) by virtue of The European Qualifications (Health and Social Care Professions) Regulations 2007 (S.I. 2007/3101), regs. 1(2), 65(b)

F594 Sch. 9 Pt. 2 Group 7 Note (6) substituted (21.3.2002) by The Value Added Tax (Health and Welfare) Order 2002 (S.I. 2002/762), art. 5

F595 Sch. 9 Pt. 2 Group 7 Note (8) inserted (21.3.2002) by The Value Added Tax (Health and Welfare) Order 2002 (S.I. 2002/762), art. 6

F596 1974 c. 28, repealed by section 100 of and Schedule 15 to the Northern Ireland Act 1998 (c. 47).

F597 1973 c. 17, repealed by section 100 of and Schedule 15 to the Northern Ireland Act 1998 (c. 47).

F598 1972 c. 22, repealed by section 100 of and Schedule 15 to the Northern Ireland Act 1998 (c. 47).

Group 8— Burial and cremation U.K.

Item No. U.K.

1 The disposal of the remains of the dead.

2 U.K. The making of arrangements for or in connection with the disposal of the remains of the dead.

[F599 Group 9— SUBSCRIPTIONS TO TRADE UNIONS, PROFESSIONAL AND OTHER PUBLIC INTEREST BODIES] U.K.

Textual Amendments

F599 Sch. 9 Pt. II Group 9: heading substituted (1.12.1999) by S.I. 1999/2834, art. 4(a)

Item No. U.K.

1 The supply to its members of such services and, in connection with those services, of such goods as are both referable only to its aims and available without payment other than a membership subscription by any of the following non-profit-making organisations—

(a) a trade union or other organisation of persons having as its main object the negotiation on behalf of its members of the terms and conditions of their employment;

(b) a professional association, membership of which is wholly or mainly restricted to individuals who have or are seeking a qualification appropriate to the practice of the profession concerned;

(c) an association, the primary purpose of which is the advancement of a particular branch of knowledge, or the fostering of professional expertise, connected with the past or present professions or employments of its members;

(d) an association, the primary purpose of which is to make representations to the Government on legislation and other public matters which affect the business or professional interests of its members.

[F600 (e) a body which has objects which are in the public domain and are of a political, religious, patriotic, philosophical, philanthropic or civic nature.]

Textual Amendments

F600 Sch. 9 Pt. II Group 9 Item 1(e) added (1.12.1999) by S.I. 1999/2834, art. 4(b)

Note: U.K.

(1) Item 1 does not include any right of admission to any premises, event or performance, to which non-members are admitted for a consideration.

(2) “Trade union” has the meaning assigned to it by section 1 of the M28 Trade Union and Labour Relations (Consolidation) Act 1992.

(3) Item 1 shall include organisations and associations the membership of which consists wholly or mainly of constituent or affiliated associations which as individual associations would be comprised in the item; and “member” shall be construed as including such an association and “membership subscription” shall include an affiliation fee or similar levy.

(4) Paragraph (c) does not apply unless the association restricts its membership wholly or mainly to individuals whose present or previous professions or employments are directly connected with the purposes of the association.

(5) Paragraph (d) does not apply unless the association restricts its membership wholly or mainly to individuals or corporate bodies whose business or professional interests are directly connected with the purposes of the association.

Marginal Citations

M28 1992 c. 52.

Group 10— Sport, sports competitions and physical education U.K.

Item No. U.K.

1 The grant of a right to enter a competition in sport or physical recreation where the consideration for the grant consists in money which is to be allocated wholly towards the provision of a prize or prizes awarded in that competition.

2 U.K. The grant, by [F601 an eligible body] established for the purposes of sport or physical recreation, of a right to enter a competition in such an activity.

Textual Amendments

F601 Words in Sch. 9 Pt. II Group 10 Item 2 substituted (1.1.2000) by S.I. 1999/1994, art. 3

3 U.K. The supply by [F602 an eligible body] to an individual F603 ... of services closely linked with and essential to sport or physical education in which the individual is taking part.

Textual Amendments

F602 Words in Sch. 9 Pt. II Group 10 Item 3 substituted (1.1.2000) by S.I. 1999/1994, art. 3

F603 Words in Sch. 9 Pt. II Group 10 omitted (1.1.2015) by virtue of The Value Added Tax (Sport) Order 2014 (S.I. 2014/3185), arts. 1, 2(2)

Notes: U.K.

(1) Item 3 does not include the supply of any services by [F604 an eligible body] of residential accommodation, catering or transport.

F605 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F606 (2A) Subject to Notes (2C) and (3), in this Group “eligible body” means [F604 an eligible body] which–

(a) is precluded from distributing any profit it makes, or is allowed to distribute any such profit by means only of distributions to a non-profit making body;

(b) applies in accordance with Note (2B) any profits it makes from supplies of a description within Item 2 or 3; and

(c) is not subject to commercial influence.

(2B) For the purposes of Note (2A)(b) the application of profits made by any body from supplies of a description within Item 2 or 3 is in accordance with this Note only if those profits are applied for one or more of the following purposes, namely–

(a) the continuance or improvement of any facilities made available in or in connection with the making of the supplies of those descriptions made by that body;

(b) the purposes of a non-profit making body.

(2C) In determining whether the requirements of Note (2A) for being an eligible body are satisfied in the case of any body, there shall be disregarded any distribution of amounts representing unapplied or undistributed profits that falls to be made to the body’s members on its winding-up or dissolution.]

(3) In Item 3 a “non-profit making body” does not include—

(a) a local authority;

(b) a Government department within the meaning of section 41(6); or

(c) a non-departmental public body which is listed in the 1993 edition of the publication prepared by the Office of Public Service and Science and known as Public Bodies.

[F607 (4) For the purposes of this Group a body shall be taken, in relation to a sports supply, to be subject to commercial influence if, and only if, there is a time in the relevant period when–

(a) a relevant supply was made to that body by a person associated with it at that time;

(b) an emolument was paid by that body to such a person;

(c) an agreement existed for either or both of the following to take place after the end of that period, namely–

(i) the making of a relevant supply to that body by such a person; or

(ii) the payment by that body to such a person of any emoluments.

(5) In this Group “the relevant period”, in relation to a sports supply, means–

(a) where that supply is one made before 1st January 2003, the period beginning with 14th January 1999 and ending with the making of that sports supply; and

(b) where that supply is one made on or after 1st January 2003, the period of three years ending with the making of that sports supply.

(6) Subject to Note (7), in this Group “relevant supply”, in relation to any body, means a supply falling within any of the following paragraphs–

(a) the grant of any interest in or right over land which at any time in the relevant period was or was expected to become sports land;

(b) the grant of any licence to occupy any land which at any such time was or was expected to become sports land;

(c) the grant, in the case of land in Scotland, of any personal right to call for or be granted any such interest or right as is mentioned in paragraph (a) above;

(d) a supply arising from a grant falling within paragraph (a), (b) or (c) above, other than a grant made before 1st April 1996;

(e) the supply of any services consisting in the management or administration of any facilities provided by that body;

(f) the supply of any goods or services for a consideration in excess of what would have been agreed between parties entering into a commercial transaction at arm’s length.

(7) A supply which has been, or is to be or may be, made by any person shall not be taken, in relation to a sports supply made by any body, to be a relevant supply for the purposes of this Group if–

(a) the principal purpose of that body is confined, at the time when the sports supply is made, to the provision for employees of that person of facilities for use for or in connection with sport or physical recreation, or both;

(b) the supply in question is one made by a charity or local authority or one which (if it is made) will be made by a person who is a charity or local authority at the time when the sports supply is made;

(c) the supply in question is a grant falling within Note (6)(a) to (c) which has been made, or (if it is made) will be made, for a nominal consideration;

(d) the supply in question is one arising from such a grant as is mentioned in paragraph (c) above and is not itself a supply the consideration for which was, or will or may be, more than a nominal consideration; or

(e) the supply in question–

(i) is a grant falling within Note (6)(a) to (c) which is made for no consideration; but

(ii) falls to be treated as a supply of goods or services, or (if it is made) will fall to be so treated, by reason only of the application, in accordance with paragraph 9 of Schedule 4, of paragraph 5 of that Schedule.

(8) Subject to Note (10), a person shall be taken, for the purposes of this Group, to have been associated with a body at any of the following times, that is to say–

(a) the time when a supply was made to that body by that person;

(b) the time when an emolument was paid by that body to that person; or

(c) the time when an agreement was in existence for the making of a relevant supply or the payment of emoluments,

if, at that time, or at another time (whether before or after that time) in the relevant period, that person was an officer or shadow officer of that body or an intermediary for supplies to that body.

(9) Subject to Note (10), a person shall also be taken, for the purposes of this Group, to have been associated with a body at a time mentioned in paragraph (a), (b) or (c) of Note (8) if, at that time, he was connected with another person who in accordance with that Note–

(a) is to be taken to have been so associated at that time; or

(b) would be taken to have been so associated were that time the time of a supply by the other person to that body.

(10) Subject to Note (11), a person shall not be taken for the purposes of this Group to have been associated with a body at a time mentioned in paragraph (a), (b) or (c) of Note (8) if the only times in the relevant period when that person or the person connected with him was an officer or shadow officer of the body are times before 1st January 2000.

(11) Note (10) does not apply where (but for that Note) the body would be treated as subject to commercial influence at any time in the relevant period by virtue of–

(a) the existence of any agreement entered into on or after 14th January 1999 and before 1st January 2000; or

(b) anything done in pursuance of any such agreement.

(12) For the purposes of this Group a person shall be taken, in relation to a sports supply, to have been at all times in the relevant period an intermediary for supplies to the body making that supply if–

(a) at any time in that period either a supply was made to him by another person or an agreement for the making of a supply to him by another was in existence; and

(b) the circumstances were such that, if–

(i) that body had been the person to whom the supply was made or (in the case of an agreement) the person to whom it was to be or might be made; and

(ii) Note (7) above were to be disregarded to the extent (if at all) that it would prevent the supply from being a relevant supply, the body would have fallen to be regarded in relation to the sports supply as subject to commercial influence.

(13) In determining for the purposes of Note (12) or this Note whether there are such circumstances as are mentioned in paragraph (b) of that Note in the case of any supply, that Note and this Note shall be applied first for determining whether the person by whom the supply was made, or was to be or might be made, was himself an intermediary for supplies to the body in question, and so on through any number of other supplies or agreements.

(14) In determining for the purposes of this Group whether a supply made by any person was made by an intermediary for supplies to a body, it shall be immaterial that the supply by that person was made before the making of the supply or agreement by reference to which that person falls to be regarded as such an intermediary.

(15) Without prejudice to the generality of subsection (1AA) of section 43, for the purpose of determining–

(a) whether a relevant supply has at any time been made to any person;

(b) whether there has at any time been an agreement for the making of a relevant supply to any person; and

(c) whether a person falls to be treated as an intermediary for the supplies to any body by reference to supplies that have been, were to be or might have been made to him,

references in the preceding Notes to a supply shall be deemed to include references to a supply falling for other purposes to be disregarded in accordance with section 43(1)(a).

(16) In this Group–

• “agreement” includes any arrangement or understanding (whether or not legally enforceable);

• “emolument” means any emolument (within the meaning of the Income Tax Acts) the amount of which falls or may fall, in accordance with the agreement under which it is payable, to be determined or varied wholly or partly by reference–

  (i)

  to the profits from some or all of the activities of the body paying the emolument; or

  (ii)

  to the level of that body’s gross income from some or all of its activities;

• “employees”, in relation to a person, includes retired employees of that person;

• “grant” includes an assignment or surrender;

• “officer”, in relation to a body, includes–

  (i)

  a director of a body corporate; and

  (ii)

  any committee member or trustee concerned in the general control and management of the administration of the body;

• “shadow officer”, in relation to a body, means a person in accordance with whose directions or instructions the members or officers of the body are accustomed to act;

• “sports land”, in relation to any body, means any land used or held for use for or in connection with the provision by that body of facilities for use for or in connection with sport or physical recreation, or both;

• “sports supply” means a supply which, if made by an eligible body, would fall within Item 2 or 3.

(17) For the purposes of this Group any question whether a person is connected with another shall be determined in accordance with [F608 section 1122 of the Corporation Tax Act 2010] (connected persons).]

Textual Amendments

F604 Words in Sch. 9 Pt. II Group 10 Notes (1)-(3) substituted (1.1.2000) by S.I. 1999/1994, art. 3

F605 Sch. 9 Pt. II Group 10 Note (2) omitted (1.1.2015) by virtue of The Value Added Tax (Sport) Order 2014 (S.I. 2014/3185), arts. 1, 2(3)

F606 Sch. 9 Pt. II Group 10 Notes (2A)(2B)(2C) inserted (1.1.2000) by S.I. 1999/1994, art. 4

F607 Sch. 9 Pt. II Group 10 Notes (4)-(17) inserted (1.1.2000) by S.I. 1999/1994, art. 5

F608 Words in Sch. 9 Pt. II Group 10 Note (17) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 285(e)(ii) (with Sch. 2)

Group 11— Works of art etc U.K.

Item No. U.K.

1 The disposal of an object with respect to which estate duty is not chargeable by virtue of section 30(3) of the M29 Finance Act 1953, section 34(1) of the M30 Finance Act 1956 or the proviso to section 40(2) of the M31 Finance Act 1930.

Marginal Citations

M29 1953 c.34.

M30 1956 c.54.

M31 1930 c.28.

2 U.K. The disposal of an object with respect to which inheritance tax is not chargeable by virtue of paragraph 1(3)(a) or (4), paragraph 3(4)(a), or the words following paragraph 3(4), of Schedule 5 to the M32 Inheritance Tax Act 1984.

Marginal Citations

M32 1984 c.51.

3 U.K. The disposal of property with respect to which inheritance tax is not chargeable by virtue of section 32(4) or 32A(5) or (7) of the M33 Inheritance Tax Act 1984.

Marginal Citations

M33 1984 c.51.

4 U.K. The disposal of an asset in a case in which any gain accruing on that disposal is not a chargeable gain by virtue of section 258(2) of the M34 Taxation of Chargeable Gains Act 1992.

Marginal Citations

M34 1992 c.12.

[F609 GROUP 12—FUND-RAISING EVENTS BY CHARITIES AND OTHER QUALIFYING BODIES] U.K.

Textual Amendments

F609 Sch. 9 Group 12 items 1-3, Notes (1)-(11) substituted for Sch. 9 Group 12 items 1-2, Notes (1)-(3) (1.4.2000) by S.I. 2000/802, art. 3

Item No. U.K.

F610 1 The supply of goods and services by a charity in connection with an event—

(a) that is organised for charitable purposes by a charity or jointly by more than one charity,

(b) whose primary purpose is the raising of money, and

(c) that is promoted as being primarily for the raising of money.

Textual Amendments

F610 Sch. 9 Group 12 items 1-3, Notes (1)-(11) substituted for Sch. 9 Group 12 items 1-2, Notes (1)-(3) (1.4.2000) by S.I. 2000/802, art. 3

F611 2 U.K. The supply of goods and services by a qualifying body in connection with an event—

(a) that is organised exclusively for the body’s own benefit,

(b) whose primary purpose is the raising of money, and

(c) that is promoted as being primarily for the raising of money.

Textual Amendments

F611 Sch. 9 Group 12 items 1-3, Notes (1)-(11) substituted for Sch. 9 Group 12 items 1-2, Notes (1)-(3) (1.4.2000) by S.I. 2000/802, art. 3

F612 3 U.K. The supply of goods and services by a charity or a qualifying body in connection with an event—

(a) that is organised jointly by a charity, or two or more charities, and the qualifying body,

(b) that is so organised exclusively for charitable purposes or exclusively for the body’s own benefit or exclusively for a combination of those purposes and that benefit,

(c) whose primary purpose is the raising of money, and

(d) that is promoted as being primarily for the raising of money.

Textual Amendments

F612 Sch. 9 Group 12 items 1-3, Notes (1)-(11) substituted for Sch. 9 Group 12 items 1-2, Notes (1)-(3) (1.4.2000) by S.I. 2000/802, art. 3

Notes: U.K.

(1) For the purposes of this Group “event” includes an event accessed (wholly or partly) by means of electronic communications.

For this purpose “electronic communications” includes any communications by means of [F613 an electronic communications network].

F614 (2) For the purposes of this Group “charity” includes a body corporate that is wholly owned by a charity if—

(a) the body has agreed in writing (whether or not contained in a deed) to transfer its profits (from whatever source) to a charity, or

(b) the body’s profits (from whatever source) are otherwise payable to a charity.

(3) For the purposes of this Group “qualifying body” means—

(a) any non-profit making organisation mentioned in item 1 of Group 9;

(b) any body that is an eligible body for the purposes of Group 10 and whose principal purpose is the provision of facilities for persons to take part in sport or physical education; or

(c) any body that is an eligible body for the purposes of item 2 of Group 13.

(4) Where in a financial year of a charity or qualifying body there are held at the same location more than 15 events involving the charity or body that are of the same kind, items 1 to 3 do not apply (or shall be treated as having not applied) to a supply in connection with any event involving the charity or body that is of that kind and is held in that financial year at that location.

(5) In determining whether the limit of 15 events mentioned in Note (4) has been exceeded in the case of events of any one kind held at the same location, disregard any event of that kind held at that location in a week during which the aggregate gross takings from events involving the charity or body that are of that kind and are held in that location do not exceed £1,000.

(6) In the case of a financial year that is longer or shorter than a year, Notes (4) and (5) have effect as if for “15” there were substituted the whole number nearest to the number obtained by—

(a) first multiplying the number of days in the financial year by 15, and

(b) then dividing the result by 365.

(7) For the purposes of Notes (4) and (5)—

(a) an event involves a charity if the event is organised by the charity or a connected charity;

(b) an event involves a qualifying body if the event is organised by the body.

Textual Amendments

F613 Words in Sch. 9 Pt. 2 Group 12 Note (1) substituted (25.7.2003 for specified purposes, 29.12.2003 in so far as not already in force) by Communications Act 2003 (c. 21), s. 411(2), Sch. 17 para. 129(3) (with Sch. 18); S.I. 2003/1900, arts. 1(2), 2(1), Sch. 1 (with art. 3) (as amended by S.I. 2003/3142, art. 1(3)); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

F614 Sch. 9 Group 12 items 1-3, Notes (1)-(11) substituted for Sch. 9 Group 12 items 1-2, Notes (1)-(3) (1.4.2000) by S.I. 2000/802, art. 3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F617 GROUP 13— CULTURAL SERVICES ETC U.K.

Textual Amendments

F617 Sch. 9 Pt. 2 Group 13 inserted (1.6.1996) by S.I. 1996/1256, arts. 1, 2(b)

Item No. U.K.

1 The supply by a public body of a right of admission to—

(a) a museum, gallery, art exhibition or zoo; or

(b) a theatrical, musical or choreographic performance of a cultural nature.

2 U.K. The supply by an eligible body of a right of admission to—

(a) a museum, gallery, art exhibition or zoo; or

(b) a theatrical, musical or choreographic performance of a cultural nature.

Notes:

(1) For the purposes of this Group “public body” means—

(a) a local authority;

(b) a government department within the meaning of section 41(6); or

(c) a non-departmental public body which is listed in the 1995 edition of the publication prepared by the Office of Public Service and known as “Public Bodies”.

(2) For the purposes of item 2 “eligible body” means any body (other than a public body) which—

(a) is precluded from distributing, and does not distribute, any profit it makes;

(b) applies any profits made from supplies of a description falling within item 2 to the continuance or improvement of the facilities made available by means of the supplies; and

(c) is managed and administered on a voluntary basis by persons who have no direct or indirect financial interest in its activities.

(3) Item 1 does not include any supply the exemption of which would be likely to create distortions of competition such as to place a commercial enterprise carried on by a taxable person at a disadvantage.

(4) Item 1(b) includes the supply of a right of admission to a performance only if the performance is provided exclusively by one or more public bodies, one or more eligible bodies or any combination of public bodies and eligible bodies.]

[F618 GROUP 14—SUPPLIES OF GOODS WHERE INPUT TAX CANNOT BE RECOVERED U.K.

Textual Amendments

F618 Sch. 9 Pt. II Group 14 added (1.3.2000) by S.I. 1999/2833, art. 2(3)

Item No. U.K.

F619 1 A supply of goods in relation to which each of the following conditions is satisfied, that is to say—

(a) there is input tax of the person making the supply (“the relevant supplier”), or of any predecessor of his, that has arisen or will arise on the supply to, F620 ... or importation by, the relevant supplier or any such predecessor of goods used for the supply made by the relevant supplier;

(b) the only such input tax is non-deductible input tax; and

(c) the supply made by the relevant supplier is not a supply which would be exempt under Item 1 of Group 1 of Schedule 9 but for an [F621 option to tax any land under Part 1 of Schedule 10].

Textual Amendments

F619 Sch. 9 Pt. II Group 14 Item 1 added (1.3.2000) by S.I. 1999/2833, art. 2(3)

F620 Words in Sch. 9 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 95(3)(a) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F621 Words in Sch. 9 Pt. II Group 14 item 1 para (c) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2008 (S.I. 2008/1146), art. 1(1), Sch. 1 para. 4 (with Sch. 2)

F622 Notes: U.K.

(1) Subject to Note (2) below, in relation to any supply of goods by the relevant supplier, the goods used for that supply are—

(a) the goods supplied; and

(b) any goods used in the process of producing the supplied goods so as to be comprised in them.

(2) In relation to a supply by any person consisting in or arising from the grant of a major interest in land (“the relevant supply”)—

(a) any supply consisting in or arising from a previous grant of a major interest in the land is a supply of goods used for the relevant supply; and

(b) subject to paragraph (a) above, the goods used for the relevant supply are any goods used in the construction of a building or civil engineering work so as to become part of the land.

(3) Subject to Notes (7) to (10) below, non-deductible input tax is input tax to which Note (4) or (5) below applies.

(4) This Note applies to input tax which (disregarding this Group and regulation 106 of the Value Added Tax Regulations 1995 F623 (de minimis rule)) is not, and will not become, attributable to supplies to which section 26(2) applies.

(5) This Note applies to input tax if—

(a) disregarding this Group and the provisions mentioned in Note (6) below, the relevant supplier or a predecessor of his has or will become entitled to credit for the whole or a part of the amount of that input tax; and

(b) the effect (disregarding this Group) of one or more of those provisions is that neither the relevant supplier nor any predecessor of his has or will become entitled to credit for any part of that amount.

(6) The provisions mentioned in Note (5) above are—

(a) Article 5 of the Value Added Tax (Input Tax) Order 1992 F624 (no credit for input tax on goods or services used for business entertainment);

(b) Article 6 F625 of that Order (no credit for input tax on non-building materials incorporated in a building or site);

(c) Article 7 F626 of that Order (no credit for input tax on motor cars);

(d) any provision directly or indirectly re-enacted (with or without modification) in a provision mentioned in paragraphs (a) to (c) above.

(7) For the purposes of this Group the input tax of a person shall be deemed to include any VAT which—

(a) has arisen or will arise on a supply to, F627 ... or importation by, that person; and

(b) would fall to be treated as input tax of that person but for its arising when that person is not a taxable person.

(8) Subject to Note (9) below, the input tax that is taken to be non-deductible input tax shall include any VAT which—

(a) is deemed to be input tax of any person by virtue of Note (7) above; and

(b) would be input tax to which Note (4) or (5) above would apply if it were input tax of that person and, in the case of a person to whom section 39 applies, if his business were carried on in the United Kingdom.

(9) Non-deductible input tax does not include any VAT that has arisen or will arise on a supply to, F628 ... or importation by, any person of any goods used for a supply of goods (“the relevant supply”) if—

(a) that VAT ; or

(b) any other VAT arising on the supply to, F629 ... or importation by, that person or any predecessor of his of any goods used for the relevant supply,

has been or will be refunded under section 33, [F630 33A,] [F631 33B,] [F632 33C,] 39 or 41.

(10) Input tax arising on a supplyF633 ... or importation of goods shall be disregarded for the purposes of determining whether the conditions in Item No. 1(a) and (b) are satisfied if, at a time after that supplyF633 ... or importation but before the supply by the relevant supplier, a supply of the goods or of anything in which they are comprised is treated under or by virtue of any provision of this Act as having been made by the relevant supplier or any predecessor of his to himself.

(11) In relation to any goods or anything comprised in any goods, a person is a predecessor of another (“the putative successor”) only if Note (12) or (13) below applies to him in relation to those goods or that thing; and references in this Group to a person’s predecessors include references to the predecessors of his predecessors through any number of transfers and events such as are mentioned in Notes (12) and (13).

(12) This Note applies to a person in relation to any goods or thing if—

(a) the putative successor is a person to whom he has transferred assets of his business by a transfer of that business, or a part of it, as a going concern;

(b) those assets consisted of or included those goods or that thing; and

(c) the transfer of the assets is one falling by virtue of an Order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services.

(13) This Note applies to a [F634 person] in relation to any goods or thing if—

(a) those goods or that thing formed part of the assets of the business of that [F635 person] at a time when it became a member of a group of which the putative successor was at that time the representative member;

(b) those goods or that thing formed part of the assets of the business of that [F636 person, or of any other person who] was a member of the same group as that [F637 person, at a time when that person] was succeeded as the representative member of the group by the putative successor; or

(c) those goods or that thing formed part of the assets of the putative successor at a time when it ceased to be a member of a group of which the [F638 person] in question was at the time the representative member.

(14) References in Note (13) above to a [F639 person's] being or becoming or ceasing to be a member of a group or the representative member of a group are references to its falling to be so treated for the purposes of section 43.

(15) In Notes (11) to (13) above the references to anything comprised in other goods shall be taken, in relation to any supply consisting in or arising from the grant of a major interest in land, to include anything the supplyF640 ... or importation of which is, by virtue of Note (2) above, taken to be a supplyF640 ... or importation of goods used for making the supply so consisting or arising.

(16) Notes (1) and (1A) to Group 1 shall apply for the purposes of this Group as they apply for the purposes of that Group.]

Textual Amendments

F622 Sch. 9 Pt. II Group 14 Notes added (1.3.2000) by S.I. 1999/2833, art. 2(3)

F623 S.I. 1995/2518.

F624 S.I. 1992/3222; Article 5 was amended by S.I. 1995/281.

F625 Article 6 was amended by S.I. 1995/281.

F626 Article 7 was amended by S.I. 1995/281 and S.I. 1995/1666.

F627 Words in Sch. 9 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 95(3)(b) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F628 Words in Sch. 9 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 95(3)(c)(i) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F629 Words in Sch. 9 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 95(3)(c)(ii) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F630 Word in Sch. 9 Group 14 Note (9) inserted (11.5.2001 for specified purposes otherwise 1.9.2001) by 2001 c. 9, s. 98(9)(10)(11)

F631 Word in Sch. 9 Pt. II Group 14 Note (9) inserted (with effect in accordance with s. 76(5) of the amending Act) by Finance Act 2011 (c. 11), s. 76(4)

F632 Word in Sch. 9 Pt. II Group 14 Note (9) inserted (with effect in accordance with s. 66(5) of the amending Act) by Finance Act 2015 (c. 11), s. 66(4)

F633 Words in Sch. 9 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 95(3)(d) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F634 Word in Sch. 9 Pt. II Group 14 Note (13) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 13(2)(a); S.I. 2019/1348, reg. 2

F635 Word in Sch. 9 Pt. II Group 14 Note (13)(a) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 13(2)(b); S.I. 2019/1348, reg. 2

F636 Words in Sch. 9 Pt. II Group 14 Note (13)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 13(2)(c)(i); S.I. 2019/1348, reg. 2

F637 Words in Sch. 9 Pt. II Group 14 Note (13)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 13(2)(c)(ii); S.I. 2019/1348, reg. 2

F638 Word in Sch. 9 Pt. II Group 14 Note (13)(c) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 13(2)(d); S.I. 2019/1348, reg. 2

F639 Word in Sch. 9 Pt. II Group 14 Note (14) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 13(3); S.I. 2019/1348, reg. 2

F640 Words in Sch. 9 Pt. II omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 95(3)(e) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

[F641 GROUP 15—INVESTMENT GOLD U.K.

Textual Amendments

F641 Sch. 9 Pt. 2 Group 15 added (1.1.2000) by S.I. 1999/3116, art. 2(3)

Item No. U.K.

F642 1 The supply of investment gold.

Textual Amendments

F642 Sch. 9 Pt. 2 Group 15 Item 1 added (1.1.2000) by S.I. 1999/3116, art. 2(3)

F643 2 U.K. The grant, assignment or surrender of any right, interest, or claim in, over or to investment gold if the right, interest or claim is or confers a right to the transfer of the possession of investment gold.

Textual Amendments

F643 Sch. 9 Pt. 2 Group 15 Item 2 added (1.1.2000) by S.I. 1999/3116, art. 2(3)

F644 3 U.K. The supply, by a person acting as agent for a disclosed principal, of services consisting of—

(a) the effecting of a supply falling within item 1 or 2 that is made by or to his principal, or

(b) attempting to effect a supply falling within item 1 or 2 that is intended to be made by or to his principal but is not in fact made.

Textual Amendments

F644 Sch. 9 Pt. 2 Group 15 Item 3 added (1.1.2000) by S.I. 1999/3116, art. 2(3)

F645 Notes: U.K.

(1) For the purposes of this Group “investment gold” means—

(a) gold of a purity not less than 995 thousandths that is in the form of a bar, or a wafer, of a weight accepted by the bullion markets;

(b) a gold coin minted after 1800 that—

(i) is of a purity of not less than 900 thousandths,

(ii) is, or has been, legal tender in its country of origin, and

(iii) is of a description of coin that is normally sold at a price that does not exceed 180% of the open market value of the gold contained in the coin; or

(c) a gold coin of a description specified in a notice that has been published by the Commissioners for the purposes of this Group and has not been withdrawn.

(2) A notice under Note (1)(c) may provide that a description specified in the notice has effect only for the purposes of supplies made at times falling within a period specified in the notice.

(3) Item 2 does not include—

(a) the grant of an option, or

(b) the assignment or surrender of a right under an option at a time before the option is exercised.

(4) This Group does not include a supply—

(a) between members of the London Bullion Market Association, or

(b) by a member of that Association to a taxable person who is not a member or by such a person to a member.]

Textual Amendments

F645 Sch. 9 Pt. 2 Group 15 Notes added (1.1.2000) by S.I. 1999/3116, art. 2(3)

[F646 GROUP 16 — SUPPLIES OF SERVICES BY GROUPS INVOLVING COST SHARING U.K.

Textual Amendments

F646 Sch. 9 Pt. II Group 16 inserted (17.7.2012) by Finance Act 2012 (c. 14), s. 197(2)

Item No U.K.

1 The supply of services by an independent group of persons where each of the following conditions is satisfied—

(a) each of those persons is a person who is carrying on an activity (“the relevant activity”) which is exempt from VAT or [F647 is not carried on in the course or furtherance of carrying on a business,]

(b) the supply of services is made for the purpose of rendering the members of the group the services directly necessary for the exercise of the relevant activity,

(c) the group merely claims from its members exact reimbursement of their share of the joint expenses, and

(d) the exemption of the supply is not likely to cause distortion of competition.]

Textual Amendments

F647 Words in Sch. 9 Pt. II substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 95(4) (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. 7 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

Section 40A(1)

[F648 SCHEDULE 9ZA U.K. VAT on acquisitions in Northern Ireland from member States

Textual Amendments

F648 Schs. 9ZA, 9ZB inserted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 2 para. 2 (with s. 3(4), Sch. 2 para. 7(7)-(10)) (with savings and transitional provisions in S.I. 2020/1545, Pt. 4); S.I. 2020/1642, reg. 9

PART 1 U.K. Charge to VAT for acquisitions in Northern Ireland from member States

Charge to VAT U.K.

1 (1) VAT is charged, in accordance with this Schedule, on the acquisition in Northern Ireland of goods from a member State— U.K.

(a) by reference to the value of the acquisition as determined under Part 2 of this Schedule, and

(b) subject to paragraph 16, at the rate of VAT for the time being in force under section 2.

(2) VAT charged on the acquisition of goods in Northern Ireland from a member State is a liability of the person who acquires the goods and (subject to provisions about accounting and payment) becomes due at the time of acquisition.

(3) VAT charged on the acquisition of goods in Northern Ireland from a member State in accordance with this Schedule is referred to in this Schedule as “NI acquisition VAT”.

(4) References to VAT (without more) in this Act include NI acquisition VAT.

(5) The Commissioners may by regulations make provision about (including provision modifying) the application of provision that applies to value added tax made by or under any enactment (including provision made by or under this Act) to NI acquisition VAT or to goods acquired in Northern Ireland from a member State.

Scope of NI acquisition VAT U.K.

2 (1) NI acquisition VAT is charged on any acquisition from a member State of any goods where— U.K.

(a) the acquisition is a taxable acquisition,

(b) it takes place in Northern Ireland,

(c) it is not in pursuance of a taxable supply (see section 4(2)), and

(d) the person who makes it is a taxable person or the goods acquired are subject to a duty of excise or consist in a new means of transport.

(2) In this Act, a “taxable acquisition” means an acquisition of goods from a member State that—

(a) is not an exempt acquisition (see paragraph 17(5)), and

(b) falls within sub-paragraph (3) or is an acquisition of goods consisting in a new means of transport.

(3) An acquisition of goods from a member State falls within this sub-paragraph if—

(a) the goods are acquired in the course or furtherance of—

(i) any business carried on by any person, or

(ii) any activities carried on otherwise than by way of business by any body corporate or by any club, association, organisation or other unincorporated body,

(b) it is the person who carries on that business or those activities who acquires the goods, and

(c) the supplier—

(i) is taxable in a member State at the time of the transaction in pursuance of which the goods are acquired, and

(ii) in participating in that transaction, acts in the course or furtherance of a business carried on by the supplier.

Meaning of acquisition of goods from a member State U.K.

3 (1) References in this Act to the acquisition of goods from a member State are to an acquisition of goods in pursuance of a transaction that— U.K.

(a) is a supply of goods (including anything treated for the purposes of this Act as a supply of goods), and

(b) involves the removal of the goods from a member State (whether by or under the direction of the supplier, the person who acquires the goods or any other person),

and references in this Act, in relation to such an acquisition, to the supplier are to be construed accordingly.

(2) Where the person with the property in any goods does not change in consequence of anything which is treated for the purposes of this Act as a supply of goods, that supply is to be treated for the purposes of this Act as a transaction in pursuance of which there is an acquisition by the person making the supply.

(3) The Treasury may by regulations make provision about the circumstances in which an acquisition of goods is not to be treated as an acquisition of goods from a member State.

Time of acquisition U.K.

4 (1) For the purposes of this Act, the normal rule for determining the time that goods were acquired from a member State is that they are treated as being acquired on the earlier of— U.K.

(a) the 15th day of the month after the month in which the first removal of the goods occurs, and

(b) the day a relevant invoice is issued in respect of the transaction in pursuance of which the goods were acquired.

(2) But—

(a) different rules apply to acquisitions to which Part 4 of Schedule 9ZB applies (warehouses), and

(b) the Commissioners may by regulations provide for different rules to apply in any case described in those regulations.

(3) Regulations under sub-paragraph (2)(b) may include provision treating an acquisition as a series of acquisitions taking place at different times.

(4) In sub-paragraph (1) “relevant invoice” means an invoice of a description prescribed by regulations made by the Commissioners.

(5) For the purposes of this Act “first removal”, in relation to goods acquired, means the first removal of the goods in the course of the transaction in pursuance of which they are acquired.

Place of acquisition U.K.

5 (1) For the purposes of this Act, the normal rule for determining whether goods are acquired in Northern Ireland is that they are treated as being acquired in Northern Ireland if— U.K.

(a) they are acquired in pursuance of a transaction which involves their removal from a member State to Northern Ireland and which does not involve their removal from Northern Ireland, or

(b) they are acquired by a person who, for the purposes of their acquisition, makes use of a number assigned to the person for the purposes of VAT in the United Kingdom along with an NI VAT identifier (see paragraph 7).

(2) But—

(a) goods are not treated as being acquired in Northern Ireland by virtue of sub-paragraph (1)(b) where it is established in accordance with regulations made by the Commissioners that VAT—

(i) has been paid in a member State on the acquisition of those goods, and

(ii) fell to be paid by virtue of provisions of the law of that member State corresponding, in relation to that member State, to the provision made by sub-paragraph (1)(a), and

(b) different rules apply to acquisitions to which paragraph 16 or 17 of Schedule 9ZB applies.

(3) If an acquisition of goods is not treated, for the purposes of this Act, as taking place in Northern Ireland it is treated for those purposes as an acquisition taking place outside Northern Ireland.

(4) The Commissioners may by regulations make provision—

(a) about the circumstances in which a person is to be treated as having made use of a number assigned to the person for the purposes of VAT in the United Kingdom along with an NI VAT identifier for the purposes of the acquisition of any goods, and

(b) for the refund, in prescribed circumstances, of NI acquisition VAT paid on acquisitions of goods in relation to which the conditions in sub-paragraph (2)(a)(i) and (ii) are met.

Acquisitions from persons belonging in member States U.K.

6 (1) Sub-paragraph (2) applies where— U.K.

(a) a person (“the original supplier”) makes a supply of goods to a person who belongs in a member State (“the intermediate supplier”),

(b) that supply involves the removal of the goods from a member State and their removal to Northern Ireland but does not involve the removal of the goods from Northern Ireland,

(c) both that supply and the removal of the goods to Northern Ireland are for the purposes of the making of a supply by the intermediate supplier to another person (“the customer”) who is registered under this Act,

(d) neither of those supplies involves the removal of the goods from a member State in which the intermediate supplier is taxable at the time of the removal without also involving the previous removal of the goods to that member State, and

(e) there would be a taxable acquisition by the customer if the supply to the customer involved the removal of goods from a member State to Northern Ireland.

(2) Where this sub-paragraph applies—

(a) the supply by the original supplier to the intermediate supplier is ignored for the purposes of this Act, and

(b) the supply by the intermediate supplier to the customer is treated for the purposes of this Act, other than for the purposes of Part 8 of this Schedule, as if it did involve the removal of the goods from a member State to Northern Ireland.

(3) For the purposes of this Act, other than for the purposes of Part 8 of this Schedule, a supply of goods is treated as involving their removal from a member State to Northern Ireland, and is treated as not being a taxable supply if—

(a) the supply is made by a person belonging in a member State to a person who is registered under this Act,

(b) the supply involves the installation or assembly of the goods at a place in Northern Ireland to which they are removed, and

(c) were the supply to be treated as described in the words before paragraph (a), there would be a taxable acquisition by the registered person.

(4) But neither sub-paragraph (2) nor sub-paragraph (3) applies in relation to a supply unless—

(a) in the case of sub-paragraph (2), the intermediate supplier, or

(b) in the case of sub-paragraph (3), the person making the supply,

complies with such requirements to provide information to the Commissioners or to the person supplied as may be specified in regulations made by the Commissioners.

(5) The requirements to provide information that may be specified in regulations include—

(a) requirements to provide documents (for example, invoices);

(b) requirements to provide information or documents before a supply is made (as well as after);

(c) requirements as to the content and form of information or documents to be provided;

(d) requirements as to the manner in which information or documents are to be provided.

(6) Where a taxable acquisition is treated as having been made by virtue of this paragraph, that acquisition is treated as taking place at the time referred to in paragraph 4(1)(b) (day on which invoice issued).

(7) For the purposes of this paragraph a person belongs in a member State if—

(a) the person is taxable in a member State,

(b) the person does not have any business establishment or other fixed establishment in Northern Ireland,

(c) the person's usual place of residence is not in Northern Ireland,

(d) the person is not identified for the purposes of VAT in Northern Ireland and is not required, as a result of regulations under paragraph 7, to make a request to be so identified, and

(e) the person does not have a VAT representative who is identified for the purposes of VAT in Northern Ireland in connection with acting on the person's behalf, and is not for the time being required to appoint one who would be identified for those purposes.

(8) In determining, for the purposes of sub-paragraph (7)(d), whether a person is required to be registered under this Act, ignore any supplies made by the person that would be ignored for the purposes of this Act if the person belonged in a member State and complied with the information requirements that would apply by virtue of sub-paragraph (4).

(9) Where—

(a) any goods are acquired from a member State in a case which corresponds, in relation to another member State, to the case described in sub-paragraph (1) in relation to Northern Ireland, and

(b) the person who acquires the goods is registered under this Act, is identified for the purposes of VAT in Northern Ireland and would be the intermediate supplier in relation to that corresponding case,

the supply to that person of those goods and the supply by that person of those goods to the person who would be the customer in that corresponding case are to be ignored for the purposes of this Act.

(10) References in this paragraph to a person being taxable in a member State do not include references to a person who is so taxable by virtue only of provisions of the law of that member State corresponding to the provisions of this Act by virtue of which a person who is not registered under this Act is a taxable person if the person is required to be so registered.

Identification of persons for the purposes of VAT in Northern Ireland U.K.

7 (1) The Commissioners may by regulations make provision for the identification of persons for the purposes of VAT in Northern Ireland. U.K.

(2) In this Act “identified for the purposes of VAT in Northern Ireland” means identified in accordance with regulations under this paragraph.

(3) A person may only be identified for the purposes of VAT in Northern Ireland if—

(a) the person is registered under this Act, or

(b) the person acts on behalf of a person in relation to VAT in Northern Ireland as a VAT representative.

(4) Regulations may make provision—

(a) about the circumstances in which a person may request to be identified for the purposes of VAT in Northern Ireland;

(b) for a person to be required to request to be identified for the purposes of Northern Ireland VAT;

(c) about the circumstances in which the Commissioners may determine that a person is identified for the purposes of VAT in Northern Ireland otherwise than at the person's request;

(d) requiring a person to notify the Commissioners of such matters as may be specified for the purpose of allowing the Commissioners to ascertain whether a person should be identified for the purposes VAT in Northern Ireland;

(e) about the circumstances in which a person is to be treated, for such purposes as may be specified, as if they were identified for the purposes of VAT in Northern Ireland (and which may include circumstances where the person is neither registered under this Act nor acting as a VAT representative);

(f) about the circumstances in which a person ceases to be identified for the purposes of VAT in Northern Ireland.

(5) Regulations may also make provision—

(a) about a specified means of communicating the fact of a person's identification for the purposes of VAT in Northern Ireland (and that means is referred to in this Act as an “NI VAT identifier”);

(b) about the circumstances in which a person may use, or is required to use, an NI VAT identifier (for example, in connection with the making of a transaction or return).

(6) In this paragraph “specified” means specified in regulations.

PART 2 U.K. Valuation of acquisitions

Valuation of acquisitions from member States U.K.

8 (1) For the purposes of this Act the value of any acquisition of goods from a member State is taken to be the value of the transaction in pursuance of which they are acquired. U.K.

(2) Where goods are acquired from a member State otherwise than in pursuance of a taxable supply, the value of the transaction in pursuance of which they are acquired is to be determined for the purposes of sub-paragraph (1) in accordance with this Part, and for those purposes—

(a) sub-paragraphs (3) to (5) have effect subject to paragraphs 9 to 13, and

(b) section 19 and Schedule 6 do not apply in relation to the transaction.

(3) If the transaction is for a consideration in money, its value is taken to be such amount as is equal to the consideration.

(4) If the transaction is for a consideration not consisting or not wholly consisting of money, its value is taken to be such amount in money as is equivalent to the consideration.

(5) Where a transaction in pursuance of which goods are acquired from a member State is not the only matter to which a consideration in money relates, the transaction is deemed to be for such part of the consideration as is properly attributable to it.

Transactions below market value U.K.

9 (1) Where, in the case of the acquisition of any goods from a member State— U.K.

(a) the relevant transaction (see paragraph 13) is for a consideration in money,

(b) the value of the relevant transaction is (apart from this paragraph) less than the transaction⿿s open market value,

(c) the supplier and the person who acquires the goods are connected, and

(d) that person is not entitled under sections 25 and 26 to credit for all the VAT on the acquisition,

the Commissioners may direct that the value of the relevant transaction is taken to be its open market value.

(2) A direction under this paragraph must be given—

(a) by notice in writing to the person by whom the acquisition in question is made, and

(b) within the period of 3 years commencing with the relevant time (see paragraph 13).

(3) A direction given to a person under this paragraph in respect of a transaction may include a direction that the value of any transaction—

(a) in pursuance of which goods are acquired by the person from a member State after the giving of the notice, or after such later date as may be specified in the notice, and

(b) as to which the conditions in paragraphs (a) to (d) of sub-paragraph (1) are satisfied,

is be taken to be its open market value.

(4) For the purposes of this paragraph, the open market value of a transaction in pursuance of which goods are acquired from a member State is to be taken to be the amount which would fall to be taken as its value under paragraph 8(3) if it 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.

(5) Section 1122 of the Corporation Tax Act 2010 (“connected” persons) applies for the purpose of determining whether a person is connected with another for the purposes of this paragraph.

(6) A direction under this paragraph may be varied or withdrawn by the Commissioners by a further direction given by notice in writing.

Value where goods subject to excise duty etc U.K.

10 (1) This paragraph applies, in such cases as the Commissioners may by regulations prescribe, to an acquisition— U.K.

(a) of goods acquired in Northern Ireland from a member State,

(b) where those goods are charged with a relevant duty, and

(c) that is not an acquisition that is treated, by virtue of paragraph 16(7) of Schedule 9ZB, as taking place before the time which is the duty point (within the meaning given by paragraph 16(11) of that Schedule).

(2) The value of the relevant transaction in relation to an acquisition to which this paragraph applies is the sum of the value of that transaction (apart from this paragraph) and the total amount of relevant duty charged that is not already reflected in the value of that transaction.

(3) In this paragraph “relevant duty” in relation to an acquisition means—

(a) a duty of excise charged in connection with the removal of goods to Northern Ireland;

(b) any EU customs duty or agricultural levy of the European Union charged on that removal in accordance with any provision for the time being having effect for transitional purposes in connection with the accession of any State to the European Union.

Transfer or disposal for no consideration U.K.

11 (1) Where goods are acquired from a member State in pursuance of anything which is treated as a supply for the purposes of this Act as a result of paragraph 5(1) of Schedule 4 or paragraph 30 of Schedule 9ZB and there is no consideration, sub-paragraph (3) applies for determining the value of the relevant transaction. U.K.

(2) Sub-paragraph (3) also applies for determining the value of the relevant transaction in the case of an acquisition by a supplier that is deemed to take place as a result of paragraph 60(2)(c) or 61(2)(c).

(3) The value of the relevant transaction is taken to be—

(a) such consideration in money as would be payable by the supplier if the supplier were, at the time of the acquisition, to purchase goods identical in every respect (including age and condition) to the goods concerned,

(b) where the value cannot be ascertained in accordance with paragraph (a), such consideration in money as would be payable by the supplier if the supplier were, at that time, to purchase goods similar to, and of the same age and condition as, the goods concerned, or

(c) where the value cannot be ascertained in accordance with paragraph (a) or (b), the cost of producing the goods concerned if they were produced at that time.

