SCHEDULES
SCHEDULE 3VAT: supplementary charge and orders changing rate
Part 1Supplementary charge to VAT
Supply spanning the date of the VAT change
2
1
For the purposes of this Schedule a supply of goods or services spans the date of the VAT change where—
a
by virtue of the issue of a VAT invoice or the receipt of a payment by the person making the supply (“the supplier”), the supply is treated as taking place before the date of the VAT change, but
b
the basic time of supply (see paragraph 4) is on or after the date of the VAT change.
2
The relevant conditions are—
a
in relation to a supply that is within sub-paragraph (1)(a) by virtue of the issue of a VAT invoice, conditions A to D, and
b
in relation to a supply that is within sub-paragraph (1)(a) by virtue of the receipt of a payment, conditions A to C.
3
Condition A is that the supplier and the person to whom the supply is made are connected with each other at any time in the period—
a
beginning with the day on which the supply is treated as taking place, and
b
ending on the date of the VAT change.
4
Paragraph 5 modifies condition A in cases involving a series of supplies.
5
Condition B is that the aggregate of the following is more than £100,000—
a
the relevant consideration for the supply, and
b
the relevant consideration for every related supply of goods or services (including every related grant of a right to goods or services) that spans the date of the VAT change (see paragraph 6).
6
Condition C is that a prepayment in respect of the supply is financed by the supplier or a person connected with the supplier (see paragraph 7).
7
In sub-paragraph (6) “prepayment”, in respect of a supply, means a payment that is received by the supplier before the basic time of supply.
8
Condition D is that full payment of the amount shown on the VAT invoice referred to in sub-paragraph (1)(a) is not due before the end of the period of 6 months beginning with the date on which the invoice is issued.
9
This paragraph does not apply in relation to a supply consisting of the grant of a right to goods or services (see paragraph 3).