The Value Added Tax Regulations 1995

1. Introductory Text

2. PART I PRELIMINARY

   1. 1. Citation and commencement

   2. 2. Interpretation—general

   3. 3. Revocations and savings

   4. 4. Requirement, direction, demand or permission

3. PART II REGISTRATION AND PROVISIONS FOR SPECIAL CASES

   1. 5. Registration and notification

   2. 6. Transfer of a going concern

   3. 7. Notice by partnership

   4. 8. Representation of club, association or organisation

   5. 9. Death, bankruptcy or incapacity of taxable person

   6. 10. VAT representatives

   7. 11. Notification of intended section 14(1) supplies by intermediate suppliers

   8. 12. Notification of intended section 14(2) supplies by persons belonging in other member States

4. PART III VAT INVOICES AND OTHER INVOICING REQUIREMENTS

   1. 13. Obligation to provide a VAT invoice

   2. 14. Contents of VAT invoice

   3. 15. Change of rate, credit notes

   4. 16. Retailers' invoices

   5. 17. Section 14(6) supplies to persons belonging in other member States

   6. 18. Section 14(1) supplies by intermediate suppliers

   7. 19. Section 14(2) supplies by persons belonging in other member States

   8. 20. General

5. PART IV EC SALES STATEMENTS

   1. 21. Interpretation of Part IV

   2. 22. Submission of statements

   3. 23. Final statements

6. PART V ACCOUNTING, PAYMENT AND RECORDS

   1. 24. Interpretation of Part V

   2. 25. Making of returns

   3. 26. Accounting for VAT on an acquisition by reference to the value shown on an invoice

   4. 27. Supplies under Schedule 4, paragraph 7

   5. 28. Estimation of output tax

   6. 29. Claims for input tax

   7. 30. Persons acting in a representative capacity

   8. 31. Records

   9. 31A. (1) This regulation applies where a person—

   10. 31B. Where a person receives a supply of a description falling...

   11. 31C. Paragraph 10(2) of Schedule 11 to the Act shall apply...

   12. 32. The VAT account

   13. 33. The register of temporary movement of goods to and from other member States

   14. 33A. A person making supplies of a description falling within article...

   15. 33B. Where a person of a description in article 6 of...

   16. 34. Correction of errors

   17. 35. Where a taxable person has made an error—

   18. 36. Notification of acquisition of goods subject to excise duty by non-taxable persons and payment of VAT

   19. 37. Claims for recovery of overpaid VAT

   20. 38. Adjustments in the course of business

   21. 39. Calculation of returns

   22. 40. VAT to be accounted for on returns and payment of VAT

   23. 40A. Where the Commissioners in exercise of their power under section...

   24. 41. Accounting etc. by reference to the duty point, and prescribed accounting period in which VAT on certain supplies is to be treated as being chargeable

   25. 42. Accounting for VAT on the removal of goods

   26. 43. Goods removed from warehousing regime

7. PART VA REIMBURSEMENT ARRANGEMENTS

   1. 43A. Interpretation of Part VA

   2. 43B. Reimbursement arrangements—general

   3. 43C. Reimbursement arrangements—provisions to be included

   4. 43D. Repayments to the Commissioners

   5. 43E. Records

   6. 43F. Production of records

   7. 43G. Undertakings

   8. 43H. Reimbursement arrangements made before 11th February 1998

8. PART VI PAYMENTS ON ACCOUNT

   1. 44. Interpretation of Part VI

   2. 45. Payments on Account

   3. 46. Save in a case to which regulation 48 applies, if...

   4. 46A. (1) A payment on account and a payment in respect...

   5. 47. Where a taxable person fails to make a payment on...

   6. 48. — (1) The Commissioners shall notify a relevant division in...

9. PART VII ANNUAL ACCOUNTING

   1. 49. Interpretation of Part VII

   2. 50. Annual accounting scheme

   3. 51. An authorised person shall, where in any given case the...

   4. 52. Admission to the scheme

   5. 53. (1) An authorised person shall continue to account for VAT...

   6. 54. (1) The Commissioners may terminate an authorisation in any case...

   7. 55. (1) The date from which an authorised person ceases to...