(4) For the purposes of sub-paragraph (3), the amount of consideration in money that would be payable by any person if the person were to purchase any goods is taken to be the amount that would be so payable after the deduction of any amount included in the purchase price in respect of VAT on the supply of the goods to that person.

Foreign currency transactions U.K.

12 (1) Subject to the following provisions of this paragraph, where— U.K.

(a) goods are acquired from a member State, and

(b) any sum relevant for determining the value of the relevant transaction is expressed in a currency other than sterling,

then, for the purpose of valuing the relevant transaction, that sum is to be converted into sterling at the market rate which, on the relevant day, would apply in the United Kingdom to a purchase with sterling of that sum in the currency in question by the person making the acquisition.

(2) Where the Commissioners have published a notice which, for the purposes of this paragraph, specifies—

(a) rates of exchange, or

(b) methods of determining rates of exchange,

a rate specified in or determined in accordance with the notice, as for the time being in force, applies (instead of the rate for which sub-paragraph (1) provides) in the case of any transaction in pursuance of which goods are acquired by a person who opts, in such manner as may be allowed by the Commissioners, for the use of that rate in relation to that transaction.

(3) An option for the purposes of sub-paragraph (2) for the use of a particular rate or method of determining a rate—

(a) may not be exercised by any person except in relation to all such transactions in pursuance of which goods are acquired by the person from a member State as are of a particular description or after a particular date, and

(b) may not be withdrawn or varied except with the consent of the Commissioners and in such manner as they may require.

(4) In specifying a method of determining a rate of exchange, a notice published by the Commissioners under sub-paragraph (2) may allow a person to apply to the Commissioners for the use, for the purpose of valuing some or all of the transactions in pursuance of which goods are acquired by the person from a member State, of a rate of exchange which is different from any which would otherwise apply.

(5) On an application made in accordance with provision contained in a notice under sub-paragraph (4), the Commissioners may authorise the use with respect to the applicant of such a rate of exchange, in such circumstances, in relation to such transactions and subject to such conditions as they think fit.

(6) A notice published by the Commissioners for the purposes of this paragraph may be withdrawn or varied by a subsequent notice published by the Commissioners.

(7) Where goods are acquired from a member State, the appropriate rate of exchange is to be determined for the purpose of valuing the relevant transaction by reference to the relevant time; and, accordingly, the day on which that time falls is the relevant day for the purposes of sub-paragraph (1).

Meaning of “relevant transaction” and “relevant time” U.K.

13 U.K. In this Part of this Schedule—

• “relevant transaction”, in relation to any acquisition of goods from a member State, means the transaction in pursuance of which the goods are acquired;

• “the relevant time”, in relation to any such acquisition, means—

  (a)

  if the person by whom the goods are acquired is not a taxable person and the time of acquisition does not fall to be determined in accordance with regulations made under paragraph 4(2)(b), the time of the first removal of the goods (see paragraph 4(5)), and

  (b)

  in any other case, the time of acquisition.

PART 3 U.K. Payment of NI acquisition VAT by taxable persons

Input tax and output tax U.K.

14 (1) NI acquisition VAT is input tax in relation to the taxable person acquiring the goods in question if the goods are used or are to be used for the purpose of any business carried on or to be carried on by the person. U.K.

(2) NI acquisition VAT is output tax in relation to the taxable person acquiring the goods in question (including VAT which is also to be counted as input tax by virtue of sub-paragraph (1)).

(3) Subsections (5) to (6A) of section 24 (input tax and output tax) apply to NI acquisition VAT as they apply to VAT on the supply or importation of goods.

Payment of NI acquisition VAT U.K.

15 (1) A taxable person must account for and pay NI acquisition VAT by reference to prescribed accounting periods (see section 25(1)). U.K.

(2) Subsections (2) to (6) of section 25 (payment by reference to accounting period and credit for input tax against output tax) contain provision relevant to the payment of NI acquisition VAT.

(3) Subsection (7) of that section (power to make order excluding credit for VAT paid) applies to acquisitions in Northern Ireland from a member State as it applies to the supply of goods.

(4) Section 26(1) has effect as if the reference to “input tax on supplies and importations” included input tax on acquisitions in Northern Ireland from a member State.

(5) That section and sections 26A to 28 contain further provision relevant to the payment of NI acquisition VAT.

PART 4 U.K. Reliefs etc

Reduced rate U.K.

16 (1) NI acquisition VAT is charged at the rate of 5% (instead of at the rate provided by section 2) if— U.K.

(a) the acquisition in question is of goods the supply of which would be a supply of a description for the time being specified in Schedule 7A (charge at reduced rate), or

(b) the acquisition in question is of a description for the time being specified in regulations made by the Treasury for the purposes of this paragraph.

(2) Regulations under this paragraph may provide that sub-paragraph (1)(a) does not apply to a description of a supply specified in Schedule 7A that is specified in those regulations.

(3) The power to specify a description of an acquisition conferred by sub-paragraph (1)(b) may be exercised so as to describe an acquisition of goods by reference to matters unrelated to the characteristics of the goods.

Zero-rating and exempt acquisitions U.K.

17 (1) Section 30(3) (zero-rating) applies to an acquisition of goods in Northern Ireland from a member State as it would apply to an importation of those goods. U.K.

(2) The Treasury may by regulations provide—

(a) that sub-paragraph (1) does not apply to an acquisition of goods specified or described in the regulations;

(b) that no NI acquisition VAT is chargeable on an acquisition of goods specified or described in the regulations.

(3) The Commissioners may by regulations provide for the zero-rating of supplies of goods, or of such goods as may be specified in the regulations, in cases where—

(a) the supply in question involves both the removal of the goods from Northern Ireland and their acquisition in a member State by a person who is liable for VAT on the acquisition in accordance with provisions of the law of that member State corresponding, in relation to that member State, to the provisions of paragraph 2, and

(b) such other conditions, if any, as may be specified in the regulations or the Commissioners may impose are fulfilled.

(4) Section 30(10) applies to a supply of goods that has been zero-rated in pursuance of regulations made under sub-paragraph (3) as it applies to a supply of goods that has been zero-rated in pursuance of regulations made under section 30(8) or (9).

(5) An acquisition of goods from a member State is an exempt acquisition if the goods are acquired in pursuance of an exempt supply (see section 31).

Refunds and reliefs U.K.

18 (1) Sections 33 to 33C, 33E and 34 apply to an acquisition of goods from a member State as they apply to a supply of those goods. U.K.

(2) The Treasury may by order make provision for relieving from NI acquisition VAT if, or to the extent that, relief from VAT would be given by an order under section 37 (relief from VAT on importation) if the acquisition in question were an importation.

(3) An order under sub-paragraph (2) may provide for relief to be subject to such conditions as appear to the Treasury to be necessary or expedient, which may include conditions—

(a) prohibiting or restricting the disposal of or dealing with the goods concerned;

(b) framed by reference to the conditions to which, by virtue of any order under section 37 in force at the time of the acquisition, relief under such an order would be subject in the case of an importation of the goods concerned.

(4) Where relief from NI acquisition VAT given by an order under this paragraph was subject to a condition that has been breached or not complied with, the VAT becomes payable at the time of the breach or, as the case may be, at the latest time allowed for compliance.

(5) Section 38 has effect as if after “by him” there were inserted “ or on the acquisition of goods by that person from member States ”.

[F649 Refund of NI acquisition VAT to persons constructing certain buildings U.K.

Textual Amendments

F649 Sch. 9ZA para. 18A inserted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 3(2); S.I. 2020/1641, reg. 2, Sch.

18A (1) Where— U.K.

(a) a person carries out works to which this paragraph applies, and

(b) the carrying out of the work by the person is lawful and otherwise than in the course or furtherance of any business, and

(c) NI acquisition VAT is chargeable on the acquisition from a member State of any goods used by the person for the purposes of the works,

the Commissioners must, on a claim made in that behalf, refund to that person the amount of NI acquisition VAT so chargeable.

(2) Where—

(a) a person carries out works to which this paragraph applies,

(b) the carrying out of the work by the person is lawful and otherwise than in the course or furtherance of any business, and

(c) VAT is chargeable in accordance with the law of a member State (see paragraph 80) on the supply of any goods used by the person for the purposes of the works,

the Commissioners must, on a claim made in that behalf, pay to that person an amount equal to that VAT so chargeable.

(3) The works to which this paragraph applies are—

(a) the construction of a building in Northern Ireland designed as a dwelling or a number of dwellings;

(b) the construction of a building in Northern Ireland for use solely for a relevant residential purpose or relevant charitable purpose;

(c) a residential conversion of a building, or a part of a building, in Northern Ireland.

(4) Subsections (1B) and (1D) of section 35 (refund of VAT to persons constructing certain buildings) apply for the purposes of this paragraph as they apply for the purposes of that section.

(5) Subsection (2) of that section applies to a refund under subparagraph (1) or (2) as it applies to a refund of VAT under that section.

(6) Subsections (4) and (4A) of that section apply for the purpose of construing this paragraph.

(7) Subsection (5) of that section has effect as if in paragraphs (a) and (b), after “this section” there were inserted “ or paragraph 18A of Schedule 9ZA ”.

(8) The provisions made by or under this Act or any other enactment (whenever passed or made) that apply to a refund under section 35 apply to a refund under sub-paragraph (2) as if references in those provisions (however framed)—

(a) to VAT chargeable on the supply of goods were to VAT chargeable under the law of a member State;

(b) to refunding VAT to a person were to paying a person in accordance with that sub-paragraph.]

Refunds in relation to new means of transport supplied to member States U.K.

19 (1) Where a person who is not a taxable person makes such a supply of goods consisting in a new means of transport that involves the removal of the goods to a member State from Northern Ireland, the Commissioners must, on a claim made in that behalf, refund to that person, as the case may be— U.K.

(a) the amount of any VAT on the supply of that means of transport to that person, or

(b) the amount of any VAT paid by that person on the acquisition of that means of transport from a member State or on its importation into the United Kingdom as a result of its entry into Northern Ireland.

(2) But the amount of VAT that is to be refunded under this paragraph is not to exceed the amount that would have been payable on the supply involving the removal if it had been a taxable supply by a taxable person and had not been zero-rated.

(3) A claim for refund of VAT under this paragraph must—

(a) be made within such time and in such form and manner as may be specified in regulations made by the Commissioners,

(b) contain such information as may be specified in those regulations, and

(c) be accompanied by such documents as may be specified in those regulations.

PART 5 U.K. Application of Act to acquisitions in particular cases

Crown application U.K.

20 U.K. Subsections (3) and (4) of section 41 (application to the Crown) apply to NI acquisition VAT as they apply to VAT chargeable on the supply of goods.

Groups of companies U.K.

21 (1) Section 43 (groups of companies) applies to an acquisition of goods from a member State as it would apply to an importation of those goods as if the reference in subsection (1)(c) to section 38 were omitted. U.K.

(2) Subsections (2) and (9) of section 44 (supplies to groups) apply to input tax on acquisitions as they applies to input tax on supplies.

Partnerships U.K.

22 (1) Subsection (1) of section 45 (partnerships) applies to persons carrying on in partnership activities, other than carrying on a business, in the course or furtherance of which they acquire goods from a member State as it apples to persons carrying on a business in partnership. U.K.

(2) Subsections (2) and (5) of that section apply to a liability for NI acquisition VAT as they apply to VAT on the supply of goods or services.

Unincorporated bodies, personal representative etc U.K.

23 (1) In section 46 (business carried on in divisions or by unincorporated bodies, personal representatives etc) any reference to “a business” includes any activity in the course or furtherance of which any body corporate or any club, association, organisation or other unincorporated body acquires goods from a member State. U.K.

(2) Subsection (3) of that section (no account to be taken in change of members of a club, association or organisation) applies in relation to the determination of whether goods are acquired from a member State by a club, association or organization mentioned in that subsection as it applies in relation to the determination of whether goods or services are supplied by such a club, association or organisation.

Agents U.K.

24 (1) Where goods are acquired from a member State by a person who is not a taxable person (“N”) and a taxable person (“T”) acts in relation to the acquisition and then supplies the goods in T's own name as agent of N, the goods are to be treated for the purposes of this Act as acquired and supplied by T as principal. U.K.

(2) Section 47 (agents) has effect as if—

(a) the reference in subsection (2) to “subsection (1) above” were to “subsection (1) and paragraph 24(1) of Schedule 9ZA”;

(b) the reference in subsection (2A) to “subsection (1) above” were to “subsection (1) or paragraph 24(1) of Schedule 9ZA”.

VAT representatives U.K.

25 U.K. Subsection (1)(a) of section 48 (VAT representatives and security) applies to a person who, without being a taxable person, acquires goods in Northern Ireland from one or more member States as it applies to a person who, without being a taxable person, makes taxable supplies.

Margin schemes U.K.

26 U.K. Section 50A(5) (margin schemes) has effect as if after “supply,” there were inserted “ acquisition ”.

PART 6 U.K. Administration, collection and enforcement

Breaches of regulatory provisions U.K.

27 (1) Section 69(1) (breaches of regulatory provisions) applies to a failure to comply with a requirement imposed under paragraph 42, 52 or 65(1) or (2)(a) of this Schedule as it applies to a requirement imposed under the provisions mentioned in subsection (1)(a) of that section. U.K.

(2) Section 69(2) has effect as if after “imposed under” there were inserted “ paragraph 64 or 65(2)(b) of Schedule 9ZA or ”.

Offences U.K.

28 (1) Any reference in section 72(1) or (8) (offences)— U.K.

(a) to the evasion of VAT includes a reference to the obtaining of a refund under regulations made under paragraph 5(4) or under paragraph [F650 18A or] 19, and

(b) to the amount of VAT, in relation to such a refund, is to be construed as a reference to the amount falsely claimed by way of refund.

(2) Subsection (5) of section 72 applies to a claim for a refund under regulations made under paragraph 5(4) or under paragraph [F651 18A or] 19 as it applies to a claim for a refund under the provisions mentioned in paragraph (a) of that subsection.

(3) Subsection (10) of that section applies where a person has reason to believe that NI acquisition VAT has been or will be evaded as it applies where a person has reason to believe that VAT on the supply of goods or services has been or will be evaded.

Textual Amendments

F650 Words in Sch. 9ZA para. 28(1)(a) inserted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 3(3)(a); S.I. 2020/1641, reg. 2, Sch.

F651 Words in Sch. 9ZA para. 28(2) inserted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 3(3)(b); S.I. 2020/1641, reg. 2, Sch.

Failure to make returns U.K.

29 (1) Subsection (3) of section 73 (failure to make returns etc) applies to an amount which by reason of the cancellation of a person's registration under paragraph 43(2), 43(5) or 53(5) ought not to have been paid as it applies to an amount which ought not to have been paid by reason of the cancellation of a person's registration under any of the provisions mentioned in that subsection. U.K.

(2) Subsection (7) of that section applies to the acquisition of goods from a member State by a taxable person as it applies to the supply of goods to a taxable person.

Interest on VAT U.K.

30 U.K. Paragraph (c) of Section 74(1) applies to a person who was, but should no longer have been, exempted from registration (under Part 8 of this Schedule) under paragraph 44 as it applies to a person who was, but should no longer have been, exempted from registration under any of the provisions mentioned in that paragraph.

Assessment in cases of acquisitions of certain goods by non-taxable persons U.K.

31 (1) Where a person who has, at a time when the person was not a taxable person, acquired in Northern Ireland from a member State any goods subject to a duty of excise or consisting in a new means of transport and— U.K.

(a) notification of that acquisition has not been given to the Commissioners by the person who is required to give one by regulations under paragraph 73(4) (whether before or after this paragraph comes into force),

(b) the Commissioners are not satisfied that the particulars relating to the acquisition in any notification given to them are accurate and complete, or

(c) there has been a failure to supply the Commissioners with the information necessary to verify the particulars contained in any such notification,

the Commissioners may assess the amount of VAT due on the acquisition to the best of their judgment and notify their assessment to that person.

(2) An assessment under this paragraph must be made within the time limits provided for in section 77 and may not be made after the later of—

(a) 2 years after the time when a notification of the acquisition of the goods in question is given to the Commissioners by the person who is required to give one by regulations under paragraph 73(4), and

(b) one year after evidence of the facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, comes to their knowledge,

but (subject to section 77) where further such evidence comes to the Commissioners' knowledge after the making of an assessment under this section, another assessment may be made under this paragraph, in addition to any earlier assessment.

(3) Where an amount has been assessed and notified to any person under this paragraph, it is, subject to the provisions of this Act as to appeals, deemed to be an amount of VAT due from the person and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.

(4) For the purposes of this paragraph, notification to a personal representative, trustee in bankruptcy, trustee in sequestration, receiver, liquidator or person otherwise acting in a representative capacity in relation to the person who made the acquisition in question is to be treated as notification to that person.

Assessment of amounts due U.K.

32 U.K. Section 77 (time limits and supplementary assessments) has effect as if—

(a) in subsection (1), in the words before paragraph (a), after “or 76” there were inserted “ or paragraph 31 of Schedule 9ZA ”;

(b) in paragraph (a) of that subsection, after “importation” there were inserted “ or acquisition ”;

(c) in subsection (4), after “importation” there were inserted “ , acquisition ”;

(d) in subsection (4C) after paragraph (a) there were inserted—

“(aza) paragraph 40 or 44(2) of Schedule 9ZA,

(azb) paragraph 50 of that Schedule,

(azc) regulations under paragraph 73(4) of that Schedule,”;

(e) in subsection (6), after “73(6)(b)” there were inserted “ or paragraph 31(2)(b) of Schedule 9ZA ”.

Credit for, or repayment of, overstated or overpaid VAT U.K.

33 U.K. In section 80 (credit for, or repayment of, overstated or overpaid VAT) has effect as if in subsection (3C) reference to VAT provisions included any provision of any EU instrument relating to VAT, or to any matter connected with VAT, that has effect in Northern Ireland as a result of section 7A of the European Union (Withdrawal) Act 2018 (general implementation of withdrawal agreement).

PART 7 U.K. Appeals and supplementary provision

Appeals U.K.

34 (1) The following matters are to be treated as if they were included in the list of matters in subsection (1) of section 83 (matters subject to appeal to the tribunal)— U.K.

(a) the VAT chargeable on the acquisition of goods from a member State;

(b) any claim for a refund under any regulations made by virtue of paragraph 5(4) of this Schedule;

(c) any direction under paragraph 9 of this Schedule;

(d) the amount of any refunds under paragraph [F652 18A or] 19 of this Schedule;

(e) an assessment under paragraph 31 of this Schedule, or the amount of such an assessment;

(f) a decision of the Commissioners under paragraph 17 of Schedule 9ZB—

(i) as to whether or not a person is to be approved as a Northern Ireland fiscal warehousekeeper or the conditions from time to time subject to which the person is so approved,

(ii) for the withdrawal of any such approval, or

(iii) for the withdrawal of Northern Ireland fiscal warehouse status from any premises.

(2) Section 84 (further provisions relating to appeals) has effect as if in subsection (4)(c), after “supply” there were inserted “ , acquisition ”.

Textual Amendments

F652 Words in Sch. 9ZA para. 34(1)(d) inserted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 3(4); S.I. 2020/1641, reg. 2, Sch.

Supplies spanning change of rate etc U.K.

35 (1) This paragraph applies where there is a change in the rate of VAT in force under section 2 or paragraph 16 of this Schedule or in the descriptions of exempt, zero-rated or reduced-rate acquisitions. U.K.

(2) Where—

(a) any acquisition of goods from a member State which is affected by the change would not have been affected (in whole or in part) if it had been treated as taking place at the time of the first removal of the goods (see paragraph 4(5)), or

(b) any acquisition of goods from a member State which is not so affected would have been affected (in whole or in part) if it had been treated as taking place at the time of that removal,

the rate at which VAT is chargeable on the acquisition, or any question of whether it is an exempt, zero-rated or reduced-rate acquisition, is to be determined as at the time of the first removal of the goods, if the person making the acquisition so elects.

(3) References in this paragraph to a zero-rated acquisition is to an acquisition on which no NI acquisition VAT is charged as a result of provision made by or under paragraph 17 (zero-rating).

(4) Reference in this paragraph to a reduced rate acquisition is to an acquisition on which NI acquisition VAT is charged at the rate in force under paragraph 16(1).

Failure of resolution under Provisional Collection of Taxes Act 1968 U.K.

36 (1) Where— U.K.

(a) by virtue of a resolution having effect under the Provisional Collection of Taxes Act 1968 NI acquisition VAT has been paid at a rate specified in the resolution by reference to a value determined under paragraph 8(3) of this Schedule, and

(b) by virtue of section 1(6) or (7) or 5(3) of that Act any of that VAT is repayable in consequence of the restoration of a lower rate,

the amount repayable is to be the difference between the VAT paid by reference to that value at the rate specified in the resolution and the VAT that would have been payable by reference to that value at the lower rate.

(2) Where—

(a) by virtue of such a resolution NI acquisition VAT is chargeable at a rate specified in the resolution by reference to a value determined under paragraph 8(3) of this Schedule, but

(b) before the VAT is paid it ceases to be chargeable at that rate in consequence of the restoration of a lower rate,

the VAT chargeable at the lower rate is to be charged by reference to the same value as that by reference to which NI acquisition VAT would have been chargeable at the rate specified in the resolution.

(3) Section 90(3) (failure of resolution under Provisional Collection of Taxes Act 1968) has effect as if after “or 35” there were inserted “ or paragraph [F653 18A or] 19 of Schedule 9ZA ”.

Textual Amendments

F653 Words in Sch. 9ZA para. 36(3) inserted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 3(5); S.I. 2020/1641, reg. 2, Sch.

Refund of VAT to Government of Northern Ireland U.K.

37 (1) Section 99 (refund of VAT to Government of Northern Ireland) applies to— U.K.

(a) VAT charged on the acquisition of goods from a member State by the Government of Northern Ireland as it applies to VAT charged on the supply of goods or services to that Government, and

(b) any amount attributable to acquisitions of goods from a member State for the purpose of a business carried on by the Government of Northern Ireland as it applies to supplies for that purpose.

PART 8 U.K. Registration in respect of acquisitions from member States

Liability to be registered U.K.

38 (1) A person who— U.K.

(a) is not registered under this Act, and

(b) is not liable to be registered under Schedule 1 or 1A or Part 9 of this Schedule,

becomes liable to be registered under this Part of this Schedule at the end of any month if, in the period beginning with 1 January of the year in which that month falls, that person had made relevant acquisitions whose value exceeds £85,000.

(2) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) becomes liable to be registered under this Part of this Schedule at any time if there are reasonable grounds for believing that the value of the person's relevant acquisitions in the following 30 days will exceed £85,000.

(3) A person is treated as having become liable to be registered under this Part of this Schedule at any time when the person would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 43(2) or 53(5) of this Schedule, paragraph 13(3) of Schedule 1, paragraph 11 of Schedule 1A or paragraph 6(2) of Schedule 3A.

(4) A person does not cease to be liable to be registered under this Part of this Schedule except in accordance with paragraph 39.

(5) In determining the value of any person⿿s relevant acquisitions for the purposes of this paragraph, so much of the consideration for any acquisition as represents any liability of the supplier, under the law of a member State, for VAT on the transaction in pursuance of which the acquisition is made, is to be disregarded.

(6) In determining the value of a person⿿s acquisitions for the purposes of sub-paragraph (1) or (2), acquisitions to which paragraph 19(6) of Schedule 9ZB (last acquisition or supply of goods before removal from Northern Ireland fiscal warehousing) applies are to be disregarded.

39 (1) A person who has become liable to be registered under this Part of this Schedule ceases to be so liable if at any time— U.K.

(a) the person's relevant acquisitions in the year ending with 31 December last before that time did not have a value exceeding £85,000, and

(b) the Commissioners are satisfied that the value of the person's relevant acquisitions in the year immediately following that year will not exceed £85,000.

(2) But a person does not cease to be liable to be registered under this Part of this Schedule at any time if there are reasonable grounds for believing that the value of that person⿿s relevant acquisitions in the following 30 days will exceed £85,000.

Notification of liability and registration U.K.

40 (1) A person who becomes liable to be registered under this Part of this Schedule must notify the Commissioners of the liability— U.K.

(a) in the case of a liability under sub-paragraph (1) of paragraph 38, within 30 days of the end of the month when the person becomes so liable, and

(b) in the case of a liability under sub-paragraph (2) of that paragraph, before the end of the period by reference to which the liability arises.

(2) The Commissioners must register any such person (whether or not the person notifies them) with effect from the relevant time or from such earlier time as may be agreed between the Commissioners and the person.

(3) In this paragraph “the relevant time“—

(a) in a case falling within sub-paragraph (1)(a), means the end of the month following the month at the end of which the liability arose, and

(b) in a case falling within sub-paragraph (1)(b), means the beginning of the period by reference to which the liability arose.

Entitlement to be registered etc U.K.

41 (1) Where a person who is not liable to be registered under this Act and is not already so registered satisfies the Commissioners that the person makes relevant acquisitions, the Commissioners must, if the person so requests, register the person with effect from the day on which the request is made or from such earlier date as may be agreed between the Commissioners and the person. U.K.

(2) Where a person who is not liable to be registered under this Act and is not already so registered—

(a) satisfies the Commissioners that the person intends to make relevant acquisitions from a specified date, and

(b) requests to be registered under this Part of this Schedule,

the Commissioners may, subject to such conditions as they think fit to impose, register the person with effect from such date as may be agreed between the Commissioners and the person.

(3) Conditions imposed under sub-paragraph (2) may—

(a) be so imposed wholly or partly by reference to, or without reference to, any conditions prescribed for the purposes of this paragraph, and

(b) be subsequently varied by the Commissioners (whenever the conditions were imposed).

(4) Where a person who is entitled to be registered under paragraph 9 or 10 of Schedule 1 requests registration under this paragraph, the person is to be registered under that Schedule, and not under this Part of this Schedule.

Notification of matters affecting continuance of registration U.K.

42 (1) Any person registered under this Part of this Schedule who ceases to be registrable under this Act must notify the Commissioners of that fact within 30 days of the day on which the person ceases to be registrable. U.K.

(2) A person registered under paragraph 41(2) must notify the Commissioners, within 30 days of the first occasion after the person's registration when the person makes a relevant acquisition, that the person has made that acquisition.

(3) For the purposes of this paragraph a person ceases to be registrable under this Act where—

(a) the person ceases to be a person who would be liable or entitled to be registered under this Act if the person's registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded, or

(b) in the case of a person who (having been registered under paragraph 41(2)) has not been such a person during the period of the person's registration, the person ceases to have any intention of making relevant acquisitions.

Cancellation of registration U.K.

43 (1) Where a person registered under this Part of this Schedule satisfies the Commissioners that the person is not liable to be so registered, the Commissioners must, if the person so requests, cancel that registration with effect from the day on which the request is made or from such later date as may be agreed between the Commissioners and the person. U.K.

(2) Where the Commissioners are satisfied that a person registered under this Part of this Schedule has ceased since the person's registration to be registrable under this Part of this Schedule, they may cancel that registration with effect from the day on which the person so ceased or from such later date as may be agreed between the Commissioners and the person.

(3) Where the Commissioners are satisfied that a person who has been registered under paragraph 41(2) and is not for the time being liable to be registered under this Part of this Schedule—

(a) has not begun, by the date specified in the person's request to be registered, to make relevant acquisitions, or

(b) has contravened any condition of the person's registration,

the Commissioners may cancel the person's registration with effect from the date so specified or, as the case may be, the date of the contravention or from such later date as may be agreed between the Commissioners and the person.

(4) But the Commissioners may not, under sub-paragraph (1), (2) or (3), cancel a person⿿s registration with effect from any time unless the Commissioners are satisfied that it is not a time when that person would be subject to a requirement, or in a case falling under sub-paragraph (2) or (3) a requirement or entitlement, to be registered under this Act.

(5) Where the Commissioners are satisfied that, on the day on which a person was registered under this Part of this Schedule, the person—

(a) was not registrable under this Part of this Schedule, and

(b) in the case of a person registered under paragraph 41(2), did not have the intention by reference to which the person was registered,

the Commissioners may cancel that registration with effect from that day.

(6) The registration of a person who—

(a) is registered under paragraph 41, or

(b) would not, if the person were not registered, be liable or entitled to be registered under any provision of this Act except that paragraph,

may not be cancelled with effect from any time before 1 January which is, or next follows, the second anniversary of the date on which the person's registration took effect.

(7) But sub-paragraph (6) does not apply to cancellation under sub-paragraph (3) or (5).

(8) In determining, for the purposes of sub-paragraphs (4) and (6), whether a person would be subject to a requirement, or would be entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when the person is already registered or when the person is so liable under any other provision is to be disregarded.

(9) For the purposes of this paragraph, a person is registrable under this Part of this Schedule at any time when the person is liable to be registered under this Part of this Schedule or is a person who makes relevant acquisitions.

Exemption from registration U.K.

44 (1) Where a person who makes or intends to make relevant acquisitions satisfies the Commissioners that any such acquisition would be an acquisition in pursuance of a transaction which would be zero-rated if it were a taxable supply by a taxable person, the Commissioners may, if the person so requests and the Commissioners think fit, exempt the person from registration under this Part of this Schedule until it appears to the Commissioners that the request should no longer be acted upon or is withdrawn. U.K.

(2) Where a person who is exempted under this paragraph from registration under this Part of this Schedule makes any relevant acquisition in pursuance of any transaction which would, if it were a taxable supply by a taxable person, be chargeable to VAT otherwise than as a zero-rated supply, the person must notify the Commissioners of the change within 30 days of the date the acquisition was made.

Power to vary specified sums by regulations U.K.

45 U.K. The Treasury may by regulations substitute for any of the sums for the time being specified in this Part of this Schedule such greater sums as the Treasury consider appropriate.

Notifications U.K.

46 U.K. Any notification required under this Part of this Schedule must be made in such form and manner and must contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.

Meaning of relevant supply U.K.

47 U.K. For the purposes of this Part of this Schedule “relevant acquisition” means an acquisition that—

(a) is a taxable acquisition (see paragraph 2(2)) of goods other than goods which are subject to a duty of excise or consist in a new means of transport, and

(b) is otherwise than in pursuance of a taxable supply and is treated, for the purposes of this Act, as taking place in Northern Ireland.

PART 9 U.K. Registration in respect of distance sales from the EU to Northern Ireland

Liability to be registered U.K.

48 (1) A person who— U.K.

(a) is not registered under this Act, and

(b) is not liable to be registered under Schedule 1 or 1A,

becomes liable to be registered under this Part of this Schedule on any day if, in the period beginning with 1 January of the year in which that day falls, that person has made relevant supplies whose value exceeds £70,000.

(2) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) becomes liable to be registered under this Part of this Schedule where—

(a) the person has exercised any option, in accordance with the law of any member State where the person is taxable, for treating relevant supplies made by that person as taking place outside that member State,

(b) the supplies to which the option relates involve the removal of goods from that member State and, apart from the exercise of the option, would be treated, in accordance with the law of that member State, as taking place in that member State, and

(c) the person makes a relevant supply at a time when the option is in force in relation to that person.

(3) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) above becomes liable to be registered under this Part of this Schedule if the person makes a supply that—

(a) is a supply of goods subject to a duty of excise,

(b) involves the removal of the goods to Northern Ireland by or under the directions of the person making the supply,

(c) is a transaction in pursuance of which the goods are acquired in Northern Ireland from a member State by a person who is not a taxable person,

(d) is made in the course or furtherance of a business carried on by the supplier, and

(e) is not anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) of Schedule 4 or paragraph 30 of Schedule 9ZB.

(4) A person is treated as having become liable to be registered under this Part of this Schedule at any time when the person would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 43(3)or 53(5) of this Schedule, paragraph 13(3) of Schedule 1, paragraph 11 of Schedule 1A, or paragraph 6(2) of Schedule 3A.

(5) A person does not cease to be liable to be registered under this Part of this Schedule except in accordance with paragraph 49.

(6) In determining for the purposes of this paragraph the value of any relevant supplies, so much of the consideration for any supply as represents any liability of the supplier, under the law of a member State, for VAT on that supply is to be disregarded.

(7) For the purposes of sub-paragraphs (1) and (2), supplies to which section 18B(4) or paragraph 19(6) of Schedule 9ZB (last supply of goods before removal from fiscal warehousing) apply are to be disregarded.

49 (1) A person who has become liable to be registered under this Part of this Schedule ceases to be so liable if at any time— U.K.

(a) the relevant supplies made by the person in the year ending with 31 December last before that time did not have a value exceeding £70,000 and did not include any supply in relation to which the conditions mentioned in paragraph 48(3) were satisfied, and

(b) the Commissioners are satisfied that the value of the person's relevant supplies in the year immediately following that year will not exceed £70,000 and that those supplies will not include a supply in relation to which those conditions are satisfied.

(2) But a person does not cease to be liable to be registered under this Part of this Schedule at any time when such an option as is mentioned in paragraph 48(2) above is in force in relation to that person.

Notification of liability and registration U.K.

50 (1) A person who becomes liable to be registered under this Part of this Schedule must notify the Commissioners of the liability within the period of 30 days after the day on which the liability arises. U.K.

(2) The Commissioners must register any such person (whether or not the person has notified them) with effect from the day on which the liability arose or from such earlier time as may be agreed between the Commissioners and the person.

Request to be registered U.K.

51 (1) Where a person who is not liable to be registered under this Act and is not already so registered— U.K.

(a) satisfies the Commissioners that the person intends—

(i) to exercise an option such as is mentioned in paragraph 48(2) and, from a specified date, to make relevant supplies to which that option will relate,

(ii) from a specified date to make relevant supplies to which any such option that the person has exercised will relate, or

(iii) from a specified date to make supplies in relation to which the conditions mentioned in paragraph 48(3) will be satisfied, and

(b) requests to be registered under this Part of this Schedule,

the Commissioners may, subject to such conditions as they think fit to impose, register the person with effect from such date as may be agreed between the Commissioners and the person.

(2) Conditions imposed under sub-paragraph (1) may—

(a) be imposed wholly or partly by reference to, or without reference to, any conditions prescribed for the purposes of this paragraph, and

(b) be subsequently varied by the Commissioners (whenever the conditions were imposed).

(3) Where a person who is entitled to be registered under paragraph 9 or 10 of Schedule 1 requests registration under this paragraph, the person is to be registered under that Schedule, and not under this Part of this Schedule.

Notification of matters affecting continuance of registration U.K.

52 (1) Any person registered under this Part of this Schedule who ceases to be registrable under this Act must notify the Commissioners of that fact within 30 days of the day on which the person ceases to be registrable. U.K.

(2) A person registered under paragraph 51 by reference to any intention to exercise any option or to make supplies of any description must notify the Commissioners within 30 days of exercising that option or, as the case may be, of the first occasion after registration when the person makes such a supply, that the person has exercised the option or made such a supply.

(3) A person who has exercised an option mentioned in paragraph 48(2) which, as a consequence of the option's revocation or otherwise, ceases to have effect in relation to any relevant supplies by the person must notify the Commissioners, within 30 days of the option⿿s ceasing so to have effect, that it has done so.

(4) For the purposes of this paragraph, a person ceases to be registrable under this Act where—

(a) the person ceases to be a person who would be liable or entitled to be registered under this Act if the person's registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded, or

(b) in the case of a person who (having been registered under paragraph 51) has not been such a person during the period of the person's registration, the person ceases to have any such intention as is mentioned in sub-paragraph (1)(a) of that paragraph.

Cancellation of registration U.K.

53 (1) Where a person registered under this Part of this Schedule satisfies the Commissioners that the person is not liable to be so registered, the Commissioners must, if the person so requests, cancel that registration with effect from the day on which the request is made or from such later date as may be agreed between the Commissioners and the person. U.K.

(2) Where the Commissioners are satisfied that a person who has been registered under paragraph 51 and is not for the time being liable to be registered under this Part of this Schedule—

(a) has not, by the date specified in the person's request to be registered, begun to make relevant supplies, exercised the option in question or, as the case may be, begun to make supplies in relation to which the conditions mentioned in paragraph 48(3) are satisfied, or

(b) has contravened any condition of the person's registration,

the Commissioners may cancel the person's registration with effect from the date so specified or, as the case may be, the date of the contravention or from such later date as may be agreed between the Commissioners and the person.

(3) But the Commissioners may not, under sub-paragraph (1) or (2), cancel a person⿿s registration with effect from any time unless the Commissioners are satisfied that it is not a time when that person would be subject to a requirement, or in a case falling under sub-paragraph (2) a requirement or entitlement, to be registered under this Act.

(4) In determining for the purposes of sub-paragraph (3) whether a person would be subject to a requirement, or would be entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when the person is already registered or when the person is so liable under any other provision is to be disregarded.

(5) Where the Commissioners are satisfied that, on the day on which a person was registered under this Part of this Schedule, the person—

(a) was not liable to be registered under this Part of this Schedule, and

(b) in the case of a person registered under paragraph 51, did not have the intention by reference to which the person was registered,

the Commissioners may cancel that registration with effect from that day.

(6) The registration of a person who has exercised an option mentioned in paragraph 48(2) may not be cancelled with effect from any time before the 1 January which is, or next follows, the second anniversary of the date on which the person's registration took effect.

Power to vary specified sums by regulations U.K.

54 U.K. The Treasury may by regulations substitute for any of the sums for the time being specified in this Part of this Schedule such greater sums as the Treasury consider appropriate.

Notifications U.K.

55 U.K. Any notification required under this Part of this Schedule must be made in such form and manner and must contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.

Meaning of relevant supply U.K.

56 U.K. For the purposes of this Part of this Schedule “relevant supply” means a supply of goods that—

(a) involves the removal of the goods to Northern Ireland from a place outside the United Kingdom by or under the directions of the person making the supply,

(b) does not involve the installation or assembly of the goods at a place in Northern Ireland,

(c) is a transaction in pursuance of which goods are acquired in Northern Ireland from a member State by a person who is not a taxable person,

(d) is made in the course or furtherance of a business carried on by the supplier, and

(e) is neither an exempt supply nor a supply of goods which are subject to a duty of excise or consist in a new means of transport and is not anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) of Schedule 4 or paragraph 30 of Schedule 9ZB.

PART 10 U.K. Call-off stock arrangements

Where this Part of this Schedule applies U.K.

57 (1) This Part of this Schedule applies where— U.K.

(a) goods forming part of the assets of any business are removed —

(i) from Northern Ireland for the purpose of being taken to a place in a member State, or

(ii) from a member State for the purpose of being taken to a place in Northern Ireland,

(b) the goods are removed in the course or furtherance of that business by or under the directions of the person carrying on that business (“the supplier”),

(c) the goods are removed with a view to their being supplied in the destination territory, at a later stage and after their arrival there, to another person (“the customer”),

(d) at the time of the removal the customer is entitled to take ownership of the goods in accordance with an agreement existing between the customer and the supplier,

(e) at the time of the removal the supplier does not have a business establishment or other fixed establishment in the destination territory,

(f) at the time of the removal the customer is identified for the purposes of VAT in accordance with the law of the destination territory and both the identity of the customer and the number assigned to the customer for the purposes of VAT by the destination territory are known to the supplier,

(g) as soon as reasonably practicable after the removal the supplier records the removal in the register provided for in Article 243(3) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, and

(h) the supplier includes the number mentioned in paragraph (f) in the recapitulative statement provided for in Article 262(2) of Council Directive 2006/112/EC.

(2) For the purposes of this Part of this Schedule, where the destination territory is Northern Ireland, a customer is identified for the purposes of VAT in accordance with the law of the destination territory if the customer is registered under this Act and is identified for the purposes of VAT in Northern Ireland.

(3) In this Part of this Schedule—

• “the destination territory” means—

  (a)

  in a case within paragraph (i) of sub-paragraph (1)(a), the member State concerned, and

  (b)

  in a case within paragraph (ii) of sub-paragraph (1)(a), Northern Ireland, and

• “the origin territory” means—

  (a)

  in a case within paragraph (i) of sub-paragraph (1)(a), Northern Ireland, and

  (b)

  in a case within paragraph (ii) of sub-paragraph (1)(a), the member State concerned.

Removal of the goods not to be treated as a supply U.K.

58 U.K. The removal of the goods from the origin territory is not to be treated by reason of paragraph 30 of Schedule 9ZB as a supply of goods by the supplier.

Goods transferred to the customer within 12 months of arrival U.K.

59 (1) The rules in sub-paragraph (2) apply if— U.K.

(a) during the period of 12 months beginning with the day the goods arrive in the destination territory the supplier transfers the whole property in the goods to the customer, and

(b) during the period beginning with the day the goods arrive in the destination territory and ending immediately before the time of that transfer no relevant event occurs.

(2) The rules are that—

(a) a supply of the goods in the relevant territory is deemed to be made by the supplier,

(b) the deemed supply is deemed to involve the removal of the goods from the origin territory at the time of the transfer mentioned in sub-paragraph (1),

(c) the consideration given by the customer for the transfer mentioned in sub-paragraph (1) is deemed to have been given for the deemed supply, and

(d) an acquisition of the goods by the customer in pursuance of the deemed supply is deemed to take place in the destination territory.

(3) In sub-paragraph (2) and in paragraphs 60(2) and 61(2) “the relevant territory” means—

(a) where the origin territory is Northern Ireland, the United Kingdom, or

(b) where the origin territory is a member State, that member State.

(4) For the meaning of a “relevant event”, see paragraph 63.

Relevant event occurs within 12 months of arrival U.K.

60 (1) The rules in sub-paragraph (2) apply (subject to paragraph 62) if— U.K.

(a) during the period of 12 months beginning with the day the goods arrive in the destination territory a relevant event occurs, and

(b) during the period beginning with the day the goods arrive in the destination territory and ending immediately before the time that relevant event occurs the supplier does not transfer the whole property in the goods to the customer.

(2) The rules are that—

(a) a supply of the goods in the relevant territory (see paragraph 59(3)) is deemed to be made by the supplier,

(b) the deemed supply is deemed to involve the removal of the goods from the origin territory at the time the relevant event occurs, and

(c) an acquisition of the goods by the supplier in pursuance of the deemed supply is deemed to take place in the destination territory.

(3) For the meaning of a “relevant event”, see paragraph 63.

Goods not transferred and no relevant event occurs within 12 months of arrival U.K.

61 (1) The rules in sub-paragraph (2) apply (subject to paragraph 62) if during the period of 12 months beginning with the day the goods arrive in the destination territory the supplier does not transfer the whole property in the goods to the customer and no relevant event occurs. U.K.

(2) The rules are that—

(a) a supply of the goods in the relevant territory (see paragraph 59(3)) is deemed to be made by the supplier,

(b) the deemed supply is deemed to involve the removal of the goods from the origin territory at the beginning of the day following the expiry of the period of 12 months mentioned in sub-paragraph (1), and

(c) an acquisition of the goods by the supplier in pursuance of the deemed supply is deemed to take place in the destination territory.

(3) For the meaning of a “relevant event”, see paragraph 63.

Exception to paragraphs 60 and 61: goods returned to origin territory U.K.

62 U.K. The rules in paragraphs 60(2) and 61(2) do not apply if during the period of 12 months beginning with the day the goods arrive in the destination territory—

(a) the goods are returned to the origin territory by or under the direction of the supplier, and

(b) the supplier records the return of the goods in the register provided for in Article 243(3) of Council Directive 2006/112/EC.

Meaning of “relevant event” U.K.

63 (1) For the purposes of this Part of this Schedule each of the following events is a relevant event— U.K.

(a) the supplier forms an intention not to supply the goods to the customer (but see sub-paragraph (2)),

(b) the supplier forms an intention to supply the goods to the customer otherwise than in the destination territory,

(c) the supplier establishes a business establishment or other fixed establishment in the destination territory,

(d) the customer ceases to be identified for the purposes of VAT in accordance with the law of the destination territory,

(e) the goods are removed from the destination territory by or under the directions of the supplier otherwise than for the purpose of being returned to the origin territory, or

(f) the goods are destroyed, lost or stolen.

(2) But the event mentioned in paragraph (a) of sub-paragraph (1) is not a relevant event for the purposes of this Part of this Schedule if—

(a) at the time that the event occurs the supplier forms an intention to supply the goods to another person (“the substitute customer”),

(b) at that time the substitute customer is identified for the purposes of VAT in accordance with the law of the destination territory,

(c) the supplier includes the number assigned to the substitute customer for the purposes of VAT by the destination territory in the recapitulative statement provided for in Article 262(2) of Council Directive 2006/112/EC, and

(d) as soon as reasonably practicable after forming the intention to supply the goods to the substitute customer the supplier records that intention in the register provided for in Article 243(3) of Council Directive 2006/112/EC.

(3) Where the destination territory is Northern Ireland, the reference in sub-paragraph (2)(c) to the number assigned to the substitute customer for the purposes of VAT is to the number assigned to the substitute customer for the purposes of VAT in the United Kingdom along with an NI VAT identifier.

(4) In a case where sub-paragraph (2) applies, references in this Part of this Schedule to the customer are to be then read as references to the substitute customer.

(5) In a case where the goods are destroyed, lost or stolen but it is not possible to determine the date on which that occurred, the goods are to be treated for the purposes of this Part of this Schedule as having been destroyed, lost or stolen on the date on which they were found to be destroyed or missing.

Record keeping by the supplier U.K.

64 U.K. In a case where the origin territory is Northern Ireland, any record made by the supplier in pursuance of paragraph 57(1)(g), 62(b) or 63(2)(d) must be preserved for such period not exceeding 6 years as the Commissioners may specify in writing.

Record keeping by the customer U.K.

65 (1) In a case where the destination territory is Northern Ireland, the customer must as soon as is reasonably practicable make a record of the information relating to the goods that is specified in Article 54A(2) of Council Implementing Regulation (EU) No. 282/2011 of 15 March 2011 laying down implementing measures for Directive 2006/112/EC on the common system of value added tax. U.K.

(2) A record made under this paragraph must—

(a) be made in a register kept by the customer for the purposes of this paragraph, and

(b) be preserved for such period not exceeding 6 years as the Commissioners may specify in writing.

PART 11 U.K. Modification of other Schedules

Registration in respect of taxable supplies: UK establishment (Schedule 1) U.K.

66 (1) Paragraph 1 of Schedule 1 (registration in respect of taxable supplies: UK establishment) has effect as if— U.K.

(a) the provisions mentioned in sub-paragraphs (4)(a) and (5) included paragraphs 43(5) and 53(5) of this Schedule (cancellation of registration);

(b) in sub-paragraph (7), after “are supplied” there were inserted “ and any taxable supplies which would not be taxable supplies apart from paragraph 29(1) of Schedule 9ZB ”;

(c) in sub-paragraph (9)—

(i) after “section 18B(4)” there were inserted “ or paragraph 19(5) of Schedule 9ZB ”;

(ii) after “supply” there were inserted “ or acquisition ”.

(2) Paragraph 2 of that Schedule has effect as if in sub-paragraph (7), after paragraph (b) there were inserted—

“(c) any acquisition of goods from a member State by one of the constituent members in the course of the activities of the taxable person is to be treated as an acquisition by that person;”.

