Finance Act 2014

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”