10. PART VIIA FLAT-RATE SCHEME FOR SMALL BUSINESSES

    1. 55A. Interpretation of Part VIIA

    2. 55B. Flat-rate scheme for small businesses

    3. 55C. Relevant supplies and purchases

    4. 55D. Method of accounting

    5. 55E. Input tax

    6. 55F. Exceptional claims for VAT relief

    7. 55G. Determining relevant turnover

    8. 55H. Appropriate percentage

    9. 55J. (1) This regulation applies where a flat-rate trader—

    10. 55K. Category of business

    11. 55L. Admission to scheme

    12. 55M. Withdrawal from the scheme

    13. 55N. Notification

    14. 55P. Termination by the Commissioners

    15. 55Q. Date of withdrawal from the scheme

    16. 55R. Self-supply on withdrawal from scheme

    17. 55S. Adjustments in respect of stock on hand at withdrawal from scheme

    18. 55T. Amendment by notice

    19. 55U. Reverse charges

    20. 55V. Bad debt relief

11. PART VIII CASH ACCOUNTING

    1. 56. Interpretation of Part VIII

    2. 57. Cash accounting scheme

    3. 57A. (1) A person shall not account for VAT in accordance...

    4. 58. Admission to the scheme

    5. 59. Without prejudice to the right of a person to withdraw...

    6. 60. (1) Without prejudice to regulation 64 below, a person shall...

    7. 61. A person who ceases to operate the scheme either of...

    8. 62. Where a person operating the scheme becomes insolvent he shall...

    9. 63. — (1) Where a person operating the scheme ceases business...

    10. 64. Withdrawal from the scheme

    11. 65. Accounting

12. PART IX SUPPLIES BY RETAILERS

    1. 66. Interpretation of Part IX

    2. 67. Retail schemes

    3. 68. The Commissioners may refuse to permit the value of taxable...

    4. 69. No retailer may at any time use more than one...

    5. 69A. No retailer may use a scheme at any time for...

    6. 70. Notification of use of a scheme

    7. 71. Changing schemes

    8. 72. Ceasing to use a scheme

    9. 73. Supplies under Schedule 8, Group 1

    10. 74. Supplies under Schedule 8, Group 12

    11. 75. Change in VAT

13. PART X TRADING STAMPS

    1. 76. Interpretation of Part X

    2. 77. Trading stamp scheme

    3. 78. . . . . . . . . . ....

    4. 79. . . . . . . . . . ....

    5. 80. . . . . . . . . . ....

14. PART XI TIME OF SUPPLY AND TIME OF ACQUISITION

    1. 81. Goods for private use and free supplies of services

    2. 82. Services from outside the United Kingdom

    3. 83. Time of acquisition

    4. 84. Supplies of land—special cases

    5. 85. Leases treated as supplies of goods

    6. 86. Supplies of water, gas or any form of power, heat, refrigeration or ventilation

    7. 87. Acquisitions of water, gas or any form of power, heat, refrigeration or ventilation

    8. 88. Supplier’s goods in possession of buyer

    9. 89. Retention payments

    10. 90. Continuous supplies of services

    11. 90A. Where— (a) relevant services are supplied for a period for...

    12. 90B. Where relevant services are treated as supplied on or after...

    13. 91. Royalties and similar payments

    14. 92. Supplies of services by barristers and advocates

    15. 93. Supplies in the construction industry

    16. 94. General

    17. 94A. In this Part a reference to receipt of payment (however...

    18. 95. Supplies spanning change of rate etc.

15. PART XII VALUATION OF ACQUISITIONS

    1. 96. Interpretation of Part XII

    2. 97. Valuation of acquisitions

16. PART XIII PLACE OF SUPPLY

    1. 98. Distance sales from the United Kingdom

17. PART XIV INPUT TAX AND PARTIAL EXEMPTION

    1. 99. Interpretation of Part XIV and longer periods

    2. 100. Nothing in this Part shall be construed as allowing a...

    3. 101. Attribution of input tax to taxable supplies

    4. 102. Use of other methods

    5. 103. Attribution of input tax to foreign and specified supplies

    6. 103A. (1) This regulation applies to a taxable person who makes...

    7. 104. Attribution of input tax on self-supplies

    8. 105. Treatment of input tax attributable to exempt supplies as being attributable to taxable supplies

    9. 106. (1) Subject to regulation 106A, where relevant input tax—

    10. 106A. (1) This regulation applies where regulation 107A applies.

    11. 107. Adjustment of attribution

    12. 107A. (1) This regulation applies where a taxable person has made...

    13. 107B. (1) This regulation applies where a taxable person has made...

    14. 107C. For the purposes of regulations 107A and 107B, a difference...

    15. 107D. For the purposes of regulations 107A and 107B a person...