(3) Paragraph 4(3) of that Schedule has effect as if after “are supplied” there were inserted “ and any taxable supplies which would not be taxable supplies apart from paragraph 29(1) of Schedule 9ZB ”.

Registration in respect of taxable supplies: non-UK establishment (Schedule 1A) U.K.

67 U.K. Paragraph 3 of Schedule 1A (registration in respect of taxable supplies: non-UK establishment) has effect as if the provisions mentioned in paragraphs (a) to (e) of that paragraph included paragraphs 43(5) and 53(5) of this Schedule.

Registration: disposals of assets where repayment is claimed (Schedule 3A) U.K.

68 U.K. Paragraph 1 of Schedule 3A (registration in respect of disposals of assets for which a VAT repayment is claimed) has effect as if—

(a) in sub-paragraph (1), after “or 1A” there were inserted “ or Part 8 or 9 of Schedule 9ZA ”, and

(b) the provisions mentioned in sub-paragraph (2) included paragraphs 43(5) and 53(5) of this Schedule.

Valuation of supplies: special cases (Schedule 6) U.K.

69 (1) Paragraph 1A of Schedule 6 (valuation: special cases) has effect as if— U.K.

(a) in sub-paragraph (4), in the definition of “motor dealer”, after “supplies of” there were inserted “ , or acquiring in Northern Ireland from a member State ”;

(b) in that sub-paragraph, in the definition of “stock in trade”—

(i) in paragraph (a) of that definition, after “supplied to” there were inserted “ or acquired in Northern Ireland from a member State by ”;

(ii) in paragraph (b) of that definition, after “supply” there were inserted “ , acquisition ”;

(c) in sub-paragraph (6)(a)—

(i) after “supplied” there were inserted “ , acquired in Northern Ireland from a member State ”;

(ii) after “supply” there were inserted “ , acquisition ”.

(2) In paragraph 6(1) of that Schedule—

(a) in paragraph (b), after “Schedule 4” there were inserted “ or paragraph 30 of Schedule 9ZB ”;

(b) in paragraph (c), for “that Schedule;” there were substituted “ Schedule 4; or ”;

(c) after that paragraph there were inserted—

“(d) paragraph 60(2)(a) or 61(2)(a) of Schedule 9ZA,”.

Zero-rating (Schedule 8) U.K.

70 U.K. Group 12 in Part 2 of Schedule 8 (zero-rating: drugs etc) has effect as if—

(a) in Note (1), after “goods are” there were inserted “ acquired from a member State ”;

(b) in Note (5N), in paragraph (b), after “made a” there were inserted “ reckonable zero-rated acquisition, or ”;

(c) in Note (5O), in paragraph (b), after “zero-rated” there were inserted “ acquisition or ”;

(d) in Note (5T), after the definition of “in the required form” there were inserted—

““reckonable zero-rated acquisition”, in relation to a motor vehicle, means an acquisition of the vehicle from a member State in a case where NI acquisition VAT is not chargeable as a result of item 2(f) or 2A.”

Exempt supplies (Schedule 9) U.K.

71 U.K. Group 14 in Part 2 of Schedule 9 (exemptions: supplies of goods where input tax cannot be recovered) has effect as if—

(a) in paragraph (a) of item 1, after “supply to” there were inserted “ or acquisition ”;

(b) in Note (7)(a), after “supply to” there were inserted “ or acquisition ”;

(c) in Note (9)—

(i) in the words before paragraph (a), after “supply to” there were inserted “ or acquisition ”;

(ii) in paragraph (b), after “supply to” there were inserted “ or acquisition ”;

(d) in Note (10)—

(i) after “on a supply” there were inserted “ , acquisition ”;

(ii) after “that supply”, there were inserted “ , acquisition ”;

(e) in Note (15)—

(i) after “anything the supply” there were inserted “ , acquisition ”;

(ii) after “be a supply” there were inserted “ , acquisition ”.

Avoidance (Schedules 9A and 11A) U.K.

72 (1) Paragraph 1(5) of Schedule 9A (anti-avoidance provisions: groups) has effect as if, in paragraph (a), after “importation” there were inserted “ or acquisition ”. U.K.

(2) Schedule 11A (disclosure of avoidance schemes) has effect as if the reference to VAT “incurred” by a taxable person in paragraph 2A(1)(b) included VAT on the acquisition by the person of any goods from a member State.

Accounting for VAT and payment of VAT (Schedule 11) U.K.

73 (1) Regulations under this paragraph may require the submission to the Commissioners by taxable persons, at such times and intervals, in such cases and in such form and manner as may be— U.K.

(a) specified in the regulations, or

(b) specified by the Commissioners in accordance with the regulations,

of statements containing such particulars of transactions in which the taxable persons are concerned and to which this sub-paragraph applies, and of the persons concerned in those transactions, as may be so specified.

(2) Sub-paragraph (1) applies to transactions involving the movement of goods between a member State and Northern Ireland, or between member States.

(3) Sections 65 and 66 (inaccuracies in, or and failure to submit, section 55A statements) apply to any statement which is required to be submitted to the Commissioners in accordance with regulations under sub-paragraph (1) as they apply to a section 55A statement.

(4) Regulations under this paragraph may make provision in relation to cases where—

(a) any goods which are subject to a duty of excise or consist in a new means of transport are acquired in Northern Ireland from a member State by any person,

(b) the acquisition of the goods is a taxable acquisition and is not in pursuance of a taxable supply, and

(c) that person is not a taxable person at the time of the acquisition,

for requiring the person who acquires the goods to give to the Commissioners such notification of the acquisition, and for requiring any VAT on the acquisition to be paid, at such time and in such form or manner as may be specified in the regulations or (in the case of the notification requirement) by the Commissioners in accordance with the regulations.

(5) Regulations under this paragraph may provide for a notification required by virtue of sub-paragraph (4)—

(a) to contain such particulars relating to the notified acquisition and any VAT chargeable in relation to it as may be specified in the regulations or by the Commissioners in accordance with the regulations, and

(b) to be given, in prescribed cases, by the personal representative, trustee in bankruptcy, trustee in sequestration, receiver, liquidator or person otherwise acting in a representative capacity in relation to the person who makes that acquisition.

(6) Regulations under this paragraph may provide for—

(a) the time when any invoice described in regulations under paragraph 4(1)(b) of this Schedule or paragraph 28(2)(b) of Schedule 9ZB is to be treated as having been issued;

(b) VAT accounted for and paid by reference to the date of issue of such an invoice to be confined to VAT on so much of the value of the supply or acquisition as is shown on the invoice.

(7) Sub-paragraphs (1) to (4), (5) and (6) are to be treated, for the purposes of this Act, as if they were contained in paragraph 2 of Schedule 11.

Administration, collection and enforcement (Schedule 11) U.K.

74 (1) Paragraph 2 of Schedule 11 has effect as if— U.K.

(a) in sub-paragraph (5A)(b), after “transport” there were inserted “ acquired from a member State, or ”;

(b) in sub-paragraph (5B)(a), after “chargeable on its” there were inserted “ acquisition or ”;

(c) in sub-paragraph (5D) in the definition of “relevant person”—

(i) before paragraph (b) there were inserted—

“(a) where the means of transport has been acquired in Northern Ireland from a member State, the person who so acquires it,”;

(ii) after paragraph (b) there were inserted—

“(c) in any other case—

(i) the owner of the means of transport at the time of its arrival in the United Kingdom, or

(ii) where it is subject to a lease or hire agreement, the lessee or hirer of the means of transport at that time.”

(2) Paragraph 2(8) of Schedule 11 applies to NI acquisition VAT in respect of an acquisition by any person from a member State of dutiable goods as it applies to VAT in respect of any supply by a taxable person of dutiable goods.

(3) Invoices described in regulations under paragraph 4(2)(b) of this Schedule or paragraph 28(2)(b) of Schedule 9ZB are items to which paragraph 3 of Schedule 11 applies (in addition to the items described in paragraph 3(2)(a) and (b) of that Schedule).

(4) Paragraph 6 of Schedule 11 has effect as if—

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

“(1A) Every person who, at a time when the person is not a taxable person, acquires in Northern Ireland from a member State any goods which are subject to a duty of excise or consist in a new means of transport must keep such records with respect to the acquisition (if it is a taxable acquisition and is not in pursuance of a taxable supply) as the Commissioners may by regulations require.”;

(a) in sub-paragraph (2), after “sub-paragraph (1)” there were inserted “ or (1A) ”.

(5) Paragraph 8(1) of Schedule 11 applies—

(a) to goods in the possession of a person who acquires goods in Northern Ireland from a member State as it applies to goods in the possession of a person who supplies goods, and

(b) to goods in the possession of a Northern Ireland fiscal warehousekeeper as it applies to goods in the possession of a fiscal warehousekeeper.

(6) Paragraph 14(1) has effect as if in paragraph (c), after “paragraph 5A” there were inserted “ or paragraph 73(1) or (4) of Schedule 9ZA ”.

PART 12 U.K. Modification of other Acts

Diplomatic privileges etc U.K.

75 (1) The following provisions apply to NI acquisition VAT as they apply to value added tax charged in accordance with section 1(1)(c) of this Act— U.K.

(a) section 2(5A) of the Diplomatic Privileges Act 1964 (application of Vienna Convention);

(b) paragraph 10(1A) of the Schedule to the Commonwealth Secretariat Act 1966 (immunities and privileges);

(c) section 1(8A) of the Consular Relations Act 1968 (application of Vienna Convention);

(d) paragraph 19(c) of Schedule 1 to the International Organisations Act 1968 (privileges and immunities);

(e) section 1(5) of the Diplomatic and other Privileges Act 1971 (refund of customs duties on hydrocarbon oil used for diplomatic or Commonwealth Secretariat purposes).

(2) Section 8 of the Consular Relations Act 1968 applies to VAT charged on the acquisition of oil in Northern Ireland from a member State as it applies to VAT charged on the importation of oil.

Customs and Excise Duties (General Reliefs) Act 1979 U.K.

76 U.K. Section 13 of the Customs and Excise Duties (General Reliefs) Act 1979 (power to provide reliefs for VAT etc) has effect as if, in subsection (4), in the definition of “value added tax” after “goods” there were inserted “ or on the acquisition of goods from a member State ”.

Vehicle Excise and Registration Act 1994 U.K.

77 U.K. Section 8 of the Vehicle Excise and Registration Act 1994 (vehicles removed into UK) has effect as if, in subsection (2)—

(a) in paragraph (a), after “United Kingdom” there were inserted “ , or on the acquisition of the vehicle from a member State, ”;

(b) in paragraph (c), after “charged on the” there were inserted “ acquisition or ”.

Finance Act 2008 U.K.

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

(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.

Finance Act 2016 U.K.

79 U.K. Schedule 18 to the Finance Act 2016 (serial tax avoidance) has effect as if—

(a) in paragraph 5(4), after paragraph (a) there were inserted—

“(b) VAT on the acquisition by the person of any goods from a member State,”;

(b) the references to VAT “incurred” by a taxable person in paragraphs 6(1)(b) and 36(7)(b) included VAT on the acquisition by the person of any goods from a member State.

Finance (No. 2) Act 2017 U.K.

80 U.K. Schedule 17 to the Finance (No. 2) Act 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes) has effect as if—

(a) the reference in paragraph 6(2)(b) to VAT “incurred” by a taxable person included VAT on the acquisition by the person of any goods from a member State;

(b) in paragraph 6(5), after paragraph (a) there were inserted—

“(b) VAT on the acquisition by the person of any goods from a member State,”.

PART 13 U.K. Interpretive provisions

Taxation under the laws of member States etc U.K.

81 (1) References in this Act, in relation to a member State, to the law of that member State are to be construed as confined to so much of the law of that member State as for the time being has effect for the purposes of any EU instrument relating to VAT. U.K.

(2) References in this Act to a person being taxable in a member State are references to that person being taxable under so much of the law of that member State as makes provision for purposes corresponding, in relation to that member State, to the purposes of so much of this Act as makes provision as to whether a person is a taxable person.

(3) The Commissioners may by regulations make provision for the manner in which any of the following are to be or may be proved for any of the purposes of this Act—

(a) the effect of any provisions of the law of any member State;

(b) that provisions of any such law correspond, in relation to any member State, to any provision of this Act;

(c) that provisions of any such law have a purpose corresponding, in relation to any member State, to the purpose of any provision of this Act.

(4) The Commissioners may by regulations provide—

(a) for a person to be treated for prescribed purposes of this Act as taxable in a member State only where the person has given such notification, and furnished such other information, to the Commissioners as may be prescribed;

(b) for the form and manner in which any notification or information is to be given or furnished under the regulations and what the notification or information must contain;

(c) for the proportion of any consideration for any transaction which is to be taken for the purposes of this Act as representing a liability, under the law of a member State, for VAT to be conclusively determined by reference to such invoices or in such other manner as may be prescribed.

(5) In any proceedings (whether civil or criminal), a certificate of the Commissioners—

(a) that a person was or was not, at any date, taxable in a member State, or

(b) that any VAT payable under the law of a member State has or has not been paid,

is sufficient evidence of that fact until the contrary is proved, and any document purporting to be a certificate under this subsection is deemed to be such a certificate until the contrary is proved.

[F654 (6) Without prejudice to the generality of any of the powers of the Commissioners under the relevant information provisions, those powers are, for the purpose of facilitating compliance with any obligation of the United Kingdom under the EU withdrawal agreement, exercisable with respect to matters that are relevant to a charge to VAT under the law of a member State, as they are exercisable with respect to matters that are relevant for any of the purposes of this Act.

(7) The reference in subsection (6) to the relevant information provisions is a reference to the provisions of section 73(7) and Schedule 11 (see also paragraph 73 which contains provision treated as if contained within that Schedule) relating to—

(a) the keeping of accounts;

(b) the making of returns and the submission of other documents to the Commissioners;

(c) the production, use and contents of invoices;

(d) the keeping and preservation of records;

(e) the furnishing of information and the production of documents.]

Textual Amendments

F654 Sch. 9ZA para. 81(6)(7) inserted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 4; S.I. 2020/1641, reg. 2, Sch.

Territories included in references to member States etc U.K.

82 (1) The Commissioners may by regulations provide for the territory of the European Union, or for the member States, to be treated for any of the purposes of this Act as including or excluding such territories as may be prescribed. U.K.

(2) Without prejudice to the generality of the powers conferred by sub-paragraph (1) and section 16, the Commissioners may, for any of the purposes of this Act, by regulations provide for prescribed provisions of any customs and excise legislation to apply in relation to cases where any territory is treated under sub-paragraph (1) as excluded from the territory of the European Union, with such exceptions and adaptations as may be prescribed.

(3) In sub-paragraph (2) the reference to customs and excise legislation is a reference to any provision (whenever passed, made or adopted) which has effect in relation to, or to any assigned matter connected with, the importation or exportation of goods or movements of goods between Northern Ireland and Great Britain.

(4) In sub-paragraph (3) “assigned matter” has the same meaning as in the Management Act.

Meaning of “new means of transport” U.K.

83 (1) In this Act “means of transport” in the expression “new means of transport” means any of the following if they are intended for the transport of persons or goods— U.K.

(a) any ship exceeding 7.5 metres in length;

(b) any aircraft the take-off weight of which exceeds 1550 kilograms;

(c) any motorized land vehicle which—

(i) has an engine with a displacement or cylinder capacity exceeding 48 cubic centimetres, or

(ii) is constructed or adapted to be electrically propelled using more than 7.2 kilowatts.

(2) For the purposes of this Schedule a means of transport is to be treated as new, in relation to any supply or any acquisition from a member State, at any time unless at that time—

(a) the period that has elapsed since its first entry into service is—

(i) in the case of a ship or aircraft, a period of more than 3 months, and

(ii) in the case of a land vehicle, a period of more than 6 months. and

(b) it has, since its first entry into service, travelled under its own power—

(i) in the case of a ship, for more than 100 hours,

(ii) in the case of an aircraft, for more than 40 hours, and

(iii) in the case of a land vehicle, for more than 6000 kilometres.

(3) The Treasury may by order vary this paragraph—

(a) by adding or deleting any ship, aircraft or vehicle of a description specified in the order to or from those which are for the time being specified in sub-paragraph (1);

(b) by altering, omitting or adding to the provisions of sub-paragraph (2) for determining whether a means of transport is new.

(4) The Commissioners may by regulations make provision specifying the circumstances in which a means of transport is to be treated for the purposes of this paragraph as having first entered into service.

VAT charged in a member State U.K.

84 U.K. Where the context requires it, references in this Schedule to VAT means value added tax charged in accordance with the law of a member State (instead of in accordance with this Act).]

Section 40A(2)

[F648 SCHEDULE 9ZB U.K. Goods removed to or from Northern Ireland and supply rules

F648 PART 1 U.K. Importations

Importations U.K.

1 (1) The importation of Union goods into the United Kingdom as a result of their entry into Northern Ireland is not an importation for the purposes of value added tax. U.K.

(2) Accordingly, no charge to VAT occurs on the importation of Union goods into the United Kingdom as a result of their entry into Northern Ireland (but see paragraph 1 of Schedule 9ZA, which imposes a charge to VAT on the acquisition of goods in Northern Ireland from a member State).

(3) VAT on the importation of any other goods imported into the United Kingdom as a result of their entry into Northern Ireland is to be charged and payable as if it were relevant NI import duty (instead of as provided under section 1(4)).

(4) Sub-paragraph (3) is to be taken as applying, in relation to any VAT chargeable on the importation of such goods—

(a) any provision of Union customs legislation that is relevant to the charging of relevant NI import duty, and

(b) any provision made by or under Part 1 of TCTA 2018 that is relevant to the charging of that duty.

(5) Section 15 (meaning of “importation of goods” into the United Kingdom) applies to the importation of such goods as if—

(a) any reference to import duty were to relevant NI import duty;

(b) the references in subsections (2) and (3) to a Customs, storage, transit or inward processing procedure were to a procedure corresponding to such a procedure under Union customs legislation, and

(c) the reference in subsection (3)(b) to section 5(1) of, or paragraph 1(5) or 3(4) of Schedule 1 to, that Act included any provision (including any provision of Union customs legislation) corresponding to those provisions that may apply to those goods.

(6) In section 16 (application of customs enactments)—

(a) subsection (1) applies to the importation of such goods as if the reference to “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” included any provision of Union customs legislation that applies in relation to relevant NI import duty, and

(b) subsections (3) and (4) apply to sub-paragraph (4) of this paragraph as they apply to subsection (2) of that section.

(7) The Commissioners may by regulations—

(a) supplement or modify any provision made by provision that applies to value added tax made by or under any enactment (including provision made by or under this Act or TCTA 2018) so far as it applies to VAT charged on the importation of goods into the United Kingdom as a result of their entry into Northern Ireland;

(b) supplement or modify any provision of Union customs legislation so far as it applies to VAT charged on such an importation.

(8) In this Schedule—

• “relevant NI import duty” means duty charged under section 30A(3) of TCTA 2018 (importation of goods: Northern Ireland), and in relation to goods of a description specified in regulations under section 30B(1) of that Act, means that duty as it would be charged if that description were not specified;

• “Union customs legislation” means provisions contained in “customs legislation” within the meaning of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (see Article 5(2) of that Regulation), so far as they apply by virtue of section 7A of the European Union (Withdrawal) Act 2018);

• “Union goods” has the meaning it has in that Regulation.

[F655 (9) This paragraph is subject to paragraph 4 of Schedule 9ZC.]

Textual Amendments

F655 Sch. 9ZB para. 1(9) inserted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 3 para. 27(2) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

Valuation of imports U.K.

2 (1) For the purposes of this Act, the value of goods imported into the United Kingdom as a result of their entry into Northern Ireland is their value as if determined for the purposes of relevant NI import duty, whether or not the goods are subject to that duty. U.K.

(2) Accordingly, section 21(1) (value of imported goods) does not apply in relation to such goods.

(3) Subsections (2) to (7) of section 21 apply in relation to such goods (and sub-paragraph (1) is subject to those subsections) as if—

(a) the reference in subsection (2) to the rules mentioned in subsection (1) of that section were to the rules mentioned in sub-paragraph (1);

(b) in subsection (2)(c), after “United Kingdom” there were inserted “ or a member State ”;

(c) the reference in subsection (2A) to the temporary admission procedure under Part 1 of TCTA 2018 were to the procedure that corresponds to that procedure under Union customs legislation.

F648 PART 2 U.K. Movements between Northern Ireland and Great Britain

Movements between Northern Ireland and Great Britain U.K.

3 (1) A supply of goods that involves the removal of goods from Northern Ireland to Great Britain or vice versa is zero-rated (see section 30(1)) if such other conditions, if any, as may be specified in regulations or imposed by the Commissioners are fulfilled. U.K.

(2) Where goods are removed from Northern Ireland to Great Britain, VAT is charged on the entry of those goods into Great Britain as if those goods had been imported into the United Kingdom.

(3) Accordingly, any provision made by or under any enactment—

(a) that is relevant to the charging of VAT on the importation of goods applies in relation to VAT charged as a result of sub-paragraph (2);

(b) that applies to an importation of goods for the purpose of value added tax applies to such a removal (and references in any such provision to imported goods are to be read as including goods that have been so removed).

(4) Where goods are removed from Great Britain to Northern Ireland, VAT is charged on the entry of those goods into Northern Ireland as if those goods had been imported into the United Kingdom as a result of their entry (from a place outside the United Kingdom) into Northern Ireland.

(5) Accordingly, any provision made by or under any enactment—

(a) that is relevant to the charging of VAT on the importation of goods applies (as modified by or under Part 1 of this Schedule) in relation to VAT charged as a result of sub-paragraph (4);

(b) that applies to an importation of goods for the purposes of VAT applies (as modified by or under that Part) to such a removal (and references in this Act to imported goods are to be read as including goods that have been so removed).

(6) Sub-paragraphs (3) and (5)—

(a) do not apply so far as the context otherwise requires, and

(b) are subject to the other provisions of this Part of this Schedule.

(7) The Treasury may by regulations—

(a) supplement or modify any provision that applies to value added tax made by or under any enactment (including provision made by or under this Act or TCTA 2018) so far as it applies to VAT charged as a result of sub-paragraph (2) or (4);

(b) supplement or modify any provision of Union customs legislation so far as it applies to VAT charged as a result of sub-paragraph (4).

Liability for VAT on movements between Great Britain and Northern Ireland U.K.

4 (1) This paragraph applies to a removal of goods from Northern Ireland to Great Britain or vice versa, instead of section 15 (general provision relating to imported goods). U.K.

(2) Goods are treated as imported—

(a) in the case of goods removed from Northern Ireland to Great Britain, when a liability to pay duty under section 30C of TCTA 2018 (duty on potentially imported goods) in respect of those goods is, or on the relevant assumptions would be, incurred, and

(b) in the case of goods removed from Great Britain to Northern Ireland, when a liability to pay duty under section 40A of TCTA 2018 (duty on certain goods removed to Northern Ireland) in respect of those goods is, or on the relevant assumptions would be, incurred.

(3) Where the removal is made in the course of a taxable supply made by a taxable person, the taxable person is the person who is treated as having imported the goods.

(4) Otherwise, each person who—

(a) in the case of goods removed from Northern Ireland to Great Britain, is, or on the relevant assumptions would be, liable to pay duty under section 30C of TCTA 2018 in respect of those goods, or

(b) in the case of goods removed from Great Britain to Northern Ireland, is, or on the relevant assumptions would be, liable to pay duty under section 40A of TCTA 2018 in respect of those goods,

is a person who is treated as having imported the goods.

(5) For the purposes of this paragraph “the relevant assumptions” are—

(a) in the case of goods removed from Northern Ireland to Great Britain, an assumption that duty under section 30C of TCTA 2018 is chargeable in respect of those goods,

(b) in the case of goods removed from Great Britain to Northern Ireland, an assumption that duty under section 40A of TCTA 2018 is chargeable in respect of those goods,

(c) in a case where there is no obligation to present the goods to customs on their arrival in the part of the United Kingdom to which they are removed, an assumption that there is such an obligation,

(d) an assumption that a liability to duty at a nil rate is replaced by a liability to duty at a higher rate, and

(e) an assumption that no relief from duty is available.

(6) The Commissioners may by regulations make provision—

(a) for any other person to be treated as importing the goods (instead of, or as well as, any person treated as importing the goods as a result of sub-paragraph (3) or (4));

(b) about (including provision modifying) the application, in relation to such a person, of any provision made by or under any enactment that has effect for the purposes of, or in connection with the enforcement of, any obligation to account for and pay VAT;

(c) for requiring any relevant person liable to VAT as a result of provision made by or under this paragraph to give to the Commissioners such notification of the removal of goods in question, and for such VAT to be paid, in such form or manner as may be specified in the regulations or by the Commissioners in accordance with the regulations.

(7) A person is “relevant” for the purposes of sub-paragraph (6)(c) if the person was not a taxable person at the time they became liable to the VAT in question.

(8) If two or more persons are treated as having imported goods those persons are jointly and severally liable to any VAT that is payable on the removal that is treated as an importation as a result of paragraph 3.

(9) The preceding provisions of this paragraph, and any provision made under sub-paragraph (6)(a), 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).

(10) But sub-paragraph (9) does not apply so far as the context otherwise requires or provision to the contrary is contained in regulations under section 16(3).

[F656 (11) Sub-paragraphs (3) and (4) are subject to paragraph 4A of Schedule 9ZC.]

Textual Amendments

F656 Sch. 9ZB para. 4(11) inserted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 3 para. 27(3) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

Valuation of goods removed from Northern Ireland to Great Britain U.K.

5 (1) This paragraph applies where goods are removed from Northern Ireland to Great Britain and— U.K.

(a) the removal is in the course of a supply, or

(b) the last supply of those goods before their removal is zero-rated as a result of that removal.

(2) Where this paragraph applies—

(a) section 21 (value of imported goods) does not apply for the purpose of determining the value of those goods, and

(b) the value of those goods is to be treated as—

(i) in a case falling within sub-paragraph (1)(a), the value of the supply in accordance with section 19 and Schedule 6 (value of supply of goods), and

(ii) in a case falling within sub-paragraph (1)(b), the value of the last supply of those goods before their removal as determined in accordance with that section and that Schedule.

Relief for qualifying Northern Ireland goods U.K.

6 (1) No VAT is to be charged on the removal of qualifying Northern Ireland goods from Northern Ireland to Great Britain as a result of paragraph 3(2) unless the removal is made in the course of a taxable supply made by a taxable person. U.K.

(2) But the relief provided by sub-paragraph (1) does not apply to a removal of qualifying goods from Northern Ireland to Great Britain if—

(a) [F657 the last supply of those goods before their removal is zero-rated as a result of [F658 that removal, or]]

[F659 (b) duty under section 30C of TCTA 2018 is charged on that removal as a result of subsection (2) of that section (duty on goods removed for an avoidance purpose).]

(3) Any VAT that is chargeable as a result of sub-paragraph [F660 (2)(a)] becomes chargeable from the later of—

(a) the time when the goods were treated as having been imported as a result of the removal, and

(b) the time at which that last supply becomes zero-rated.

(4) In this paragraph “qualifying Northern Ireland goods” has the meaning it has in the European Union (Withdrawal) Act 2018 (see section 8C(6) of that Act).

Textual Amendments

F657 Words in Sch. 9ZB para. 6(2)(a) in Sch. 9ZB para. 6(2) renumbered as Sch. 9ZB para. 6(2)(a) (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 5(a); S.I. 2020/1641, reg. 2, Sch.

F658 Words in Sch. 9ZB para. 6(2)(a) substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 5(b); S.I. 2020/1641, reg. 2, Sch.

F659 Sch. 9ZB para. 6(2)(b) inserted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 5(c); S.I. 2020/1641, reg. 2, Sch.

F660 Word in Sch. 9ZB para. 6(3) substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 5(d); S.I. 2020/1641, reg. 2, Sch.

Zero-rating of supplies made before declaration on removal U.K.

7 U.K. Item 1 of Group 13 of Schedule 8 (zero-rating)—

(a) applies to a supply of goods which are removed from Great Britain to Northern Ireland as if the reference to a Customs declaration were to such a declaration made for the purposes of Union customs legislation (rather than under Part 1 of TCTA 2018);

(b) does not apply to goods which are removed from Northern Ireland to Great Britain where no Customs declaration under Part 1 of TCTA 2018 is required to be made in respect of the removal of the goods.

PART 3 U.K. Modifications in relation to exports

Movements of goods by charities U.K.

8 U.K. Subsection (5) of Section 30 (export by charities treated as supply in United Kingdom) has effect as if the reference to the export of goods—

(a) included the removal of goods from Great Britain to Northern Ireland, and

(b) did not include the export of goods from Northern Ireland to a place in the member States.

Goods exported from Northern Ireland U.K.

9 U.K. Section 30(6) (zero-rating of exports by supplier) has effect as if reference to the export of goods did not include the export of goods from Northern Ireland to a place in the member States.

Zero-rating regulations U.K.

10 U.K. Subsection (8) of section 30 (power to zero-rate supplies where goods have been or are to be exported) has effect as if reference to the export of goods—

(a) included the removal of goods from Northern Ireland to Great Britain, or vice versa, and

(b) did not include the export of goods from Northern Ireland to a place in the member States.

Zero-rating of supply of exported goods let on hire U.K.

11 U.K. Section 30(9) (zero-rating of supply of exported goods let on hire) has effect as if the reference to the export of goods did not include the export of goods from Northern Ireland to a place in the member States.

Application of section 30(10) U.K.

12 (1) Where a supply of goods has been zero-rated under paragraph 3(1), or as a result of regulations under section 30(8), on the basis that the goods have been or are to be removed from Northern Ireland to Great Britain, section 30(10) (forfeiture of goods found in the United Kingdom) applies in relation to that supply as if any reference to the United Kingdom were to Northern Ireland. U.K.

(2) Where a supply of goods has been zero-rated under paragraph 3(1) [F661 or 31A(3)], or as a result of regulations under section 30(8), on the basis that the goods have been or are to be removed from Great Britain to Northern Ireland, section 30(10) applies in relation to that supply as if any reference to the United Kingdom were to Great Britain.

Textual Amendments

F661 Words in Sch. 9ZB para. 12(2) inserted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 7; S.I. 2020/1641, reg. 2, Sch.

Relief from VAT on importation of goods U.K.

13 (1) Section 37 (relief from VAT on importation of goods) has effect as if any reference to the export of goods did not include the export of goods from Northern Ireland to a place in the member States. U.K.

(2) That section has effect in relation to a removal of goods from Northern Ireland to Great Britain (which is treated as an importation as a result of paragraph 3(3)) as if any reference to the export of goods included their removal from Great Britain to Northern Ireland.

(3) That section has effect in relation to a removal of goods from Great Britain to Northern Ireland (which is treated as an importation as a result of paragraph 3(5)) as if any reference to the export of goods included their removal from Northern Ireland to Great Britain.

Schedule 8: modifications to Group 13 and 15 U.K.

14 (1) Item 3 of Group 13 of Schedule 8 (zero-rating) has effect as if the reference to goods for export did not include goods for export from Northern Ireland to a place in the member States. U.K.

(2) Group 15 of that Schedule has effect as if—

(a) any reference to the export of goods did not include the export of goods from Northern Ireland to a place in the member States;

(b) any reference to the export of goods, other than the reference in item 3, included the removal of goods from Great Britain to Northern Ireland or vice versa;

(c) after item 3 there were inserted—

“3A The removal by a charity of goods donated to it—

(a) from Great Britain to Northern Ireland;

(b) from Northern Ireland to Great Britain.”

PART 4 U.K. Warehouses

Modification of sections 18 and 18A U.K.

15 (1) Section 18 (place and time of supply) has effect as if— U.K.

(a) every reference to the United Kingdom were to Great Britain, other than the references—

(i) in the phrases “taking place outside the United Kingdom” and “taking place in the United Kingdom”, and

(ii) in the definition of “warehouse” in subsection (6);

(b) in subsection (6)—

(i) in the definition of “the duty point”, in paragraph (b), after “import duty” there were inserted “ or duty under section 30C of TCTA 2018 ”;

(ii) in the definition of “warehouse”, in paragraph (a), after “import duty” there were inserted “ or duty under section 30C of TCTA 2018 ”.

(2) Section 18A (fiscal warehousing) has effect as if the reference to “such place in the United Kingdom” in subsection (3) were to “such place in Great Britain”.

Place and time of supply: Northern Ireland warehouses U.K.

16 (1) A supply of goods, or an acquisition of goods in Northern Ireland from a member State, is treated as taking place outside the United Kingdom where— U.K.

(a) the goods are subject to a Northern Ireland warehousing regime,

(b) they have been removed—

(i) from a place outside the member States, other than Northern Ireland, and have entered the territory of the European Union, or

(ii) from a place outside the member States and have entered Northern Ireland (which includes goods removed to Northern Ireland from Great Britain),

(c) the material time for their supply, or their acquisition in Northern Ireland, is while they are subject to that regime and before the duty point, and

(d) those goods are not, or are not mixed with, any dutiable goods which were produced or manufactured in Northern Ireland or acquired from a member State.

(2) The Commissioners may by regulations provide that sub-paragraph (1) does not apply in circumstances specified or described in the regulations.

(3) A supply of dutiable goods which were produced or manufactured in Northern Ireland or acquired from a member State, or a supply of a mixture of such goods and other goods, is treated as taking place outside the United Kingdom where the conditions in sub-paragraph (5) are met.

(4) An acquisition in Northern Ireland from a member State of dutiable goods is treated as taking place outside the United Kingdom where those conditions are met.

(5) Those conditions are—

(a) that the goods are subject to a Northern Ireland warehousing regime,

(b) that the material time for the supply mentioned in sub-paragraph (3), or the acquisition mentioned in sub-paragraph (4), is while the goods are subject to that regime and before the duty point, and

(c) that the material time for any subsequent supply of those goods is also while the goods are subject to that regime and before the duty point.

(6) Where—

(a) the conditions in sub-paragraph (5)(a) and (b) are met in relation to a supply of goods mentioned in sub-paragraph (3) or an acquisition of goods mentioned in sub-paragraph (4),

(b) the condition in sub-paragraph (5)(c) is not met in relation to that supply or acquisition, and

(c) the supply or acquisition is treated as taking place within the United Kingdom,

sub-paragraph (7) applies to the supply or acquisition.

(7) Where this sub-paragraph applies to a supply or acquisition of goods, the supply or acquisition is treated as taking place at the earlier of—

(a) the time when the goods are removed from the Northern Ireland warehousing regime, and

(b) the duty point.

(8) Where sub-paragraph (7) applies to a supply of goods, any VAT payable on the supply must be paid—

(a) at the time when the supply is treated as taking place, and

(b) by—

(i) the person who removed the goods from the Northern Ireland warehousing regime, or

(ii) the person who is required to pay any duty or agricultural levy in respect of the goods.

(9) The Commissioners may by regulations make provision for enabling a taxable person to pay the VAT the person is required to pay by virtue of sub-paragraph (8) at a time later than that provided for by that sub-paragraph.

(10) Regulations under sub-paragraph (9) 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 the person 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 the person under section 127A of the Customs and Excise Management Act 1979,

and the regulations may make different provision for different descriptions of taxable person and for different descriptions of goods.

(11) In this paragraph—

• “dutiable goods” means any goods which are subject—

  (a)

  to a duty of excise, or

  (b)

  in accordance with any provision for the time being having effect for transitional purposes in connection with the accession of any State to the European Union, to any EU customs duty or agricultural levy of the European Union;

• “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—

  (i)

  the time when the requirement to pay duty charged under section 30A(3) of TCTA 2018 (importation of goods: Northern Ireland) on those goods takes effect,

  (ii)

  the time when the requirement to pay duty charged under section 40A of TCTA 2018 (duty on goods potentially for export from Northern Ireland) on those goods takes effect, or

  (iii)

  the time when any Community customs debt in respect of duty on the entry of the goods into the territory of the European Union would be incurred or, as the case may be, the corresponding time in relation to any such duty or levy as is mentioned in paragraph (b) of the definition of dutiable goods;

• “Northern Ireland warehouse” means any warehouse where goods may be stored in the United Kingdom or a member State without payment of any one or more of the following—

  (a)

  duty charged under section 30A(3) of TCTA 2018 (importation of goods: Northern Ireland) or under section 40A of TCTA 2018 (duty on goods potentially for export from Northern Ireland);

  (b)

  EU customs duty;

  (c)

  any agricultural levy of the European Union;

  (d)

  VAT on the importation of the goods into any member State;

  (e)

  VAT on the importation of goods into the United Kingdom as a result of their entry into Northern Ireland;

  (f)

  any duty of excise or any duty which is equivalent in a member State to a duty of excise.

(12) References in this paragraph to goods being subject to a Northern Ireland warehousing regime are to goods being kept in a Northern Ireland warehouse or being transported between Northern Ireland warehouses (whether in the same country or different countries) without the payment in a country of any duty, levy or VAT; and references to the removal of goods from a warehousing regime are to be construed accordingly.

Northern Ireland fiscal warehouses U.K.

17 (1) The Commissioners may, if it appears to them proper, upon application approve any registered person as a Northern Ireland fiscal warehousekeeper, and such approval is subject to such conditions as the Commissioners impose. U.K.

(2) Subject to those conditions and to regulations made under paragraph 25(6), such a person is entitled to keep a Northern Ireland fiscal warehouse.

(3) “Northern Ireland fiscal warehouse” means a place in Northern Ireland in the occupation or under the control of a Northern Ireland fiscal warehousekeeper that the warehousekeeper has notified to the Commisioners as a Northern Ireland fiscal warehouse.

(4) Retail premises may not be notified as a Northern Ireland fiscal warehouse.

(5) A place notified under sub-paragraph (3) is a Northern Ireland fiscal warehouse from the later of—

(a) the date the Commissioners received the notification, and

(b) the date specified in the notice from which the notification is to have effect.

(6) A place ceases to be a Northern Ireland fiscal warehouse—

(a) if that place ceases to be in the occupation or under the control of the Northern Ireland fiscal warehousekeeper, or

(b) if the Northern Ireland fiscal wareshousekeeper notifies the Commissioners that the place is to cease to be a Northern Ireland fiscal warehouse.

(7) The Commissioners may in considering an application by a person to be a Northern Ireland 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) the person's record of compliance and ability to comply with the provisions made by or under this Act;

(b) the person's record of compliance and ability to comply with the provisions made by or under the customs and excise Acts (as defined in the Management Act);

(c) the person's record of compliance and ability to comply with Union customs legislation;

(d) the person's record of compliance and ability to comply with the requirements of member States relating to VAT and duties equivalent to duties of excise;

(e) if the applicant is a company, the records of compliance and ability to comply with the matters set out in paragraphs (a) to (d) 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 in those paragraphs of the beneficial owners of the shares of the company or any of them;

(f) if the applicant is an individual, the records of compliance and ability to comply with the matters set out in those paragraphs of any company of which the applicant 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.

(8) For the purposes of paragraphs (e) and (f) of sub-paragraph (7)—

(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).

(9) Subject to sub-paragraph (10), a person approved under sub-paragraph (1) remains a Northern Ireland fiscal warehousekeeper until the person—

(a) ceases to be a registered person, or

(b) notifies the Commissioners in writing that the person is to cease to be a Northern Ireland fiscal warehousekeeper.

(10) The Commissioners may if they consider it appropriate from time to time—

(a) impose conditions on a Northern Ireland fiscal warehousekeeper in addition to those conditions, if any, imposed under sub-paragraph (1);

(b) vary or revoke any conditions previously imposed;

(c) withdraw approval of any person as a Northern Ireland fiscal warehousekeeper;

(d) withdraw Northern Ireland fiscal warehouse status from any premises.

(11) Any application by or on behalf of a person to be a Northern Ireland fiscal warehousekeeper must be in writing and in such form as the Commissioners may direct and must be accompanied by such information as the Commissioners require.

(12) Any approval by the Commissioners under sub-paragraph (1), and any withdrawal of approval or other act by them under sub-paragraph (10), must be notified to the fiscal warehousekeeper in writing and takes effect on such notification being made or on any later date specified for the purpose in the notification.

(13) Without prejudice to the provisions of section 43 concerning liability for VAT, “registered person”, for the purposes of this paragraph, includes any person who under that section is for the time being treated as a member of a group.

Conversion of relevant fiscal warehouses etc U.K.

18 (1) Sub-paragraph (2) applies to any place in Northern Ireland that was a fiscal warehouse immediately before the coming into force of paragraph 17. U.K.

(2) On the coming into force of that paragraph, a place to which this sub-paragraph applies becomes a Northern Ireland fiscal warehouse (and may cease to be in accordance with that paragraph).

(3) On the coming into force of that paragraph, any fiscal warehousekeeper in relation to such a place immediately before the coming into force of that paragraph becomes a Northern Ireland warehousekeeper (and may cease to be in accordance with that paragraph).

(4) But a person does not cease to be a fiscal warehousekeeper in relation to a place in Great Britain as a result of sub-paragraph (3).

(5) Sub-paragraph (6) applies to a fiscal warehousekeeper who becomes a Northern Ireland fiscal warehousekeeper as a result of sub-paragraph (3).

(6) Any condition imposed under section 18A(1) or (6) that, immediately before the coming into force of paragraph 17, applied to a fiscal warehousekeeper to whom this sub-paragraph applies, applies to that person as a Northern Ireland fiscal warehousekeeper as if imposed under paragraph 17 (and may be varied or revoked accordingly).

(7) In this paragraph “fiscal warehouse” and “fiscal warehousekeeper” have the meaning they have in sections 18A to 18F (see section 18F).

Northern Ireland fiscal warehouses: relief U.K.

19 (1) Sub-paragraphs (5) and (6) apply where— U.K.

(a) there is an acquisition of goods in Northern Ireland from a member State,

(b) those goods are eligible goods,

(c) either—

(i) the acquisition takes place while the goods are subject to a Northern Ireland fiscal warehousing regime, or

(ii) after the acquisition but before the supply, if any, of those goods which next occurs, the acquirer causes the goods to be placed in a Northern Ireland fiscal warehousing regime, and

(d) the acquirer, not later than the time of the acquisition, prepares and keeps a certificate that the goods are subject to a fiscal warehousing regime, or (as the case may be) that the acquirer will cause paragraph (c)(ii) to be satisfied.

(2) A certificate prepared for the purposes of sub-paragraph (1)(d) must be kept for such period as the Commissioners may by regulations specify.

(3) Sub-paragraphs (5) and (6) also 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 Northern Ireland 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 Northern Ireland fiscal warehousing regime,

(d) in a case falling within paragraph (c)(ii), the person to whom the supply is made gives the supplier, not later than the time of the supply, a certificate that the person will cause paragraph (c)(ii) to be satisfied, and

(e) the supply is not a retail transaction.

(4) A certificate under sub-paragraph (1)(d) or (3)(d) must be in such form as may be specified by regulations or by the Commissioners in accordance with regulations.

(5) An acquisition or supply to which this sub-paragraph applies is 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 Northern Ireland fiscal warehousing regime.

(6) Where an acquisition or supply to which this sub-paragraph applies falls, for the purposes of this Act, to be treated as taking place in the United Kingdom that acquisition or supply is treated for the purposes of this Act as taking place when the goods are removed from the Northern Ireland fiscal warehousing regime.

(7) Where—

(a) sub-paragraph (6) applies to an acquisition or a supply,

(b) the acquisition or supply is taxable and not zero-rated, and

(c) the acquirer or supplier is not a taxable person but would be were it not for paragraph 1(9) of Schedule 1 and paragraphs 38(6) and 48(7) of Schedule 9ZA, or any of those provisions,

VAT is chargeable on that acquisition or supply notwithstanding that the acquirer or the supplier is not a taxable person.

(8) For the purposes of this paragraph, apart from sub-paragraph (6), an acquisition or supply is treated as taking place at the material time for the acquisition or supply.

(9) In this paragraph “eligible goods” has the meaning it has in section 18B, but as if in section 18B(6)(b)—

(a) in sub-paragraph (i)—

(i) after “import duty” there were inserted “ , and any duty under section 30A(3) of TCTA 2018, ”;

(ii) after “those Acts” there were inserted “ or Union customs legislation ”;

(b) in sub-paragraph (ii), after “section 1(1)(c)” there were inserted “ (including any VAT chargeable on the movement of goods from Great Britain to Northern Ireland as a result of paragraph 3(4)) ”.

(10) The Commissioners may by regulations provide that goods of a description specified in regulations are, for the purposes of this paragraph, to be treated—

(a) where such goods are not of a description falling within Schedule 5A (goods eligible to be fiscally warehoused), as if they were;

(b) where such goods are of a description falling within that Schedule, as if they were not.

(11) The Commissioners may by regulations provide for the zero-rating of supplies of goods, or of such goods as may be specified in regulations, in cases where—

(a) the Commissioners are satisfied that the supply in question involves both—

(i) the removal of the goods from a Northern Ireland fiscal warehousing regime, and

(ii) their being placed in a warehousing regime in a member State, or in such member State or States as may be prescribed, where that regime is established by provisions of the law of that member State corresponding, in relation to that member State, to the provisions of this paragraph and paragraph 17, and

(b) such other conditions, if any, as may be specified in the regulations or the Commissioners may impose are fulfilled.

(12) Section 30(10) (zero-rating) applies in relation to regulations made under sub-paragraph (11) as it applies to regulations made under section 30(8) or (9).

Modification of section 18B U.K.

20 U.K. Section 18B(5) (fiscally warehoused goods: relief) has effect as if after “Schedule 1” there were inserted “ and paragraphs 38(6) and 48(7) of Schedule 9ZA, or any of those provisions ”.

Northern Ireland warehouses and fiscal warehouses: services U.K.

21 (1) Section 18C has effect as if any reference to— U.K.

(a) “a warehousing or fiscal warehousing regime” were to “a warehousing, Northern Ireland warehousing, fiscal warehousing, or Northern Ireland fiscal warehousing regime”;

(b) “a warehouse or a fiscal warehousekeeper” were to “a warehouse, Northern Ireland warehouse, fiscal or Northern Ireland fiscal warehousekeeper”;

(c) “a warehousing regime” were to “a warehousing or Northern Ireland warehousing regime”;

(d) “a fiscal warehousing regime” were to “a fiscal or Northern Ireland fiscal warehousing regime”.

(2) Subsection (2) of that section has effect in relation to goods subject to a Northern Ireland warehousing or Northern Ireland fiscal warehousing regime as if the term “material time” had the meaning it has in this Part of this Schedule.

(3) Subsection (3) of that section has effect in relation to goods subject to a Northern Ireland warehousing or Northern Ireland fiscal warehousing regime as if the term “duty point” had the meaning it has in paragraph 16.

(4) Subsection (4)(b) of that section has effect in relation to goods subject to a Northern Ireland fiscal warehousing regime as if after “carried out under” there were inserted “ Union customs legislation (within the meaning of Schedule 9ZB) or under ”.

Removal from warehousing: accountability U.K.

