http://www.legislation.gov.uk/uksi/1995/1269/article/4/made

The Value Added Tax (Cars) (Amendment) Order 1995

VAT

Taxi and minicab licences

King's Printer of Acts of Parliament

2016-08-02

VALUE ADDED TAX

Under the directive of the Council of the European Communities dated 17th May 1977, No. 77/388/EEC (OJ No. L145, 13.7.77, p. 1) as amended by the directive of that Council dated 14th February 1994, No. 94/5/EC (OJ No. L60, 3.3.94, p. 16) effective from 1st January 1995, member States are required to provide, for certain goods, a scheme of accounting on which VAT is calculated by reference to the profit margin (the margin scheme). The directives enable the United Kingdom to allow taxable persons to continue to calculate VAT by reference to the profit margin on certain goods and also to extend this facility to other goods, all of which become subject to conditions contained in the directives. One of these conditions is that goods supplied under the margin scheme are always taxable in the member State of origin and thus the normal VAT rules for intra-EC transactions do not apply.