    16. 107E. (1) Regulations 107A and 107B shall not apply where the...

    17. 108. — (1) This regulation applies where a taxable person has...

    18. 109. — (1) This regulation applies where a taxable person has...

    19. 110. (1) Subject to paragraph (2) below, in this regulation, in...

    20. 111. Exceptional claims for VAT relief

18. PART XV ADJUSTMENTS TO THE DEDUCTION OF INPUT TAXON CAPITAL ITEMS

    1. 112. Interpretation of Part XV

    2. 113. Capital items to which this Part applies

    3. 114. Period of adjustment

    4. 115. Method of adjustment

    5. 116. Ascertainment of taxable use of a capital item

19. PART XVI IMPORTATIONS, EXPORTATIONS AND REMOVALS

    1. 117. Interpretation of Part XVI

    2. 118. Enactments excepted

    3. 119. Regulations excepted

    4. 120. Community legislation excepted

    5. 121. Adaptations

    6. 122. Postal importations by registered persons in the course of business

    7. 123. Temporary importations

    8. 124. Reimportation of certain goods by non-taxable persons

    9. 125. Reimportation of certain goods by taxable persons

    10. 126. Reimportation of goods exported for treatment or process

    11. 127. Supplies to export houses

    12. 128. Export of freight containers

    13. 129. Supplies to overseas persons

    14. 130. Supplies to persons departing from the member States

    15. 131. — (1) Where the Commissioners are satisfied that—

    16. 132. The Commissioners may, on application by an overseas visitor who...

    17. 133. The Commissioners may, on application by any person who intends...

    18. 134. Supplies to persons taxable in another member State

    19. 135. Supplies of goods subject to excise duty to persons who are not taxable in another member State

    20. 136. Territories to be treated as excluded from or included in the territory of the Community and of the member States

    21. 137. For the purposes of the Act the following territories shall...

    22. 138. — (1) For the purposes of the Act the territory...

    23. 139. For the purposes of the Act the following territories shall...

    24. 140. Entry and exit formalities

    25. 141. Use of the internal Community transit procedure

    26. 142. Customs and excise legislation to be applied

    27. 143. Where goods are imported into the United Kingdom from the...

    28. 144. Where goods are exported from the United Kingdom to the...

    29. 145. — (1) Subject to paragraph (2) below, where goods are...

20. PART XVI(A) FISCAL AND OTHER WAREHOUSING REGIMES

    1. 145A. Interpretation of Part XVI(A)

    2. 145B. Fiscal warehousing certificates

    3. 145C. Certificates connected with services in fiscal or other warehousing regimes

    4. 145D. VAT invoices relating to services performed in fiscal or other warehousing regimes

    5. 145E. Fiscal warehousing regimes

    6. 145F. The fiscal warehousing record and stock control

    7. 145G. Fiscal warehousing transfers in the United Kingdom

    8. 145H. Removal of goods from a fiscal warehousing regime and transfers overseas

    9. 145I. (1) A fiscal warehousekeeper shall not remove or allow the...

    10. 145J. Payment on removal of goods from a fiscal warehousing regime

21. PART XVII NEW MEANS OF TRANSPORT

    1. 146. Interpretation of Part XVII

    2. 147. First entry into service of a means of transport

    3. 148. Notification of acquisition of new means of transport by non-taxable persons and payment of VAT

    4. 149. Refunds in relation to new means of transport

    5. 150. The claim shall be made at, or sent to, any...

    6. 151. The claim shall contain the following information—

    7. 152. The claim shall be accompanied by the following documents—

    8. 153. The claim shall include a declaration, signed by the claimant...

    9. 154. The claim shall be completed by the submission to the...

    10. 155. Supplies of new means of transport to persons departing to another member State

22. PART XVIII BAD DEBT RELIEF (THE OLD SCHEME)

    1. 156. Interpretation of Part XVIII

    2. 157. The making of a claim to the Commissioners

    3. 158. Evidence required of the claimant in support of the claim

    4. 159. . . . . . . . . . ....

    5. 160. Preservation of documents and records and duty to produce

    6. 161. Set-off of amounts between the claimant and the debtor

    7. 162. Determination of outstanding amount of consideration in money

    8. 163. Repayment of a refund

    9. 164. Proving in the insolvency in Scotland

23. PART XIX BAD DEBT RELIEF (THE NEW SCHEME)

    1. 165. Interpretation of Part XIX

    2. 165A. Time within which a claim must be made

    3. 166. The making of a claim to the Commissioners

    4. 166A. Notice to purchaser of claim

    5. 167. Evidence required of the claimant in support of the claim

    6. 168. Records required to be kept by the claimant

    7. 169. Preservation of documents and records and duty to produce

    8. 170. Attribution of payments

    9. 170A. (1) This regulation applies where— (a) the claimant made a...