22 (1) This paragraph applies to any supply to which paragraph 19(6) applies (supply treated as taking place on removal or duty point) and any acquisition to which paragraph 19(7) applies (acquisition treated as taking place on removal where acquirer not a taxable person). U.K.

(2) Any VAT payable on the supply or acquisition must (subject to any regulations under sub-paragraph (3)) be paid—

(a) at the time when the supply or acquisition is treated as taking place under the paragraph 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 the person is required to pay by virtue of sub-paragraph (2) at a time later than that provided by that sub-paragraph.

(4) Regulations may make different provisions for different descriptions of taxable persons and for different descriptions of goods and services.

Deficiency in Northern Ireland fiscally warehoused goods U.K.

23 (1) Section 18E applies— U.K.

(a) to goods which have been subject to a Northern Ireland fiscal warehousing regime as it applies to goods which have been subject to a fiscal warehousing regime, and

(b) to a Northern Ireland fiscal warehousekeeper as it applies to a fiscal warehousekeeper.

(2) In this paragraph “fiscal warehousekeeper” has the meaning it has in sections 18A to 18F (see section 18F).

Incorrect Northern Ireland fiscal warehousing certificates U.K.

24 (1) Where— U.K.

(a) a person who makes, or is to make, an acquisition of goods in Northern Ireland from a member State prepares a certificate for the purposes of paragraph 19(1)(d), and

(b) the certificate is incorrect,

the person preparing the certificate is liable to a penalty.

(2) The amount of the penalty is the amount of VAT actually chargeable on the acquisition.

(3) A person is not liable to a penalty under sub-paragraph (1) if the person satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for having prepared the certificate in question.

(4) If a person is convicted of an offence (whether under this Act or otherwise) by reason of preparing an incorrect certificate for the purposes of paragraph 19(1)(d), the person is not liable to a penalty under sub-paragraph (1).

(5) A penalty under sub-paragraph (1) is to be treated, for the purposes of sections 76 and 83 (assessments and appeals), as if it were a penalty under section 62 (incorrect certificates).

(6) Section 62 has effect as if in subsection (1)(a)(ii), after “18C(1)(c)” there were inserted “ or paragraph 19(3)(d) of Schedule 9ZB (Northern Ireland fiscal warehouses) ”.

Supplementary provision U.K.

25 (1) In this Part of this Schedule— U.K.

• “eligible goods” is to be construed in accordance with paragraph 19(9) and (10);

• “material time”—

  (a)

  in relation to any acquisition or supply the time of which is determined in accordance with regulations under section 6(14) or paragraph 4(2)(b) of Schedule 9ZA, means such time as may be prescribed for the purpose of this paragraph by those regulations,

  (b)

  in relation to any other acquisition, means the time of the first removal of the goods (see paragraph 4(5) of that Schedule), 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;

• “Northern Ireland fiscal warehouse” is to be construed in accordance with paragraph 17;

• “Northern Ireland fiscal warehousekeeper” is to be construed in accordance with that paragraph;

• “Northern Ireland warehouse” has the meaning given by paragraph 16(11).

(2) Any reference in this Part of this Schedule to goods being subject to a Northern Ireland fiscal warehousing regime is, subject to any regulations made under sub-paragraph (6), a reference to eligible goods being kept in a Northern Ireland fiscal warehouse or being transferred between Northern Ireland fiscal warehouses in accordance with such regulations; and any reference to the removal of goods from a Northern Ireland fiscal warehousing regime are to be construed accordingly.

(3) Where as a result of an operation on eligible goods subject to a Northern Ireland fiscal warehousing regime they change their nature but the resulting goods are also eligible goods, the provisions of this Part of this Schedule apply as if the resulting goods were the original goods.

(4) Where as a result of an operation on eligible goods subject to a Northern Ireland fiscal warehousing regime they cease to be eligible goods, on their ceasing to be so this Part applies as if they had at that time been removed from the regime; and for that purpose the proprietor of the goods is treated as if that person were the person removing them.

(5) Where—

(a) any person ceases to be a Northern Ireland fiscal warehousekeeper, or

(b) any premises cease to have Northern Ireland fiscal warehouse status,

this Part of this Schedule applies as if the goods of which the person 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 is to be treated as if the proprietor were the person removing them.

(6) The Commissioners may make regulations governing the deposit, keeping, securing and treatment of goods in a Northern Ireland fiscal warehouse, and the removal of goods from a Northern Ireland fiscal warehouse.

(7) Regulations may, without prejudice to the generality of sub-paragraph (6), include provision—

(a) in relation to—

(i) goods which are, have been or are to be subject to a Northern Ireland fiscal warehousing regime,

(ii) other goods which are, have been or are to be kept in Northern Ireland fiscal warehouses,

(iii) Northern Ireland fiscal warehouse premises, and

(iv) Northern Ireland fiscal warehousekeepers and their businesses,

as to the keeping, preservation and production of records and the furnishing of returns and information by Northern Ireland 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 the request of that authorised person;

(c) prohibiting the carrying out on Northern Ireland fiscally warehoused goods of such operations as the Commissioners may prescribe;

(d) regulating the transfer of goods from one Northern Ireland fiscal warehouse to another;

(e) concerning goods which, though kept in a Northern Ireland 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 this Part of this Schedule;

(f) prohibiting a Northern Ireland fiscal warehousekeeper from allowing goods to be removed from a Northern Ireland fiscal warehousing regime without payment of any VAT payable under paragraph 22 on or by reference to that removal and, if in breach of that prohibition the warehousekeeper allows goods to be so removed, making the warehousekeeper 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.

(8) Regulations may make different provision for different cases, including different provision for different Northern Ireland fiscal warehousekeepers or descriptions of Northern Ireland fiscal warehousekeeper, for Northern Ireland fiscal warehouses of different descriptions or for goods of different classes or descriptions or of the same class or description in different circumstances.

Modification of other provisions U.K.

26 (1) Paragraph 3 of Schedule 6 (valuation: special cases) has effect in relation to goods whose supply involves their removal to Northern Ireland from a place outside the United Kingdom as if— U.K.

(a) in sub-paragraph (1)(a)(ii), after “EU” there were inserted “ customs duty or ”;

(b) in sub-paragraph (1)(b), for “section 18(4)” there were substituted “ paragraph 16(7) of Schedule 9ZB ”;

(c) in sub-paragraph (2), for “section 18” there were substituted “ paragraph 16 of Schedule 9ZB ”.

(2) Paragraph 2(8) of Schedule 11 has effect as if after “section 18” there were inserted “ in relation to goods other than goods in Northern Ireland, or paragraph 16 of Schedule 9ZB in relation to goods in Northern Ireland ”.

(3) Section 702 of the Income Tax (Earnings and Pensions) Act 2003 (meaning of “readily convertible asset”) has effect as if in subsection (6)(a), in the definition of “warehousing regime”, after “Value Added Tax Act 1994 (c23))” there were inserted “ or a Northern Ireland warehousing or Northern Ireland fiscal warehousing regime (within the meaning of paragraphs 16 to 25 of Schedule 9ZB to that Act) ”.

(4) Paragraph 11 of Schedule 36 to the Finance Act 2008 (power to inspect premises) has effect as if—

(a) in sub-paragraph (1)(c), after “warehouse” there were inserted “ or Northern Ireland fiscal warehouse ”;

(b) in sub-paragraph (2)(c), after “warehousing” there were inserted “ or Northern Ireland fiscal warehousing ”.

PART 5 U.K. Rules relating to particular supplies

Supplies of gas, electricity or heat U.K.

27 (1) Paragraph 3(1) (zero-rating of supplies involving removal of goods from Northern Ireland to Great Britain or vice versa) does not apply to a supply of relevant goods. U.K.

(2) In this paragraph “relevant goods” has the meaning it has in section 9A (reverse charge on gas, electricity, heat or cooling).

Time of supply involving both a supply and an acquisition U.K.

28 (1) Where any supply of goods involves both— U.K.

(a) the removal of the goods from Northern Ireland, and

(b) their acquisition in a member State by a person who is liable for VAT on the acquisition in accordance with provisions of the law of that member State corresponding, in relation to that member State, to the provisions of paragraph 2,

subsections (2), (4) to (6) and (10) to (12) of section 6 (time of supply) do not apply and the supply is treated for the purposes of this Act as taking place on whichever is the earlier of the days specified in sub-paragraph (2).

(2) The days mentioned in sub-paragraph (1) are—

(a) the 15th day of the month following that in which the removal in question takes place, and

(b) the day of the issue, in respect of the supply, of a VAT invoice or of an invoice of such other description as the Commissioners may by regulations prescribe.

(3) Section 6(14) has effect as if after “section 55(4)” there were inserted “ or paragraph 28 of Schedule 9ZB ”.

Distance selling between EU and Northern Ireland: place of supply U.K.

29 (1) Goods whose place of supply is not determined under subsection (2) or (3) of section 7 (place of supply of goods) are treated as supplied in the United Kingdom where— U.K.

(a) the supply involves the removal of the goods to Northern Ireland by or under the directions of the person who supplies them,

(b) the supply is a transaction in pursuance of which the goods are acquired in Northern Ireland from a member State by a person who is not a taxable person,

(c) the supplier—

(i) is liable to be registered under Part 9 of Schedule 9ZA, or

(ii) would be so liable if the supplier were not already registered under this Act or liable to be registered under Schedule 1 or 1A, and

(d) the supply is neither a supply of goods consisting in a new means of transport nor anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) of Schedule 4 or paragraph 30 of Schedule 9ZB.

(2) Goods whose place of supply is not determined under sub-paragraph (1) or subsection (2) or (3) of section 7 and which do not consist in a new means of transport are treated as supplied outside the United Kingdom where—

(a) the supply involves the removal of the goods from Northern Ireland, by or under the directions of the person who supplies them, to a member State,

(b) the person who makes the supply is taxable in a member State, and

(c) provisions of the law of that member State corresponding, in relation to that member State, to the provisions made by sub-paragraph (1) make that person liable to VAT on the supply.

(3) But sub-paragraph (2) does not apply in relation to any supply in a case where the liability mentioned in sub-paragraph (2)(c) depends on the exercise by any person of an option in the United Kingdom corresponding to such an option as is mentioned in paragraph 48(2) unless that person has given, and has not withdrawn, a notification to the Commissioners that the person wishes supplies by that person to be treated as taking place outside the United kingdom where they are supplies in relation to which the other requirements of sub-paragraph (2) are satisfied.

(4) The Commissioners may by regulations provide that a notification for the purposes of sub-paragraph (3) is not to be given or withdrawn except in such circumstances, and in such form and manner, as may be prescribed.

(5) For the purposes of this paragraph—

(a) where goods, in the course of their removal from a place in Northern Ireland to another place in Northern Ireland leave and re-enter Northern Ireland the removal is not to be treated as a removal from or to Northern Ireland, and

(b) where goods, in the course of their removal from a place in Northern Ireland to another place in the United Kingdom leave and re-enter the United Kingdom the removal is not to be treated as a removal from Northern Ireland.

(6) Section 7 has effect as if the references in subsections (5A) to (7) to “the preceding provisions of this section” included sub-paragraphs (1) and (2) of this paragraph.

Removal of business assets to be treated as a supply of goods U.K.

30 (1) A person carrying on a business makes a supply of goods where— U.K.

(a) the goods form part of the assets of that business,

(b) they are removed from Northern Ireland or a member State under the directions of that person, and

(c) the removal is in the course or furtherance of that business for the purpose of being taken to a place in—

(i) in the case of goods removed from Northern Ireland, a member State, or

(ii) in the case of goods removed from a member State, to another member State or to Northern Ireland.

(2) Sub-paragraph (1) applies to the removal of goods, whether or not that removal of the goods is, or is connected with, a transaction for consideration.

(3) Sub-paragraph (1) does not apply—

(a) to a case falling within paragraph 5(1) of Schedule 4 (matters to be treated as supply of goods or services),

(b) to the removal of goods from Northern Ireland where that removal is in the course of their removal from one part of Northern Ireland to another part of Northern Ireland,

(c) to the removal of goods from a member State where that removal is in the course of their removal from one part of a member State to another part of that member State,

(d) to goods which have been removed from a place outside the member States for entry into the territory of the European Union and are removed from a member State before the time when any Community customs debt in respect of any EU customs duty on their entry into that territory would be incurred,

(e) to goods which have been removed from a place outside the United Kingdom and the member States for entry into Northern Ireland and are removed from Northern Ireland before any duty under section 30A(3) of TCTA 2018 on their entry into Northern Ireland would be incurred, or

(f) to goods which have been removed from Great Britain to Northern Ireland and are removed from Northern Ireland before any duty under section 40A of TCTA 2018 on their entry into Northern Ireland would be incurred.

(4) Sub-paragraph (1) is subject to paragraph 58 of Schedule 9ZA (call-off stock arrangements).

Application of section 43 (company groups) to goods in Northern Ireland U.K.

31 U.K. Subsection (1)(a) of Section 43 (disregard of supplies between members of groups) does not apply to a supply of goods if the goods are in Northern Ireland at the time they are supplied unless the supplier and the recipient each has a business establishment, or some other fixed establishment, in Northern Ireland.

Partially exempt supplies U.K.

[F662 31A (1) A removal of goods from Great Britain to Northern Ireland to which this sub-paragraph applies is to be treated as a taxable supply of goods made in the course or furtherance of a business carried on by the person who removes the goods.

(2) Sub-paragraph (1) applies to a removal of goods if—

(a) the removal is not (ignoring sub-paragraph (1)) made in the course of a taxable supply,

(b) before the removal the goods were supplied to, or were imported by, the person who removed them (“P”),

(c) P is, at the time of that supply or importation and at the time of the removal, a taxable person,

(d) P has incurred VAT on that supply or importation,

(e) the removal takes place within 12 months of P becoming liable to that VAT,

(f) some, or all, of the VAT incurred on the supply or importation has not been credited as input tax in relation to P because it has, before the removal, been attributed to—

(i) both taxable and exempt supplies, or

(ii) exempt supplies, and

(g) either—

(i) P has not used the goods before their removal, or

(ii) P meets the condition in sub-paragraph (3).

(3) That condition is that P uses the goods, after their removal, exclusively for the purpose of making—

(a) in a case falling within sub-paragraph (2)(f)(i), both taxable and exempt supplies, or

(b) in a case falling within sub-paragraph (2)(f)(ii), exempt supplies.

(4) A supply of goods which is treated as arising under sub-paragraph (1) is zero-rated.

(5) VAT incurred by P on the removal of the goods from Great Britain to Northern Ireland (see paragraph 3(4)) is not to be treated as attributable (for the purposes of section 26) to the supply treated as arising under sub-paragraph (1).]

Textual Amendments

F662 Sch. 9ZB para. 31A inserted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 6; S.I. 2020/1641, reg. 2, Sch.

PART 6 U.K. Northern Ireland and the Isle of Man

Application of Part 2 of this Schedule U.K.

32 (1) Paragraph 3(1) (zero-rating of supply of goods removed from Great Britain to Northern Ireland and vice versa) applies to goods removed from Northern Ireland to the Isle of Man as they apply to goods removed from Northern Ireland to Great Britain. U.K.

(2) The following provisions apply to goods removed to Northern Ireland from the Isle of Man as they apply to goods removed from Great Britain to Northern Ireland—

(a) sub-paragraphs (4) and (5) of paragraph 3 (charge on goods removed from Great Britain to Northern Ireland);

(b) sub-paragraphs (6) and (7) of that paragraph (so far as they relate to sub-paragraph (4) or (5)).

(3) Paragraph 4 (liability for VAT on movements between Great Britain and Northern Ireland) applies to goods removed to Northern Ireland from the Isle of Man as they apply to goods removed from Great Britain to Northern Ireland as if the references to a “taxable person” included a person who is, or is required to be, registered under an Act of Tynwald for the purposes of any tax imposed by or under an Act of Tynwald which corresponds to VAT.

(4) Paragraph 7 (zero-rating of supplies made before declaration on removal) applies to goods removed to Northern Ireland from the Isle of Man as it applies to goods removed from Great Britain to Northern Ireland.

Modifications in relation to exports: goods removed to Isle of Man U.K.

33 (1) Subsection (8) of section 30 (power to zero-rate supplies where goods have been or are to be exported) has effect as if reference to the export of goods included the removal of goods from Northern Ireland to the Isle of Man. U.K.

(2) Where a supply of goods has been zero-rated as a result of paragraph 3(1) or regulations under section 30(8), on the basis that the goods have been or are to be removed from Northern Ireland to the Isle of Man, section 30(10) applies in relation to that supply as if any reference to the United Kingdom were to Northern Ireland.

(3) Section 37 (relief from VAT on importation of goods) has effect in relation to a removal of goods to Northern Ireland from the Isle of Man (which is treated as an importation as a result of paragraphs 3(5) and 32(2)) as if any reference to the export of goods included their removal from Northern Ireland to the Isle of Man.

(4) Group 15 of Schedule 8 (zero-rating) has effect as if—

(a) any reference to the export of goods, other than the reference in item 3, included the removal of goods from Northern Ireland to the Isle of Man;

(b) the modification made by paragraph 14(2)(c) applied to the removal of goods to the Isle of Man from Northern Ireland as it applies to the removal of goods from Northern Ireland to Great Britain.

Warehouses U.K.

34 U.K. Part 4 (warehouses) has effect as if any reference to Great Britain included the Isle of Man (see also article 2 of the Value Added Tax (Isle of Man) Order 1982 which provides that this Act has effect as if the Isle of Man were part of the United Kingdom subject to the provisions of that Order).

Extent U.K.

35 U.K. Nothing in this Part of this Schedule is to be taken as extending to the Isle of Man.]

Section 40A(3)

[F663 SCHEDULE 9ZC U.K. Online sales by overseas persons and low value importations: modifications relating to the Northern Ireland Protocol

Textual Amendments

F663 Sch. 9ZC inserted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 3 para. 28 (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

F663 PART 1 U.K. Modification of this Act

1 U.K. References in the following provisions of this Act to goods being imported do not include goods imported into the United Kingdom as a result of their entry into Northern Ireland or goods treated as having been imported into the United Kingdom as a result of their being removed from Northern Ireland to Great Britain—

(a) section 5A(3) (the imported consignment condition);

(b) section 7(5B)(b) (place of supply of goods);

(c) section 7AA(1)(c) (reverse charge on goods supplied from abroad).

[F664 1A U.K. Section 5A has effect as if in subsection (1)(c)(ii) after “outside the United Kingdom” there were inserted “ and prior to the supply the goods were located in Great Britain ”.]

Textual Amendments

F664 Sch. 9ZC para. 1A inserted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 3 para. 29(2) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

2 U.K. Section 77F (exception from liability under section 5A) has effect as if—

(a) in the heading, after “section 5A” there were inserted “ or Part 1 of Schedule 9ZC ”;

(b) in subsection (1), after “section 5A” there were inserted “ or Part 1 of Schedule 9ZC ”;

(c) in subsection (2), after “(as defined in section 5A” there were inserted “ or Part 1 of Schedule 9ZC, as the case may be ”.

3 (1) In Schedule 11, paragraph 6 has effect subject to the following modifications. U.K.

(2) Sub-paragraph (4C) has effect as if—

(a) the “or” at the end of paragraph (a) were omitted;

(b) after paragraph (b) there were inserted “, or

(c) Part 1 of Schedule 9ZC makes provision about who is treated as having imported those goods.”

(3) Sub-paragraph (4D) has effect as if—

(a) the “or” at the end of paragraph (b) were omitted;

(b) after paragraph (c) there were inserted “, or

(d) is treated as having imported goods under Part 1 of Schedule 9ZC.”

4 (1) Sub-paragraph (2) applies, instead of section 15(4) and (5) (as modified by paragraph 1 of Schedule 9ZB), where— U.K.

(a) goods are imported into the United Kingdom as a result of their entry into Northern Ireland in the course or furtherance of a business by a person (“P”),

(b) that importation is in the course of a taxable supply to a person (“R”) who—

(i) is not registered under this Act, or

(ii) is registered under this Act but who has not provided P or, where the supply is facilitated by an online marketplace, the operator of that marketplace, with R's VAT registration number,

(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 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.

(2) The person who is treated as having imported the goods is—

(a) in a case where the supply is facilitated by an online marketplace, the operator of the online marketplace, or

(b) in any other case, P.

(3) In sub-paragraph (1)(b)(ii), “VAT registration number” means the number allocated by the Commissioners to a person registered under this Act.

(4) For the purposes of sub-paragraph (1)(d)(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 regulations substitute a different figure for a figure that is at any time specified in sub-paragraph (1)(c).

[F665 4A (1) Sub-paragraph (2) applies, instead of paragraph 4(3) and (4) of Schedule 9ZB, in relation to a removal of goods from Northern Ireland to Great Britain or, as the case may be, vice versa where— U.K.

(a) the removal is in the course of a supply by a person established outside of the United Kingdom (“P”), and

(b) the supply is facilitated by an online marketplace.

(2) The operator of the online marketplace is the person who is treated as having imported the goods.

(3) But sub-paragraph (2) does not apply where the person to whom the goods are supplied (“R”)—

(a) is registered under this Act,

(b) 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.

(4) In sub-paragraph (3)—

• “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.

(5) The Commissioners may by regulations specify the details that must be provided for the purposes of sub-paragraph (3)(c).]

Textual Amendments

F665 Sch. 9ZC para. 4A inserted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 3 para. 29(3) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

PART 2 U.K. Modification of the Value Added Tax (Imported Goods) Relief Order 1984

5 (1) In Schedule 2 to the Value Added Tax (Imported Goods) Relief Order 1984 (S.I. 1984/746) (reliefs for goods of certain descriptions), Group 8 (articles sent for miscellaneous purposes) has effect subject to the following modifications. U.K.

(2) That Group has effect as if after item 7 there were inserted—

“8 Any consignment of goods imported into the United Kingdom as a result of their entry into Northern Ireland (other than alcoholic beverages, tobacco products, perfumes or toilet waters) not exceeding £15 in value.”

(3) That Group has effect as if after note (1) there were inserted—

“(2) Item 8 does not apply in relation to any goods imported on mail order.

(3) For the purposes of note (2)—

• “mail order” in relation to any goods means any transaction or series of transactions under which a seller (S) sends goods in fulfilment of an order placed remotely,

• “remotely” means by any means that do not involve the simultaneous physical presence of S and the person placing the order, and

• “seller” does not include any person acting otherwise than in a commercial or professional capacity.”

PART 3 U.K. Registration

Liability to be registered U.K.

6 (1) A person who is treated as having imported goods under Part 1 of this Schedule and— U.K.

(a) is not registered under this Act, and

(b) is not liable to be registered under Schedule 1, 1A or 9ZA to this Act,

becomes liable to be registered under this Schedule at the point they are so treated.

(2) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) becomes liable to be registered under this Schedule at any time if there are reasonable grounds for believing that the person will be treated as having imported goods under Part 1 of this Schedule in the following 30 days.

(3) A person is treated as having become liable to be registered under this Schedule at any time when the person would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 11(2) of this Schedule, paragraph 13(3) of Schedule 1, paragraph 11 of Schedule 1A, paragraph 6(2) of Schedule 3A or paragraph 43 or 53 of Schedule 9ZA.

(4) A person does not cease to be liable to be registered under this Schedule except in accordance with paragraph 7.

7 (1) A person who has become liable to be registered under this Schedule ceases to be so liable at any time if the Commissioners are satisfied that the person is no longer a person who is, or will be, treated as having imported goods under Part 1 of this Schedule. U.K.

(2) But a person does not cease to be liable to be registered under this Schedule at any time if there are reasonable grounds for believing that the person will be treated as having imported goods under Part 1 of this Schedule in the following 30 days.

Notification of liability and registration U.K.

8 (1) A person who becomes liable to be registered under this Schedule must notify the Commissioners of the liability— U.K.

(a) in the case of a liability under sub-paragraph (1) of paragraph 6, within 30 days of the person becoming so liable, and

(b) in the case of a liability under sub-paragraph (2) of that paragraph, before the end of the period by reference to which the liability arises.

(2) The Commissioners must register any such person (whether or not the person notifies them) with effect from the relevant time.

(3) In this paragraph “the relevant time”—

(a) in a case falling within sub-paragraph (1)(a), means the beginning of the day on which the liability arose, and

(b) in a case falling within sub-paragraph (1)(b), means the beginning of the period by reference to which the liability arose.

Entitlement to be registered etc U.K.

9 (1) Where a person who is not liable to be registered under this Act and is not already so registered— U.K.

(a) satisfies the Commissioners that the person intends to make or facilitate a relevant supply from a specified date, and

(b) requests to be registered under this Schedule,

the Commissioners may, subject to such conditions as they think fit to impose, register the person with effect from such date as may be agreed between the Commissioners and the person.

(2) Conditions imposed under sub-paragraph (1) may—

(a) be so imposed wholly or partly by reference to, or without reference to, any conditions prescribed for the purposes of this paragraph, and

(b) be subsequently varied by the Commissioners (whenever the conditions were imposed).

(3) Where a person who is entitled to be registered under paragraph 9 or 10 of Schedule 1 requests registration under this paragraph, the person is to be registered under that Schedule, and not under this Schedule.

Notification of matters affecting continuance of registration U.K.

10 (1) Any person registered under this Schedule who ceases to be registrable under this Act must notify the Commissioners of that fact within 30 days of the day on which the person ceases to be registrable. U.K.

(2) A person registered under paragraph 9(1) must notify the Commissioners, within 30 days of the first occasion after the person's registration when the person makes or facilitates a relevant supply, that the person has made or facilitated that supply.

(3) For the purposes of this paragraph a person ceases to be registrable under this Act where—

(a) the person ceases to be a person who would be liable or entitled to be registered under this Act if the person's registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded, or

(b) in the case of a person who (having been registered under paragraph 9(1)) has not been such a person during the period of the person's registration, the person ceases to have any intention of making or facilitating relevant supplies.

Cancellation of registration U.K.

11 (1) Where a person registered under this Schedule satisfies the Commissioners that the person is not liable to be so registered, the Commissioners must, if the person so requests, cancel that registration with effect from the day on which the request is made or from such later date as may be agreed between the Commissioners and the person. U.K.

(2) Where the Commissioners are satisfied that a person registered under this Schedule has ceased since the person's registration to be registrable under this Schedule, they may cancel that registration with effect from the day on which the person so ceased or from such later date as may be agreed between the Commissioners and the person.

(3) Where the Commissioners are satisfied that a person who has been registered under paragraph 9(1) and is not for the time being liable to be registered under this Schedule—

(a) has not begun, by the date specified in the person's request to be registered, to make or facilitate relevant supplies, or

(b) has contravened any condition of the person's registration,

the Commissioners may cancel the person's registration with effect from the date so specified or, as the case may be, the date of the contravention or from such later date as may be agreed between the Commissioners and the person.

(4) But the Commissioners may not, under sub-paragraph (1), (2) or (3), cancel a person⿿s registration with effect from any time unless the Commissioners are satisfied that it is not a time when that person would be subject to a requirement, or in a case falling under sub-paragraph (2) or (3) a requirement or entitlement, to be registered under this Act.

(5) Where the Commissioners are satisfied that, on the day on which a person was registered under this Schedule, the person—

(a) was not registrable under this Schedule, and

(b) in the case of a person registered under paragraph 9(1), did not have the intention by reference to which the person was registered,

the Commissioners may cancel that registration with effect from that day.

(6) In determining, for the purposes of sub-paragraph (4), whether a person would be subject to a requirement, or would be entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when the person is already registered or when the person is so liable under any other provision is to be disregarded.

(7) For the purposes of this paragraph, a person is registrable under this Schedule at any time when the person is liable to be registered under this Schedule or is a person who makes or facilitates relevant supplies.

Notifications U.K.

12 U.K. Any notification required under this Part of this Schedule must be made in such form and manner and must contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.

Meaning of relevant supply U.K.

13 U.K. For the purposes of this Part of this Schedule a supply is a “relevant supply” if the person making or facilitating it would be treated as having imported goods under Part 1 of this Schedule.

Modification of the Finance Act 2008 U.K.

14 U.K. Paragraph 1 of Schedule 41 to the Finance Act 2008 (penalties: failure to notify etc) has effect as if in the table there were inserted the following entry—

“Value added tax

Obligation under paragraph 8 of Schedule 9ZC to VATA 1994 (obligations to notify liability to register and notify matters affecting continuance of registration).”]

[F666 SCHEDULE 9A U.K. Anti-avoidance provisions: groups

Textual Amendments

F666 Sch. 9A inserted (29.4.1996) by 1996 c. 8, s. 31, Sch. 4

Power to give directions U.K.

1 (1) Subject to paragraph 2 below, the Commissioners may give a direction under this Schedule if, in any case— U.K.

(a) a relevant event has occurred;

(b) the condition specified in sub-paragraph (3) below is fulfilled;

(c) that condition would not be fulfilled apart from the occurrence of that event; and

(d) in the case of an event falling within sub-paragraph (2)(b) below, the transaction in question is not a supply which is the only supply by reference to which the case falls within paragraphs (a) to (c) above.

(2) For the purposes of this Schedule, a relevant event occurs when a [F667 person]—

(a) begins to be, or ceases to be, treated as a member of a group; or

(b) enters into any transaction.

(3) The condition mentioned in sub-paragraph (1) above is that—

(a) there has been, or will or may be, a taxable supply on which VAT has been, or will or may be, charged otherwise than by reference to the supply’s full value;

(b) there is at least a part of the supply which is not or, as the case may be, would not be zero-rated; and

(c) the charging of VAT on the supply otherwise than by reference to its full value gives rise or, as the case may be, would give rise to a tax advantage.

(4) For the purposes of this paragraph the charging of VAT on a supply (“the undercharged supply”) otherwise than by reference to its full value shall be taken to give rise to a tax advantage if, and only if, a person has become entitled—

(a) to credit for input tax allowable as attributable to that supply or any part of it, or

(b) in accordance with regulations under section 39, to any repayment in respect of that supply or any part of it.

(5) The cases where a person shall be taken for the purposes of sub-paragraph (4) above to have become entitled to a credit for input tax allowable as attributable to the undercharged supply, or to a part of it, shall include any case where—

(a) a person has become entitled to a credit for any input tax on the supply to him, or the F668 ... importation by him, of any goods or services; and

(b) whatever the supplies to which the credit was treated as attributable when the entitlement to it arose, those goods or services are used by him in making the undercharged supply, or a part of it.

(6) For the purposes of sub-paragraphs (4) and (5) above where—

(a) there is a supply of any of the assets of a business of a person (“the transferor”) to a person to whom the whole or any part of that business is transferred as a going concern (“the transferee”), and

(b) that supply is treated, in accordance with an order under section 5(3), as being neither a supply of goods nor a supply of services,

the question, so far as it falls to be determined by reference to those assets, whether a credit for input tax to which any person has become entitled is one allowable as attributable to the whole or any part of a supply shall be determined as if the transferor and the transferee were the same person.

(7) Where, in a case to which sub-paragraph (6) above applies, the transferor himself acquired any of the assets in question by way of a supply falling within paragraphs (a) and (b) of that sub-paragraph, that sub-paragraph shall have the effect, as respects the assets so acquired, of requiring the person from whom those assets were acquired to be treated for the purposes of sub-paragraphs (4) and (5) above as the same person as the transferor and the transferee, and so on in the case of any number of successive supplies falling within those paragraphs.

(8) For the purposes of this paragraph any question—

(a) whether any credit for input tax to which a person has become entitled was, or is to be taken to have been, a credit allowable as attributable to the whole or any part of a supply, or

(b) whether any repayment is a repayment in respect of the whole or any part of a supply,

shall be determined, in relation to a supply of a right to goods or services or to a supply of goods or services by virtue of such a right, as if the supply of the right and supplies made by virtue of the right were a single supply of which the supply of the right and each of those supplies constituted different parts.

(9) References in this paragraph to the full value of a supply are references to the amount which (having regard to any direction under paragraph 1 of Schedule 6) would be the full value of that supply for the purposes of the charge to VAT if that supply were not a supply falling to be disregarded, to any extent, in pursuance of section 43(1)(a).

(10) References in this paragraph to the supply of a right to goods or services include references to the supply of any right, option or priority with respect to the supply of goods or services, and to the supply of an interest deriving from any right to goods or services.

Textual Amendments

F667 Word in Sch. 9A para. 1(2) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(2); S.I. 2019/1348, reg. 2

F668 Words in Sch. 9A para. 1(5)(a) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 96(2) (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)

Restrictions on giving directions U.K.

2 [F669 (1)] The Commissioners shall not give a direction under this Schedule by reference to a relevant event if they are satisfied that— U.K.

(a) the change in the treatment of the [F670 person], or

(b) the transaction in question,

had as its main purpose or, as the case may be, as each of its main purposes a genuine commercial purpose unconnected with the fulfilment of the condition specified in paragraph 1(3) above.

[F671 (2) This paragraph shall not apply where the relevant event is the termination of a [F672 person's] treatment as a member of a group by a notice under section 43C(1) or (3).]

Textual Amendments

F669 Sch. 9A para. 2(1) renumbered (27.7.1999) by 1999 c. 16, s. 16, Sch. 2 para. 5(2)

F670 Word in Sch. 9A para. 2(1)(a) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(3)(a); S.I. 2019/1348, reg. 2

F671 Sch. 9A para. 2(2) inserted (27.7.1999) by 1999 c. 16, s. 16, Sch. 2 para. 5(2)

F672 Word in Sch. 9A para. 2(2) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(3)(b); S.I. 2019/1348, reg. 2

Form of directions under Schedule U.K.

3 (1) The directions that may be given by the Commissioners under this Schedule are either— U.K.

(a) a direction relating to any supply of goods or services that has been made, in whole or in part, by one [F673 person] to another; or

(b) a direction relating to a particular [F674 person].

(2) A direction under this Schedule relating to a supply shall require it to be assumed (where it would not otherwise be the case) that, to the extent described in the direction, the supply was not a supply falling to be disregarded in pursuance of section 43(1)(a).

(3) A direction under this Schedule relating to a [F675 person] shall require it to be assumed (where it would not otherwise be the case) that, for such period (comprising times before the giving of the direction or times afterwards or both) as may be described in the direction, the [F675 person]—

(a) did not fall to be treated, or is not to be treated, as a member of a group, or of a particular group so described; or

(b) fell to be treated, or is to be treated, as a member of any group so described of which, for that period, it was or is eligible to be a member.

(4) Where a direction under this Schedule requires any assumptions to be made, then—

(a) so far as the assumptions relate to times on or after the day on which the direction is given, this Act shall have effect in relation to such times in accordance with those assumptions; and

(b) paragraph 6 below shall apply for giving effect to those assumptions in so far as they relate to earlier times.

(5) A direction falling within sub-paragraph (3)(b) above may identify in relation to any times or period the [F676 person who] is to be assumed to have been, or to be, the representative member of the group at those times or for that period.

(6) A direction under this Schedule may vary the effect of a previous direction under this Schedule.

(7) The Commissioners may at any time, by notice in writing to the person to whom it was given, withdraw a direction under this Schedule.

(8) The refusal or non-refusal by the Commissioners of an application [F677 such as is mentioned in section 43B] shall not prejudice the power of the Commissioners to give a direction under this Schedule requiring any case to be assumed to be what it would have been had the application not been refused or, as the case may be, had it been refused.

Textual Amendments

F673 Word in Sch. 9A para. 3(1)(a) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(4)(a); S.I. 2019/1348, reg. 2

F674 Word in Sch. 9A para. 3(1)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(4)(a); S.I. 2019/1348, reg. 2

F675 Word in Sch. 9A para. 3(3) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(4)(b); S.I. 2019/1348, reg. 2

F676 Words in Sch. 9A para. 3(5) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(4)(c); S.I. 2019/1348, reg. 2

F677 Words in Sch. 9A para. 3(8) substituted (27.7.1999) by 1999 c. 16, s. 16, Sch. 2 para. 5(3)

Time limit on directions U.K.

4 (1) A direction under this Schedule shall not be given more than six years after whichever is the later of— U.K.

(a) the occurrence of the relevant event by reference to which it is given; and

(b) the time when the relevant entitlement arose.

(2) A direction under this Schedule shall not be given by reference to a relevant event occurring on or before 28th November 1995.

(3) Subject to sub-paragraphs (1) and (2) above, a direction under this Schedule—

(a) may be given by reference to a relevant event occurring before the coming into force of this Schedule; and

(b) may require assumptions to be made in relation to times (including times before 29th November 1995) falling before the occurrence of the relevant event by reference to which the direction is given, or before the relevant entitlement arose.

(4) For the purposes of this paragraph the reference, in relation to the giving of a direction, to the relevant entitlement is a reference to the entitlement by reference to which the requirements of paragraph 1(4) above are taken to be satisfied for the purposes of that direction.

Manner of giving directions U.K.

5 (1) A direction under this Schedule relating to a supply may be given to— U.K.

(a) the person who made the supply to which the direction relates; or

(b) any [F678 person who], at the time when the direction is given, is the representative member of a group of which [F679 the person mentioned in paragraph (a)] was treated as being a member at the time of the supply.

(2) A direction under this Schedule relating to a [F680 person (“the relevant person”)] may be given to [F681 that person or to any person who] at the time when the direction is given is, or in pursuance of the direction is to be treated as, the representative member of a group of which [F682 the relevant person]—

(a) is treated as being a member;

(b) was treated as being a member at a time to which the direction relates; or

(c) is to be treated as being, or having been, a member at any such time.

(3) A direction given to any person under this Schedule shall be given to him by notice in writing.

(4) A direction under this Schedule must specify the relevant event by reference to which it is given.

Textual Amendments

F678 Words in Sch. 9A para. 5(1)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(5)(a)(i); S.I. 2019/1348, reg. 2

F679 Words in Sch. 9A para. 5(1)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(5)(a)(ii); S.I. 2019/1348, reg. 2

F680 Words in Sch. 9A para. 5(2) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(5)(b)(i); S.I. 2019/1348, reg. 2

F681 Words in Sch. 9A para. 5(2) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(5)(b)(ii); S.I. 2019/1348, reg. 2

F682 Words in Sch. 9A para. 5(2) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(5)(b)(iii); S.I. 2019/1348, reg. 2

Assessment in consequence of a direction U.K.

6 (1) Subject to sub-paragraph (3) below, where— U.K.

(a) a direction is given under this Schedule, and

(b) there is an amount of VAT (“the unpaid tax”) for which a relevant person would have been liable before the giving of the direction if the facts had accorded with the assumptions specified in the direction,

the Commissioners may, to the best of their judgement, assess the amount of unpaid tax as tax due from the person to whom the direction was given or another relevant person and notify their assessment to that person.

(2) In sub-paragraph (1) above the reference to an amount of VAT for which a person would, on particular assumptions, have been liable before the giving of a direction under this Schedule is a reference to the aggregate of the following—

(a) any amount of output tax which, on those assumptions but not otherwise, would have been due from a relevant person at the end of a prescribed accounting period ending before the giving of the direction;

(b) the amount of any credit for input tax to which a relevant person is treated as having been entitled at the end of such an accounting period but to which he would not have been entitled on those assumptions; and

(c) the amount of any repayment of tax made to a relevant person in accordance with regulations under section 39 but to which he would not have been entitled on those assumptions.

(3) Where any assessment falls to be made under this paragraph in a case in which the Commissioners are satisfied that the actual revenue loss is less than the unpaid tax, the total amount to be assessed under this paragraph shall not exceed what appears to them, to the best of their judgement, to be the amount of that loss.

(4) For the purposes of the making of an assessment under this paragraph in relation to any direction, the actual revenue loss shall be taken to be equal to the amount of the unpaid tax less the amount given by aggregating the amounts of every entitlement—

(a) to credit for input tax, or

(b) to a repayment in accordance with regulations under section 39,

which (whether as an entitlement of the person in relation to whom the assessment is made or as an entitlement of any other person) would have arisen on the assumptions contained in the direction, but not otherwise.

(5) An assessment under this paragraph relating to a direction may be notified to the person to whom that direction is given by being incorporated in the same notice as that direction.

(6) An assessment under this paragraph shall not be made—

(a) more than one year after the day on which the direction to which it relates was given, or

(b) in the case of any direction that has been withdrawn.

(7) Where an amount has been assessed on any person under this paragraph and notified to him—

(a) that amount shall be deemed (subject to the provisions of this Act as to appeals) to be an amount of VAT due from him;

(b) that amount may be recovered accordingly, either from that person or, in the case of a [F683 person who] is for the time being treated as a member of a group, from the representative member of that group; and

(c) to the extent that more than one person is liable by virtue of any assessment under this paragraph in respect of the same amount of unpaid tax, those persons shall be treated as jointly and severally liable for that amount.

(8) Sub-paragraph (7) above does not have effect if or to the extent that the assessment in question has been withdrawn or reduced.

(9) Sections 74 and 77(6) apply in relation to assessments under this paragraph as they apply in relation to assessments under section 73 but as if the reference in subsection (1) of section 74 to the reckonable date were a reference to the date on which the assessment is notified.

(10) Where by virtue of sub-paragraph (9) above any person is liable to interest under section 74—

(a) section 76 shall have effect in relation to that liability with the omission of subsections (2) to [F684 (5)]; and

(b) section 77, except subsection (6), shall not apply to an assessment of the amount due by way of interest;

and (without prejudice to the power to make assessments for interest for later periods) the interest to which any assessment made under section 76 by virtue of paragraph (a) above may relate shall be confined to interest for a period of no more than two years ending with the time when the assessment to interest is made.

(11) In this paragraph “ a relevant person ”, in relation to a direction, means—

(a) the person to whom the direction is given;

(b) the [F685 person who] was the representative member of any group of which [F686 the person mentioned in paragraph (a)] was treated as being, or in pursuance of the direction is to be treated as having been, a member at a time to which the assumption specified in the direction relates; or

(c) any [F687 person who], in pursuance of the direction, is to be treated as having been the representative member of such a group.

Textual Amendments

F683 Words in Sch. 9A para. 6(7)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(6)(a); S.I. 2019/1348, reg. 2

F684 Word in Sch. 9A para. 6(10)(a) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 96(3) (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)

F685 Words in Sch. 9A para. 6(11)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(6)(b)(i); S.I. 2019/1348, reg. 2

F686 Words in Sch. 9A para. 6(11)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(6)(b)(ii); S.I. 2019/1348, reg. 2

F687 Words in Sch. 9A para. 6(11)(c) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 14(6)(c); S.I. 2019/1348, reg. 2

Interpretation of Schedule etc. U.K.

7 (1) References in this Schedule to being treated as a member of a group and to being eligible to be treated as a member of a group shall be construed in accordance with [F688 section 43 to 43C]. U.K.

(2) For the purposes of this Schedule the giving of any notice or notification to any receiver, liquidator or person otherwise acting in a representative capacity in relation to another shall be treated as the giving of a notice or, as the case may be, notification to the person in relation to whom he so acts.]

Textual Amendments

F688 Words in Sch. 9A para. 7(1) substituted (27.7.1999) by 1999 c. 16, s. 16, Sch. 2 para. 5(4)

Section 51

[F689 SCHEDULE 10 U.K. BUILDINGS AND LAND

Textual Amendments

F689 Sch. 10 substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2008 (S.I. 2008/1146), arts. 1(1), 2 (with Sch. 2)

PART 1 U.K. THE OPTION TO TAX LAND

Introduction U.K.

Overview of the option to tax U.K.

1. (1) This Part of the Schedule makes provision for a person to opt to tax any land.

(2) The effect of the option to tax is dealt with in paragraph 2 (exempt supplies become taxable), as read with paragraph 3.

(3) Grants are excluded from the effect of paragraph 2 by—

(a) paragraph 5 (dwellings designed or adapted, and intended for use, as dwelling etc),

(b) paragraph 6 (conversion of buildings for use as dwelling etc),

(c) paragraph 7 (charities),

(d) paragraph 8 (residential caravans),

(e) paragraph 9 (residential houseboats),

(f) paragraph 10 (relevant housing associations), and

(g) paragraph 11 (grant to individual for construction of dwelling).

(4) Paragraphs 12 to 17 (anti-avoidance: developers of land etc) provide for certain supplies to which any grant gives rise to be excluded from the effect of paragraph 2.

(5) Paragraphs 18 to 30 deal with—

(a) the scope of the option to tax,

(b) the day from which the option to tax has effect,

(c) notification requirements,

(d) elections to opt to tax land subsequently acquired,

(e) the revocation of the option,

(f) the effect of the option to tax in relation to new buildings, and

(g) requirements for prior permission in the case of exempt grants made before the exercise of an option to tax.

(6) Paragraphs 31 to 34 deal with definitions which apply for the purposes of this Part, as well as other supplemental matters.

The option to tax U.K.

Effect of the option to tax: exempt supplies become taxable U.K.

2. (1) This paragraph applies if—

(a) a person exercises the option to tax any land under this Part of this Schedule, and

(b) a grant is made in relation to the land at any time when the option to tax it has effect.

(2) If the grant is made—

(a) by the person exercising that option, or

(b) by a relevant associate (if that person is a body corporate),

the grant does not fall within Group 1 of Schedule 9 (exemptions for land).

(3) For the meaning of “relevant associate”, see paragraph 3.

Meaning of “relevant associate” U.K.

3. (1) This paragraph explains for the purposes of this Part of this Schedule what is meant by a “relevant associate” in a case where a [F690 person] (“the opter”) exercises an option to tax in relation to any building or land.

(2) A [F691 person] is a relevant associate of the opter if under sections 43A to 43D (groups of companies) the [F691 person]—

(a) was treated as a member of the same group as the opter at the time when the option first had effect,

(b) has been so treated at any later time when the opter had a relevant interest in the building or land, or

(c) has been treated as a member of the same group as a [F692 person] within paragraph (a) or (b) of this sub-paragraph at a time when [F693 that person] had a relevant interest in the building or land.

(3) But a [F694 person (“P”)] ceases to be a relevant associate of the opter in relation to the building or land in the following circumstances.

(4) [F695 P] ceases to be a relevant associate of the opter in relation to the building or land at the time when all of the following conditions are first met—

(a) [F696 P] has no relevant interest in the building or land [F697 ,

(aa) where [F698 P] has disposed of such an interest, it is not the case that a supply for the purposes of the charge to VAT in respect of the disposal—

(i) is yet to take place, or

(ii) would be yet to take place if one or more conditions (such as the happening of an event or the doing of an act) were to be met,]

(b) [F699 P] or the opter is not treated under sections 43A to 43D as a member of the group mentioned above, and

(c) [F700 P] is not connected with any person who has a relevant interest in the building or land where that person is the opter or another relevant associate of the opter.

(5) [F701 P] also ceases to be a relevant associate of the opter in relation to the building or land if [F701 P]—

(a) meets conditions specified in a public notice (see paragraph 4), or

(b) gets the prior permission of the Commissioners (also, see that paragraph).

The time when [F702 P] ceases to be a relevant associate of the opter is determined in accordance with that paragraph.

(6) In this paragraph “relevant interest in the building or land” means an interest in, right over or licence to occupy the building or land (or any part of it).

