Part II Value Added Tax

EC Second VAT Simplification Directive

29 Work on materials.

1

The Value Added Tax Act 1994 shall be amended as follows.

2

After subsection (2) of section 30 there shall be inserted the following subsection—

2A

A supply by a person of services which consist of applying a treatment or process to another person’s goods is zero-rated by virtue of this subsection if by doing so he produces goods, and either—

a

those goods are of a description for the time being specified in Schedule 8; or

b

a supply by him of those goods to the person to whom he supplies the services would be of a description so specified.

3

In subsection (5) of section 55 (supplies of gold), after paragraph (b) there shall be inserted the following—

; or

c

any supply of services consisting in the application to another person’s goods of a treatment or process which produces goods a supply of which would fall within paragraph (a) above.

and the word “or” at the end of paragraph (a) shall be omitted.

4

Paragraph 2 of Schedule 4 (which provides that the treatment or processing of another person’s goods shall in certain circumstances be a supply of goods) shall be omitted.

5

This section shall apply to supplies made on or after 1st January 1996.