    10. 171. Repayment of a refund

    11. 172. Writing off debts

    12. 172A. Writing off debts—margin schemes

    13. 172B. Writing off debts—tour operators margin scheme

24. PART XIXA REPAYMENT OF INPUT TAX WHERE CLAIM MADE UNDER PART XIX

    1. 172ZC. Application

    2. 172C. Interpretation of Part XIXA

    3. 172D. Repayment of input tax

    4. 172E. Restoration of an entitlement to credit for input tax

25. PART XIXB REPAYMENT OF INPUT TAX WHERE CONSIDERATION NOT PAID

    1. 172F. Application

    2. 172G. Interpretation

    3. 172H. Repayment of input tax

    4. 172I. Restoration of an entitlement to credit for input tax

    5. 172J. Attribution of payments

26. PART XX REPAYMENTS TO COMMUNITY TRADERS

    1. 173. Interpretation of Part XX

    2. 174. Repayment of VAT

    3. 175. Persons to whom this Part applies

    4. 176. Supplies and importations to which this Part applies

    5. 177. VAT which will not be repaid

    6. 178. Method of claiming

    7. 179. Time within which a claim must be made

    8. 180. Deduction of bank charges

    9. 181. Treatment of claim and repayment claimed

    10. 182. For the purpose of section 83(c) of the Act repayments...

    11. 183. False, altered or incorrect claims

    12. 184. Where any sum has been repaid to a claimant as...

27. PART XXI REPAYMENTS TO THIRD COUNTRY TRADERS

    1. 185. Interpretation of Part XXI

    2. 186. Repayments of VAT

    3. 187. VAT representatives

    4. 188. Persons to whom this Part applies

    5. 189. Supplies and importations to which this Part applies

    6. 190. VAT which will not be repaid

    7. 191. Method of claiming

    8. 192. Time within which a claim must be made

    9. 193. Deduction of bank charges

    10. 194. Treatment of claim and repayment claimed

    11. 195. For the purpose of section 83(c) of the Act repayments...

    12. 196. False, altered or incorrect claims

    13. 197. Where any sum has been repaid to a claimant as...

28. PART XXII REPAYMENT SUPPLEMENT

    1. 198. Computation of period

    2. 199. Duration of period

29. PART XXIII REFUNDS TO “DO-IT-YOURSELF” BUILDERS

    1. 200. Interpretation of Part XXIII

    2. 201. Method and time for making claim

30. PART XXIV FLAT-RATE SCHEME FOR FARMERS

    1. 202. Interpretation of Part XXIV

    2. 203. Flat-rate scheme

    3. 204. Admission to the scheme

    4. 205. Certification

    5. 206. Cancellation of certificates

    6. 207. Death, bankruptcy or incapacity of certified person

    7. 208. Further certification

    8. 209. Claims by taxable persons for amounts to be treated as credits for input tax

    9. 210. Duty to keep records

    10. 211. Production of records

31. PART XXV DISTRESS AND DILIGENCE

    1. A212. In this Part— “Job Band” followed by a number between...

    2. 212. Distress

    3. 213. Diligence

32. Signature

33. 1. SCHEDULE 1

       1. Information to be indicated:

       2. declare that the goods shown below are subject to a...

       3. and that the following services are to be performed on...

       4. I certify that the supply of services is eligible to...

       5. (signature)

       6. (date)

       7. NOTE: You should be aware that there are severe penalties...

    2. SCHEDULE 1A

       1. 1. Goods in and out of a fiscal warehouse and its...

       2. 2. Specified services performed in a fiscal warehouse It shall accurately...

       3. 3. Documents relating to transfers and specified services

       4. 4. Procedures where transfers are not completed (a) It shall be...

       5. 5. Removals from a fiscal warehousing regime (a) It shall identify...

       6. 6. Miscellaneous (a) It shall incorporate any modifications to the features...

    3. SCHEDULE 2

       REVOCATIONS

    4. TABLE OF DERIVATIONS

       (This table is not part of the Regulations)

       1. 1. Notes:

       2. 2. The following abbreviations are used in the Table: AA =The...

34. Explanatory Note