Textual Amendments

F690 Word in Sch. 10 para. 3(1) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(a); S.I. 2019/1348, reg. 2

F691 Word in Sch. 10 para. 3(2) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(b)(i); S.I. 2019/1348, reg. 2

F692 Word in Sch. 10 para. 3(2)(c) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(b)(i); S.I. 2019/1348, reg. 2

F693 Words in Sch. 10 para. 3(2)(c) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(b)(ii); S.I. 2019/1348, reg. 2

F694 Words in Sch. 10 para. 3(3) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(c); S.I. 2019/1348, reg. 2

F695 Word in Sch. 10 para. 3(4) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(d)(i); S.I. 2019/1348, reg. 2

F696 Word in Sch. 10 para. 3(4)(a) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(d)(ii); S.I. 2019/1348, reg. 2

F697 Words in Sch. 10 para. 3(4) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2009 (S.I. 2009/1966), arts. 1(1), 3

F698 Word in Sch. 10 para. 3(4)(aa) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(d)(ii); S.I. 2019/1348, reg. 2

F699 Word in Sch. 10 para. 3(4)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(d)(ii); S.I. 2019/1348, reg. 2

F700 Word in Sch. 10 para. 3(4)(c) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(d)(ii); S.I. 2019/1348, reg. 2

F701 Word in Sch. 10 para. 3(5) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(e)(i); S.I. 2019/1348, reg. 2

F702 Word in Sch. 10 para. 3(5) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(2)(e)(ii); S.I. 2019/1348, reg. 2

Permission for a body corporate to cease to be a relevant associate of the opter U.K.

4. (1) This paragraph applies for the purposes of paragraph 3(5) in relation to a [F703 person (“P”) who] has been a relevant associate of the opter.

(2) If the conditions specified in the public notice under paragraph 3(5)(a) are met in relation to [F704 P, P] ceases to be a relevant associate of the opter only if notification of those conditions being met is given to the Commissioners.

(3) The notification must—

(a) be made in a form specified in a public notice,

(b) state the day from which [F705 P] is to cease to be a relevant associate of the opter (which may not be before the day on which the notification is given),

(c) contain a statement by [F706 P] certifying that, on that day, the conditions specified in the public notice under paragraph 3(5)(a) are met in relation to [F707 P], and

(d) contain other information specified in a public notice.

(4) An application for the prior permission of the Commissioners must—

(a) be made in a form specified in a public notice,

(b) contain a statement by [F708 P] certifying which (if any) of the conditions specified in the public notice under paragraph 3(5)(a) are met in relation to [F709 P], and

(c) contain other information specified in a public notice.

(5) If [F710 P] gets the prior permission of the Commissioners, [F711 P] ceases to be a relevant associate of the opter from—

(a) the day on which the Commissioners give their permission, or

(b) such earlier or later day as they specify in their permission.

(6) The Commissioners may specify an earlier day only if—

(a) [F712 P] has purported to give a notification of [F713 P's] ceasing to be a relevant associate of the opter,

(b) the conditions specified in the public notice are not, in the event, met in relation to [F714 P], and

(c) the Commissioners consider that the grounds on which those conditions are not so met are insignificant.

(7) The day specified may be the day from which [F715 P] would have ceased to be a relevant associate of the opter if those conditions had been so met.

(8) The Commissioners may specify conditions subject to which their permission is given and, if any of those conditions are broken, they may treat the application as if it had not been made.

Textual Amendments

F703 Words in Sch. 10 para. 4(1) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(3)(a); S.I. 2019/1348, reg. 2

F704 Words in Sch. 10 para. 4(2) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(3)(b); S.I. 2019/1348, reg. 2

F705 Word in Sch. 10 para. 4(3)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(3)(c); S.I. 2019/1348, reg. 2

F706 Word in Sch. 10 para. 4(3)(c) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(3)(d)(i); S.I. 2019/1348, reg. 2

F707 Word in Sch. 10 para. 4(3)(c) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(3)(d)(ii); S.I. 2019/1348, reg. 2

F708 Word in Sch. 10 para. 4(4)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(3)(e)(i); S.I. 2019/1348, reg. 2

F709 Word in Sch. 10 para. 4(4)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(3)(e)(ii); S.I. 2019/1348, reg. 2

F710 Word in Sch. 10 para. 4(5) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(3)(f)(i); S.I. 2019/1348, reg. 2

F711 Word in Sch. 10 para. 4(5) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(3)(f)(ii); S.I. 2019/1348, reg. 2

F712 Word in Sch. 10 para. 4(6)(a) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(3)(g)(i); S.I. 2019/1348, reg. 2

F713 Word in Sch. 10 para. 4(6)(a) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(3)(g)(ii); S.I. 2019/1348, reg. 2

F714 Word in Sch. 10 para. 4(6)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(3)(h); S.I. 2019/1348, reg. 2

F715 Word in Sch. 10 para. 4(7) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(3)(i); S.I. 2019/1348, reg. 2

Exclusions from effect of option to tax U.K.

Dwellings designed or adapted, and intended for use, as dwelling etc U.K.

5. (1) An option to tax has no effect in relation to any grant in relation to a building or part of a building if the building or part of the building is designed or adapted, and is intended, for use—

(a) as a dwelling or number of dwellings, or

(b) solely for a relevant residential purpose.

(2) In relation to the expression “relevant residential purpose”, see the certification requirement imposed as a result of the application of Note (12) of Group 5 of Schedule 8 by paragraph 33 of this Schedule.

Conversion of buildings for use as dwelling etc U.K.

6. (1) An option to tax has no effect in relation to any grant made to a person (“the recipient”) in relation to a building or part of a building if the recipient certifies that the building or part of the building is intended for use—

(a) as a dwelling or number of dwellings, or

(b) solely for a relevant residential purpose.

(2) The recipient must give the certificate to the person making the grant (“the seller”)—

(a) within the period specified in a public notice, or

(b) if the seller agrees, at any later time before the seller makes a supply to which the grant gives rise.

(3) The recipient may give the certificate to the seller only if the recipient—

(a) intends to use the building or part of the building as mentioned above,

(b) has the relevant conversion intention, or

(c) is a relevant intermediary.

(4) The recipient is a relevant intermediary if—

(a) the recipient intends to dispose of the relevant interest to another person, and

(b) that other person gives the recipient a certificate stating that the other person has the relevant conversion intention or the relevant disposal intention.

(5) For this purpose a person has the relevant disposal intention if—

(a) the person intends to dispose of the relevant interest to a third person, and

(b) the third person gives a qualifying certificate to the person.

(6) A person (P) gives a qualifying certificate to another if P gives a certificate to that other person stating that P has the relevant conversion intention or intends to dispose of the relevant interest to another person (Q) who has given a certificate to P stating—

(a) that Q has the relevant conversion intention, or

(b) that Q intends to dispose of the relevant interest to another person who has given a qualifying certificate to Q,

and so on (in the case of further disposals of the relevant interest).

(7) In this paragraph—

• “the relevant conversion intention”, in relation to a person, means an intention of the person to convert the building or part of the building with a view to its being used as mentioned above, and

• “the relevant interest”, in relation to any interest in the building or part of the building to which the grant gives rise, means the whole of that interest.

(8) For the purposes of this paragraph a building or part of a building is not to be regarded as intended for use as a dwelling or number of dwellings at any time if there is intended to be a period before that time during which it will not be so used (but disregarding use for incidental or other minor purposes).

(9) For the purposes of this paragraph the reference to use solely for a relevant residential purpose is to be read without regard to Note (12) of Group 5 of Schedule 8 (which would otherwise apply as a result of paragraph 33 of this Schedule).

(10) The Commissioners may publish a notice for the purposes of this paragraph—

(a) preventing a person from giving any certificate under this paragraph unless the person meets conditions specified in the notice,

(b) specifying the form in which any certificate under this paragraph must be made, and

(c) specifying any information which any certificate under this paragraph must contain.

Charities U.K.

7. (1) An option to tax has no effect in relation to any grant made to a person in relation to a building or part of a building intended by the person for use—

(a) solely for a relevant charitable purpose, but

(b) not as an office.

(2) In relation to the expression “relevant charitable purpose”, see the certification requirement imposed as a result of the application of Note (12) of Group 5 of Schedule 8 by paragraph 33 of this Schedule.

Residential caravans U.K.

8. (1) An option to tax has no effect in relation to any grant made in relation to a pitch for a residential caravan.

(2) A caravan is not a residential caravan if residence in it throughout the year is prevented by the terms of a covenant, statutory planning consent or similar permission.

Residential houseboats U.K.

9. (1) An option to tax has no effect in relation to any grant made in relation to facilities for the mooring of a residential houseboat.

• “Mooring” includes anchoring or berthing.

(2) In this paragraph—

(a) “houseboat” means a houseboat within the meaning of Group 9 of Schedule 8, and

(b) a houseboat is not a residential houseboat if residence in it throughout the year is prevented by the terms of a covenant, statutory planning consent or similar permission.

Relevant housing associations U.K.

10. (1) An option to tax has no effect in relation to any grant made to a relevant housing association in relation to any land if the association certifies that the land is to be used (after any necessary demolition work) for the construction of a building or buildings intended for use—

(a) as a dwelling or number of dwellings, or

(b) solely for a relevant residential purpose.

(2) The association must give the certificate to the person making the grant (“the seller”)—

(a) within the period specified in a public notice, or

(b) if the seller agrees, at any later time before the seller makes a supply to which the grant gives rise.

(3) In this paragraph “relevant housing association” means—

[F716 (za) a private registered provider of social housing,]

(a) a registered social landlord within the meaning of Part 1 of the Housing Act 1996 (F717 ... Welsh registered social landlords),

[F718 (b) a registered social landlord within the meaning of the Housing (Scotland) Act 2010 (asp 17) which is either—

(i) a society registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 (c.12), or

(ii) a company within the meaning of the Companies Act 2006 (c.46), or]

(c) a registered housing association within the meaning of Part 2 of the Housing (Northern Ireland) Order 1992 (Northern Irish registered housing associations).

(4) For the purposes of this paragraph the reference to use solely for a relevant residential purpose is to be read without regard to Note (12) of Group 5 of Schedule 8 (which would otherwise apply as a result of paragraph 33 of this Schedule).

(5) The Commissioners may publish a notice for the purposes of this paragraph—

(a) specifying the form in which any certificate under this paragraph must be made, and

(b) specifying any information which any certificate under this paragraph must contain.

Textual Amendments

F716 Sch. 10 para. 10(3)(za) inserted (1.4.2010) by The Value Added Tax (Buildings and Land) Order 2010 (S.I. 2010/485), arts. 1, 4(1)(a)

F717 Words in Sch. 10 para. 10(3)(a) omitted (1.4.2010) by virtue of The Value Added Tax (Buildings and Land) Order 2010 (S.I. 2010/485), arts. 1, 4(1)(b)

F718 Sch. 10 para. 10(3)(b) substituted (1.4.2012) by The Housing (Scotland) Act 2010 (Consequential Provisions and Modifications) Order 2012 (S.I. 2012/700), art. 1(3), Sch. para. 5(3)

Modifications etc. (not altering text)

C17 Sch. 10 para. 10(3) modified (temp.) (1.4.2010) by The Value Added Tax (Buildings and Land) Order 2010 (S.I. 2010/485), arts. 1, 4(2)

Grant to individual for construction of dwelling U.K.

11. An option to tax has no effect in relation to any grant made to an individual if—

(a) the land is to be used for the construction of a building intended for use by the individual as a dwelling, and

(b) the construction is not carried out in the course or furtherance of a business carried on by the individual.

Anti-avoidance U.K.

Developers of exempt land U.K.

12. (1) A supply is not, as a result of an option to tax, a taxable supply if—

(a) the grant giving rise to the supply was made by a person (“the grantor”) who was a developer of the land, and

(b) the exempt land test is met.

(2) The exempt land test is met if, at the time when the grant was made (or treated for the purposes of this paragraph as made), the relevant person intended or expected that the land—

(a) would become exempt land (whether immediately or eventually and whether or not as a result of the grant), or

(b) would continue, for a period at least, to be exempt land.

(3) “The relevant person” means—

(a) the grantor, or

(b) a development financier.

(4) For the meaning of a development financier, see paragraph 14.

(5) For the meaning of “exempt land”, see paragraphs 15 and 16.

(6) If a supply is made by a person other than the person who made the grant giving rise to it—

(a) the person making the supply is treated for the purposes of this paragraph as the person who made the grant giving rise to it, and

(b) the grant is treated for the purposes of this paragraph as made at the time when that person made the first supply arising from the grant.

(7) For a special rule in the case of a grant made on or after 19th March 1997 and before 10th March 1999, see paragraph 17.

(8) Nothing in this paragraph applies in relation to a supply arising from—

(a) a grant made before 26th November 1996, or

(b) a grant made on or after that date but before 30th November 1999, in pursuance of a written agreement entered into before 26th November 1996, on terms which (as terms for which provision was made by that agreement) were fixed before 26th November 1996.

Meaning of grants made by a developer U.K.

13. (1) This paragraph applies for the purposes of paragraph 12.

(2) A grant made by any person (“the grantor”) in relation to any land is made by a developer of the land if—

(a) the land is, or was intended or expected to be, a relevant capital item (see sub-paragraphs (3) to (5)), and

(b) the grant is made at an eligible time as respects that capital item (see sub-paragraph (6)).

(3) The land is a relevant capital item if—

(a) the land, or

(b) the building or part of a building on the land,

is a capital item in relation to the grantor.

(4) The land was intended or expected to be a relevant capital item if the grantor, or a development financier, intended or expected that—

(a) the land, or

(b) a building or part of a building on, or to be constructed on, the land,

would become a capital item in relation to the grantor or any relevant transferee.

(5) A person is a relevant transferee if the person is someone to whom the land, building or part of a building was to be transferred—

(a) in the course of a supply, or

(b) in the course of a transfer of a business or part of a business as a going concern.

(6) A grant is made at an eligible time as respects a capital item if it is made before the end of the period provided in the relevant regulations for the making of adjustments relating to the deduction of input tax as respects the capital item.

(7) But if—

(a) a person other than the grantor is treated by paragraph 12(6) as making the grant of the land, and

(b) the grant is consequently treated as made at what would otherwise be an ineligible time,

the grant is treated instead as if were not made at an ineligible time.

(8) In this paragraph a “capital item”, in relation to any person, means an asset falling, in relation to the person, to be treated as a capital item for the purposes of the relevant regulations.

(9) In this paragraph “the relevant regulations”, as respects any item, means regulations under section 26(3) and (4) providing for adjustments relating to the deduction of input tax to be made as respects that item.

Meaning of “development financier” U.K.

14. (1) This paragraph explains for the purposes of paragraphs 12 to 17 what is meant, in relation to the grantor of any land, by a development financier.

(2) A “development financier” means a person who—

(a) has provided finance for the grantor’s development of the land, or

(b) has entered into any arrangement to provide finance for the grantor’s development of the land,

with the intention or in the expectation that the land will become exempt land or continue (for a period at least) to be exempt land.

(3) For the purposes of this paragraph references to finance being provided for the grantor’s development of the land are to doing (directly or indirectly) any one or more of the following—

(a) providing funds for meeting the whole or any part of the cost of the grantor’s development of the land,

(b) procuring the provision of such funds by another,

(c) providing funds for discharging (in whole or in part) any liability that has been or may be incurred by any person for or in connection with the raising of funds to meet the cost of the grantor’s development of the land, and

(d) procuring that any such liability is or will be discharged (in whole or in part) by another.

(4) For the purposes of this paragraph references to providing funds for a particular purpose are to—

(a) the making of a loan of funds that are or are to be used for that purpose,

(b) the provision of any guarantee or other security in relation to such a loan,

(c) the provision of any of the consideration for the issue of any shares or other securities issued wholly or partly for raising those funds,

(d) the provision of any consideration for the acquisition by any person of any shares or other securities issued wholly or partly for raising those funds, or

(e) any other transfer of assets or value as a consequence of which any of those funds are made available for that purpose.

(5) For the purposes of this paragraph references to the grantor’s development of the land are to the acquisition by the grantor of the asset which—

(a) consists in the land or a building or part of a building on the land, and

(b) is, or (as the case may be) was intended or expected to be, a relevant capital item in relation to the grantor (within the meaning of paragraph 13).

(6) For this purpose the reference to the acquisition of the asset includes—

(a) its construction or reconstruction, and

(b) the carrying out in relation to it of any other works by reference to which it is, or was intended or expected to be, a relevant capital item (within the meaning of paragraph 13).

(7) In this paragraph “arrangement” means any agreement, arrangement or understanding (whether or not legally enforceable).

Meaning of “exempt land”: basic definition U.K.

15. (1) This paragraph explains for the purposes of paragraphs 12 to 17 what is meant by exempt land.

(2) Land is exempt land if, at any time before the end of the relevant adjustment period as respects that land—

(a) a relevant person is in occupation of the land, and

(b) that occupation is not wholly, or substantially wholly, for eligible purposes.

(3) Each of the following is a relevant person—

(a) the grantor,

(b) a person connected with the grantor,

(c) a development financier, and

(d) a person connected with a development financier.

[F719 (3A) Where a person (“P”) is in occupation of the land at any time before the end of the relevant adjustment period as respects that land, P is treated for the purposes of sub-paragraph (2) as not in occupation of the land at that time if—

(a) the building occupation conditions are met at that time, or

(b) P’s occupation of the land arises solely by reference to any automatic teller machine of P.]

(4) The relevant adjustment period as respects any land is the period provided in the relevant regulations (within the meaning of paragraph 13) for the making of adjustments relating to the deduction of input tax as respects the land.

(5) For the purposes of this paragraph any question whether a person’s occupation of any land is “wholly, or substantially wholly,” for eligible purposes is to be decided by reference to criteria specified in a public notice.

Textual Amendments

F719 Sch. 10 para. 15(3A) substituted (with effect in accordance with art. 2 of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2011 (S.I. 2011/86), arts. 1, 5

Meaning of “exempt land”: the building occupation conditions U.K.

[F720 15A. (1) For the purposes of paragraph 15(3A), the building occupation conditions are met at any time (“the time in question”) if—

(a) the grant consists of or includes the grant of a relevant interest in a building, and

(b) P does not, at the time in question, occupy—

(i) any part of the land that is not a building, or

(ii) more than [F721 the maximum allowable percentage] of any relevant building.

(2) For the purposes of sub-paragraph (1)(b)(i) and (ii) occupation by a person connected with P is treated as occupation by P [F722 if that occupation is not wholly, or substantially wholly, for eligible purposes.]

(3) For the purposes of sub-paragraph (1)(b)(i) occupation by a person of—

(a) land used for the parking of cars or other vehicles, or

(b) land that is within the curtilage of a building,

is disregarded if the occupation is ancillary to the occupation by that person of a building.

[F723 (4) In sub-paragraph (1)(b)(ii)—

• “the maximum allowable percentage” means—

  (a)

  2% where P is the grantor or a person connected with the grantor, and

  (b)

  10% where P is a development financier or a person connected with a development financier (but not also the grantor or a person connected with the grantor), and

• “relevant building”—

  (a)

  means a building any relevant interest in which is included in the grant, other than any part of such a building in which, immediately before the grant, neither the grantor nor any person connected with the grantor held a relevant interest, but

  (b)

  does not include any building P’s occupation of which arises solely by reference to any automatic teller machine of P.]

(5) The way in which occupation by a person of a building is measured for the purposes of sub-paragraph (1)(b)(ii) is to be determined in accordance with conditions specified in a public notice.

(6) In this paragraph “relevant interest”, in relation to a building or part of a building, means any interest in, right over or licence to occupy the building or part.

[F724 (6A) Sub-paragraph (5) of paragraph 15 (determination of whether occupation “wholly, or substantially wholly” for eligible purposes to be by reference to criteria in public notice) applies for the purposes of this paragraph.]

(7) Sub-paragraphs (4) to (7) of paragraph 18 (meaning of “building”) apply for the purposes of this paragraph.]

Textual Amendments

F720 Sch. 10 para. 15A inserted (with effect in accordance with art. 2 of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2010 (S.I. 2010/485), arts. 1, 6

F721 Words in Sch. 10 para. 15A(1)(b)(ii) substituted (with effect in accordance with art. 2 of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2011 (S.I. 2011/86), arts. 1, 6(a)

F722 Words in Sch. 10 para. 15A(2) inserted (with effect in accordance with art. 2 of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2011 (S.I. 2011/86), arts. 1, 6(b)

F723 Sch. 10 para. 15A(4) substituted (with effect in accordance with art. 2 of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2011 (S.I. 2011/86), arts. 1, 6(c)

F724 Sch. 10 para. 15A(6A) inserted (with effect in accordance with art. 2 of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2011 (S.I. 2011/86), arts. 1, 6(d)

Meaning of “exempt land”: eligible purposes U.K.

16. (1) This paragraph explains what is meant for the purposes of paragraph 15 by a person occupying land for eligible purposes.

(2) A person cannot occupy land at any time for eligible purposes unless the person is a taxable person at that time (but this rule is qualified by sub-paragraphs (5) and (6)).

(3) A taxable person occupies land for eligible purposes so far as the occupation is for the purpose of making creditable supplies (but this rule is qualified by sub-paragraphs (5) to (7)).

(4) “Creditable supplies” means supplies which—

(a) are or are to be made in the course or furtherance of a business carried on by the person, and

(b) are supplies of such a description that the person would be entitled to a credit for any input tax wholly attributable to those supplies.

(5) Any occupation of land by a body to which section 33 applies (local authorities etc) is occupation of the land for eligible purposes so far as the occupation is for purposes other than those of a business carried on by the body.

(6) Any occupation of land by a Government department (within the meaning of section 41) is occupation of the land for eligible purposes.

F725 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) If a person occupying land—

(a) holds the land in order to put it to use for particular purposes, and

(b) does not occupy it for any other purpose,

the person is treated for the purposes of this paragraph, for so long as the conditions in paragraphs (a) and (b) continue to be met, as occupying the land for the purposes for which the person proposes to use it.

(9) If land is in the occupation of a person (“A”) who—

(a) is not a taxable person, but

(b) is a person whose supplies are treated for the purposes of this Act as made by another person (“B”) who is a taxable person,

the land is treated for the purposes of this paragraph as if A and B were a single taxable person.

(10) For the purposes of this paragraph a person occupies land—

(a) whether the person occupies it alone or together with one or more other persons, and

(b) whether the person occupies all of the land or only part of it.

Textual Amendments

F725 Sch. 10 para. 16(7) omitted (with effect in accordance with art. 2 of the amending S.I.) by virtue of The Value Added Tax (Buildings and Land) Order 2011 (S.I. 2011/86), arts. 1, 7

Paragraph 12: grants made on or after 19th March 1997 and before 10th March 1999 U.K.

17. (1) A grant in relation to land which was made—

(a) on or after 19th March 1997, and

(b) before 10th March 1999,

is treated for the purposes of paragraph 12 as made on 10th March 1999 if, at the time of the grant, the capital item test was met.

(2) The capital item test was met if the person making the grant, or a development financier, intended or expected that—

(a) the land, or

(b) a building or part of a building on, or to be constructed on, the land,

would become a capital item in relation to the grantor or any relevant transferee but it had not become such an item.

(3) For the purposes of that test “capital item” and “relevant transferee” have the meaning given by paragraph 13.

Scope of the option, its duration, notification etc U.K.

Scope of the option U.K.

18. (1) An option to tax has effect in relation to the particular land specified in the option.

(2) If an option to tax is exercised in relation to—

(a) a building, or

(b) part of a building,

the option has effect in relation to the whole of the building and all the land within its curtilage.

(3) If an option to tax—

(a) is exercised in relation to any land, but

(b) is not exercised by reference to a building or part of a building,

the option is nonetheless taken to have effect in relation to any building which is (or is to be) constructed on the land (as well as in relation to land on which no building is constructed).

(4) For the purposes of this paragraph—

(a) buildings linked internally or by a covered walkway, and

(b) complexes consisting of a number of units grouped around a fully enclosed concourse,

are treated as a single building.

(5) But for those purposes—

(a) buildings which are linked internally are not treated as a single building if the internal link is created after the buildings are completed, and

(b) buildings which are linked by a covered walkway are not treated as a single building if the walkway starts to be constructed after the buildings are completed.

(6) In this paragraph a “building” includes—

(a) an enlarged or extended building,

(b) an annexe to a building, and

(c) a planned building.

(7) In this paragraph “covered walkway” does not include a covered walkway to which the general public has reasonable access.

The day from which the option has effect U.K.

19. (1) An option to tax has effect from—

(a) the start of the day on which it is exercised, or

(b) the start of any later day specified in the option.

(2) But if, when an option to tax is exercised, the person exercising the option intends to revoke it in accordance with paragraph 23 (revocation of option: the “cooling off” period), the option is treated for the purposes of this Act as if it had never been exercised.

(3) An option to tax may be revoked in accordance with paragraph 22(2) or (3) and any of paragraphs 23 to 25, but not otherwise.

(4) This paragraph needs to be read with—

(a) paragraph 20 (requirement to notify the option), and

(b) paragraph 29(3) (application for prior permission in the case of an exempt grant before the exercise of an option to tax).

Requirement to notify the option U.K.

20. (1) An option to tax has effect only if—

(a) notification of the option is given to the Commissioners within the allowed time, and

(b) that notification is given together with such information as the Commissioners may require.

(2) Notification of an option is given within the allowed time if (and only if) it is given—

(a) before the end of the period of 30 days beginning with the day on which the option was exercised, or

(b) before the end of such longer period beginning with that day as the Commissioners may in any particular case allow.

(3) The Commissioners may publish a notice for the purposes of this paragraph specifying—

(a) the form in which a notification under this paragraph must be made, and

(b) the information which a notification under this paragraph must contain.

(4) Notification of an option to tax does not need to be given under this paragraph if the option is treated as exercised in accordance with paragraph 29(3).

Real estate elections: elections to opt to tax land subsequently acquired U.K.

21. (1) A person (E) may make an election (a “real estate election”) for this paragraph to have effect in relation to—

(a) relevant interests in any building or land which E acquires after the election is made, and

(b) relevant interests in any building or land which a [F726 person] acquires after the election is made at a time when [F727 the person] is a relevant group member.

(2) If E makes a real estate election—

(a) E is treated for the purposes of this Part of this Schedule as if E had exercised an option to tax in relation to the building or land in which the relevant interest is acquired,

(b) that option is treated for those purposes as if it had been exercised on the day on which the acquisition was made and as if it had effect from the start of that day, and

(c) paragraph 20 does not apply in relation to that option,

but this sub-paragraph is subject to sub-paragraphs (3) to (5).

(3) A person (P) is not to be treated as a result of this paragraph as exercising an option to tax in relation to any building or land where at any time—

(a) P, or any [F728 person who] was a relevant group member at that time, exercises an option to tax in relation to the building (or part of the building) or land apart from this paragraph, and

(b) that option has effect from a time earlier than the time from which an option to tax exercised by P in relation to the building or land would otherwise have been treated as having effect as a result of this paragraph.

(4) A person (P) is not to be treated as a result of this paragraph as exercising an option to tax in relation to any building or land in which a relevant interest is acquired (“the later interest”) if—

(a) the person making the acquisition in question held another relevant interest in that building or land before P makes a real estate election, and

(b) the person making the acquisition in question continues to hold that other relevant interest at the time when the later interest is acquired.

(5) A person is not to be treated as a result of this paragraph as exercising an option to tax in relation to any building or land if—

(a) a relevant interest in the building or land is acquired as mentioned in sub-paragraph (1), and

(b) on the relevant assumptions the case would fall within paragraph 28 (pre-option exempt grants: requirement for prior permission before exercise of option to tax).

(6) The relevant assumptions are that—

(a) the effect of this paragraph is disregarded, and

(b) the day from which the person would want the option to tax to have effect for the purposes of paragraphs 28 or 29(3) is the day on which the relevant interest is acquired.

(7) A real estate election has effect only if—

(a) notification of the election is given to the Commissioners before the end of the period of 30 days beginning with the day on which it was made or such longer period as the Commissioners may in any particular case allow,

(b) the notification is made in a form specified in a public notice, and

(c) the notification contains information so specified.

(8) The Commissioners may at any time require a person who has made a real estate election to give to the Commissioners information specified in a public notice before the end of—

(a) the period of 30 days beginning with that time, or

(b) such longer period as the Commissioners may in any particular case allow.

(9) If a person (P) does not comply with that requirement—

(a) the Commissioners may revoke the election, and

(b) that revocation has effect in relation to relevant interests in any building or land acquired after the notified time by P or a [F729 person who] is a relevant group member at the time of acquisition.

• “The notified time” means the time specified in a notification given by the Commissioners to P (which may not be before the notification is given).

(10) A real estate election may not be revoked except in accordance with sub-paragraph (9).

(11) If a real estate election made by a person (P) is revoked in accordance with that sub-paragraph, another real estate election may be made at any subsequent time by—

(a) P, or

(b) any [F730 person who] is a relevant group member at that subsequent time,

but only with the prior permission of the Commissioners.

(12) In this paragraph—

• “relevant group member”, in relation to any person [F731 (“P”)] making a real estate election and any time, means a [F732 person who] is treated under sections 43A to 43D as a member of the same group as [F733 P] at that time, and

• “relevant interest”, in relation to any building or land, means any interest in, right over or licence to occupy the building or land (or any part of it).

[F734 (13) For the purposes of this paragraph, the time at which a relevant interest in any building or land is acquired is—

(a) the time at which a supply is treated as taking place for the purposes of the charge to VAT in respect of the acquisition, or

(b) if there is more than one such time, the earliest of them.

(14) For the purposes of sub-paragraph (13)(a), any order under section 5(3)(c) that would otherwise have the effect that the acquisition in question is to be treated as neither a supply of goods nor a supply of services is to be disregarded.]

Textual Amendments

F726 Word in Sch. 10 para. 21(1)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(4)(a)(i); S.I. 2019/1348, reg. 2

F727 Words in Sch. 10 para. 21(1)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(4)(a)(ii); S.I. 2019/1348, reg. 2

F728 Words in Sch. 10 para. 21(3)(a) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(4)(b); S.I. 2019/1348, reg. 2

F729 Words in Sch. 10 para. 21(9)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(4)(c); S.I. 2019/1348, reg. 2

F730 Words in Sch. 10 para. 21(11)(b) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(4)(d); S.I. 2019/1348, reg. 2

F731 Word in Sch. 10 para. 21(12) inserted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(4)(e)(i); S.I. 2019/1348, reg. 2

F732 Words in Sch. 10 para. 21(12) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(4)(e)(ii); S.I. 2019/1348, reg. 2

F733 Word in Sch. 10 para. 21(12) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(4)(e)(iii); S.I. 2019/1348, reg. 2

F734 Sch. 10 para. 21(13)(14) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2009 (S.I. 2009/1966), arts. 1(1), 4

Real estate elections: supplementary U.K.

22. (1) This paragraph applies if, at any time (“the relevant time”), a person (E) makes a real estate election under paragraph 21.

(2) An option to tax exercised in relation to any building or part of any building before the relevant time by—

(a) E, or

(b) any relevant group member,

is treated for the purposes of this Part of this Schedule as if it had been revoked from the relevant time if, at that time, neither E nor any relevant group member has a relevant interest in that building.

(3) An option to tax exercised in relation to any land (otherwise than by reference to any building or part of a building) before the relevant time by—

(a) E, or

(b) any relevant group member,

is treated for the purposes of this Part of this Schedule as if it had been revoked in accordance with sub-paragraph (4) from the relevant time if, at that time, neither E nor any relevant group member has a relevant interest in that land, or E or any relevant group member has a relevant interest in only some of it.

(4) The option is treated for the purposes of this Part of this Schedule as if it had been revoked in relation to—

(a) that land, or

(b) the parts of that land in which neither E nor any relevant group member has a relevant interest at the relevant time,

as the case may be.

(5) Sub-paragraphs (2) and (3) are subject to paragraph 26 (anti-avoidance).

(6) An option to tax (“the original option”) exercised in relation to any land (otherwise than by reference to any building or part of a building) before the relevant time by—

(a) E, or

(b) any relevant group member,

may, in circumstances specified in a public notice, be converted by E into separate options to tax if, at the relevant time, E or any relevant group member has a relevant interest in the land or any part of it.

(7) The original option is converted into separate options to tax different parcels of land comprised in that land or part.

(8) Those separate options to tax are treated for the purposes of this Part of this Schedule—

(a) as if they had been exercised by E, and

(b) as if they had effect from the time from which the original option had effect.

(9) But—

(a) those separate options to tax are treated for the purposes of paragraph 3(2) as if they had effect from the relevant time, and

(b) paragraph 23 (revocation of an option: the “cooling off” period) does not apply to those separate options to tax.

(10) The notification of the election given by E must identify—

(a) the separate options to tax treated as exercised by E as a result of sub-paragraphs (6) to (8), and

(b) the different parcels of land in relation to which those separate options to tax are treated as having effect.

(11) In this paragraph—

(a) any reference to any relevant group member is to a body corporate which is a relevant group member at the relevant time, and

(b) any reference to any relevant group member, in relation to any relevant interest in any building or land (or any part of it), is to any relevant group member regardless of whether it has exercised an option to tax the building or land (or any part of it).

(12) In this paragraph “relevant group member” and “relevant interest”, have the meaning given by paragraph 21.

(13) In this paragraph any reference to a real estate election under paragraph 21 does not include an election which is made under sub-paragraph (11) of that paragraph.

Revocation of option: the “cooling off” period U.K.

23. (1) An option to tax any land exercised by any person (“the taxpayer”) may be revoked with effect from the day on which it was exercised if—

(a) the time that has lapsed since the day on which the option had effect is less than 6 months,

F735 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) no tax has become chargeable as a result of the option,

(d) there is no relevant transfer of a business as a going concern (see sub-paragraph (2)), and

(e) notification of the revocation is given to the Commissioners (see sub-paragraph (3)).

(2) There is no relevant transfer of a business as a going concern if, since the option had effect, no grant in relation to the land has been made which is treated as neither a supply of goods nor a supply of services because—

(a) the supply is a supply of the assets of a business by the taxpayer to a person to whom the business (or part of it) is transferred as a going concern, or

(b) the supply is a supply of assets of a business by a person to the taxpayer to whom the business (or part of it) is so transferred.

(3) The notification of the revocation must—

(a) be made in a form specified in a public notice, and

(b) contain information so specified.

(4) The Commissioners may publish a notice for the purposes of this paragraph providing that a revocation under this paragraph is effective only if—

(a) the conditions specified in the notice are met in relation to the option, or

(b) the taxpayer gets the prior permission of the Commissioners on an application made to them before the end of the 6 month period mentioned above.

(5) A notice under sub-paragraph (4) may—

(a) provide that, in a case falling with paragraph (a) of that sub-paragraph, the taxpayer must certify that the conditions specified under that paragraph are met in relation to the option,

(b) specify the form in which an application under paragraph (b) of that sub-paragraph must be made,

(c) provide that an application under that paragraph must contain a statement by the taxpayer certifying which (if any) of the conditions specified under sub-paragraph (4)(a) are met in relation to the option,

(d) specify other information which an application under sub-paragraph (4)(a) must contain, and

(e) provide that the Commissioners may specify conditions subject to which their permission is given and, if any of those conditions are broken, the Commissioners may treat the revocation as if it had not been made.

Textual Amendments

F735 Sch. 10 para. 23(1)(b) omitted (1.4.2010) by virtue of The Value Added Tax (Buildings and Land) Order 2010 (S.I. 2010/485), arts. 1, 7

Revocation of option: lapse of 6 years since having a relevant interest U.K.

24. (1) An option to tax exercised by any person in relation to any building or land is treated for the purposes of this Part of this Schedule as revoked if the person does not have a relevant interest in the building or land throughout any continuous period of 6 years beginning at any time after the option has effect.

(2) The option to tax is treated for the purposes of this Part of this Schedule as revoked from the end of that period.

(3) In this paragraph “a relevant interest in the building or land” means an interest in, right over or licence to occupy the building or land (or any part of it).

(4) This paragraph is subject to paragraph 26 (anti-avoidance).

Revocation of option: lapse of more than 20 years since option had effect U.K.

25. (1) An option to tax any land exercised by any person (“the taxpayer”) may be revoked if the time that has lapsed since the day on which the option had effect is more than 20 years and—

(a) at the time when the option is to be revoked the conditions specified in a public notice are met in relation to the option (in which case, see sub-paragraphs (2) to (4)), or

(b) the taxpayer gets the prior permission of the Commissioners (in which case, see the remaining sub-paragraphs).

(2) If the conditions specified in the public notice are met in relation to the option, the revocation has effect only if notification of the revocation is given to the Commissioners.

(3) The notification must—

(a) be made in the specified form,

(b) state the day from which the option is to be revoked (which may not be before the day on which the notification is given),

(c) contain a statement by the taxpayer certifying that, on that day, the conditions specified in the public notice are met in relation to the option, and

(d) contain other information specified in a public notice.

(4) If—

(a) notification of the revocation of an option is given to the Commissioners on the basis that the conditions specified in the public notice were met in relation to the option, but

(b) it is subsequently discovered that those conditions were not met in relation to the option,

the Commissioners may nonetheless treat the option as if it had been validly revoked in accordance with this paragraph.

(5) An application for the prior permission of the Commissioners must—

(a) be made in a form specified in a public notice,

(b) contain a statement by the taxpayer certifying which (if any) of the conditions specified in the public notice under sub-paragraph (1)(a) are met in relation to the option, and

(c) contain other information specified in a public notice.

(6) If the taxpayer gets the prior permission of the Commissioners for the revocation of an option, the option is revoked from—

(a) the day on which the Commissioners give their permission, or

(b) such earlier or later day [F736 or time as they may] specify in their permission.

(7) The Commissioners may specify an earlier day [F737 or time] only if—

(a) the taxpayer has purported to give a notification of the revocation of the option,

(b) the conditions specified in the public notice are not, in the event, met in relation to the option, and

(c) the Commissioners consider that the grounds on which those conditions are not so met are insignificant.

[F738 (8) The Commissioners may specify a day or time under sub-paragraph (6)(b) by reference to the happening of an event or the meeting of a condition.]

(9) The Commissioners may specify conditions subject to which their permission is given and, if any of those conditions are broken, they may treat the revocation as if it had not been made.

Textual Amendments

F736 Words in Sch. 10 para. 25(6)(b) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2009 (S.I. 2009/1966), arts. 1(1), 5(2)

F737 Words in Sch. 10 para. 25(7) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2009 (S.I. 2009/1966), arts. 1(1), 5(3)

F738 Sch. 10 para. 25(8) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2009 (S.I. 2009/1966), arts. 1(1), 5(4)

Revocation of option under paragraph 22(2) or (3) or 24: anti-avoidance U.K.

[F739 26. (1) Sub-paragraphs (2) and (3) of paragraph 22 (revocation of option to tax where a real estate election is made) do not apply if condition A or B is met.

(2) Paragraph 24 (lapse of option to tax) does not apply if condition A, B or C is met.

(3) Condition A is that—

(a) the opter, or a relevant associate of the opter, disposes of a relevant interest in the building or land before the relevant time, and

(b) at the relevant time, a supply for the purposes of the charge to VAT in respect of the disposal—

(i) is yet to take place, or

(ii) would be yet to take place if one or more conditions (such as the happening of an event or the doing of an act) were to be met.

(4) Condition B is that—

(a) the opter is a body corporate that was, at any time before the relevant time, treated under sections 43A to 43D as a member of a group (“the group”), and

(b) before the relevant time, a relevant associate of the opter in relation to the building or land ceased to be treated under those sections as a member of the group without at the same time meeting the conditions in sub-paragraph (5).

(5) A person (“A”) meets the conditions in this sub-paragraph if—

(a) A has no relevant interest in the building or land,

(b) where A has disposed of such an interest, it is not the case that a supply for the purposes of the charge to VAT in respect of the disposal—

(i) is yet to take place, or

(ii) would be yet to take place if one or more conditions (such as the happening of an event or the doing of an act) were to be met, and

(c) A is not connected with any person who has a relevant interest in the building or land where that person is the opter or another relevant associate of the opter.

(6) Condition C is that the opter is a body corporate and, at the relevant time, a relevant associate of the opter in relation to the building or land—

(a) is treated under sections 43A to 43D as a member of the same group as the opter, and

(b) holds a relevant interest in the building or land or has held such an interest at any time within the previous 6 years.

(7) In this paragraph—

• “relevant interest in the building or land” means an interest in, right over or license to occupy the building or land (or any part of it);

• “the relevant time”, in relation to any option to tax, means the time from which the option would (but for this paragraph) have been treated as revoked as a result of paragraph 22(2) or (3) or 24;

• “opter” means the person who exercised the option to tax in question.]

Textual Amendments

F739 Sch. 10 para. 26 substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2009 (S.I. 2009/1966), arts. 1(1), 6

Exclusion of new building from effect of an option U.K.

27. (1) This paragraph applies if—

(a) a person (“the taxpayer”) has at any time opted to tax any land,

(b) at any subsequent time the construction of a building (“the new building”) on the land begins, and

(c) no land within the curtilage of the new building is within the curtilage of an existing building.

(2) The taxpayer may exclude—

(a) the whole of the new building, and

(b) all the land within its curtilage,

from the effect of the option if notification of that exclusion is given to the Commissioners.

(3) The exclusion has effect from the earliest of the following times—

(a) the time when a grant of an interest in, or in any part of, the new building is first made,

(b) the time when the new building, or any part of it, is first used,

(c) the time when the new building is completed.

(4) The notification of the exclusion must—

[F740 (za) be given before the end of the period of 30 days beginning with the day on which it is to have effect or such longer period as the Commissioners may in any case allow,]

(a) be made in a form specified in a public notice,

[F741 (b) state the time from which it is to have effect, and]

(c) contain other information so specified.

(5) Sub-paragraphs (4) to (6) of paragraph 18 (meaning of “building”) apply for the purposes of this paragraph as they apply for the purposes of that paragraph.

(6) For the purposes of this paragraph the reference to the construction of a building is to be read without regard to Note (17) or (18)(b) of Group 5 of Schedule 8 (which would otherwise apply as a result of paragraph 33 of this Schedule).

(7) The Commissioners may publish a notice for determining the time at which the construction of a building on any land is to be taken to begin for the purposes of this paragraph.

Textual Amendments

F740 Sch. 10 para. 27(4)(za) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2009 (S.I. 2009/1966), arts. 1(1), 7(2)

F741 Sch. 10 para. 27(4)(b) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2009 (S.I. 2009/1966), arts. 1(1), 7(3)

Pre-option exempt grants: requirement for prior permission before exercise of option to tax U.K.

28. (1) This paragraph applies if—

(a) a person wants to exercise an option to tax any land with effect from a particular day,

(b) at any time (“the relevant time”) before that day the person has made, makes or intends to make an exempt supply to which any grant in relation to the land gives rise, and

(c) the relevant time is within the period of 10 years ending with that day.

(2) The person may exercise the option to tax the land only if—

(a) the conditions specified in a public notice are met in relation to the land, or

(b) the person gets the prior permission of the Commissioners (but see also paragraph 30).

(3) The Commissioners must refuse their permission if they are not satisfied that there would be a fair and reasonable attribution of relevant input tax to relevant supplies.

(4) For this purpose—

• “relevant input tax” means input tax incurred, or likely to be incurred, in relation to the land, and

• “relevant supplies” means supplies to which any grant in relation to the land gives rise which would be taxable (if the option has effect).

(5) In deciding whether there would be a fair and reasonable attribution of relevant input tax to relevant supplies, the Commissioners must have regard to all the circumstances of the case.

(6) But they must have regard in particular to—

(a) the total value of any exempt supply to which any grant in relation to the land gives rise and which is made or to be made before the day from which the person wants the option to have effect,

(b) the expected total value of any supply to which any grant in relation to the land gives rise that would be taxable (if the option has effect), and

(c) the total amount of input tax incurred, or likely to be incurred, in relation to the land.

Paragraph 28: application for prior permission U.K.

29. (1) An application for the prior permission of the Commissioners under paragraph 28 must—

(a) be made in a form specified in a public notice,

(b) contain a statement by the applicant certifying which (if any) of the conditions specified in the public notice under paragraph 28(2)(a) are met in relation to the land, and

(c) contain other information specified in a public notice.

(2) The Commissioners may specify conditions subject to which their permission is given and, if any of those conditions are broken, they may treat the application as if it had not been made.

(3) If the applicant (A) gets the prior permission of the Commissioners, A is, as a result of this sub-paragraph, treated for the purposes of this Part of this Schedule as if A had exercised the option to tax the land with effect from—

(a) the start of the day on which the application was made, or

(b) the start of any later day specified in the application.

Paragraph 28: purported exercise where prior permission not obtained U.K.

30. (1) This paragraph applies if—

(a) an option to tax was purportedly exercised in a case where, before the option could be exercised, the prior permission of the Commissioners was required under paragraph 28, and

(b) notification of the purported option was purportedly given to the Commissioners in accordance with paragraph 20.

(2) The Commissioners may, in the case of any such option, subsequently dispense with the requirement for their prior permission to be given under paragraph 28.

(3) If the Commissioners dispense with that requirement, a purported option—

(a) is treated for the purposes of this Part of this Schedule as if it had instead been validly exercised, and

(b) has effect in accordance with paragraph 19.

Supplementary provisions U.K.

Timing of grant and supplies U.K.

31. (1) This paragraph applies if—

(a) an option to tax is exercised in relation to any land,

(b) a grant in relation to the land would otherwise be taken to have been made (whether in whole or in part) before the time when the option has effect, and

(c) the grant gives rise to supplies which are treated for the purposes of this Act as taking place after that time.

(2) For the purposes of this Part of this Schedule, the option to tax has effect, in relation to those supplies, as if the grant had been made after that time.

Supplies in relation to a building where part designed or intended for residential or charitable use and part designed or intended for other uses U.K.

32. Note (10) of Group 5 of Schedule 8 applies for the purposes of this Part of this Schedule.

Definitions in Schedules 8 or 9 that are applied for the purposes of this Schedule U.K.

33. In this Part of this Schedule, references to the expressions listed in the first column are to be read in accordance with the provisions listed in the second column—

Expression	Provision
building designed or adapted for use as a dwelling or a number of dwellings	Note (2) to Group 5 of Schedule 8
completion of a building	Note (2) to Group 1 of Schedule 9
construction of a building	Notes (16) to (18) to Group 5 of Schedule 8 (but see paragraph 27(6) of this Schedule)
construction of a building intended for use as a dwelling or a number of dwellings	Note (3) to Group 5 of Schedule 8
grant	Note (1) to Group 5 of Schedule 8/ Notes (1) and (1A) to Group 1 of Schedule 9
use for a relevant charitable purpose	Notes (6) and (12) to Group 5 of Schedule 8
use for a relevant residential purpose	Notes (4), (5) and (12) to Group 5 of Schedule 8 (but see paragraphs 6(9) and 10(4) of this Schedule)

Other definitions etc U.K.

34. (1) In this Part of this Schedule—

• “notification” means written notification, and

• “permission” means written permission.

