SCHEDULES

SCHEDULE 31 VALUE ADDED TAX: RE-ENACTMENT OF REDUCED RATE PROVISIONS

Part 2 CONSEQUENTIAL AMENDMENTS

4

1

Section 88 of the Value Added Tax Act 1994 (supplies spanning change of rate etc.) is amended as follows.

2

In subsection (1) (section applies where there is a change in the rate of VAT in force under section 2 or the descriptions of exempt or zero-rated supplies or acquisitions)—

a

after “section 2” insert “ or 29A ”, and

b

for “or zero-rated” (in both places) substitute “ , zero-rated or reduced-rate ”.

3

In subsection (2) (election to disregard time of supply rules), after “any question whether it is zero-rated or exempt” insert “ or a reduced-rate supply ”.

4

In subsection (4) (election to disregard time of acquisition rules), after “any question whether it is zero-rated or exempt” insert “ or a reduced-rate acquisition ”.

5

After subsection (7) insert—

8

References in this section—

a

to a supply being a reduced-rate supply, or

b

to an acquisition being a reduced-rate acquisition,

are references to a supply, or (as the case may be) an acquisition, being one on which VAT is charged at the rate in force under section 29A.