Finance Act 2014

Value added tax U.K.

103 VAT: special schemes U.K.

Schedule 22 contains provision about the supply of electronic services, broadcasting services and telecommunication services.

104 VAT: place of belonging U.K.

(1) Section 9 of VATA 1994 (place where supplier or recipient of services belongs) is amended as follows.

(2) In subsection (3)(c), after “usual place of residence” insert “ or permanent address ”.

(3) In subsection (5), for the words from “belonging” to the end substitute “belonging—

(a) in the country in which the person's usual place of residence or permanent address is (except in the case of a body corporate or other legal person);

(b) in the case of a body corporate or other legal person, in the country in which the place where it is established is.”

(4) For subsection (6) substitute—

“(6) The reference in subsection (5)(b) to the place where a body corporate or other legal person “is established” is to be read in accordance with Article 13a of Implementing Regulation (EU) No 282/2011 (which is inserted by Council Implementing Regulation (EU) No 1042/2013).”

(5) The amendments made by this section have effect in relation to supplies made on or after 1 January 2015.

105 VAT: place of supply orders: disapplication of transitional provision U.K.

(1) Section 97A of VATA 1994 (place of supply orders: transitional provision) is to be ignored for the purpose of giving effect to any new order under section 7A(6) of that Act which—

(a) is expressed as having effect in relation to supplies made on or after 1 January 2015, and

(b) makes provision about the place of supply of electronically supplied services, telecommunication services and radio and television broadcasting services.

(2) In subsection (1) “new order” means an order made on or after the day on which this Act is passed.

(3) Subsection (1) applies only so far as the order makes provision about supplies to which Article 2 of Council Implementing Regulation (EU) No 1042/2013 (transitional provision for changes in the law affecting electronically supplied, telecommunication and radio and television broadcasting services) applies.

106 VAT: supply of services through agents U.K.

(1) Section 47 of VATA 1994 (agents) is amended as follows.

(2) In subsection (3), after “services” insert “ , other than electronically supplied services and telecommunication services, ”.

(3) After subsection (3) insert—

“(4) Where electronically supplied services or telecommunication services are supplied through an agent, the supply is to be treated both as a supply to the agent and as a supply by the agent.

(5) For the purposes of subsection (4) “agent” means a person (“A”) who acts in A's own name but on behalf of another person within the meaning of Article 28 of Council Directive 2006/112/EC on the common system of value added tax.

(6) In this section “electronically supplied services” and “telecommunication services” have the same meaning as in Schedule 4A (see paragraph 9(3) and (4) and paragraph 8(2) of that Schedule).”

(4) The amendments made by this section have effect in relation to supplies made on or after 1 January 2015.

107 VAT: refunds to health service bodies U.K.

(1) In section 41(7) of VATA 1994 (application to the Crown: list of bodies regarded as Government departments) after “Excellence” insert “ , Health Education England (established by the Care Act 2014), and the Health Research Authority (also established by that Act), ”.

(2) In section 41(7) of VATA 1994 as amended by subsection (1)—

(a) for “above,” substitute “—

(a)” ,

“for the “and” after “1990,” substitute—

(b)”,

(c) after “1978” insert “,

(c)” ,

(d) for the “and” after “foundation trust” substitute “,

(d)” ,

(e) for the “and” after “Care Trust” substitute “,

(e)” ,

(f) for the “and” after “Health Board” substitute “,

(f)” ,

(g) after “group,” insert—

(g)” ,

(h) after “Centre,” insert—

(h)” ,

(i) for the “and” after “Commissioning Board” substitute “,

(i)” ,

(j) before “Health Education England” insert—

(j)” ,

(k) before “the Health Research Authority” insert—

(k)” ,

(l) the words from “shall be regarded” to the end are to follow, rather than form part of, the paragraph (k) so formed, and

(m) in those words, for “shall” substitute “ are each to ”.

108 VAT: prompt payment discounts U.K.

(1) In Part 2 of Schedule 6 to VATA 1994 (valuation: special cases), for paragraph 4 (prompt payment discounts), substitute—

“4 (1) Sub-paragraph (2) applies where—

(a) goods or services are supplied for a consideration which is a price in money,

(b) the terms on which those goods or services are so supplied allow a discount for prompt payment of that price,

(c) payment of that price is not made by instalments, and

(d) payment of that price is made in accordance with those terms so that the discount is realised in relation to that payment.

(2) For the purposes of section 19 (value of supply of goods or services) the consideration is the discounted price paid.”

(2) The amendment made by this section has effect in relation to relevant supplies made on or after 1 May 2014.

(3) The Treasury may by order made by statutory instrument provide that the amendment has effect in relation to supplies of a description specified in the order made on or after a date so specified (being a date before 1 April 2015).

(4) Subject to that, the amendment has effect in relation to supplies made on or after 1 April 2015.

(5) In this section—

• “relevant supply” means a supply of radio or television broadcasting services or telecommunication services made by a taxable person who is not required by or under any enactment to provide a VAT invoice to the person supplied;

• “telecommunication services” has the same meaning as in paragraph 8(2) of Schedule 4A to VATA 1994.