(2) For the purposes of this Part of this Schedule any question whether a person is connected with another person is to be decided in accordance with [F742 section 1122 of the Corporation Tax Act 2010] [F743 ; but this is subject to sub-paragraph (2A)].

[F744 (2A) For the purposes of this Part of this Schedule, a company is not connected with another company only because both are under the control of—

(a) the Crown,

(b) a Minister of the Crown,

(c) a government department, or

(d) a Northern Ireland department.

(2B) In sub-paragraph (2A) “company” and “control” have the same meaning as in section 839 of the Taxes Act.]

(3) Any reference in any provision of this Part of this Schedule to a public notice is to a notice published by the Commissioners for the purposes of that provision.

Textual Amendments

F742 Words in Sch. 10 para. 34(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 285(f) (with Sch. 2)

F743 Words in Sch. 10 para. 34(2) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2009 (S.I. 2009/1966), arts. 1(1), 8(2)

F744 Sch. 10 para. 34(2A)(2B) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2009 (S.I. 2009/1966), arts. 1(1), 8(3)

PART 2 U.K. RESIDENTIAL AND CHARITABLE BUILDINGS: CHANGE OF USE ETC

Introductory U.K.

[F745 35. (1) This Part of this Schedule applies where one or more relevant zero-rated supplies relating to a building (or part of a building) have been made to a person (“P”).

(2) In this Part of this Schedule—

• “relevant zero-rated supply” means a grant or other supply which relates to a building (or part of a building) intended for use solely for—

  (a)

  a relevant residential purpose, or

  (b)

  a relevant charitable purpose,

  and which, as a result of Group 5 of Schedule 8, is zero-rated (in whole or in part);

• “relevant premises” means the building (or part of a building) in relation to which a relevant zero-rated supply has been made to P;

• “relevant period”, in relation to relevant premises, means 10 years beginning with the day on which the relevant premises are completed.

(3) Where P is a [F746 person] treated as a member of a group under sections 43A to 43D, any reference in this Part of this Schedule to P includes a reference to any member of that group.]

Textual Amendments

F745 Sch. 10 paras. 35-37 substituted (with effect in accordance with art. 3 of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2011 (S.I. 2011/86), arts. 1, 8

F746 Word in Sch. 10 para. 35(3) substituted (1.11.2019) by Finance Act 2019 (c. 1), s. 53(2), Sch. 18 para. 15(5); S.I. 2019/1348, reg. 2

Disposal of interest or change of use following relevant zero-rated supply U.K.

[F745 36. (1) Paragraph 37 applies on each occasion during the relevant period when—

(a) there is an increase in the proportion of the relevant premises falling within sub-paragraph (2) or (3), and

(b) as a result, the proportion of the relevant premises so falling (“R2”) exceeds the maximum proportion of those premises so falling at any earlier time in the relevant period (“R1”).

(2) The relevant premises fall (or part of the relevant premises falls) within this sub-paragraph if P has, since the beginning of the relevant period, disposed of P’s entire interest in the relevant premises (or part).

(3) The relevant premises fall (or a part of the relevant premises falls) within this sub-paragraph if—

(a) those premises do not (or that part does not) fall within sub-paragraph (2), and

(b) those premises are (or that part is) being used for a purpose that is neither a relevant residential purpose nor a relevant charitable purpose.

(4) Sub-paragraph (5) applies where—

(a) only a proportion of the use of the relevant premises (or the use of a part of those premises) is for a relevant residential purpose or a relevant charitable purpose, and

(b) that use is not confined to a part of those premises (or of that part) which is used solely for a relevant residential purpose or a relevant charitable purpose.

(5) Where this sub-paragraph applies, sub-paragraph (3) applies as if—

(a) the same proportion of the relevant premises (or part) were being used for a relevant residential purpose or a relevant charitable purpose, and

(b) the remainder of the relevant premises (or part) were being used for a purpose that is neither a relevant residential purpose nor a relevant charitable purpose.

(6) Where P is a charity using the relevant premises (or a part of the relevant premises) as a village hall or similarly in providing social or recreational facilities for a local community the premises are (or the part is) treated as being used for a relevant charitable purpose whether or not any person in occupation is using the premises (or part) for a relevant charitable purpose.]

Textual Amendments

F745 Sch. 10 paras. 35-37 substituted (with effect in accordance with art. 3 of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2011 (S.I. 2011/86), arts. 1, 8

Charge to VAT U.K.

[F745 37. (1) Where this paragraph applies, P’s interest, right or licence in the relevant premises held immediately prior to the time when the increase referred to in paragraph 36(1) occurs is treated for the purposes of this Part of this Schedule as—

(a) supplied to P for the purposes of a business which P carries on, and

(b) supplied by P in the course or furtherance of that business

immediately prior to the time of that increase.

(2) The supply is taken to be a taxable supply which is not zero-rated as a result of Group 5 of Schedule 8.

(3) The value of the supply is taken to be—

(a) in the case of the first deemed supply under this paragraph, the amount obtained by the formula—

, and

(b) in the case of any subsequent deemed supply under this paragraph, the amount obtained by the formula—

(4) For the purpose of sub-paragraph (3)—

(a) R1 and R2 have the meaning given by paragraph 36(1)(b),

(b) Y is the amount that yields an amount of VAT chargeable on it equal to—

(i) the VAT which would have been chargeable on the relevant zero-rated supply, or

(ii) if there was more than one supply, the aggregate amount of the VAT which would have been chargeable on the supplies,

had the relevant premises not been intended for use solely for a relevant residential purpose or a relevant charitable purpose, and

(c) Z is the number of whole months since the day on which the relevant premises were completed.]

Textual Amendments

F745 Sch. 10 paras. 35-37 substituted (with effect in accordance with art. 3 of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2011 (S.I. 2011/86), arts. 1, 8

Supplies in relation to a building where part designed for residential or charitable use and part designed for other uses U.K.

38. Note (10) of Group 5 of Schedule 8 applies for the purposes of this Part of this Schedule.

Definitions U.K.

39. In this Part of this Schedule, references to the expressions listed in the first column are to be read in accordance with the provisions listed in the second column—

Expression	Provision
completion of a building	Note (2) to Group 1 of Schedule 9
grant	Note (1) to Group 5 of Schedule 8/ Notes (1) and (1A) to Group 1 of Schedule 9
use for a relevant charitable purpose	Notes (6) and (12) to Group 5 of Schedule 8
use for a relevant residential purpose	Notes (4), (5) and (12) to Group 5 of Schedule 8

PART 3 U.K. GENERAL

Benefit of consideration for grant accruing to a person other than the grantor U.K.

40. (1) This paragraph applies if the benefit of the consideration for the grant of an interest in, right over or licence to occupy land accrues to a person (“the beneficiary”) other than the person making the grant.

(2) The beneficiary is to be treated for the purposes of this Act as the person making the grant.

(3) So far as any input tax of the person actually making the grant is attributable to the grant, it is to be treated for the purposes of this Act as input tax of the beneficiary.]

[F747 SCHEDULE 10A U.K. Face-value vouchers [F748 issued before 1 January 2019]

Textual Amendments

F747 Sch. 10A inserted (with application in accordance with Sch. 1 para. 4 of the amending Act) by Finance Act 2003 (c. 14), Sch. 1 para. 2

F748 Words in Sch. 10A heading inserted (12.2.2019) by Finance Act 2019 (c. 1), Sch. 17 para. 4

Meaning of “face-value voucher” etc U.K.

1 (1) In this Schedule “face-value voucher” means a token, stamp or voucher (whether in physical or electronic form) that represents a right to receive goods or services to the value of an amount stated on it or recorded in it. U.K.

(2) References in this Schedule to the “face value” of a voucher are to the amount referred to in sub-paragraph (1) above.

Nature of supply U.K.

2 U.K. The issue of a face-value voucher, or any subsequent supply of it, is a supply of services for the purposes of this Act.

Treatment of credit vouchers U.K.

3 (1) This paragraph applies to a face-value voucher issued by a person who— U.K.

(a) is not a person from whom goods or services may be obtained by the use of the voucher, and

(b) undertakes to give complete or partial reimbursement to any such person from whom goods or services are so obtained.

Such a voucher is referred to in this Schedule as a “credit voucher”.

(2) The consideration for any supply of a credit voucher shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the voucher.

(3) Sub-paragraph (2) above does not apply if any of the persons from whom goods or services are obtained by the use of the voucher fails to account for any of the VAT due on the supply of those goods or services to the person using the voucher to obtain them.

[F749 (4) The Treasury may by order specify other circumstances in which sub-paragraph (2) above does not apply.]

Textual Amendments

F749 Sch. 10A para. 3(4) inserted (19.7.2006) by Finance Act 2006 (c. 25), s. 22(3)

Treatment of retailer vouchers U.K.

4 (1) This paragraph applies to a face-value voucher issued by a person who— U.K.

(a) is a person from whom goods or services may be obtained by the use of the voucher, and

(b) if there are other such persons, undertakes to give complete or partial reimbursement to those from whom goods or services are so obtained.

Such a voucher is referred to in this Schedule as a “retailer voucher”.

(2) The consideration for the issue of a retailer voucher shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the voucher.

(3) Sub-paragraph (2) above does not apply if—

(a) the voucher is used to obtain goods or services from a person other than the issuer, and

(b) that person fails to account for any of the VAT due on the supply of those goods or services to the person using the voucher to obtain them.

(4) Any supply of a retailer voucher subsequent to the issue of it shall be treated in the same way as the supply of a voucher to which paragraph 6 below applies.

Treatment of postage stamps U.K.

5 U.K. The consideration for the supply of a face-value voucher that is a postage stamp shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the stamp.

Treatment of other kinds of face-value voucher U.K.

6 (1) This paragraph applies to a face-value voucher that is not a credit voucher, a retailer voucher or a postage stamp. U.K.

(2) A supply of such a voucher is chargeable at the rate in force under section 2(1) (standard rate) except where sub-paragraph (3), (4) or (5) below applies.

(3) Where the voucher is one that can only be used to obtain goods or services in one particular non-standard rate category, the supply of the voucher falls in that category.

(4) Where the voucher is used to obtain goods or services all of which fall in one particular non-standard rate category, the supply of the voucher falls in that category.

(5) Where the voucher is used to obtain goods or services in a number of different rate categories—

(a) the supply of the voucher shall be treated as that many different supplies, each falling in the category in question, and

(b) the value of each of those supplies shall be determined on a just and reasonable basis.

Vouchers supplied free with other goods or services U.K.

7 U.K. Where—

(a) a face-value voucher (other than a postage stamp) and other goods or services are supplied to the same person in a composite transaction, and

(b) the total consideration for the supplies is no different, or not significantly different, from what it would be if the voucher were not supplied,

the supply of the voucher shall be treated as being made for no consideration.

[F750 Exclusion of single purpose vouchers U.K.

Textual Amendments

F750 Sch. 10A para. 7A and cross-heading inserted (with effect in accordance with s. 201(2) of the amending Act) by Finance Act 2012 (c. 14), s. 201(1)

7A U.K. Paragraphs 2 to 4, 6 and 7 do not apply in relation to the issue, or any subsequent supply, of a face-value voucher that represents a right to receive goods or services of one type which are subject to a single rate of VAT.]

Interpretation U.K.

8 (1) In this Schedule— U.K.

• “credit voucher” has the meaning given by paragraph 3(1) above;

• “face value” has the meaning given by paragraph 1(2) above;

• “face value voucher” has the meaning given by paragraph 1(1) above;

• “retailer voucher” has the meaning given by paragraph 4(1) above.

(2) For the purposes of this Schedule—

(a) the “rate categories” of supplies are—

(i) supplies chargeable at the rate in force under section 2(1) (standard rate),

(ii) supplies chargeable at the rate in force under section 29A (reduced rate),

(iii) zero-rated supplies, and

(iv) exempt supplies and other supplies that are not taxable supplies;

(b) the “non-standard rate categories” of supplies are those in sub-paragraphs (ii), (iii) and (iv) of paragraph (a) above;

(c) goods or services are in a particular rate category if a supply of those goods or services falls in that category.

(3) A reference in this Schedule to a voucher being used to obtain goods or services includes a reference to the case where it is used as part-payment for those goods or services.]

Section 51C

[F751 SCHEDULE 10B U.K. VAT treatment of vouchers issued on or after 1 January 2019

Textual Amendments

F751 Sch. 10B inserted (12.2.2019) by Finance Act 2019 (c. 1), Sch. 17 para. 5

Meaning of “voucher” U.K.

1 (1) In this Schedule “voucher” means an instrument (in physical or electronic form) in relation to which the following conditions are met. U.K.

(2) The first condition is that one or more persons are under an obligation to accept the instrument as consideration for the provision of goods or services.

(3) The second condition is that either or both of—

(a) the goods and services for the provision of which the instrument may be accepted as consideration, and

(b) the persons who are under the obligation to accept the instrument as consideration for the provision of goods or services,

are limited and are stated on or recorded in the instrument or the terms and conditions governing the use of the instrument.

(4) The third condition is that the instrument is transferable by gift (whether or not it is transferable for consideration).

(5) The following are not vouchers—

(a) an instrument entitling a person to a reduction in the consideration for the provision of goods or services;

(b) an instrument functioning as a ticket, for example for travel or for admission to a venue or event;

(c) postage stamps.

Meaning of related expressions U.K.

2 (1) This paragraph gives the meaning of other expressions used in this Schedule. U.K.

(2) “Relevant goods or services”, in relation to a voucher, are any goods or services for the provision of which the voucher may be accepted as consideration.

(3) References in this Schedule to the transfer of a voucher do not include the voucher being offered and accepted as consideration for the provision of relevant goods or services.

(4) References in this Schedule to a voucher being offered or accepted as consideration for the provision of relevant goods or services include references to the voucher being offered or accepted as part consideration for the provision of relevant goods or services.

VAT treatment of vouchers: general rule U.K.

3 (1) The issue, and any subsequent transfer, of a voucher is to be treated for the purposes of this Act as a supply of relevant goods or services. U.K.

(2) References in this Schedule to the “paragraph 3 supply”, in relation to the issue or transfer of a voucher, are to the supply of relevant goods or services treated by this paragraph as having been made on the issue or transfer of the voucher.

Single purpose vouchers: special rules U.K.

4 (1) A voucher is a single purpose voucher if, at the time it is issued, the following are known— U.K.

(a) the place of supply of the relevant goods or services, and

(b) that any supply of relevant goods or services falls into a single supply category (and what that supply category is).

(2) The supply categories are—

(a) supplies chargeable at the rate in force under section 2(1) (standard rate),

(b) supplies chargeable at the rate in force under section 29A (reduced rate),

(c) zero-rated supplies, and

(d) exempt supplies and other supplies that are not taxable supplies.

(3) For the purposes of this paragraph, assume that the supply of relevant goods or services is the provision of relevant goods or services for which the voucher may be accepted as consideration (rather than the supply of relevant goods or services treated as made on the issue or transfer of the voucher).

5 (1) This paragraph applies where a single purpose voucher is accepted as consideration for the provision of relevant goods or services. U.K.

(2) The provision of the relevant goods or services is not a supply of goods or services for the purposes of this Act.

(3) But where the person who provides the relevant goods or services (the “provider”) is not the person who issued the voucher (the “issuer”), for the purposes of this Act the provider is to be treated as having made a supply of those goods or services to the issuer.

Multi-purpose vouchers: special rules U.K.

6 U.K. A voucher is a multi-purpose voucher if it is not a single purpose voucher.

7 (1) Any consideration for the issue or subsequent transfer of a multi-purpose voucher is to be disregarded for the purposes of this Act. U.K.

(2) The paragraph 3 supply made on the issue or subsequent transfer of a multi-purpose voucher is to be treated as not being a supply within section 26(2).

8 (1) Where a multi-purpose voucher is accepted as consideration for the provision of relevant goods or services, for the purposes of this Act— U.K.

(a) the provision of the relevant goods or services is to be treated as a supply, and

(b) the value of the supply treated as having been made by paragraph (a) is determined as follows.

(2) If the consideration for the most recent transfer of the voucher for consideration is known to the supplier, the value of the supply is such amount as, with the addition of the VAT chargeable on the supply, is equal to that consideration.

(3) If the consideration for the most recent transfer of the voucher for consideration is not known to the supplier, the value of the supply is such amount as, with the addition of the VAT chargeable on the supply, is equal to the face value of the voucher.

(4) The “face value” of a voucher is the monetary value stated on or recorded in—

(a) the voucher, or

(b) the terms and conditions governing the use of the voucher.

Intermediaries U.K.

9 (1) This paragraph applies where— U.K.

(a) a voucher is issued or transferred by an agent who acts in their own name, and

(b) the paragraph 3 supply is a supply of services to which section 47(3) would apply (apart from this paragraph).

(2) Section 47(3) does not apply.

(3) The paragraph 3 supply is treated as both a supply to the agent and a supply by the agent.

10 U.K. Nothing in this Schedule affects the application of this Act to any services provided, by a person who issues or transfers a voucher, in addition to the issue or transfer of the voucher.

Composite transactions U.K.

11 (1) This paragraph applies where, as part of a composite transaction— U.K.

(a) goods or services are supplied to a person, and

(b) a voucher is issued or transferred to that person.

(2) If the total consideration for the transaction is not different, or not significantly different, from what it would be if the voucher were not issued or transferred, the paragraph 3 supply is to be treated as being made for no consideration.]

Section 58.

SCHEDULE 11 U.K. Administration, collection and enforcement

General U.K.

[F752 1 U.K. The Commissioners for Her Majesty’s Revenue and Customs shall be responsible for the collection and management of VAT.]

Textual Amendments

F752 Sch. 11 para. 1 substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 56; S.I. 2005/1126, art. 2(2)(h)

F753 Accounting for VAT... and payment of VAT U.K.

Textual Amendments

F753 Words in Sch. 11 para. 2 heading repealed (1.12.2003) by Finance Act 2002 (c. 23), s. 24(5), Sch. 40 Pt. 2; S.I. 2003/3043, art. 2

2 (1) Regulations under this paragraph may require the keeping of accounts [F754 , the making of returns and the submission of information] in such form and manner as may be specified in the regulations F755 ... [F756 or by the Commissioners in accordance with the regulations.] U.K.

F757 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F757 (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F758 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F759 (3ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F760 (3A) Regulations under this paragraph may require the submission to the Commissioners by taxable persons, at such times and intervals, in such cases and in such form and manner as may be—

(a) specified in the regulations, or

[F761 (b) specified by the Commissioners in accordance with the regulations,]

of statements containing such particulars of supplies to which section 55A(6) applies in which the taxable persons are concerned, and of the persons concerned in those supplies, as may be [F762 so specified].

[F763 (3B) Regulations under this paragraph may make provision for requiring—

(a) a person who first makes a supply of goods [F764 or services] to which section 55A(6) applies (a “reverse charge supply”),

(b) a person who ceases making reverse charge supplies without intending subsequently to make such supplies, or

(c) a person who has fallen within paragraph (b) above but who nonetheless starts to make reverse charge supplies again,

to give to the Commissioners such notification of that fact at such time and in such form and manner as may be specified in the regulations or [F765 by the Commissioners in accordance with the regulations].]]

F766 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F767 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F768 (5A) Regulations under this paragraph may make provision—

(a) for requiring the relevant person to give to the Commissioners such notification of the arrival in the United Kingdom of goods consisting of a means of transport, at such time and in such form and manner, as may be specified in the regulations or by the Commissioners in accordance with the regulations, and

[F769 (b) where notification of the arrival of a means of transport imported into the United Kingdom is required by virtue of paragraph (a), for requiring any VAT on its importation to be paid at such time and in such manner as may be specified in the regulations.]

(5B) The provision that may be made by regulations made by virtue of sub-paragraph (5A) includes—

(a) provision for a notification required by virtue of that sub-paragraph to contain such particulars relating to the notified arrival of the means of transport and any VAT chargeable on its F770 ... importation as may be specified in the regulations or by the Commissioners in accordance with the regulations,

(b) provision for such a notification to be given by a person who is not the relevant person and is so specified, or is of a description so specified,

(c) provision for such a notification to contain a declaration, given in such form and by such person as may be so specified, as to the information contained in the notification, and

(d) supplementary, incidental, consequential or transitional provision (including provision amending any provision made by or under this Act or any other enactment).

(5C) Subsection (3) of section 97 (orders subject to Commons approval) applies to a statutory instrument containing any regulations made by virtue of sub-paragraph (5A) which amend an enactment as it applies to an order within subsection (4) of that section.

(5D) For the purposes of sub-paragraph (5A)—

• F771 ...

• “relevant person”, in relation to the arrival of a means of transport in the United Kingdom, means—

  (a)

  F772 ...

  (b)

  where it has been imported F773 ..., the person liable to pay VAT on the importation, and

  (c)

  F774 ...

[F775 (5E) For the purposes of sub-paragraphs (5A) to (5D) “means of transport” means—

(a) any ship which exceeds 7.5 metres in length,

(b) any aircraft the take-off weight of which exceeds 1550 kilograms, or

(c) any motorised land vehicle which—

(i) has an engine with a displacement or cylinder capacity exceeding 48 cubic centimetres, or

(ii) is constructed or adapted to be electrically propelled using more than 7.2 kilowatts,

but only if the ship, aircraft or vehicle is intended for the transport of persons or goods.

(5F) The Treasury may by order vary sub-paragraph (5E) by adding or deleting any ship, aircraft or vehicle of a description specified in the order to or from those which are for the time being specified there.]

(6) Regulations under this paragraph may make special provision for such taxable supplies by retailers of any goods or of any description of goods or of services or any description of services as may be determined by or under the regulations and, in particular—

(a) for permitting the value which is to be taken as the value of the supplies in any prescribed accounting period or part thereof to be determined, subject to any limitations or restrictions, by such method or one of such methods as may have been described in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice or as may be agreed with the Commissioners; and

(b) for determining the proportion of the value of the supplies which is to be attributed to any description of supplies; and

(c) for adjusting that value and proportion for periods comprising two or more prescribed accounting periods or parts thereof.

(7) Regulations under this paragraph may make provision whereby, in such cases and subject to such conditions as may be determined by or under the regulations, VAT in respect of a supply may be accounted for and paid by reference to the time when consideration for the supply is received; and any such regulations may make such modifications of the provisions of this Act (including in particular, but without prejudice to the generality of the power, the provisions as to the time when, and the circumstances in which, credit for input tax is to be allowed) as appear to the Commissioners necessary or expedient.

(8) Regulations under this paragraph may make provision whereby, in such cases and subject to such conditions as may be determined by or under the regulations—

(a) VAT in respect of any supply by a taxable person of dutiable goods, F776 ...

F776 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

may be accounted for and paid, and any question as to the inclusion of any duty or agricultural levy in the value of the supply F777 ... determined, by reference to the duty point or by reference to such later time as the Commissioners may allow.

In this sub-paragraph “dutiable goods” and “duty point” have the same meanings as in section 18.

F778 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) Regulations under this paragraph may make provision—

(a) for treating VAT chargeable in one prescribed accounting period as chargeable in another such period; and

(b) with respect to the making of entries in accounts for the purpose of making adjustments, whether for the correction of errors or otherwise; and

(c) for the making of financial adjustments in connection with the making of entries in accounts for the purpose mentioned in paragraph (b) above [F779 and

(d) for a person, for purposes connected with the making of any such entry or financial adjustment, to be required to provide to any prescribed person, or to retain, a document in the prescribed form containing prescribed particulars of the matters to which the entry or adjustment relates; and

(e) for enabling the Commissioners, in such cases as they may think fit, to dispense with or relax a requirement imposed by regulations made by virtue of paragraph (d) above.]

(11) Regulations under this paragraph may make different provision for different circumstances and may provide for different dates as the commencement of prescribed accounting periods applicable to different persons.

[F780 (11A) Regulations under this paragraph may include incidental, supplemental, consequential, saving, transitional or transitory provision.]

(12) The provisions made by regulations under this paragraph for cases where goods are treated as supplied by a taxable person by virtue of paragraph 7 of Schedule 4 may require VAT chargeable on the supply to be accounted for and paid, and particulars thereof to be provided, by such other person and in such manner as may be specified by the regulations.

(13) Where, at the end of a prescribed accounting period, the amount of VAT due from any person or the amount of any VAT credit would be less than £1, that amount shall be treated as nil.]

Textual Amendments

F754 Words in Sch. 11 para. 2(1) substituted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), s. 62(2)(a)

F755 Words in Sch. 11 para. 2(1) repealed (1.12.2003) by Finance Act 2002 (c. 23), s. 24(5), Sch. 40 Pt. 2; S.I. 2003/3043, art. 2

F756 Words in Sch. 11 para. 2(1) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 29 para. 12(2)

F757 Sch. 11 para. 2(2)(2A) repealed (1.12.2003) by Finance Act 2002 (c. 23), s. 24(5), Sch. 40 Pt. 2; S.I. 2003/3043, art. 2

F758 Sch. 11 para. 2(3) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(2)(a) (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)

F759 Sch. 11 para. 2(3ZA) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(2)(a) (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)

F760 Sch. 11 para. 2(3A)(3B) inserted (1.6.2007) by Finance Act 2006 (c. 25), s. 19(7); S.I. 2007/1419, art. 2

F761 Sch. 11 para. 2(3A)(b) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 29 para. 12(4)(a)

F762 Words in Sch. 11 para. 2(3A) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 29 para. 12(4)(b)

F763 Sch. 11 para. 2(3B) substituted (1.6.2007) by The Value Added Tax (Administration, Collection and Enforcement) Order 2007 (S.I. 2007/1421), arts. 1, 2

F764 Words in Sch. 11 para. 2(3B) inserted (8.4.2010) by Finance Act 2010 (c. 13), s. 50(2)

F765 Words in Sch. 11 para. 2(3B) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 29 para. 12(5)

F766 Sch. 11 para. 2(4) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(2)(b) (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)

F767 Sch. 11 para. 2(5) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(2)(b) (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)

F768 Sch. 11 para. 2(5A)-(5D) inserted (17.7.2012) by Finance Act 2012 (c. 14), s. 202

F769 Sch. 11 para. 2(5A)(b) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(2)(c) (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)

F770 Words in Sch. 11 para. 2(5B)(a) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(2)(d) (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)

F771 Words in Sch. 11 para. 2(5D) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(2)(e)(i) (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)

F772 Words in Sch. 11 para. 2(5D) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(2)(e)(ii)(a) (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)

F773 Words in Sch. 11 para. 2(5D) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(2)(e)(ii)(b) (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)

F774 Words in Sch. 11 para. 2(5D) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(2)(e)(ii)(c) (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)

F775 Sch. 11 para. 2(5E)(5F) inserted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(2)(f) (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)

F776 Sch. 11 para. 2(8)(b) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(2)(g)(i) (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)

F777 Words in Sch. 11 para. 2(8) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(2)(g)(ii) (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)

F778 Sch. 11 para. 2(9) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(2)(h) (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)

F779 Sch. 11 para. 2(10)(d)(e) and word preceding it inserted (29.4.1996) by 1996 c. 8, s. 38(3)

F780 Sch. 11 para. 2(11A) inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), s. 62(2)(b)

[F781 VAT invoices U.K.

Textual Amendments

F781 Sch. 11 paras. 2A, 2B and cross-headings inserted (1.12.2003) by Finance Act 2002 (c. 23), s. 24(2)(5); S.I. 2003/3043, art. 2

2A (1) Regulations may require a taxable person supplying goods or services to provide an invoice (a “VAT invoice”) to the person supplied. U.K.

(2) A VAT invoice must give—

(a) such particulars as may be prescribed of the supply, the supplier and the person supplied;

(b) such an indication as may be prescribed of whether VAT is chargeable on the supply under this Act F782 ...;

(c) such particulars of any VAT that is so chargeable as may be prescribed.

(3) Regulations may confer power on the Commissioners to allow the requirements of any regulations as to the information to be given in a VAT invoice to be relaxed or dispensed with.

(4) Regulations may—

(a) provide that the VAT invoice that is required to be provided in connection with a particular description of supply must be provided within a prescribed time after the supply is treated as taking place, or at such time before the supply is treated as taking place as may be prescribed;

(b) allow for the invoice to be issued later than required by the regulations where it is issued in accordance with general or special directions given by the Commissioners.

(5) Regulations may—

(a) make provision about the manner in which a VAT invoice may be provided, including provision prescribing conditions that must be complied with in the case of an invoice issued by a third party on behalf of the supplier;

(b) prescribe conditions that must be complied with in the case of a VAT invoice that relates to more than one supply;

(c) make, in relation to a document that refers to a VAT invoice and is intended to amend it, such provision corresponding to that which may be made in relation to a VAT invoice as appears to the Commissioners to be appropriate.

(6) Regulations may confer power on the Commissioners to require a person who has received in the United Kingdom a VAT invoice that is (or part of which is) in a language other than English to provide them with an English translation of the invoice (or part).

(7) Regulations under this paragraph—

(a) may be framed so as to apply only in prescribed cases or only in relation to supplies made to persons of prescribed descriptions;

(b) may make different provision for different circumstances.

Textual Amendments

F782 Words in Sch. 11 para. 2A(2)(b) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(3) (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)

Self-billed invoices U.K.

2B (1) This paragraph applies where a taxable person provides to himself a document (a “self-billed invoice”) that purports to be a VAT invoice in respect of a supply of goods or services to him by another taxable person. U.K.

(2) Subject to compliance with such conditions as may be—

(a) prescribed,

(b) specified in a notice published by the Commissioners, or

(c) imposed in a particular case in accordance with regulations,

a self-billed invoice shall be treated as the VAT invoice required by regulations under paragraph 2A above to be provided by the supplier.

(3) For the purposes of section 6(4) (under which the time of supply can be determined by the prior issue of an invoice) a self-billed invoice shall not be treated as issued by the supplier.

(4) For the purposes of section 6(5) and (6) (under which the time of supply can be determined by the subsequent issue of an invoice) a self-billed invoice in relation to which the conditions mentioned in sub-paragraph (2) are complied with shall, subject to compliance with such further conditions as may be prescribed, be treated as issued by the supplier.

In such a case, any notice of election given or request made for the purposes of section 6(5) or (6) by the person providing the self-billed invoice shall be treated for those purposes as given or made by the supplier.

(5) Regulations under this paragraph—

(a) may be framed so as to apply only in prescribed cases or only in relation to supplies made to persons of prescribed descriptions;

(b) may make different provision for different circumstances.]

[F783 Electronic communication and storage of VAT invoices etc U.K.

Textual Amendments

F783 Sch. 11 para. 3 and cross-heading substituted (1.12.2003) by Finance Act 2002 (c. 23), s. 24(3)(5); S.I. 2003/3043, art. 2

3 (1) Regulations may prescribe, or provide for the Commissioners to impose in a particular case, conditions that must be complied with in relation to— U.K.

(a) the provision by electronic means of any item to which this paragraph applies;

(b) the preservation by electronic means of any such item or of information contained in any such item.

(2) The items to which this paragraph applies are—

(a) any VAT invoice;

(b) any document that refers to a VAT invoice and is intended to amend it;

F784 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Regulations under this paragraph may make different provision for different circumstances.]

Textual Amendments

F784 Sch. 11 para. 3(2)(c) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(4) (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)

Power to require security and production of evidence U.K.

[F785 4 (1) The Commissioners may, as a condition of allowing or repaying input tax to any person, require the production of such evidence relating to VAT as they may specify. U.K.

(1A) If they think it necessary for the protection of the revenue, the Commissioners may require, as a condition of making any VAT credit, the giving of such security for the amount of the payment as appears to them appropriate.]

[F786 (2) If they think it necessary for the protection of the revenue, the Commissioners may require a taxable person, as a condition of his supplying or being supplied with goods or services under a taxable supply, to give security, or further security, for the payment of any VAT that is or may become due from—

(a) the taxable person, or

(b) any person by or to whom relevant goods or services are supplied.

(3) In sub-paragraph (2) above “relevant goods or services” means goods or services supplied by or to the taxable person.

(4) Security under sub-paragraph (2) above shall be of such amount, and shall be given in such manner, as the Commissioners may determine.

(5) The powers conferred on the Commissioners by sub-paragraph (2) above are without prejudice to their powers under section 48(7).]

Textual Amendments

F785 Sch. 11 para. 4(1)(1A) substituted for Sch. 11 para. 4(1) (retrospective to 10.4.2003) by Finance Act 2003 (c. 14), s. 17(3)(8)

F786 Sch. 11 para. 4(2)-(5) substituted for Sch. 11 para. 4(2) (retrospective to 10.4.2003) by Finance Act 2003 (c. 14), s. 17(4)(8)

Recovery of VAT, etc U.K.

5 (1) VAT due from any person shall be recoverable as a debt due to the Crown. U.K.

(2) Where an invoice shows a supply of goods or services as taking place with VAT chargeable on it, there shall be recoverable from the person who issued the invoice an amount equal to that which is shown on the invoice as VAT or, if VAT is not separately shown, to so much of the total amount shown as payable as is to be taken as representing VAT on the supply.

(3) Sub-paragraph (2) above applies whether or not—

(a) the invoice is a VAT invoice issued in pursuance of paragraph 2(1) above; or

(b) the supply shown on the invoice actually takes or has taken place, or the amount shown as VAT, or any amount of VAT, is or was chargeable on the supply; or

(c) the person issuing the invoice is a taxable person;

and any sum recoverable from a person under the sub-paragraph shall, if it is in any case VAT be recoverable as such and shall otherwise be recoverable as a debt due to the Crown.

F787 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F787 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F787 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F787 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F787 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F787 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F787 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F787 Sch. 11 para. 5(4)-(10) repealed (1.7.1997) by 1997 c. 16, 113, Sch. 18 Pt. V(2), Note; S.I. 1997/1433, art. 2

Duty to keep records U.K.

6 (1) Every taxable person shall keep such records as the Commissioners may by regulations require F788 .... U.K.

(2) Regulations under sub-paragraph (1) above may make different provision for different cases and may be framed by reference to such records as may be specified in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice.

(3) The Commissioners may require any records kept in pursuance of this paragraph to be preserved for such period not exceeding 6 years as they may [F789 specify in writing (and different periods may be specified for different cases)].

[F790 (4) The duty under this paragraph to preserve records may be discharged—

(a) by preserving them in any form and by any means, or

(b) by preserving the information contained in them in any form and by any means,

subject to any conditions or exceptions specified in writing by the Commissioners for Her Majesty's Revenue and Customs.]

[F791 (4A) In relation to a relevant taxable person, a duty under this paragraph to preserve records relating to a relevant taxable supply must be discharged by at least preserving the information contained in the records electronically.

(4B) A relevant taxable person must make available to the Commissioners electronically on request any records preserved in accordance with sub-paragraph (4A).

(4C) In sub-paragraph (4A) “relevant taxable supply” means a supply of goods where—

(a) that supply is deemed to be a supply by an operator of an online marketplace by virtue of section 5A, or

(b) the place of supply of those goods is determined by section 7(5B).

(4D) In sub-paragraphs (4A) and (4B) “relevant taxable person” means a person who is a taxable person and who—

(a) is the operator of an online marketplace,

(b) is a person making taxable supplies of goods facilitated by an online marketplace, or

(c) makes taxable supplies, the place of supply of which is determined by section 7(5B).]

[F792 (5) The Commissioners may by regulations make [F793 further] provision about the form in which, and means by which, records are to be kept and preserved.

(6) Regulations under sub-paragraph (5) may—

(a) make different provision for different cases;

(b) provide for any provision of the regulations to be subject to conditions or exceptions specified in writing by the Commissioners;

(c) include incidental, supplemental, consequential, saving, transitional or transitory provision.

(7) If regulations under sub-paragraph (5) make provision requiring records to be kept or preserved in electronic form they must make provision for a taxable person to be exempt from those requirements for any month (“the current month”) if—

(a) the value of the person's taxable supplies, in the period of one year ending with the month before the current month, was less than the VAT threshold, and

(b) the person was not subject to those requirements in the month before the current month.

(8) The regulations may modify the exemption for cases where a business or part of a business carried on by a taxable person is transferred to another person as a going concern.

(9) The “VAT threshold” means the amount specified in paragraph 1(1)(a) of Schedule 1 on the first day of the current month.

(10) Regulations under sub-paragraph (5) requiring records to be kept or preserved in electronic form may (among other things) make provision—

(a) as to the electronic form in which records are to be kept or preserved,

(b) for the production of the contents of records kept or preserved in accordance with the regulations,

(c) as to conditions that must be complied with in connection with the keeping or preservation of electronic records,

(d) for treating records as not having been kept or preserved unless conditions are complied with,

(e) for authenticating records,

(f) about the manner of proving for any purpose the contents of any records (including provision for the application of conclusive or other presumptions).

(11) Regulations under sub-paragraph (5) requiring records to be kept or preserved in electronic form may—

(a) allow any authorisation or requirement for which the regulations may provide to be given by means of a specific or general direction given by the Commissioners,

(b) provide that the conditions of an authorisation or requirement are to be taken to be satisfied only where the Commissioners are satisfied as to specified matters.]

Textual Amendments

F788 Words in Sch. 11 para. 6(1) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(5) (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)

F789 Words in Sch. 11 para. 6(3) substituted (1.4.2009) by Finance Act 2008 (c. 9), s. 115(2), Sch. 37 para. 5(2); S.I. 2009/402, art. 2

F790 Sch. 11 para. 6(4) substituted for Sch. 11 para. 6(4)-(6) (1.4.2009) by Finance Act 2008 (c. 9), s. 115(2), Sch. 37 para. 5(3); S.I. 2009/402, art. 2

F791 Sch. 11 para. 6(4A)-(4D) inserted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 3 para. 17(2) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

F792 Sch. 11 para. 6(5)-(11) inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), s. 62(3)(b) (with s. 62(7))

F793 Word in Sch. 11 para. 6(5) inserted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 3 para. 17(3) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

Modifications etc. (not altering text)

C18 Sch. 11 para. 6(2)-(4) extended (27.7.1999) by 1999 c. 16, s. 13(6)

[F794 6A (1) The Commissioners may direct any taxable person named in the direction to keep such records as they specify in the direction in relation to such goods as they so specify. U.K.

(2) A direction under this paragraph may require the records to be compiled by reference to VAT invoices or any other matter.

(3) The Commissioners may not make a direction under this paragraph unless they have reasonable grounds for believing that the records specified in the direction might assist in identifying taxable supplies in respect of which the VAT chargeable might not be paid.

(4) The taxable supplies in question may be supplies made by—

(a) the person named in the direction, or

(b) any other person.

(5) A direction under this paragraph—

(a) must be given by notice in writing to the person named in it,

(b) must warn that person of the consequences under section 69B of failing to comply with it, and

(c) remains in force until it is revoked or replaced by a further direction.

(6) The Commissioners may require any records kept in pursuance of this paragraph to be preserved for such period not exceeding 6 years as they may require.

(7) [F795 Sub-paragraph (4) of paragraph 6 (preservation of information) applies] for the purposes of this paragraph as [F796 it applies] for the purposes of that paragraph.

(8) This paragraph is without prejudice to the power conferred by paragraph 6(1) to make regulations requiring records to be kept.

(9) Any records required to be kept by virtue of this paragraph are in addition to any records required to be kept by virtue of paragraph 6.]

Textual Amendments

F794 Sch. 11 para. 6A inserted (19.7.2006) by Finance Act 2006 (c. 25), s. 21(6)

F795 Words in Sch. 11 para. 6A(7) substituted (1.4.2009) by Finance Act 2008 (c. 9), s. 115(2), Sch. 37 para. 6(a); S.I. 2009/402, art. 2

F796 Words in Sch. 11 para. 6A(7) substituted (1.4.2009) by Finance Act 2008 (c. 9), s. 115(2), Sch. 37 para. 6(b); S.I. 2009/402, art. 2

Furnishing of information and production of documents U.K.

7 (1) The Commissioners may by regulations make provision for requiring taxable persons to notify to the Commissioners such particulars of changes in circumstances relating to those persons or any business carried on by them as appear to the Commissioners required for the purpose of keeping the register kept under this Act up to date. U.K.

F797 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F797 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F797 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F797 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F797 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F797 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F797 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F797 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F797 Sch. 11 para. 7(2)-(9) omitted (1.4.2009) by virtue of Finance Act 2008 (c. 9), s. 113(2), Sch. 36 para. 87(2) (with Sch. 36 para. 38); S.I. 2009/404, art. 2

Power to take samples U.K.

8 [F798 (1) An authorised person may take samples from goods that are in the possession of either a person who supplies goods or a fiscal warehousekeeper if it appears necessary to do so— U.K.

(a) to protect the revenue against mistake or fraud, and

(b) to determine how the goods, or the material of which they are made, ought to be or to have been treated for the purposes of VAT.]

(2) Any sample taken under this paragraph shall be disposed of and accounted for in such manner as the Commissioners may direct.

(3) Where a sample is taken under this paragraph from the goods in any person’s possession and is not returned to him within a reasonable time and in good condition the Commissioners shall pay him by way of compensation a sum equal to the cost of the sample to him or such larger sum as they may determine.

Textual Amendments

F798 Sch. 11 para. 8(1) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(6) (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)

Power to require opening of [F799 machines on which relevant machine games are played] U.K.

Textual Amendments

F799 Words in Sch. 11 para. 9 heading substituted (with effect in accordance with Sch. 24 para. 66(4) of the amending Act) by Finance Act 2012 (c. 14), Sch. 24 para. 65(4)

9 U.K. An authorised person may at any reasonable time require a person making such a supply as is referred to in section 23(1) or any person acting on his behalf—

[F800 (a) to open any machine on which relevant machine games (as defined in section 23A) are capable of being played; and]

(b) to carry out any other operation which may be necessary to enable the authorised person to ascertain the amount which, in accordance with [F801 section 23(3)], is to be taken as the value of supplies made in the circumstances mentioned in subsection (1) of that section in any period.

Textual Amendments

F800 Sch. 11 para. 9(a) substituted (with effect in accordance with Sch. 24 para. 66(4) of the amending Act) by Finance Act 2012 (c. 14), Sch. 24 para. 65(2)

F801 Words in Sch. 11 para. 9(b) substituted (with effect in accordance with Sch. 24 para. 66(4) of the amending Act) by Finance Act 2012 (c. 14), Sch. 24 para. 65(3)

Entry and search of premises and persons U.K.

10 F802 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F802 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F802 (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F803 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F803 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F803 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F803 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F802 Sch. 11 para. 10(1)-(2A) omitted (1.4.2009) by virtue of Finance Act 2008 (c. 9), s. 113(2), Sch. 36 para. 87(3) (with Sch. 36 para. 38); S.I. 2009/404, art. 2

F803 Sch. 11 para. 10(3)-(6) repealed (8.11.2007) by Finance Act 2007 (c. 11), s. 84(4)(5), Sch. 22 para. 8(b), Sch. 27 Pt. 5(1); S.I. 2007/3166, art. 2(c)

Order for access to recorded information etc. U.K.

11 (1) Where, on an application by an authorised person, a justice of the peace or, in Scotland, a justice (within the meaning of [F804 section 308 of the Criminal Procedure (Scotland) Act 1995]) is satisfied that there are reasonable grounds for believing— U.K.

(a) that an offence in connection with VAT is being, has been or is about to be committed, and

(b) that any recorded information (including any document of any nature whatsoever) which may be required as evidence for the purpose of any proceedings in respect of such an offence is in the possession of any person,

he may make an order under this paragraph.

(2) An order under this paragraph is an order that the person who appears to the justice to be in possession of the recorded information to which the application relates shall—

(a) give an authorised person access to it, and

(b) permit an authorised person to remove and take away any of it which he reasonably considers necessary,

not later than the end of the period of 7 days beginning on the date of the order or the end of such longer period as the order may specify.

(3) The reference in sub-paragraph (2)(a) above to giving an authorised person access to the recorded information to which the application relates includes a reference to permitting the authorised person to take copies of it or to make extracts from it.

(4) Where the recorded information consists of information [F805 stored in any electronic form], an order under this paragraph shall have effect as an order to produce the information in a form in which it is visible and legible [F806 or from which it can readily be produced in a visible and legible form] and, if the authorised person wishes to remove it, in a form in which it can be removed.

(5) This paragraph is without prejudice to paragraphs 7 and 10 above.

Textual Amendments

F804 Words in Sch. 11 para. 11(1) substituted (1.4.1996) by 1995 c. 40, ss. 5, 7(2), Sch. 4 para. 91(b)

F805 Words in Sch. 11 para. 11(4) substituted (1.4.2003) by Criminal Justice and Police Act 2001 (c. 16), s. 138(2), Sch. 2 para. 13(1)(a), (2)(f); S.I. 2003/708, art. 2(k)

F806 Words in Sch. 11 para. 11(4) inserted (1.4.2003) by Criminal Justice and Police Act 2001 (c. 16), s. 138(2), Sch. 2 para. 13(1)(b), (2)(f); S.I. 2003/708, art. 2(k)

Procedure where documents etc. are removed U.K.

12 (1) An authorised person who removes anything in the exercise of a power conferred by or under paragraph 10 or 11 above shall, if so requested by a person showing himself— U.K.

(a) to be the occupier of premises from which it was removed, or

(b) to have had custody or control of it immediately before the removal,

provide that person with a record of what he removed.

(2) The authorised person shall provide the record within a reasonable time from the making of the request for it.

(3) Subject to sub-paragraph (7) below, if a request for permission to be granted access to anything which—

(a) has been removed by an authorised person, and

(b) is retained by the Commissioners for the purposes of investigating an offence,

is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed or by someone acting on behalf of such a person, the officer shall allow the person who made the request access to it under the supervision of an authorised person.

(4) Subject to sub-paragraph (7) below, if a request for a photograph or copy of any such thing is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall—

(a) allow the person who made the request access to it under the supervision of an authorised person for the purpose of photographing it or copying it, or

(b) photograph or copy it, or cause it to be photographed or copied.

(5) Where anything is photographed or copied under sub-paragraph (4)(b) above the photograph or copy shall be supplied to the person who made the request.

(6) The photograph or copy shall be supplied within a reasonable time from the making of the request.

(7) There is no duty under this paragraph to grant access to, or to supply a photograph or copy of, anything if the officer in overall charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice—

(a) that investigation;

(b) the investigation of an offence other than the offence for the purposes of the investigation of which the thing was removed; or

(c) any criminal proceedings which may be brought as a result of—

(i) the investigation of which he is in charge, or

(ii) any such investigation as is mentioned in paragraph (b) above.

(8) Any reference in this paragraph to the officer in overall charge of the investigation is a reference to the person whose name and address are endorsed on the warrant or order concerned as being the officer so in charge.

13 (1) Where, on an application made as mentioned in sub-paragraph (2) below, the appropriate judicial authority is satisfied that a person has failed to comply with a requirement imposed by paragraph 12 above, the authority may order that person to comply with the requirement within such time and in such manner as may be specified in the order. U.K.

