SCHEDULES

SCHEDULE 22Supplies of electronic, broadcasting and telecommunication services: special accounting schemes

PART 2Non-Union scheme: amendments of Schedule 3B to VATA 1994

Consequential and other amendments

9

1

Part 4 of the Schedule (application of provisions relating to VAT) is amended as follows.

2

Paragraph 17 (registration under VATA 1994) is renumbered as sub-paragraph (1) of that paragraph.

3

In that paragraph, after sub-paragraph (1) (as renumbered), insert—

2

Where a participant in the special scheme (“the scheme participant”) makes relevant supplies, it is to be assumed for all purposes of this Act relating to the determination of—

a

whether or not VAT is chargeable under this Act on those supplies,

b

how much VAT is chargeable under this Act on those supplies,

c

the time at which those supplies are treated as taking place, and

d

any other matter that the Commissioners may specify by regulations,

that the scheme participant is registered under this Act.

3

Supplies of scheme services made by the scheme participant are “relevant supplies” if—

a

the value of the supplies must be accounted for in a special scheme return, and

b

the supplies are treated as made in the United Kingdom.

4

In paragraph 18 (de-registration), in paragraph (b), for “Article 26c,” substitute “ Section 2 of Chapter 6 of Title XII of the VAT Directive, ”.

5

After paragraph 18 insert—

Value of supplies to connected persons

18A

In paragraph 1 of Schedule 6 (valuation: supply to connected person at less than market value) the reference to a supply made by a taxable person is to be read as including a supply of scheme services that is made by a participant in the special scheme (and is treated as made in the United Kingdom).

6

In paragraph 20 (appeals)—

a

in sub-paragraph (1), for paragraphs (b) and (c) substitute—

b

a refusal to make a repayment under paragraph 16I (overpayments), or a decision by the Commissioners as to the amount of the repayment due under that provision;

c

a refusal to make a repayment under paragraph 16K(4) (decrease in consideration);

d

any liability to a surcharge under paragraph 16F (default surcharge).

b

after sub-paragraph (2) insert—

3

Where the Commissioners have made an assessment under section 73 in reliance on paragraph 16 or 16A—

a

section 83(1)(p)(i): (appeals against assessments under section 73(1) etc) applies as if the relevant special scheme return were a return under this Act, and

b

the references in section 84(3) and (5) to the matters mentioned in section 83(1)(p) are to be read accordingly.

7

Omit paragraph 21 (payments on account of non-UK VAT to other member States) and the heading before it (but see paragraph 7(7) of this Schedule).

8

For the title substitute— “ OTHER PROVISIONS ABOUT SPECIAL SCHEMES ”