Finance Act 2009

Part 4 U.K. Value added tax

76 Place of supply of services etc U.K.

Schedule 36 contains provisions about the place of supply of services for the purposes of value added tax and related matters.

77 Repayment to those in business in other States U.K.

(1) VATA 1994 is amended as follows.

(2) In subsection (3) of section 39 (repayment of VAT to those in business overseas)—

(a) in the words before paragraph (a), after “such cases” insert “ and to such extent ”,

(b) in sub-paragraph (ii) of paragraph (b), after “Act” insert “ in respect of such period as may be prescribed ” and omit the “and” at the end,

(c) after that paragraph insert—

“(ba) for and in connection with the payment of interest to or by the Commissioners (including in relation to the repayment of interest wrongly paid), and”, and

(d) in paragraph (c), for “methods by which” substitute “ time by which and manner in which claims must be made, ”.

(3) After that section insert—

“39A Applications for forwarding of VAT repayment claims to other member States

The Commissioners must make arrangements for dealing with applications made to the Commissioners by taxable persons, in accordance with Council Directive 2008/9/EC, for the forwarding to the tax authorities of another member State of claims for refunds of VAT on—

(a) supplies to them in that member State, or

(b) the importation of goods by them into that member State from places outside the member States.”

(4) In section 83(1) (appeals), after paragraph (h) insert—

“(ha) any decision of the Commissioners to refuse to make a repayment under a scheme under section 39;”.

78 Information relating to cross-border supplies of services to taxable recipients U.K.

(1) Paragraph 2 of Schedule 11 to VATA 1994 (accounting for VAT and submission of particulars of transactions etc) is amended as follows.

(2) In sub-paragraph (3), for “which involve the movement of goods between member States” substitute “ to which this sub-paragraph applies ”.

(3) After that paragraph insert—

“(3ZA) Sub-paragraph (3) above applies to—

(a) transactions involving the movement of goods between member States, and

(b) transactions involving the supply of services to a person in a member State other than the United Kingdom who is required to pay VAT on the supply in accordance with provisions of the law of that other member State giving effect to Article 196 of Council Directive 2006/112/EC.”

79 Effect of VAT changes on arbitration of rent for agricultural holdings U.K.

(1) In paragraph 4(2) of Schedule 2 to the Agricultural Holdings Act 1986 (frequency of arbitrations of rent: changes in rent to be disregarded), insert at the end—

“(d) an increase or reduction of rent arising from—

(i) the exercise of an option to tax under Schedule 10 to the Value Added Tax Act 1994,

(ii) the revocation of such an option, or

(iii) a change in the rate of value added tax applicable to grants of interests in or rights over land in respect of which such an option has effect.”

(2) Paragraph 4(2)(d) of Schedule 2 to that Act (as inserted by subsection (1)) includes an increase or reduction of rent arising from an option, revocation or change in rate that takes effect before the day on which this Act is passed.

(3) The references in that provision and in subsection (2) to an option to tax, or to the exercise or revocation of such an option, under Schedule 10 to VATA 1994 include a reference to an election to waive exemption, or to the making or revocation of such an election, under that Schedule (as it had effect before 1 June 2008).