(2) An application under sub-paragraph (1) above shall be made—

(a) in the case of a failure to comply with any of the requirements imposed by paragraph 12(1) and (2) above, by the occupier of the premises from which the thing in question was removed or by the person who had custody or control of it immediately before it was so removed, and

(b) in any other case, by the person who had such custody or control.

(3) In this paragraph “the appropriate judicial authority” means—

(a) in England and Wales, a magistrates’ court;

(b) in Scotland, the sheriff; and

(c) in Northern Ireland, a court of summary jurisdiction.

(4) In England and Wales and Northern Ireland, an application for an order under this paragraph shall be made by way of complaint; and sections 21 and 42(2) of the M35 Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this paragraph.

Marginal Citations

M35 1954 c. 33(N.I.)

Evidence by certificate, etc U.K.

14 (1) A certificate of the Commissioners— U.K.

(a) that a person was or was not, at any date, registered under this Act; or

(b) that any return required by or under this Act has not been made or had not been made at any date; or

(c) that any statement or notification required to be submitted or given to the Commissioners in accordance with any regulations under paragraph [F807 2(5A)] above has not been submitted or given or had not been submitted or given at any date; F808 ...

F808 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

shall be sufficient evidence of that fact until the contrary is proved.

(2) A photograph of any document furnished to the Commissioners for the purposes of this Act and certified by them to be such a photograph shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself.

(3) Any document purporting to be a certificate under sub-paragraph (1) or (2) above shall be deemed to be such a certificate until the contrary is proved.

Textual Amendments

F807 Words in Sch. 11 para. 14(1)(c) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 97(7) (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)

F808 Sch. 11 para. 14(1)(d) and word omitted (21.7.2008) by virtue of Finance Act 2008 (c. 9), Sch. 44 para. 6

Section 58A

[F809 SCHEDULE 11A U.K. Disclosure of avoidance Schemes

Textual Amendments

F809 Sch. 11A inserted (22.7.2004 for specified purposes, 1.8.2004 in so far as not already in force) by Finance Act 2004 (c. 12), s. 19(2), Sch. 2 para. 2; S.I. 2004/1934, art. 2

Modifications etc. (not altering text)

C19 Sch. 11A modified (16.11.2017 for specified purposes, 1.1.2018 in so far as not already in force) by Finance (No. 2) Act 2017 (c. 32), s. 66(2)(4)

Interpretation U.K.

1 U.K. In this Schedule—

• “designated scheme” has the meaning given by paragraph 3(4);

• [F810 “non-deductible tax”, in relation to a taxable person, has the meaning given by paragraph 2A;]

• “notifiable scheme” has the meaning given by paragraph 5(1);

• “scheme” includes any arrangements, transaction or series of transactions;

• “tax advantage” is to be read in accordance with paragraph 2.

Textual Amendments

F810 Words in Sch. 11A para. 1 inserted (1.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 6(2), Sch. 1 para. 2; S.I. 2005/2010, art. 2 (with art. 4)

Obtaining a tax advantage U.K.

[F811 2 (1) For the purposes of this Schedule, a taxable person obtains a tax advantage if— U.K.

(a) in any prescribed accounting period, the amount by which the output tax accounted for by him exceeds the input tax deducted by him is less than it would otherwise be,

(b) he obtains a VAT credit when he would not otherwise do so, or obtains a larger VAT credit or obtains a VAT credit earlier than would otherwise be the case,

(c) in a case where he recovers input tax as a recipient of a supply before the supplier accounts for the output tax, the period between the time when the input tax is recovered and the time when the output tax is accounted for is greater than would otherwise be the case, or

(d) in any prescribed accounting period, the amount of his non-deductible tax is less than it would otherwise be.

(2) For the purposes of this Schedule, a person who is not a taxable person obtains a tax advantage if his non-refundable tax is less than it would otherwise be.

(3) In sub-paragraph (2), “non-refundable tax”, in relation to a person who is not a taxable person, means—

(a) VAT on the supply to him of any goods or services,

(b) VAT on the acquisition by him from another member State of any goods, and

(c) VAT paid or payable by him on the importation of any goods from a place outside the member States,

but excluding (in each case) any VAT in respect of which he is entitled to a refund from the Commissioners by virtue of any provision of this Act.]

Textual Amendments

F811 Sch. 11A para. 2 substituted (1.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 6(2), Sch. 1 para. 3; S.I. 2005/2010, art. 2 (with art. 4)

[F812 Meaning of “non-deductible tax” U.K.

Textual Amendments

F812 Sch. 11 para. 2A and cross-heading inserted (1.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 6(2), Sch. 1 para. 4; S.I. 2005/2010, art. 2 (with art. 4)

2A (1) In this Schedule “non-deductible tax”, in relation to a taxable person, means— U.K.

(a) input tax for which he is not entitled to credit under section 25, and

(b) any VAT incurred by him which is not input tax and in respect of which he is not entitled to a refund from the Commissioners by virtue of any provision of this Act.

(2) For the purposes of sub-paragraph (1)(b), the VAT “incurred” by a taxable person is—

(a) VAT on the supply to him of any goods or services,

(b) F813 ... and

(c) VAT paid or payable by him on the importation of any goods F814 ....]

Textual Amendments

F813 Sch. 11A para. 2A(2)(b) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 98(a) (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)

F814 Words in Sch. 11A para. 2A(2)(c) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 98(b) (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)

Designation by order of avoidance schemes U.K.

3 (1) If it appears to the Treasury— U.K.

(a) that a scheme of a particular description has been, or might be, entered into for the purpose of enabling any person to obtain a tax advantage, and

(b) that it is unlikely that persons would enter into a scheme of that description unless the main purpose, or one of the main purposes, of doing so was the obtaining by any person of a tax advantage,

the Treasury may by order designate that scheme for the purposes of this paragraph.

(2) A scheme may be designated for the purposes of this paragraph even though the Treasury are of the opinion that no scheme of that description could as a matter of law result in the obtaining by any person of a tax advantage.

(3) The order must allocate a reference number to each scheme.

(4) In this Schedule “designated scheme” means a scheme of a description designated for the purposes of this paragraph.

Designation by order of provisions included in or associated with avoidance schemes U.K.

4 (1) If it appears to the Treasury that a provision of a particular description is, or is likely to be, included in or associated with schemes that are entered into for the purpose of enabling any person to obtain a tax advantage, the Treasury may by order designate that provision for the purposes of this paragraph. U.K.

(2) A provision may be designated under this paragraph even though it also appears to the Treasury that the provision is, or is likely to be, included in or associated with schemes that are not entered into for the purpose of obtaining a tax advantage.

(3) In this paragraph “provision” includes any agreement, transaction, act or course of conduct.

Meaning of “notifiable scheme” U.K.

5 (1) For the purposes of this Schedule, a scheme is a “notifiable scheme”if— U.K.

(a) it is a designated scheme, or

(b) although it is not a designated scheme, conditions A and B below are met in relation to it.

(2) Condition A is that the scheme includes, or is associated with, a provision of a description designated under paragraph 4.

(3) Condition B is that the scheme has as its main purpose, or one of its main purposes, the obtaining of a tax advantage by any person.

Duty to notify Commissioners U.K.

6 (1) This paragraph applies in relation to a taxable person where— U.K.

(a) the amount of VAT shown in a return in respect of a prescribed accounting period as payable by or to him is less than or greater than it would be but for any notifiable scheme to which he is party, F815 ...

(b) he makes a claim for the repayment of output tax or an increase in credit for input tax in respect of any prescribed accounting period in respect of which he has previously delivered a return and the amount claimed is greater than it would be but for such a scheme[F816 , or

(c) the amount of his non-deductible tax in respect of any prescribed accounting period is less than it would be but for such a scheme.]

(2) Where the scheme is a designated scheme, the taxable person must notify the Commissioners within the prescribed time, and in such form and manner as may be required by or under regulations, of the reference number allocated to the scheme under paragraph 3(3).

[F817 (2A) Sub-paragraph (2) does not apply to a taxable person in relation to any scheme if he has on a previous occasion—

(a) notified the Commissioners under that sub-paragraph in relation to the scheme, or

(b) provided the Commissioners with prescribed information under sub-paragraph (3) (as it applied before the scheme became a designated scheme) in relation to the scheme.]

(3) Where the scheme is not a designated scheme, the taxable person must, subject to sub-paragraph (4), provide the Commissioners within the prescribed time, and in such form and manner as may be required by or under regulations, with prescribed information relating to the scheme.

(4) Sub-paragraph (3) does not apply where the scheme is one in respect of which any person has previously—

(a) provided the Commissioners with prescribed information under paragraph 9, and

(b) provided the taxable person with a reference number notified to him by the Commissioners under paragraph 9(2)(b).

[F818 (5) Sub-paragraph (3) also does not apply where the scheme is one in respect of which the taxable person has on a previous occasion provided the Commissioners with prescribed information under that sub-paragraph.]

(6) This paragraph has effect subject to paragraph 7.

Textual Amendments

F815 Word in Sch. 11A para. 6(1)(a) repealed (1.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 6(2), Sch. 1 para. 5(2)(a), Sch. 11 Pt. 1; S.I. 2005/2010, art. 2 (with art. 4)

F816 Sch. 11A para. 6(1)(c) and word inserted (1.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 6(2), Sch. 1 para. 5(2)(b); S.I. 2005/2010, art. 2 (with arts. 3, 4)

F817 Sch. 11A para. 6(2A) inserted (1.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 6(2), Sch. 1 para. 5(3); S.I. 2005/2010, art. 2 (with art. 4)

F818 Sch. 11A para. 6(5) substituted (1.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 6(2), Sch. 1 para. 5(4); S.I. 2005/2010, art. 2 (with art. 4)

Exemptions from duty to notify under paragraph 6 U.K.

7 (1) Paragraph 6 does not apply to a taxable person in relation to a scheme— U.K.

(a) where the taxable person is not a group undertaking in relation to any other undertaking and conditions A and B below, as they have effect in relation to the scheme, are met in relation to the taxable person, or

(b) where the taxable person is a group undertaking in relation to any other undertaking and conditions A and B below, as they have effect in relation to the scheme, are met in relation to the taxable person and every other group undertaking.

(2) Condition A is that the total value of the person’s taxable supplies and exempt supplies in the period of twelve months ending immediately before the beginning of the relevant period is less than the minimum turnover.

(3) Condition B is that the total value of the person’s taxable supplies and exempt supplies in the prescribed accounting period immediately preceding the relevant period is less than the appropriate proportion of the minimum turnover.

(4) In sub-paragraphs (2) and (3) “the minimum turnover” means—

(a) in relation to a designated scheme, £600,000, and

(b) in relation to any other notifiable scheme, £10,000,000.

(5) In sub-paragraph (3) “the appropriate proportion” means the proportion which the length of the prescribed accounting period bears to twelve months.

(6) The value of a supply of goods or services shall be determined for the purposes of this paragraph on the basis that no VAT is chargeable on the supply.

(7) The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (4)(a) or (b) such other sum as they think fit.

(8) This paragraph has effect subject to paragraph 8.

(9) In this paragraph—

• “relevant period” means the prescribed accounting period referred to in paragraph [F819 6(1)(a), (b) or (c)];

• “undertaking” and “group undertaking” have the same meanings as in [F820 section 1161 of the Companies Act 2006].

Textual Amendments

F819 Words in Sch. 11A para. 7(9) substituted (1.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 6(2), Sch. 1 para. 6; S.I. 2005/2010, art. 2 (with art. 4)

F820 Words in Sch. 11A para. 7(9) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments) (Taxes and National Insurance) Order 2008 (S.I. 2008/954), arts. 1(1), 20 (with art. 4)

Power to exclude exemption U.K.

8 (1) The purpose of this paragraph is to prevent the maintenance or creation of any artificial separation of business activities carried on by two or more persons from resulting in an avoidance of the obligations imposed by paragraph 6. U.K.

(2) In determining for the purposes of sub-paragraph (1) whether any separation of business activities is artificial, regard shall be had to the extent to which the different persons carrying on those activities are closely bound to one another by financial, economic and organisational links.

(3) If the Commissioners make a direction under this section—

(a) the persons named in the direction shall be treated for the purposes of paragraph 7 as a single taxable person carrying on the activities of a business described in the direction with effect from the date of the direction or, if the direction so provides, from such later date as may be specified in the direction, and

(b) if paragraph 7 would not exclude the application of paragraph 6, in respect of any notifiable scheme, to that single taxable person, it shall not exclude the application of paragraph 6, in respect of that scheme, to the persons named in the direction.

(4) The Commissioners shall not make a direction under this section naming any person unless they are satisfied—

(a) that he is making or has made taxable or exempt supplies,

(b) that the activities in the course of which he makes those supplies form only part of certain activities, the other activities being carried on concurrently or previously (or both) by one or more other persons, and

(c) that, if all the taxable and exempt supplies of the business described in the direction were taken into account, conditions A and B in paragraph 7(2) and (3), as those conditions have effect in relation to designated schemes, would not be met in relation to that business.

(5) A direction under this paragraph shall be served on each of the persons named in it.

(6) A direction under this paragraph remains in force until it is revoked or replaced by a further direction.

Voluntary notification of avoidance scheme that is not designated scheme U.K.

9 (1) Any person may, at any time, provide the Commissioners with prescribed information relating to a scheme or proposed scheme of a particular description which is (or, if implemented, would be) a notifiable scheme by virtue of paragraph 5(1)(b). U.K.

(2) On receiving the prescribed information, the Commissioners may—

(a) allocate a reference number to the scheme (if they have not previously done so under this paragraph), and

(b) notify the person who provided the information of the number allocated.

Modifications etc. (not altering text)

C20 Sch. 11A para. 9 excluded (16.11.2017 for specified purposes, 1.1.2018 in so far as not already in force) by Finance (No. 2) Act 2017 (c. 32), s. 66(3)(4)

Penalty for failure to notify use of notifiable scheme U.K.

10 (1) A person who fails to comply with paragraph 6 shall be liable, subject to sub-paragraphs (2) and (3), to a penalty of an amount determined under paragraph 11. U.K.

(2) Conduct falling within sub-paragraph (1) shall not give rise to liability to a penalty under this paragraph if the person concerned satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for the failure.

(3) Where, by reason of conduct falling within sub-paragraph (1)—

(a) a person is convicted of an offence (whether under this Act or otherwise), or

(b) a person is assessed to a penalty under section 60 [F821 or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007],

that conduct shall not give rise to a penalty under this paragraph.

Textual Amendments

F821 Words in Sch. 11A para. 10(3)(b) inserted (1.4.2009) by The Finance Act 2008, Schedule 40 (Appointed Day, Transitional Provisions and Consequential Amendments) Order 2009 (S.I. 2009/571), art. 1(1), Sch. 1 para. 17

Amount of penalty U.K.

11 (1) Where the failure mentioned in paragraph 10(1) relates to a notifiable scheme that is not a designated scheme, the amount of the penalty is £5,000. U.K.

(2) Where the failure mentioned in paragraph 10(1) relates to a designated scheme, the amount of the penalty is 15 per cent. of the VAT saving (as determined under sub-paragraph (3)).

(3) For this purpose the VAT saving is—

(a) to the extent that the case falls within paragraph 6(1)(a), the aggregate of—

(i) the amount by which the amount of VAT that would, but for the scheme, have been shown in returns in respect of the relevant periods as payable by the taxable person exceeds the amount of VAT that was shown in those returns as payable by him, and

(ii) the amount by which the amount of VAT that was shown in such returns as payable to the taxable person exceeds the amount of VAT that would, but for the scheme, have been shown in those returns as payable to him, F822 ...

(b) to the extent that the case falls within paragraph 6(1)(b), the amount by which the amount claimed exceeds the amount which the taxable person would, but for the scheme, have claimed[F823 , and

(c) to the extent that—

(i) the case falls within paragraph 6(1)(c), and

(ii) the excess of the notional non-deductible tax of the taxable person for the relevant periods over his non-deductible tax for those periods is not represented by a corresponding amount which by virtue of paragraph (a) or (b) is part of the VAT saving,

the amount of the excess.]

(4) In sub-paragraph (3)(a) [F824 and (c)] “the relevant periods” means the prescribed accounting periods beginning with that in respect of which the duty to comply with paragraph 6 first arose and ending with the earlier of the following—

(a) the prescribed accounting period in which the taxable person complied with that paragraph, and

(b) the prescribed accounting period immediately preceding the notification by the Commissioners of the penalty assessment.

[F825 (5) In sub-paragraph (3)(c), “notional non-deductible tax”, in relation to a taxable person, means the amount that would, but for the scheme, have been the amount of his non-deductible tax.]

Textual Amendments

F822 Word in Sch. 11A para. 11(3)(a) repealed (1.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 6(2), Sch. 1 para. 7(2)(a), Sch. 11 Pt. 1; S.I. 2005/2010, art. 2 (with art. 4)

F823 Sch. 11A para. 11(3)(c) and word inserted (1.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 6(2), Sch. 1 para. 7(2)(b); S.I. 2005/2010, art. 2 (with art. 4)

F824 Words in Sch. 11A para. 11(4) inserted (1.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 6(2), Sch. 1 para. 7(3); S.I. 2005/2010, art. 2 (with art. 4)

F825 Sch. 11A para. 11(5) inserted (1.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 6(2), Sch. 1 para. 7(4); S.I. 2005/2010, art. 2 (with art. 4)

Penalty assessments U.K.

12 (1) Where any person is liable under paragraph 10 to a penalty of an amount determined under paragraph 11, the Commissioners may, subject to sub-paragraph (3), assess the amount due by way of penalty and notify it to him accordingly. U.K.

(2) The fact that any conduct giving rise to a penalty under paragraph 10 may have ceased before an assessment is made under this paragraph shall not affect the power of the Commissioners to make such an assessment.

[F826 (3) In a case where—

(a) the penalty falls to be calculated by reference to the VAT saving as determined under paragraph 11(3), and

(b) the notional tax cannot readily be attributed to any one or more prescribed accounting periods,

the notional tax shall be treated for the purposes of this Schedule as attributable to such period or periods as the Commissioners may determine to the best of their judgment and notify to the person liable for the penalty.

(3A) In sub-paragraph (3) “the notional tax” means—

(a) the VAT that would, but for the scheme, have been shown in returns as payable by or to the taxable person, or

(b) any amount that would, but for the scheme, have been the amount of the non-deductible tax of the taxable person.]

(4) No assessment to a penalty under this paragraph shall be made more than two years from the time when facts sufficient, in the opinion of the Commissioners, to indicate that there has been a failure to comply with paragraph 6 in relation to a notifiable scheme came to the Commissioners' knowledge.

(5) Where the Commissioners notify a person of a penalty in accordance with sub-paragraph (1), the notice of assessment shall specify—

(a) the amount of the penalty,

(b) the reasons for the imposition of the penalty,

(c) how the penalty has been calculated, and

(d) any reduction of the penalty in accordance with section 70.

(6) Where a person is assessed under this paragraph to an amount due by way of penalty and is also assessed under section 73(1), (2), (7), (7A) or (7B) for any of the prescribed accounting periods to which the assessment under this paragraph relates, the assessments may be combined and notified to him as one assessment, but the amount of the penalty shall be separately identified in the notice.

(7) If an amount is assessed and notified to any person under this paragraph, then unless, or except to the extent that, the assessment is withdrawn or reduced, that amount shall be recoverable as if it were VAT due from him.

(8) Subsection (10) of section 76 (notification to certain persons acting for others) applies for the purposes of this paragraph as it applies for the purposes of that section.

Textual Amendments

F826 Sch. 11A para. 12(3)(3A) substituted for Sch. 11A para. 12(3) (1.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 6(2), Sch. 1 para. 8; S.I. 2005/2010, art. 2 (with art. 4)

Penalty assessments U.K.

13 U.K. Regulations under this Schedule—

(a) may make different provision for different circumstances, and

(b) may include transitional provisions or savings.]

Section 61.

F827 SCHEDULE 12 U.K. Constitution and procedure of tribunals

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F827 Sch. 12 omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 228

Section 100.

SCHEDULE 13 U.K. Transitional provisions and savings

Extent Information

E1 Sch. 13 para. 23 extends to the Isle of Man.

General provisions U.K.

1 (1) The continuity of the law relating to VAT shall not be affected by the substitution of this Act for the enactments repealed by this Act and earlier enactments repealed by and corresponding to any of those enactments (“the repealed enactments”). U.K.

(2) Any reference, whether express or implied, in any enactment, instrument or document (including this Act or any Act amended by this Act) to, or to things done or falling to be done under or for the purposes of, any provision of this Act shall, if and so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision in the repealed enactments has or had effect, a reference to, or as the case may be, to things done or falling to be done under or for the purposes of, that corresponding provision.

(3) Any reference, whether express or implied, in any enactment, instrument or document (including the repealed enactments and enactments, instruments and documents passed or made or otherwise coming into existence after the commencement of this Act) to, or to things done or falling to be done under or for the purposes of, any of the repealed enactments shall, if and so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision of this Act has effect, a reference to, or as the case may be to things done or falling to be done under or for the purposes of, that corresponding provision.

(4) Without prejudice to paragraphs (1) to (3) above, in any case where as respects the charge to VAT on any supply, acquisition or importation made at a time before 1st September 1994 but falling in a prescribed accounting period to which Part I applies

(a) an enactment applicable to that charge to VAT is not re-enacted in this Act or is re-enacted with amendments which came into force after that time, or

(b) a repealed enactment corresponding to an enactment in this Act did not apply to that charge to VAT,

any question arising under Part I and relating to that charge to VAT shall continue to be determined in accordance with the law in force at that time.

Validity of subordinate legislation U.K.

2 U.K. So far as this Act re-enacts any provision contained in a statutory instrument made in exercise of powers conferred by any Act, it shall be without prejudice to the validity of that provision, and any question as to its validity shall be determined as if the re-enacted provision were contained in a statutory instrument made under those powers.

Provisions related to the introduction of VAT U.K.

3 U.K. Where a vehicle in respect of which purchase tax was remitted under section 23 of the M36 Purchase Tax Act 1963 (vehicles for use outside the United Kingdom) is brought back to the United Kingdom the vehicle shall not, when brought back, be treated as imported for the purpose of VAT chargeable on the importation of goods.

Marginal Citations

M36 1963 c. 9.

Supply in accordance with pre-21.4.75 arrangements U.K.

4 U.K. Where there were in force immediately before 21st April 1975 arrangements between the Commissioners and any taxable person for supplies made by him (or such supplies made by him as were specified in the arrangements) to be treated as taking place at times or on dates which, had section 6(10) been in force when the arrangements were made, could have been provided for by a direction under that section, he shall be treated for the purposes of that section as having requested the Commissioners to give a direction thereunder to the like effect, and the Commissioners may give a direction (or a general direction applying to cases of any class or description specified in the direction) accordingly.

President, chairmen etc of tribunals U.K.

5 (1) Any appointment to a panel of chairmen of the tribunals current at the commencement of this Act and made by the Treasury before the passing of the 1983 Act shall not be affected by the repeal by this Act of paragraph 8 of Schedule 10 to that Act. U.K.

(2) The terms of appointment of any person who was appointed to the office of President of the tribunal or chairman or other member of the tribunals before 1st April 1986 and holds that office on the coming into force of this Act shall continue to have effect notwithstanding the re-enactment, as Schedule 12 to this Act, of Schedule 8 to the 1983 Act as amended by Schedule 8 to the M37 Finance Act 1985.

Marginal Citations

M37 1985 c. 54.

Overseas suppliers accounting through their customers U.K.

6 U.K. Notwithstanding the repeal by this Act of section 32B of the 1983 Act, that section shall continue to apply in relation to any supply in relation to which section 14 does not apply by virtue of section 14(8), and for the purposes to this paragraph section 32B shall have effect as if it were included in Part III of this Act, any reference in section 32B to any enactment repealed by this Act being read as a reference to the corresponding provision of this Act.

Supplies of fuel and power for domestic or charity use U.K.

F828 7 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F828 Sch. 13 para. 7 repealed (1.5.1995 with application as mentioned in s. 21(6) of the amending Act) by 1995 c. 4, ss. 21(5), 162, Sch. 29 Pt. VI Note

Group 4A U.K. Fuel and power for domestic or charity use

Item No. U.K.

1 Supplies for qualifying use of—

(a) coal, coke or other solid substances held out for sale solely as fuel;

(b) coal gas, water gas, producer gases or similar gases;

(c) petroleum gases, or other gaseous hydrocarbons, whether in a gaseous or liquid state;

(d) fuel oil, gas oil or kerosene; or

(e) electricity, heat or air-conditioning.

Notes: U.K.

(1) “Qualifying use” means—

(a) domestic use; or

(b) use by a charity otherwise than in the course or furtherance of a business.

(2) The following supplies are always for domestic use—

(a) a supply of not more than one tonne of coal or coke held out for sale as domestic fuel;

(b) a supply of wood, peat or charcoal not intended for sale by the recipient;

(c) a supply to a person at any premises of piped gas (that is, gas within paragraph (b) of item 1, or of petroleum gas in a gaseous state, provided through pipes) where the gas (together with any other piped gas provided to him at the premises by the same supplier) was not provided at a rate exceeding 150 therms a month or, if the supplier charges for the gas by reference to the number of kilowatt hours supplied, 4397 kilowatt hours a month;

(d) a supply of petroleum gas in a liquid state where the gas is supplied in cylinders the net weight of each of which is less than 50 kilogrammes and either the number of cylinders supplied is 20 or fewer or the gas is not intended for sale by the recipient;

(e) a supply of petroleum gas in a liquid state, otherwise than in cylinders, to a person at any premises at which he is not able to store more than two tonnes of such gas;

(f) a supply of not more than 2,300 litres of fuel oil, gas oil or kerosene;

(g) a supply of electricity to a person at any premises where the electricity (together with any other electricity provided to him at the premises by the same supplier) was not provided at a rate exceeding 1000 kilowatt hours a month.

(3) Supplies not within Note (2) are for domestic use if and only if the goods supplied are for use in—

(a) a building, or part of a building, which consists of a dwelling or number of dwellings;

(b) a building, or part of a building, used for a relevant residential purpose;

(c) self-catering holiday accommodation;

(d) a caravan; or

(e) a houseboat.

(4) Use for a relevant residential purpose means use as—

(a) a home or other institution providing residential accommodation for children;

(b) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder;

(c) a hospice;

(d) residential accommodation for students or school pupils;

(e) residential accommodation for members of any of the armed forces;

(f) a monastery, nunnery or similar establishment; or

(g) an institution which is the sole or main residence of at least 90 per cent. of its residents,

except use as a hospital, a prison or similar institution or an hotel or inn or similar establishment.

(5) Self-catering holiday accommodation includes any accommodation advertised or held out as such.

(6) “Houseboat” means a boat or other floating decked structure designed or adapted for use solely as a place of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion.

(7) Where there is a supply of goods partly for qualifying use and partly not—

(a) if at least 60 per cent. of the goods are supplied for qualifying use, the whole supply shall be treated as a supply for qualifying use; and

(b) in any other case, an apportionment shall be made to determine the extent to which the supply is a supply for qualifying use.

(8) Paragraph (a) of item 1 shall be deemed to include combustible materials put up for sale for kindling fires but shall not include matches.

(9) Paragraphs (b) and (c) of item 1 do not include any road fuel gas (within the meaning of the Hydrocarbon Oil Duties Act 1979) on which a duty of excise has been charged or is chargeable.

(10) Paragraph (d) of item 1 does not include hydrocarbon oil on which a duty of excise has been or is to be charged without relief from, or rebate of, such duty by virtue of the provisions of the Hydrocarbon Oil Duties Act 1979.

(11) “Fuel oil” means heavy oil which contains in solution an amount of asphaltenes of not less than 0.5 per cent. or which contains less than 0.5 per cent. but not less than 0.1 per cent. of asphaltenes and has a closed flash point not exceeding 150°C.

(12) “Gas oil” means heavy oil of which not more than 50 per cent. by volume distils at a temperature not exceeding 240°C and of which more than 50 per cent. by volume distils at a temperature not exceeding 340°C.

(13) “Kerosene” means heavy oil of which more than 50 per cent. by volume distils at a temperature not exceeding 240°C.

(14) “Heavy oil” shall have the same meaning as in the Hydrocarbon Oil Duties Act 1979.

Zero-rated supplies of goods and services U.K.

8 (1) A supply of services made after the commencement of this Act in pursuance of a legally binding obligation incurred before 21st June 1988 shall if— U.K.

(a) the supply fell within item 2 of Group 8A of Schedule 5 to the 1983 Act immediately before 1st April 1989, and

(b) it was by virtue of paragraph 13(1) of Schedule 3 to the M38 Finance Act 1989 a zero-rated supply,

be a zero-rated supply for the purposes of this Act.

(2) Where a grant, assignment or other supply is zero-rated by virtue of this paragraph, it is not a relevant zero-rated supply for the purposes of [F829 Part 2 of Schedule 10].

Textual Amendments

F829 Words in Sch. 13 para. 8(2) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Buildings and Land) Order 2008 (S.I. 2008/1146), art. 1(1), Sch. 1 para. 5(a) (with Sch. 2)

Marginal Citations

M38 1989 c. 26.

Bad debt relief U.K.

9 F830 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

[F831 (2) Claims for refunds of VAT shall not be made in accordance with section 36 of this Act in relation to—

(a) any supply made before 1st April 1989; or

(b) any supply as respects which a claim is or has been made under section 22 of the 1983 Act.]

Textual Amendments

F830 Sch. 13 para. 9(1) repealed (19.3.1997 with effect as mentioned in s. 39 of the amending Act) by 1997 c. 16, ss. 39, 113, Sch. 18 Pt. IV(3), Note

F831 Sch. 13 para. 9(2) substituted (retrospectively) by 1995 c. 4, s. 33(4)

Supplies during construction of buildings and works U.K.

F832 10 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F832 Sch. 13 para. 10 omitted (with effect in accordance with art. 1(2) of the amending S.I.) by virtue of The Value Added Tax (Buildings and Land) Order 2008 (S.I. 2008/1146), art. 1(1), Sch. 1 para. 5(b) (with Sch. 2)

Offences and Penalties U.K.

11 U.K. Where an offence for the continuation of which a penalty was provided has been committed under an enactment repealed by this Act, proceedings may be taken under this Act in respect of the continuance of the offence after the commencement of this Act in the same manner as if the offence had been committed under the corresponding provision of this Act.

12 U.K. Part IV of this Act, except section 72, shall not apply in relation to any act done or omitted to be done before 25th July 1985, and the following provision of this Schedule shall have effect accordingly.

13 (1) Section 72 shall have effect in relation to any offence committed or alleged to have been committed at any time (“the relevant time”) before the commencement of this Act subject to the following provisions of this paragraph. U.K.

(2) Where the relevant time falls between 25th July 1983 and 26th July 1985 (the dates of passing of the 1983 and 1985 Finance Acts respectively), section 72 shall apply—

(a) with the substitution in subsection (1)(b), (3)(ii) and (8)(b) of “2 years” for “ 7 years ”;

(b) with the omission of subsections (2) and (4) to (7).

14 (1) The provisions of this paragraph have effect in relation to section 59. U.K.

(2) Section 59 shall apply in any case where a person is in default in respect of a prescribed accounting period which has ended before the commencement of this Act, but shall have effect in any case where the last day referred to in subsection (1) of that section falls before 1st October 1993 subject to the following modifications—

(a) for the words “a prescribed accounting period” in subsection (2)(a) there shall be substituted “ any two prescribed accounting periods ”;

(b) with the addition of the following paragraph in subsection (2)—

“(aa) the last day of the later one of those periods falls on or before the first anniversary of the last day of the earlier one; and”;

(c) for the words “period referred to in paragraph (a)” in subsection (2)(b) there shall be substituted “ slater period referred to in paragraph (aa) ”; and

(d) for the words “a default in respect of a prescribed accounting period and that period” in subsection (3) there shall be substituted “ defaults in respect of two prescribed accounting periods and the second of those periods ”.

(3) Section 59 shall have effect, in any case where a person has been served with a surcharge liability notice and that person is in default in respect of a prescribed accounting period because of a failure of the Commissioners to receive a return or an amount of VAT on or before a day falling before 30th September 1993 with the omission of—

(a) subsection (4)(b);

(b) the words in subsection (5) “and for which he has outstanding VAT”; and

(c) subsection (6).

15 (1) Section 63 does not apply in relation to returns and assessments made for prescribed accounting periods beginning before 1st April 1990 but subject to that shall have effect in relation to the cases referred to in the following sub-paragraphs subject to the modifications there specified. U.K.

(2) Subsection (1) shall have effect in a case falling within paragraph (b) of that subsection where the assessment was made on or before 10th March 1992 with the substitution of “20 per cent.” for “ 15 per cent. ”.

(3) In relation to any prescribed accounting period beginning before 1st December 1993 section 63 shall have effect with the substitution—

(a) for the words in subsection (2) following “exceeds” of “ either 30 per cent. of the true amount of the VAT for that period or whichever is the greater of £10,000 and 5 per cent. of the true amount of VAT for that period. ” and with the omission of subsections (4) to (6); and

(b) for the words in subsection (8) from “subsections” to “statements” of “ subsection (7) that the statement by each of those returns is a correct statement ”.

(4) In relation to any prescribed accounting period beginning before 1st June 1994 section 63 shall have effect with the substitution for subsection (3) of the following subsection—

“(3) Any reference in this section to the VAT for a prescribed accounting period which would have been lost if an inaccuracy had not been discovered is a reference to the aggregate of—

(a) the amount (if any) by which credit for input tax for that period was overstated; and

(b) the amount (if any) by which output tax for that period was understated;

but if for any period there is an understatement of credit for input tax or an overstatement of output tax, allowance shall be made for that error in determining the VAT for that period which would have been so lost.”and in subsection (8) for “this section” there shall be substituted “ subsections (5) and (7) above ”.

16 (1) In relation to any prescribed accounting period beginning before 1st December 1993 section 64 shall have effect subject to the following modifications— U.K.

(a) in subsection (1)(b) for the words from “whichever” to “period” there shall be substituted “ whichever is the greater of £100 and 1 per cent. of the true amount of VAT for that period ”;

(b) for subsections (2) and (3) there shall be substituted—

“(2) Subsection (3) below applies in any case where—

(a) there is a material inaccuracy in respect of any two prescribed accounting periods, and

(b) the last day of the later one of those periods falls on or before the second anniversary of the last day of the earlier one, and

(c) after 29th July 1988 the Commissioners serve notice on the person concerned (“a penalty liability notice”) specifying as a penalty period for the purposes of this section a period beginning on the date of the notice and ending on the second anniversary of that date.

(3) If there is a material inaccuracy in respect of a prescribed accounting period ending within the penalty period specified in a penalty liability notice served on the person concerned that person shall be liable to a penalty equal to 15 per cent. of the VAT for that period which would have been lost if the inaccuracy had not been discovered.”;

(c) in subsection (4) for “(5)” there shall be substituted “ (7) ”; and

(d) in subsection (6) the words from “except” to the end shall be omitted.

(2) A penalty liability notice shall not be served under section 64 by reference to any material inaccuracy in respect of a prescribed accounting period beginning before 1st December 1993, and the penalty period specified in any penalty liability notice served before that day shall be deemed to end with the day before that day.

17 U.K. Section 70 shall not apply in relation to any penalty to which a person has been assessed before 27th July 1993 and in the case of any penalty in relation to which that section does not apply by virtue of this paragraph, section 60 shall have effect subject to the following modifications—

(a) in subsection (1) for “subsection (6)” there shall be substituted “ subsections (3A) and (6) ”;

(b) after subsection (3) there shall be inserted—

“(3A) If a person liable to a penalty under this section has co-operated with the Commissioners in the investigation of his true liability to tax or, as the case may be, of his true entitlement to any payment, refund or repayment, the Commissioners or, on appeal, a tribunal may reduce the penalty to an amount which is not less than half what it would have been apart from this subsection; and in determining the extent of any reduction under this subsection, the Commissioners or tribunal shall have regard to the extent of the co-operation which the person concerned has given to the Commissioners in their investigation.”;

(c) in subsection (4)(b) for the words from “under” to “this section” there shall be substituted “ to reduce a penalty under this section, as provided in subsection (4) above, and, in determining the extent of such a reduction in the case of any person, the Commissioners or tribunal will have regard to the extent of the co-operation which he has given to the Commissioners in their investigation ”;

and in section 61(6) for “70” there shall be substituted “ 60(3A) ”.

18 U.K. Section 74 shall not apply in relation to prescribed accounting periods beginning before 1st April 1990 and subsection (3) of that section shall not apply in relation to interest on amounts assessed or, as the case may be, paid before 1st October 1993.

Importation of goods U.K.

19 U.K. Nothing in this Act shall prejudice the effect of the M39 Finance (No.2) Act 1992 (Commencement No.4 and Transitional Provisions) Order 1992 and accordingly—

(a) where Article 4 of that Order applies immediately before the commencement of this Act in relation to any importation of goods, that Article and the legislation repealed by this Act shall continue to apply in relation to that importation as if this Act had not been enacted, and

(b) where Article 5 of that Order applies in relation to any goods, this Act shall apply in relation to those goods in accordance with that Article and Article 6 of that Order.

Marginal Citations

M39 S.I.1992/3261 (C.102).

Assessments U.K.

20 U.K. An assessment may be made under section 73 in relation to amounts paid or credited before the commencement of this Act but—

(a) in relation to an amount paid or credited before 30th July 1990 section 73(2) shall have effect with the omission of the words from “or which” to “out to be”, and

(b) in relation to amounts repaid or paid to any person before the passing of the M40 Finance Act 1982 section 73 shall have effect with the omission of subsection (2).

Marginal Citations

M40 1982 c.39.

Set-off of credits U.K.

21 U.K. Section 81 shall have effect in relation to amounts becoming due before 10th May 1994 with the omission of subsections (4) and (5).

VAT tribunals U.K.

22 (1) Without prejudice to paragraph 1 above, section 83 applies to things done or omitted to be done before the coming into force of this Act and accordingly references in Part V to any provision of this Act includes a reference to the corresponding provision of the enactments repealed by this Act or by any enactment repealed by such an enactment. U.K.

(2) Section 84 shall have effect before such day as may be appointed for the purposes of section 18(3) of the M41 Finance Act 1994 with the substitution for subsection (5) of the following subsection—

“(5) No appeal shall lie with respect to any matter that has been or could have been referred to arbitration under section 127 of the Management Act as applied by section 16.”

Marginal Citations

M41 1994 c. 9.

Isle of Man U.K.

23 U.K. Nothing in paragraph 7 of Schedule 14 shall affect the validity of any Order made under section 6 of the M42 Isle of Man Act 1979 and, without prejudice to section 17 of the M43 Interpretation Act 1978, for any reference in any such Order to any enactment repealed by this Act there shall be substituted a reference to the corresponding provision of this Act.

Marginal Citations

M42 1979 c. 58

M43 1978 c. 30.

SCHEDULE 14 U.K. Consequential amendments

Extent Information

E2 Sch. 14 para. 7 extends to the Isle of Man.

Diplomatic Privileges Act 1964 c.81 U.K.

1 U.K. In section 2(5A) of the Diplomatic Privileges Act 1964 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.

Commonwealth Secretariat Act 1966 c.10 U.K.

2 U.K. In paragraph 10(1A) of the Commonwealth Secretariat Act 1966 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.

Consular Relations Act 1968 c.18 U.K.

3 U.K. In section 1(8A) of the Consular Relations Act 1968 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.

International Organisations Act 1968 c.48 U.K.

4 U.K. In paragraph 19(c) of Schedule 1 to the International Organisations Act 1968 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.

Diplomatic and other Privileges Act 1971 c.64 U.K.

5 U.K. In section 1(5) of the Diplomatic and other Privileges Act 1971 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.

Customs and Excise Management Act 1979 c.2 U.K.

6 U.K. In section 1(1) of the Customs and Excise Management Act 1979 for the definition of “free zone goods” there shall be substituted—

““free zone goods” are goods which are within a free zone;”.

Isle of Man Act 1979 c.58 U.K.

7 (1) In section 1(1)(d) of the Isle of Man Act for “13 of the Value Added Tax Act 1983” there shall be substituted “ 23 of the Value Added Tax Act 1994 ”. U.K.

(2) In section 6 of that Act—

(a) for “1983” in each place where it occurs there shall be substituted “ 1994 ”;

(b) in subsection (2)(f) for “29” there shall be substituted “ 43 ”;

(c) in subsection (4)(a) for “16(9)” there shall be substituted “ 30(10) ”;

(d) in subsection (4)(b) for “Schedule 7” there shall be substituted “ Schedule 11 ”; and

(e) in subsection (4)(c) for “39(3)” there shall be substituted “ 72(8) ”.

(3) In section 14(4)(b) for “section 33(2A) of the Finance Act 1972” there shall be substituted “ paragraph 5(3) of Schedule 11 to the Value Added Tax Act 1994 ”.

Insolvency Act 1986 c.45 U.K.

F833 8 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F833 Sch. 14 para. 8 repealed (15.9.2003) by Enterprise Act 2002 (c. 40), s. 279, Sch. 26; S.I. 2003/2093, art. 2(1), Sch. 2 (with art. 4)

Bankruptcy (Scotland) Act 1985 c.66 U.K.

F834 9 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F834 Sch. 14 para. 9 repealed (30.11.2016) by The Bankruptcy (Scotland) Act 2016 (Consequential Provisions and Modifications) Order 2016 (S.I. 2016/1034), art. 1, Sch. 2 Pt. 1

Income and Corporation Taxes Act 1988 c.1 U.K.

10 (1) The Income and Corporation Taxes Act 1988 shall be subject to the following amendments. U.K.

(2) In section 827 for—

(a) “Chapter II of Part I of the Finance Act 1985” there shall be substituted “ Part IV of the Value Added Tax Act 1994 ”;

(b) “13 to 17A” there shall be substituted “ 60 to 70 ”;

(c) “18” and “19” there shall be substituted respectively “ 74 ” and “ 59 ”;

(d) “20 of the Finance Act 1985” there shall be substituted “ 79 of that Act ”.

Capital Allowances Act 1990 c.1 U.K.

F835 11 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F835 Sch. 14 para. 11 repealed (22.3.2001 with effect as mentioned in s. 579(1)) of the amending Act) by 2001 c. 2, s. 580, Sch. 4

Tribunals and Inquiries Act 1992 c.53 U.K.

F836 12 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F836 Sch. 14 para. 12 omitted (1.4.2009) by virtue of The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56), art. 1(2), Sch. 1 para. 229

Finance Act 1994 c.9 U.K.

13 U.K. In section 7 of the Finance Act 1994—

[F837 (a) in subsection (4) for “25 and 29 of the Finance Act 1985” and “40 of the Value Added Tax Act 1983” there shall be substituted, respectively, “ 85 and 87 of the Value Added Tax Act 1994 ” and “ 83 of that Act ” ; ]

(b) in subsection (5) for “8 to the Value Added Tax Act 1983” there shall be substituted “ 12 to the Value Added Tax Act 1994 ”.

Textual Amendments

F837 Sch. 14 para. 13(a) substituted (retrospectively) by 1995 c. 4, s. 33(5)

Vehicle Excise and Registration Act 1994 c.22 U.K.

14 U.K. In paragraph 23 of Schedule 2 to the Vehicle Excise and Registration Act 1994—

(a) for “2C of the Value Added Tax Act 1983” there shall be substituted “ 3 of the Value Added Tax Act 1994 ”;

(b) for “(7) of section 16” there shall be substituted “ (8) of section 30 ”; and

(c) for “subsection (9)” there shall be substituted “ subsection (10) ”.

SCHEDULE 15 U.K. Repeals

Acts of Parliament U.K.

Chapter	Short title	Extent of repeal
1979 c.2.	Customs and Excise Management Act 1979	Sections 100B and 100C.
1983 c.55.	Value Added Tax Act 1983	The whole Act.
1984 c.24.	Dentists Act 1984	In Schedule 5, paragraph 16.
1984 c.43.	Finance Act 1984	Sections 10 to 13.
		Schedule 6.
1984 c.51.	Inheritance Tax Act 1984	In Schedule 8, paragraph 24.
1984 c.60.	Police and Criminal Evidence Act 1984	In Schedule 6, paragraph 41.
1985 c.54.	Finance Act 1985	Sections 11 to 33.
		Schedules 6, 7 and 8.
		In Schedule 26, paragraph 14.
1986 c.41.	Finance Act 1986	Sections 9 to 15.
		Schedule 6.
1987 c.16.	Finance Act 1987	Sections 11 to 19.
		Schedule 2.
1987 c.18.	Debtors (Scotland) Act 1987	In Schedule 4, paragraph 4.
1988 c.39.	Finance Act 1988	Sections 13 to 22.
1988 c.54.	Road Traffic (Consequential Provisions) Act 1988	In Schedule 3, paragraph 32.
1989 c.26.	Finance Act 1989	Sections 18 to 26.
		Schedule 3.
1989 c.40.	Companies Act 1989	In Schedule 18, paragraph 27.
1989 c.44.	Opticians Act 1989	Section 37(3).
1990 c.11.	Planning (Consequential Provisions) Act 1990	In Schedule 2, paragraph 61.
1990 c.19.	National Health Service and Community Care Act 1990	Section 61(4).
		In Schedule 8, paragraph 9.
1990 c.29.	Finance Act 1990	Sections 10 to 16.
1990 c.41.	Courts and Legal Services Act 1990	In Schedule 10, paragraph 52.
1990 c.42.	Broadcasting Act 1990	In Schedule 20, paragraph 37.
1991 c.21.	Disability Living Allowance and Disability Working Allowance Act 1991	In Schedule 2, paragraph 13.
1991 c.31.	Finance Act 1991	Sections 13 to 18.
1992 c.12.	Taxation of Chargeable Gains Act 1992	In Schedule 10, paragraph 6.
1992 c.20.	Finance Act 1992	Sections 6 and 7.
1992 c.48.	Finance (No.2) Act 1992	Sections 14(1) and (3) to (6).
		Sections 15 to 17.
		Schedule 3, Parts I and II.
1992 c.52.	Trade Union and Labour Relations (Consolidation) Act 1992	In Schedule 2, paragraph 32.
1992 c.53.	Tribunals and Inquiries Act 1992	In Schedule 3, paragraph 17.
1993 c.8.	Judicial Pensions and Retirement Act 1993	In Schedule 6, paragraph 35.
		In Schedule 8, paragraph 16.
1993 c.34.	Finance Act 1993	Sections 42 to 50.
		Schedule 2.
1994 c.9	Finance Act 1994	Section 7(1) and (2).
		In section 18(3) the words from “and for” to the end.
		Sections 45 and 47.
1994 c.22	Vehicle Excise and Registration Act 1994	In Schedule 3, paragraph 21.

Statutory Instruments U.K.

