The Value Added Tax (Special Provisions) Order 1992

Explanatory Note

(This note is not part of the Order)

Under the directive of the Council of the European Communities dated 17th May 1977, No. 77/388/EEC (OJ No. L145, 13.6.1977, p. 1) as amended by the directive of that Council dated 16th December 1991, No. 91/680 EEC (OJ No. L376, 31.12.1991,p. 1), as from 1st January 1993 goods removed to the United Kingdom from another member State of the European Communities will no longer be chargeable to tax on importation. However, such goods may become chargeable to tax on their acquisition in the United Kingdom. Goods imported into the United Kingdom from a place outside the member States will continue to be chargeable to tax on their importation.

This Order revokes and re-enacts, with amendments, the provisions specified in the Schedule. The amendments are made in consequence of the new charging event arising from an acquisition of goods from another member State.

Article 4 re-enacts, with amendments, articles 10 and 11 of the Value Added Tax (Special Provisions) Order 1981 (No. 1741) (the 1981 Order). It excludes from the scope of the tax disposals by mortgagees, finance houses and insurers of boats and aircraft, and by finance houses and insurers of works of art, antiques and collectors' pieces and specified used goods (which will have borne tax on an earlier transaction).

Article 5 re-enacts article 12 of the 1981 Order. It excludes from the scope of the tax, in certain circumstances, the transfer of assets of a business, on the transfer as a going concern of the business, or of a part of the business which is capable of separate operation.

Article 6 re-enacts article 13 of the 1981 Order, and treats certain exchanges of reconditioned articles for similar unserviceable articles as a supply of services, and not a supply of goods.

Article 7 re-enacts, with minor amendment, article 14 of the 1981 Order. Its effect is that, in certain circumstances where a person who is not a fully taxable person and who produces printed matter for use in his business (otherwise than by way of supplying them or incorporating them in other goods), the printed matter is to be treated as both supplied to him and by him.

Article 8 re-enacts, with amendments, articles 4 and 5 of the 1981 Order. The tax chargeable on the supply of works of art, antiques and collectors' pieces and specified used goods is, in certain circumstances, chargeable by reference to the excess (if any) of the consideration for which the goods are supplied over the cost of their purchase plus (in the case of goods acquired from another member State or imported from a place outside the member States) the tax chargeable on their acquisition or importation.

Article 9 re-enacts, with minor amendments, article 6 of the 1981 Order. It gives relief from tax on the importation of certain original works of art, antiques and collectors' pieces.