(1)Subject to the following provisions of this section F1. . ., VAT shall be charged at the rate of 17.5 per cent. and shall be charged—
(a)on the supply of goods or services, by reference to the value of the supply as determined under this Act; and
(b)on the acquisition of goods from another member State, by reference to the value of the acquisition as determined under this Act; and
(c)on the importation of goods from a place outside the member States, by reference to the value of the goods as determined under this Act.
[F2(1A)VAT charged on—
(a)any supply for the time being falling within paragraph 1 of Schedule A1; or
(b)any equivalent acquisition or importation,
shall be charged at the rate of [F35 per cent].
(1B)The reference in subsection (1A) above to an equivalent acquisition or importation, in relation to any supply for the time being falling within paragraph 1 of Schedule A1, is a reference (as the case may be) to—
(a)any acquisition from another member State of goods the supply of which would be such a supply; or
(b)any importation from a place outside the member States of any such goods.
(1C)The Treasury may by order vary Schedule A1 by adding to or deleting from it any description of supply for the time being specified in it or by varying any other provision for the time being contained in it.]
(2)The Treasury may by order increase or decrease the rate of VAT for the time being in force by such percentage thereof not exceeding 25 per cent. as may be specified in the order, but any such order shall cease to be in force at the expiration of a period of one year from the date on which it takes effect, unless continued in force by a further order under this subsection.
(3)In relation to an order made under subsection (2) above to continue, vary or replace a previous order, the reference in that subsection to the rate for the time being in force is a reference to the rate which would be in force if no order under that subsection had been made.
Textual Amendments
F1Words in s. 2(1) omitted (1.5.1995 with application as mentioned in s. 21(6) of the amending Act) by virtue of 1995 c. 4, s. 21(2)
F2S. 2(1A)(1B)(1C) inserted (1.5.1995 with application as mentioned in s. 21(6) of the amending Act) by 1995 c. 4, s. 21(2)
F3Words in s. 2(1A) substituted (31.7.1997 with effect as mentioned in s. 6(2) of the amending Act) by 1997 c. 58, s. 6(1) (with s. 3(3))
Modifications etc. (not altering text)
C1S. 2(1C) extended (28.7.2000) by 2000 c. 17, s. 30, Sch. 6 para. 9(4)