Chapter	Short title	Extent of repeal
S.I.1980/440	Value Added Tax (Fuel and Power) Order 1980	The whole Order.
S.I.1983/1717	Value Added Tax (Charities Etc.) Order 1983	The whole Order.
S.I.1984/489	Value Added Tax (Handicapped Persons) Order 1984	The whole Order.
S.I.1984/631	Value Added Tax (Lifeboats) Order 1984	The whole Order.
S.I.1984/766	Value Added Tax (Charities Etc.) Order 1984	The whole Order.
S.I.1984/767	Value Added Tax (Marine etc. Insurance) Order 1984	The whole Order.
S.I.1984/959	Value Added Tax (Handicapped Persons) (No.2) Order 1984	The whole Order.
S.I.1984/1784	Value Added Tax (Optical Appliances) Order 1984	The whole Order.
S.I.1985/18	Value Added Tax (Protected Buildings) Order 1985	The whole Order.
S.I.1985/431	Value Added Tax (Charities Etc.) Order 1985	The whole Order.
S.I.1985/432	Value Added Tax (Finance) Order 1985	The whole Order.
S.I.1985/799	Value Added Tax (Hiring of Goods) Order 1985	The whole Order.
S.I.1985/919	Value Added Tax (Handicapped Persons) Order 1985	Article 3.
S.I.1985/1900	Value Added Tax (Welfare) Order 1985	The whole Order.
S.I.1986/530	Value Added Tax (Handicapped Persons and Charities) Order 1986	The whole Order.
S.I.1987/437	Value Added Tax (Charities) Order 1987	The whole Order.
S.I.1987/517	Value Added Tax (Betting, Gaming and Lotteries) Order 1987	The whole Order.
S.I.1987/518	Value Added Tax (International Services) Order 1987	The whole Order.
S.I.1987/1072	Value Added Tax (Construction of Buildings) (No.2) Order 1987	Article 2.
S.I.1987/860	Value Added Tax (Finance) Order 1987	The whole Order.
S.I.1987/1259	Value Added Tax (Education) Order 1987	The whole Order.
S.I.1987/1806	Value Added Tax (Tour Operators) Order 1987	Article 11.
S.I.1988/507	Value Added Tax (Confectionery) Order 1988	The whole Order.
S.I.1988/1282	Value Added Tax (Training) Order 1988	The whole Order.
S.I.1989/267	Value Added Tax (Education) Order 1989	The whole Order.
S.I.1989/470	Value Added Tax (Fund-Raising Events and Charities) Order 1989	The whole Order.
S.I.1989/2272	Value Added Tax (Finance, Health and Welfare) Order 1989	The whole Order.
S.I.1990/682	Value Added Tax (Increase of Registration Limits) Order 1990	The whole Order.
S.I.1990/750	Value Added Tax (Charities) Order 1990	The whole Order.
S.I.1990/752	Value Added Tax (Transport) Order 1990	The whole Order.
S.I.1990/2037	Value Added Tax (Insurance) Order 1990	The whole Order.
S.I.1990/2129	Value Added Tax (Charities) (No.2) Order 1990	The whole Order.
S.I.1990/2553	Value Added Tax (Construction of Dwellings and Land) Order 1990	The whole Order.
S.I.1991/737	Value Added Tax (Charities) Order 1991	The whole Order.
S.I.1991/738	Value Added Tax (Increase of Registration Limits) Order 1991	The whole Order.
S.I.1991/2534	Value Added Tax (Piped Gas) (Metrication) Order 1991	The whole Order.
S.I.1991/2569	Value Added Tax (Buildings and Land) Order 1991	The whole Order.
S.I.1992/628	Value Added Tax (Charities and Aids for Handicapped Persons) Order 1992	The whole Order.
S.I.1992/629	Value Added Tax (Increase of Registration Limits) Order 1992	The whole Order.
S.I.1992/733	Value Added Tax (Increase for Consideration for Fuel) Order 1992	The whole Order.
S.I.1992/3065	Value Added Tax (Motor Vehicles for the Handicapped) Order 1992	The whole Order.
S.I.1992/3126	Value Added Tax (Transport) Order 1992	The whole Order.
S.I.1992/3127	Value Added Tax (Means of Transport) Order 1992	The whole Order.
S.I.1992/3131	Value Added Tax (Tax Free Shops) Order 1992	The whole Order.
S.I.1992/3223	Value Added Tax (International Services and Transport) Order 1992	The whole Order.
S.I.1993/765	Value Added Tax (Increase for Consideration for Fuel) Order 1993	The whole Order.
S.I.1993/766	Value Added Tax (Increase of Registration Limits) Order 1993	The whole Order.
S.I.1993/767	Value Added Tax (Protective Boots and Helmets) Order 1993	The whole Order.
S.I.1993/1124	Value Added Tax (Education) (No.2) Order 1993	The whole Order.
S.I.1993/2214	Finance Act 1993 (Appointed Day) Order 1993	The whole Order.
S.I.1993/2328	Value Added Tax (Reverse Charge) Order 1993	The whole Order.
S.I.1993/2498	Value Added Tax (Beverages) Order 1993	The whole Order.
S.I.1993/2498	Value Added Tax (Beverages) Order 1983	The whole Order.
S.I.1993/2952	Value Added Tax (Increase of Consideration for Fuel) (No.2) Order 1993	The whole Order.
S.I.1993/2953	Value Added Tax (Increase of Registration Limits) (No.2) Order 1993	The whole Order.
S.I.1994/686	Value Added Tax (Tax Free Shops) Order 1994	The whole Order.
S.I.1994/687	Value Added Tax (Sport, Physical Education and Fund-Raising Events) 1994	The whole Order.
S.I.1994/1188	Value Added Tax (Education) Order 1994	The whole Order.

U.K. TABLE OF DERIVATIONS

Notes: U.K.

1 This Table shows the derivation of the provisions of the Bill.

2 U.K. The following abbreviations are used in the Table:—

Acts of Parliament U.K.

CEMA	= Customs and Excise Management Act 1979 c.2
1984	= Finance Act 1984 c.43
PACE	= Police and Criminal Evidence Act 1984 c.60
1985	= Finance Act 1985 c.54
1986	= Finance Act 1986 c.41
1987	= Finance Act 1987 c.16
1988	= Finance Act 1988 c.39
1989	= Finance Act 1989 c.26
1990	= Finance Act 1990 c.29
CLSA	= Courts and Legal Services Act 1990 c.41
DLA	= Disability Living Allowance and Disability Working Allowance Act 1991 c.21
1991	= Finance Act 1991 c.31
1992	= Finance Act 1992 c.20
1992(2)	= Finance (No.2) Act 1992 c.48
JPRA	= Judicial Pensions and Retirement Act 1993 c.8
1993	= Finance Act 1993 c.34
1994	= Finance Act 1994 c.9

Subordinate legislation U.K.

S.I.1983/1717	= The Value Added Tax (Charities Etc.) Order 1983
S.I.1984/489	= The Value Added Tax (Handicapped Persons) Order 1984
S.I.1984/631	= The Value Added Tax (Lifeboats) Order 1984
S.I.1984/766	= The Value Added Tax (Charities Etc.) Order 1984
S.I.1984/767	= The Value Added Tax (Marine etc. Insurance) Order 1984
S.I.1984/959	= The Value Added Tax (Handicapped Persons) (No.2) Order 1984
S.I.1985/18	= The Value Added Tax (Protected Buildings) Order 1985
S.I.1985/431	= The Value Added Tax (Charities Etc.) Order 1985
S.I.1985/432	= The Value Added Tax (Finance) Order 1985
S.I.1985/799	= The Value Added Tax (Hiring of Goods) Order 1985
S.I. 1985/919	= The Value Added Tax (Handicapped Persons) Order 1985
S.I.1985/1900	= The Value Added Tax (Welfare) Order 1985
S.I.1986/530	= The Value Added Tax (Handicapped Persons and Charities) Order 1986
S.I.1987/437	= The Value Added Tax (Charities) Order 1987
S.I.1987/517	= The Value Added Tax (Betting, Gaming and Lotteries) Order 1987
S.I. 1987/860	= The Value Added Tax (Finance) Order 1987
S.I.1987/1806	= The Value Added Tax (Tour Operators) Order 1987
S.I.1987/1427	= Value Added Tax (Cash Accounting) Regulations 1987
S.I.1988/507	= The Value Added Tax (Confectionary) Regulations 1988
S.I.1989/470	= The Value Added Tax (Fund-Raising Events and Charities) Order 1989
S.I.1989/2272	= The Value Added Tax (Finance, Health and Welfare) Order 1989
S.I.1990/750	= The Value Added Tax (Charities) Order 1990
S.I.1990/752	= The Value Added Tax (Transport) Order 1990
S.I.1990/2037	= The Value Added Tax (Insurance) Order 1990
S.I.1990/2129	= The Value Added Tax (Charities) (No.2) Order 1990
S.I.1990/2553	= The Value Added Tax (Construction of Dwellings and Land) Order 1990
S.I.1991/737	= The Value Added Tax (Charities) Order 1991
S.I.1991/2534	= The Value Added Tax (Piped Gas) (Metrication) Order 1991
S.I.1991/2569	= The Value Added Tax (Buildings and Land) Order 1991
S.I.1991/2727	= Free Zone Regulations 1991
S.I.1992/628	= The Value Added Tax (Charities and Aids for Handicapped Persons) Order 1992
S.I.1992/3065	= The Value Added Tax (Motor Vehicles for the Handicapped) Order 1992
S.I.1992/3095	= Customs and Excise (Single Market etc.) Regulations 1992
S.I.1992/3126	= The Value Added Tax (Transport) Order 1992
S.I.1992/3127	= The Value Added Tax (Means of Transport) Order 1992
S.I.1992/3128	= The Value Added Tax (Reverse Charge) Order 1992
S.I.1992/3131	= The Value Added Tax (Tax Free Shops) Order 1992
S.I.1992/3223	= The Value Added Tax (International Services and Transport) Order 1992
S.I.1993/765	= The Value Added Tax (Increase for Consideration for Fuel) Order 1993
S.I.1993/766	= The Value Added Tax (Increase of Registration Limits) Order 1993
S.I.1993/767	= The Value Added Tax (Protective Boots and Helmets) Order 1993
S.I.1993/2328	= The Value Added Tax (Reverse Charge) Order 1993
S.I.1993/2498	= The Value Added Tax (Beverages) Order 1993
S.I.1993/2952	= Value Added Tax (Increase of Consideration for Fuel) (No.2) Order 1993
S.I.1993/2953	= Value Added Tax (Increase of Registration Limits) (No.2) Order 1993
S.I.1994/686	= Value Added Tax (Tax Free Shops) Order 1994
S.I.1994/687	= Value Added Tax (Sport, Physical Education and Fund-raising Events) Order 1994
S.I.1994/1188	= Value Added Tax (Education) Order 1994

Provision	Derivation
1(1)	1983 s.1; amended 1992(2) Sch.3 para.2.
(2)	1983 s.2(3).
(3)	1983 s.2A(4); added 1992(2) Sch.3 para.3.
(4)	1983 s.2B(1); added 1992(2) Sch.3 para.3.
2	1983 s.9; amended 1991 s.13; 1992(2) Sch.3 para.11; 1993 s.42(2).
3	1983 s.2C; added 1992(2) Sch.3 para.3.
4	1983 s.2(1), (2).
5	1983 s.3; amended 1992(2) Sch.3 para.4.
6(1) to (3)	1983 s.4
(4) to (6)	1983 s.5(1) to (3)
(7), (8)	1983 s.5(3A), (3B); added 1992(2) Sch.3 para.6(1).
(9) to (13)	1983 s.5(4) to (8).
(14)	1983 s.5(9); amended 1993 s.45(2).
(15)	1983 s.5(10); amended 1992(2) Sch.3 para.6(3).
7(1), (2)	1983 s.6(1), (2); 1987 s.12(2); 1992(2) Sch.3 para.7(1), (2); 1993 s.44(3).
(3) to (7)	1983 s.6(2A), (2B), (2C), (2D), (3); 1992(2) Sch.3 para.7(3).
(8)	1983 s.6(4); 1992(2) Sch.3 para.7(4).
(9)	1983 s.6(4A); 1992(2) Sch.3 para.7(5).
(10)	1983 s.6(5).
(11)	1983 s.6(6); 1992(2) Sch.3 para.7(6).
8(1) to (5)	1983 s.7(1) to (5); 1987 Sch.2 para.1.
(6)	1983 s.7(6); 1992(2) Sch.3 para.8.
9	1983 s.8.
10	1983 s.2A(1) to (3); added 1992(2) Sch.3 para.3.
11	1983 s.8A; added 1992(2) Sch.3 para.10.
12	1983 s.8B; added 1992(2) Sch.3 para.10.
13	1983 s.8C; added 1992(2) Sch.3 para.10; amended 1993 s.44(3)(b).
14	1983 s.8D; added 1993 s.44.
15	1983 s.2B(2) to (4); added 1992(2) Sch.3 para.3.
16(1)	1983 s.24(1); substituted 1992(2) Sch.3 para.25.
(2)	1983 s.24(2).
17(1)	1983 s.24(1); substituted 1992(2) Sch.3 para.25.
(2)	CEMA s.100C(1); 1984 Sch.4 Pt.I; S.I.1991/2727.
(3)	CEMA s.100B; 1984 Sch.4 Pt.I; S.I.1991/2727.
(4)	CEMA s.100C(3), (4); 1984 Sch.4 Pt.I; S.I.1991/2727.
18	1983 s.35; substituted 1992(2) Sch.3 para.35.
19	1983 s.10; amended 1992(2) Sch.3 para.12.
20	1983 s.10A; added 1992(2) Sch.3 para.13.
21(1), (2)	1983 s.11(1), (2); amended 1992(2) Sch.3 para.14.
(3)	1983 s.11(2A); added 1992(2) Sch.3 para.14.
22	1983 s.12.
23	1983 s.13.
24(1), (2)	1983 s.14(3); amended and para.(aa) added 1992(2) Sch.3 para.15(2).
(3)	1983 s.14(3A); added 1990 s.12(2); amended 1992(2) Sch.3 para.15(3).
(4)	1983 s.14(3B); added 1991 s.14.
(5)	1983 s.14(4); amended 1992(2) Sch.3 para.15(4).
(6)	1983 s.14(9); amended 1992(2) Sch.3 para.15(5), (6).
(7)	1983 s.14(11); added 1990 s.12(3).
25(1), (2)	1983 s.14(1), (2); amended 1992(2) Sch.3 para.15(1).
(3) to (6)	1983 s.14(5) to (8).
(7)	1983 s.14(10); amended 1992(2) Sch.3 para.15(5), (6).
26(1) to (3)	1983 s.15(1) to (3); substituted 1987 s.12(1); subs.(3)(d) added 1989 s.26; amended and subs.(2)(ba) added 1992(2) Sch.3 para.16.
(4)	1983 s.15(4)
27	1983 s.26; amended 1992(2) Sch.3 para.27.
28	1983 s.38C; added 1992 s.6.
29	1988 s.22.
30(1), (2)	1983 s.16(1), (2).
(3)	1983 s.16(3); amended 1992(2) Sch.3 para.17(1).
(4)	1983 s.16(4).
(5)	1983 s.16(5).
(6)	1983 s.16(6); amended 1986 s.12(1); 1992(2) Sch.3 para.17(2).
(7)	1983 s.16(6A); added 1990 s.13.
(8), (9)	1983 s.16(7), (8); amended 1992(2) Sch.3 para.17(3).
(10)	1983 s.16(9); amended 1986 s.12(2).
31	1983 s.17; amended 1992(2) Sch.3 para.18.
32	1983 s.18; amended 1992(2) Sch.3 para.19.
33(1), (2)	1983 s.20(1), (2); amended 1992(2) Sch.3 para.21.
(3)	1983 s.20(3); para.(j) substituted Broadcasting Act 1990 c.42 Sch.20 para.37.
(4)	1983 s.20(4).
(5)	1983 s.20(4A); added Broadcasting Act 1990 c.42 Sch.20 para.37.
(6)	1983 s.20(5).
34	1983 s.36; amended 1992(2) Sch.3 para.36.
35(1), (2)	1983 s.21(1), (2); substituted 1989 Sch.3 para.5; amended 1992(2) Sch.3 para.23(1).
(3)	1983 s.21(2A); added 1992(2) Sch.3 para.23(2).
36	1990 s.11; amended 1991 s.15; 1993 s.48.
37(1)	1983 s.19(1); amended 1992(2) Sch.3 para.20(1).
(2)	1983 s.19(1A); added 1986 s.13; amended 1992(2) Sch.3 para.20(2).
(3), (4)	1983 s.19(2); amended 1992(2) Sch.3 para.20(3), (4).
38	1983 s.25; amended 1992(2) Sch.3 para.26.
39	1983 s.23; amended 1987 Sch.2 para.2; 1992(2) Sch.3 para.24.
40	1983 s.20A; added 1992(2) Sch.3 para.22.
41(1), (2)	1983 s.27(1), (2).
(3), (4)	1983 s.27(2A), (2B); added 1984 s.11; amended 1992(2) Sch.3 para.28.
(5)	1983 s.27(3).
(6)	1983 s.27(4); amended National Health Service and Community Care Act 1990 (c.19) Sch.8 para.9; Health and Personal Social Services (Northern Ireland Consequential Amendments) Order 1991 S.I.195 Art.5.
(7)	1983 s.27(5); added National Health Service and Community Care Act 1990 (c.19) s.61(4).
(8)	1983 s.27(6); added Health and Personal Social Services (Northern Ireland Consequential Amendments) Order 1991 S.I.195 Art.5.
42	1983 s.28; amended 1990 s.10(8).
43(1)	1983 s.29(1); amended 1992(2) Sch.3 para.29.
(2)	1983 s.29(2)
(3)	1983 s.29(3), (3A); added 1991 s.16.
(4) to (8)	1983 s.29(4) to (8); amended Companies Consolidation (Consequential Provisions) Act 1985 (c.9) Sch.2; Companies Act 1989 (c.40) Sch.18 para.27.
44(1), (2), (3)	Section 29A added 1987 s.15; s.29A(1), (2) amended 1990 s.14(2); 1992(2) Sch.3 para.30(1), (2).
(4)	1983 s.29A(3A); added 1990 s.14(3).
(5) to (10)	1983 s.29A(4) to (9); amended 1992(2) Sch.3 para.30(3).
45	1983 s.30; amended 1992(2) Sch.3 para.31.
46(1) to (4)	1983 s.31(1) to (4); amended 1992(2) Sch.3 para.32(1).
(5)	1983 s.31(5); added 1985 s.31.
(6)	1983 s.31(6); added 1992(2) Sch.3 para.32(2).
47(1)	1983 s.32(2); substituted 1992(2) Sch.3 para.33.
(2), (3)	1983 s.32(3), (4).
48	1983 s.32A; added 1992(2) Sch.3 para.34.
49	1983 s.33.
50	1983 s.34.
51	1983 s.35A; added 1989 Sch.3 para.6.
52	1983 s.37; substituted 1992(2) Sch.3 para.37.
53	1983 s.37A; added 1987 s.16.
54	1983 s.37B; added 1992(2) s.16.
55	1983 s.37C; added 1993 s.45.
56(1), (2)	1986 s.9(1), (2).
(3)(a)	1986 s.9(3)(a).
(b)	1986 s.9(3)(aa); added 1992(2) Sch.3 para.94.
(c) to (e)	1986 s.9(3)(b) to (d).
(4)	1986 s.9(4).
(5)	1986 s.9(5); amended 1992(2) Sch.3 para.94.
(6) to (10)	1986 s.9(6) to (10); amended Road Traffic (Consequential Provisions) Act 1988 (c.54) Sch.3 para.32.
57(1)	1986 Sch.6 para.1.
(2), (3)	1986 Sch.6 para.2; Table A substituted S.I.1993/765; amended S.I.1993/2952.
(4)	1986 Sch.6 para.4; amended 1993 s.43(3).
(5)	1986 Sch.6 para.5(1); amended 1993 s.43(2)(a), (b).
(6)	1986 Sch.6 para.5(2).
(7)	1986 Sch.6 para.6(1); amended 1993 s.43(2)(c).
(8)	1986 Sch.6 para.6(2); amended 1993 s.43(2)(d).
58	1983 s.38; amended 1992(2) Sch.3 para.38.
59(1)	1985 s.19(1).
(2)	1985 s.19(2)(a), (c); amended 1993 Sch.2 para.5(1).
(3)	1985 s.19(3); amended 1993 Sch.2 para.5(2).
(4)	1985 s.19(4); substituted 1993 Sch.2 para.6(1).
(5)	1985 s.19(5); amended 1993 Sch.2 para.6(2),7.
(6)	1985 s.19(5A); added 1993 Sch.2 para.6(3).
(7) to (10)	1985 s.19(6) to (9).
(11)	1993 Sch.2 para.5(3),7(2), (4).
60(1)	1985 s.13(1); amended 1993 Sch.2 para.3(2)(a).
(2)(a)	1985 s.13(2)(ba); added 1992(2) Sch.3 para.77(1)(b).
(b)	1985 s.13(2)(a).
(c)	1985 s.13(2)(b); amended 1992(2) Sch.3 para.77(1)(a).
(d)	1985 s.13(2)(d); added 1990 s.11(12).
(e)	1985 s.13(2)(c).
(3)	1985 s.13(3).
(4) to (6)	1985 s.13(5) to (7).
(7)	1985 s.27(1).
61(1) to (5)	1986 s.14(1) to (5).
(6)	1986 s.14(8).
62	1985 s.13A; added 1989 s.23.
63(1)	1985 s.14(1); amended 1992 s.7(1).
(2)	1985 s.14(2); substituted 1988 s.16(2); amended 1993 Sch.2 para.1.
(3)	1985 s.14(4); amended 1988 s.16(3); 1994 s.45.
(4) to (6)	1985 s.14(4A), (4B), (4C); added 1993 Sch.2 para.1(2).
(7)	1985 s.14(5); amended 1988 s.16(4).
(8), (9)	1985 s.14(5A), (5B); added 1988 s.16(5); amended 1992(2) Sch.3 para.78; 1993 Sch.2 para.1(3); 1994 s.45.
(10), (11)	1985 s.14(6), (7).
64	1985 s.14A; added 1988 s.17.
(1)	1985 s.14A(1); amended 1993 Sch.2 para.2(1).
(2), (3)	1985 s.14A(2), (3); substituted 1993 Sch.2 para.2(2).
(4)	1985 s.14A(4); amended 1993 Sch.2 para.2(3).
(5)	1985 s.14A(5).
(6)	1985 s.14A(6); amended 1993 Sch.2 para.2(4).
(7)	1985 s.14A(7).
65	1985 s.14B; added 1992(2) Sch.3 para.79.
66	1985 s.17A(1) to (8), (10); added 1992(2) Sch.3 para.82.
67(1)	1985 s.15(1)(a), (aa), (b); amended 1988 s.18(1); 1992(2) Sch.3 para.80(1).
(2)	1985 s.15(2).
(3)	1985 s.15(3); amended 1988 s.18(2); 1992(2) Sch.3 para.80(2).
(4)	1985 s.15(3A); added 1988 s.18(3); amended 1992(2) Sch.3 para.80(3).
(5), (6)	1985 s.15(3B), (3C); added 1992(2) Sch.3 para.80(4).
(7)	1985 s.15(3D); added 1992(2) s.16(5).
(8) to (11)	1985 s.15(4) to (7).
68	1985 s.16.
69(1)	1985 s.17(1); amended 1988 s.19(1)(b).
(a)	1985 s.17(1)(a); amended 1988 s.19(1)(a); 1992(2) Sch.3 para.81(a).
(b)	1985 s.17(1)(aa); added 1992(2) Sch.3 para.81(b).
(c), (d),	1985 s.17(1)(b), (c).
(e), (f)	1985 s.17(1)(d), (e); added 1986 s.15(1).
(2)	1985 s.17(2).
(3)	1985 s.17(3); amended 1988 s.19(2).
(4)	1985 s.17(4)(a), (c) to (e).
(5) to (9)	1985 s.17(5) to (7), (9), (10).
(10)
70	1985 s.15A; added 1993 Sch.2 para.3(1).
71	1985 s.33(2), (3).
72(1)	1983 s.39(1); amended 1985 s.12(2).
(2)	1983 s.39(1A); added 1985 s.12(3); para.(ba) added 1992(2) Sch.3 para.39(1)(b); amended 1990 s.11(11)(a); 1992(2) Sch.3 para.39(1)(a).
(3)	1983 s.39(2); amended 1985 s.12(2), (4).
(4) to (7)	1983 s.39(2A), (2B), (2C), (2D); added 1985 s.12(5); amended 1992(2) Sch.3 para.39(2).
(8)	1983 s.39(3); amended 1985 s.12(2).
(9)	1983 s.39(3A); added 1985 s.12(6).
(10)	1983 s.39(4); amended 1992(2) Sch.3 para.39(3).
(11)	1983 s.39(5).
(12)	1983 s.39(9); 1985 s.33(5)(a).
(13)	1985 s.33(5)(a); amended 1992(2) Sch.3 para.86.
73(1)	1983 Sch.7 para.4(1).
(2), (3)	1983 Sch.7 para.4(2), (2A); substituted 1988 s.15(2); amended 1990 s.15(1); 1992(2) Sch.3 para.66(1).
(4), (5)	1983 Sch.7 para.4(3), (4); Bankruptcy (Scotland) Act 1985 (c.66) s.75(11).
(6)	1983 Sch.7 para.4(5); amended 1988 s.15(3); 1992(2) Sch.3 para.66(2).
(7)	1983 Sch.7 para.4(6); amended 1985 Sch.7 para.1(2); 1992(2) Sch.3 para.66(3).
(8)	1983 Sch.7 para.4(6A); added 1985 Sch.7 para.1(3).
(9), (10)	1983 Sch.7 para.4(9), (10); amended 1988 s.15(4); Bankruptcy (Scotland) Act 1985 (c.66) s.75(11).
74(1)	1985 s.18(1); amended 1988 s.14(8)(b); 1990 s.16(2); 1992(2) Sch.3 para.83; 1993 Sch.2 para.4(1).
(2)	1985 s.18(3); amended 1990 s.16(3); 1993 Sch.2 para.4(1).
(3)	1985 s.18(3A); added 1993 Sch.2 para.4(2), (3).
(4) to (7)	1985 s.18(6), (7), (8)(a), (b), (9); amended 1990 s.16(5).
(8)	1993 Sch.2 para.4(3).
75	1983 Sch.7 para.4A; added 1992(2) Sch.3 para.67; amended Bankruptcy (Scotland) Act 1985 (c.66) s.75(11).
76(1)	1985 s.21(1); amended 1988 s.19(3); 1992(2) Sch.3 para.84(1).
(2)	1985 s.21(1A); added 1988 s.19(3);.
(3) to (5)	1985 s.21(2) to (4).
(6)	1985 s.21(4A); added 1992(2) Sch.3 para.84(2).
(7) to (10)	1985 s.21(5) to (8); amended 1992(2) Sch.3 para.84(3), (4); Bankruptcy (Scotland) Act 1985 (c.66) s.75(11).
77	1985 s.22(1) to (5), (6); amended 1992(2) Sch.3 para.85.
78	1983 s.38A; added 1991 s.17
(1) to (8)	1983 s.38A(1) to (8).
(9)	1983 s.38A(8A); added 1992(2) s.15(2).
(10) to (12)	1983 s.38A(9) to (11).
(13)	1983 s.38A(12); 1992(2) s.15(4).
79(1) to (3)	1985 s.20(1) to (3); substituted 1988 s.20; 1994 s.46.
(4)	1985 s.20(3A); added 1992(2) s.15(1).
(5) to (7)	1985 s.20(4), (5), (7); substituted 1988 s.20.
80	1989 s.24; S.I.1989/2271.
81(1), (2)	1983 s.38B; added 1991 s.17.
(3) to (5)	1988 s.21; amended 1994 s.45.
82(1)	1983 s.40(1), Sch.8 para.1; 1985 s.30(1).
(2)	1983 s.40; 1994 s.7(1)
(3), (4)	1985 Sch.8 para.6.
83(a)	1983 s.40(1)(a).
(b)	1983 s.40(1)(b); amended 1992(2) Sch.3 para.40(a).
(c)	1983 s.40(1)(c).
(d)	1983 s.40(1)(fa); added 1992(2) Sch.3 para.40(c).
(e)	1983 s.40(1)(d); substituted 1987 Sch.2 para.4.
(f)	1983 s.40(1)(g).
(g)	1983 s.40(1)(e).
(h)	1983 s.40(1)(f); amended 1990 s.11(11)(b).
(j)	1983 s.40(1)(da); added 1992(2) Sch.3 para.40(b).
(k)	1983 s.40(1)(h).
(l)	1983 s.40(1)(n); amended 1992(2) Sch.3 para.40(f).
(m)	1983 s.40(1)(hza); added 1992(2) s.16(2).
(n)	1983 s.40(1)(o); added 1985 s.24(1); amended 1992(2) Sch.3 para.40(g).
(o)	1986 s.14(6).
(p)	1983 s.40(1)(m); amended 1992(2) Sch.3 para.40(e).
(q), (r)	1983 s.40(1)(p), (q); added 1985 s.24(1).
(s)	1983 s.40(1)(ha); added 1991 s.17(1).
(t)	1983 s.40(1)(s); added 1989 s.24(9).
(u)	1983 s.40(1)(hh); added 1986 s.10(2).
(v)	1983 s.40(1)(j).
(w)	1983 s.40(1)(ja); added 1992(2) Sch.3 para.40(d).
(x)	1983 s.40(1)(k).
(y)	1983 s.40(1)(r); added S.I.1987/1427 reg.11.
(z)	1983 s.40(1)(l).
84(1)
(2)	1983 s.40(2); amended 1985 s.24(3).
(3)	1983 s.40(3); amended 1985 s.24(4).
(4)	1983 s.40(3ZA); added 1993 s.46(1).
(5)	1983 s.40(3B); added (as (3A)) 1985 s.24(5); amended 1986 s.10(3).
(6)	1983 s.40(1A); added 1985 s.24(2) and amended 1993 Sch.2 para.3(2)(b); 1986 s.14(6).
(7)	1983 s.40(3A); added 1986 s.10(3).
(8) to (10)	1983 s.40(4) to (6); amended 1994 s.18(3).
(11)	1993 s.46(2).
85	1985 s.25.
86	1985 s.26(1), (2)(a), (3); amended Tribunals and Inquiries Act 1992 (c.53) Sch.3 para.17.
87	1985 s.29.
88(1)	1983 s.41(1); amended 1992(2) Sch.3 para.41(1).
(2), (3)	1983 s.41(2), (3).
(4)	1983 s.41(3A); added 1992(2) Sch.3 para.41(2).
(5), (6)	1983 s.41(4), (5).
(7)	1983 s.41(6); added 1992(2) Sch.3 para.41(3).
89(1)	1983 s.42(1).
(2)	1983 s.42(1A); added 1989 Sch.3 para.7(1).
(3)	1983 s.42(2); amended 1989 Sch.3 para.7(2).
90	1983 s.43; amended 1992(2) Sch.3 para.42.
91	1983 s.44; amended Transfer of Functions (Economic Statistics) Order 1989 S.I.1989/992.
92	1983 s.46A; amended 1992(2) Sch.3 para.44.
93	1983 s.46B; amended 1992(2) Sch.3 para.44.
94	1983 s.47.
95(1)	1983 s.47A(1); added 1992(2) Sch.3 para.45.
(2)	1983 s.47A(1A); added S.I. 1992/3127.
(3) to (5)	1983 s.47A(2) to (4); added 1992(2) Sch.3 para.45.
96(1)	1983 s.48(1); amended 1987 s.13; 1989 Sch.3 para.9; 1992(2) Sch.3 para.46(1).
(2)	1983 s.48(9); added 1992(2) Sch.3 para.46(4).
(3)	1983 s.48(1A); added 1992(2) Sch.3 para.46(2).
(4)	1983 s.20(6).
(5)	1983 s.48(1B); added 1992(2) Sch.3 para.46(2).
(6), (7)	1983 s.48(4)
(8) to (11)	1983 s.48(5) to (8); amended 1992(2) Sch.3 para.46.
97(1)	1983 s.45(1).
(2)	1985 s.26(2)(b), 27(3)(c).
(3), (4)	1983 s.45(3), (4); amended 1987 s.16(2); 1992 s.6(2); para.(d) added 1989 Sch.3 para.8; para.(e) added 1992(2) s.16(3).
(5)	1983 s.45(2); 1985 s.15(8), 17(8), 17A(9), 18(8).
98	1983 s.46; amended 1992(2) Sch.3 para.43.
99	1983 s.49; amended 1992(2) Sch.3 para.47.
100
101
102
Schedule 1
para.1(1) to (4)	1983 Sch.1 para.1(1) to (4); substituted 1987 s.14(2); 1990 s.10(2), (3); amended 1992(2) Sch.3 para.48; S.I.1993/766; S.I.1993/2953.
(5), (6)	1983 Sch.1 para.1(4A), (4B); added 1992(2) Sch.3 para.48.
(7)	1983 Sch.1 para.1(5); substituted 1987 s.14(2); amended 1988 s.14(2); 1990 s.10(4); 1992(2) Sch.3 para.48.
(8)	1983 Sch.1 para.1(6); added 1989 Sch.3 para.10(a); amended 1990 s.10(5).
para.2(1) to (6)	1983 Sch.1 para.1A(1) to (6); added 1986 s.10(1); amended 1992(2) Sch.3 para.49(1).
(7)(a), (b)	1983 Sch.1 para.1A(7)(a), (b); added 1986 s.10(1).
(c)	1983 Sch.1 para.1A(7)(ba); added 1992(2) Sch.3 para.49(2).
(d) to (f)	1983 Sch.1 para.1A(7)(c) to (e); added 1986 s.10(1).
(8)	1983 Sch.1 para.1A(8); added 1986 s.10(1).
para.3	1983 Sch.1 para.1B; added 1992(2) Sch.3 para.50.
para.4	1983 Sch.1 para.2; substituted 1987 s.14(3); amended 1988 s.14(2); 1989 Sch.3 para.10(b); 1992(2) Sch.3 para.51; S.I.1993/766; S.I.1993/2953.
para.5 to 8	1983 Sch.1 para.3, 4, 4A, 4B; substituted 1990 s.10(6); amended 1992(2) Sch.3 para.52.
para.9, 10	1983 Sch.1 para.5,5A; substituted 1988 s.14(4); amended 1992(2) Sch.3 para.53; repealed in part 1992(2) Sch.18 Pt.V.
para.11, 12	1983 Sch.1 para.7, 7A; substituted 1988 s.14(5); amended 1992(2) Sch.3 para.54, 55.
para.13(1)	1983 Sch.1 para.8A(1); substituted 1988 s.14(6); amended 1992(2) Sch.3 para.56.
(2)	1983 Sch.1 para.9(1); amended 1992(2) Sch.3 para.57.
(3)	1983 Sch.1 para.10; substituted 1988 s.14(6).
(4)	1983 Sch.1 para.8A(1A), 9(1A); added 1992(2) Sch.3 para.56, 57.
(5)	1983 Sch.1 para.8A(1B), 9(1B); added 1992(2) Sch.3 para.56, 57.
(6)	1983 Sch.1 para.8A(2); substituted 1988 s.14(6); amended 1992(2) Sch.3 para.56.
para.14, 15	1983 Sch.1 para.11, 12; substituted 1988 s.14(7); amended 1992(2) Sch.3 para.58.
para.16	1983 Sch.1 para.13; substituted 1987 s.14(10).
para.17	1983 Sch.1 para.14.
para.18	1983 Sch.1 para.9(2); substituted 1988 s.14(6); amended 1992(2) Sch.3 para.57.
para.19	1983 Sch.1 para.15.
Schedule 2	1983 Sch.1A; added 1992(2) Sch.3 para.59.
Schedule 3	1983 Sch.1B; added 1992(2) Sch.3 para.59; amended S.I.1993/766; S.I.1993/2953.
Schedule 4
para.1 to 4	1983 Sch.2 para.1 to 4; amended 1989 Sch.3 para.11.
para.5(1), (2)	1983 Sch.2 para.5(1), (2); amended 1989 Sch.3 para.11; 1993 s.47(2).
(3)	1983 Sch.2 para.5(2A); added 1993 s.47(3).
(4)	1983 Sch.2 para.5(3).
(5)	1983 Sch.2 para.5(3A); added 1993 s.47(4).
(6)	1983 Sch.2 para.5(4).
para.6	1983 Sch.2 para.5A; added 1992(2) Sch.3 para.60.
para.7	1983 Sch.2 para.6
para.8(1), (2)	1983 Sch.2 para.7(1), (2); amended 1992(2) Sch.3 para.60.
(3)	1983 Sch.2 para.7(2A); added 1992(2) s.16(4).
(4)	1983 Sch.2 para.7(3)
para.9	1983 Sch.2 para.8; added 1989 Sch.3 para.11.
Schedule 5
para.1 to 6	1983 Sch.3 para.1 to 6
para.7	1983 Sch.3 para.6A; added S.I.1985/799.
para.8	1983 Sch.3 para.7; amended S.I.1985/799.
para.9	1983 Sch.3 para.8; added S.I.1992/3128; substituted S.I.1993/2328.
para.10	S.I.1993/2328 para.4.
Schedule 6
para.1	1983 Sch.4 para.1; amended 1987 s.17(1); Income and Corporation Taxes Act 1988 (c.1) Sch.29.
para.2	1983 Sch.4 para.3.
para.3	1983 Sch.4 para.3A; added 1992(2) Sch.3 para.61.
para.4	1983 Sch.4 para.4
para.5, 6, 7	1983 Sch.4 para.6, 7 ,8; amended 1992(2) Sch.3 para.61.
para.8	1983 Sch.4 para.8A; added 1992(2) Sch.3 para.61.
para.9	1983 Sch.4 para.9; amended 1986 s.11; 1989 Sch.3 para.4(2).
para.10	1983 Sch.4 para.10.
para.11	1983 Sch.4 para.11; substituted 1992(2) Sch.3 para.61.
para.12, 13	1983 Sch.4 para.12, 13.
Schedule 7	1983 Schedule 4A; added 1992(2) Sch.3 para.62.
Schedule 8	1983 Schedule 5
Group 1 to 4	Group 1 to 4; amended 1984 Sch.6 para.1; S.I.1988/507; 1989 s.19; S.I.1986/530; S.I.1992/628.
Group 5	Group 8; substituted 1989 Sch.3 para.1; amended S.I.1990/2553.
Group 6	Group 8A; added 1984 Sch.6 para.8.
Item 1, 2	Group 8A Item 1, 2; amended 1989 Sch.3 para.2.
Notes (1) to (8)	Group 8A Notes (1), (1A), (2), (3), (4), (6), (6A), (7); amended S.I.1985/18; 1989 Sch.3 para.2; Planning (Consequential Provisions) Act 1990 c.11 Sch.2 para.61; Planning (Northern Ireland) Order 1991 S.I.1220 (N.I. 11).
Group 7	Group 9; substituted S.I.1992/3223.
Group 8 Item 1 to 13	Group 10 Item 1 to 10, 12 to 14; amended S.I.1984/631; S.I.1987/1806; S.I.1990/752; S.I.1992/628; S.I.1992/3126; S.I.1992/3223.
Notes (1) to (9)	Group 10 Notes (1), (2), (2A), (3) to (8); amended S.I.1987/1806; S.I.1990/752; S.I.1992/3126.
Group 9	Group 11; amended 1989 Sch.3 para.3.
Group 10	Group 12.
Group 11	Group 13.
Group 12 Item 1 to 20	Group 14 Item 1 to 10, 10A, 10B, 11, 12, 12A, 13 to 17; amended DLA Sch.2 para.13; S.I.1984/489; S.I.1984/959; S.I.1986/530; S.I.1987/437; S.I.1992/628; S.I.1992/3065.
Notes (1) to (9)	Group 14 Notes (1) to (9); amended DLA Sch.2 para.13; S.I.1984/959; S.I.1985/919; S.I.1986/530.
Group 13	Group 15 Item 1, 3, 4, Notes (2) to (6); amended 1992(2) Sch.3 para.63; S.I.1992/3095 Sch.1 para.8.
Group 14	Group 15A; added S.I.1992/3131; S.I.1994/686.
Group 15 Item 1 to 10	Group 16 Item 1 to 10; amended S.I.1986/530; S.I.1987/437; S.I.1990/750; S.I.1991/737.
Notes (1) to (12)	Group 16 Notes (1), (3) to (13); amended S.I.1983/1717; S.I.1984/766; S.I.1985/431; S.I.1986/530; S.I.1987/437; S.I.1989/470; S.I.1990/750; S.I.1990/2129; S.I.1991/737.
Group 16	Group 17; amended 1989 s.22; S.I.1993/767.
Schedule 9	Schedule 6
Group 1 Item 1(a) to (n)	Group 1 Item 1(a), (aa), (b) to (l); substituted 1989 Sch.3 para.4; amended S.I.1990/2553; S.I.1991/2569.
Notes (1) to (16)	Group 1 Notes (1) to (6), (6A), (7) to (10), (10A), (10B), (11) to (13); amended S.I.1990/2553; S.I.1991/2569.
Group 2	Group 2; amended S.I.1990/2037.
Group 3	Group 3.
Group 4	Group 4 Item 1, 2, Notes (1), (2), (4); amended S.I.1987/517.
Group 5 Item 1 to 9	Group 5 Item 1 to 6, 6A, 7, 8; 1987 s.18(1); S.I.1987/860; S.I.1989/2272.
Notes (1) to (6)	Group 5 Notes (1) to (6); amended S.I.1985/432; S.I.1989/2272.
Group 6	Substituted S.I.1994/1188.
Group 7 Item 1 to 11	Group 7 Item (1) to (11); amended Opticians Act 1989 (c.44) s.37(3); S.I.1985/1900; 1988 s.13; S.I.1989/2272.
Notes (1) to (7)	Group 7 Notes (1) to (7); amended S.I.1985/1900; 1988 s.13.
Group 8	Group 8.
Group 9	Group 9.
Group 10	Group 10; amended S.I.1994/687.
Group 11	Group 11; amended Inheritance Tax 1984 (c.51) Sch.8 para.24; 1985 Sch.26 para.26; 1986 s.100.
Group 12	Group 12 Item 1, 2, Notes (1), (1A), (2); added S.I.1989/470; amended S.I.1991/737; S.I.1994/687.
Schedule 10	1983 Schedule 6A; added 1989 Sch.3 para.6.
para.1, 2	1983 Sch.6A para.1,2; amended S.I.1991/2569.
para.3(1) to (6)	1983 Sch.6A para.3(1) to (6); amended S.I.1991/2569.
(7), (8)	1983 Sch.6A para.3(8), (9).
(9)	1983 Sch.6A para.3(10); added S.I.1991/2569.
para.4, 5	1983 Sch.6A para.4, 5; amended S.I.1991/2569.
para.6(1), (2)	1983 Sch.6A para.6(1),(2); amended S.I.1991/2569.
(3), (4)	1983 Sch.6A para.6(2A), (2B); added S.I.1991/2569.
(5)	1983 Sch.6A para.6(3).
(6) to (8)	1983 Sch.6A para.6(4) to (6); added S.I.1991/2569.
para.7	1983 Sch.6A para.6A; added S.I.1991/2569.
para.8, 9	1983 Sch.6A para.7, 8; amended S.I.1991/2569.
Schedule 11
para.1	1983 Sch.7 para.1.
para.2(1), (2)	1983 Sch.7 para.2(1), (2); amended 1992(2) Sch.3 para.64.
(3) to (5)	1983 Sch.7 para.2(2A), (2B), (2C); added 1992(2) Sch.3 para.64.
(6)	1983 Sch.7 para.2(3).
(7)	1983 Sch.7 para.2(3A); added 1987 s.11(2).
(8), (9)	1983 Sch.7 para.2(3B), (3C); added 1992(2) Sch.3 para.64; amended 1993 s.50(4)
(10) to (13)	1983 Sch.7 para.2(4) to (7); amended 1989 s.25(2).
para.3(1), (2)	1983 Sch.7 para.3(1), (2)
(3)	1983 Sch.7 para.3(2A); amended 1992(2) Sch.3 para.65.
para.4	1983 Sch.7 para.5; amended 1992(2) Sch.3 para.68.
para.5	1983 Sch.7 para.6; amended 1984 s.16; Debtors (Scotland) Act (c.18) Sch.4 para.4; 1992(2) Sch.3 para.69.
para.6(1)	1983 Sch.7 para.7(1); amended 1992(2) Sch.3 para.70.
(2)	1983 Sch.7 para.7(1A); added 1989 s.25.
(3) to (6)	1983 Sch.7 para.7(2) to (5); amended 1985 Sch.7 para.2; PACE Sch.6 para.41.
para.7(1) to (4)	1983 Sch.7 para.8(1) to (4); amended 1985 Sch.7 para.3; 1992(2) Sch.3 para.71.
(5) to (7)	1983 Sch.7 para.8(4A), (4B), (4C); amended 1985 Sch.7 para.3.
(8)	1983 Sch.7 para.8(5).
para.8	1983 Sch.7 para.9; amended 1992(2) Sch.3 para.72.
para.9	1983 Sch.7 para.9A; added 1985 Sch.7 para.4.
para.10	1983 Sch.7 para.10; amended PACE Sch.6 para.41; 1985 Sch.7 para.5; 1992(2) Sch.3 para.73.
para.11 to 13	1983 Sch.7 para.10A, 10B, 10C; added 1985 Sch.7 para.6.
para.14	1983 Sch.7 para.11; amended 1992(2) Sch.3 para.74.
Schedule 12
para.1	1983 Sch.8 para.1; 1994 s.7.
para.2	1983 Sch.8 para.2; amended 1985 Sch.8 para.2; CLSA Sch.10 para.52.
para.3(1)	1983 Sch.8 para.3(1); substituted JPRA Sch.6 para.35.
(2) to (4)	1983 Sch.8 para.3(2) to (4); amended 1985 Sch.8 para.3.
(5)	1983 Sch.8 para.3(4A); added JPRA Sch.8 para.16.
(6)	1983 Sch.8 para.3(5); amended 1985 Sch.8 para..3.
para.4	1983 Sch.8 para.4; amended 1985 Sch.8 para.4.
para.5, 6	1983 Sch.8 para.5, 6.
para.7(1) to (3)	1983 Sch.8 para.7(1) to (3).
(4) to (7)	1983 Sch.8 para.7(3A), (3B), (3C), (3E); added 1985 Sch.8 para.5; amended CLSA Sch.10 para.52; JPRA Sch.6 para.35.
(8)	1983 Sch.8 para.7(4); amended 1985 Sch.8 para.5.
(9)	1983 Sch.8 para.7(4A); added JPRA 1993 Sch.8 para.16.
(10)	1983 Sch.8 para.7(5); amended 1985 Sch.8 para.5.
para.8	1983 Sch.8 para.8
para.9	1983 Sch.8 para.9; 1985 s.27(3).
(a) to (d)	1983 Sch.8 para.9(a) to (d).
(e)	1983 Sch.8 para.9(dd); added 1985 s.27(2).
(f) to (h)	1983 Sch.8 para.9(e) to (g); amended 1985 s.27(2).
(j)	1986 s.14(7)
para.10	1983 Sch.8 para.10; added 1985 s.28.