(This note is not part of the Regulations)
These Regulations revoke and remake, with certain amendments, all the regulations relating to VAT, namely—
The Value Added Tax (Supplies by Retailers) Regulations 1972 (S.I. 1972/1148) (as amended)
The Value Added Tax (Trading Stamps) Regulations 1973 (S.I. 1973/293)
The Value Added Tax (Repayment to Community Traders) Regulations 1980 (S.I. 1980/1537) (as amended)
The Value Added Tax (General) Regulations 1985 (S.I. 1985/886) (as amended)
The Value Added Tax (Bad Debt Relief) Regulations 1986 (S.I. 1986/335) (as amended)
The Value Added Tax (Cash Accounting) Regulations 1987 (S.I. 1987/1427) (as amended)
The Value Added Tax (Repayments to Third Country Traders) Regulations 1987 (S.I. 1987/2015) (as amended)
The Value Added Tax (Annual Accounting) Regulations 1988 (S.I. 1988/886) (as amended)
The Value Added Tax (Repayment Supplement) Regulations 1988 (S.I. 1988/1343)
The Value Added Tax (Accounting and Records) Regulations 1989 (S.I. 1989/2248) (as amended)
The Value Added Tax (“Do-It-Yourself” Builders) (Refund of Tax) Regulations 1989 (S.I. 1989/2259)
The Value Added Tax (Refunds for Bad Debts) Regulations 1991 (S.I. 1991/371)
The Value Added Tax (Flat-rate Scheme for Farmers) Regulations 1992 (S.I. 1992/3103)
In addition to minor and drafting amendments, made for greater clarity and for consistency, the Regulations make the following changes of substance.
Regulation 14(2) now requires that a VAT invoice provided to a person in another member State should contain the quantity of goods or extent of services, the rate of VAT and the amount payable, excluding VAT, expressed in sterling.
Regulation 16 now permits a retailer to issue single invoices showing supplies which are subject to different rates of VAT.
Regulation 43 is a new provision concerning goods removed from a warehousing regime. Regulation 43(2) allows registered persons who are approved to defer payment of excise duty on goods removed from an excise warehouse also to defer payment of any VAT which would otherwise be due when such goods are removed. Regulation 43(3) determines the latest time at which the VAT is payable, and distinguishes between hydrocarbon oils and other goods subject to excise duty according to the different arrangements which apply to them for the payment of excise duty. Regulation 43(4) applies the provisions of regulation 43(3) to goods which are relieved from payment of excise duty.
Regulation 58(2) now excludes from the cash accounting scheme lease purchases and supplies where full payment of the amount shown on the invoice is not due for more than 12 months from the date of issue of the invoice.
Regulation 86 (time of supply of water, gas, or any form of power, heat, refrigeration or ventilation) now covers supplies of petroleum gases and other gaseous hydrocarbons in a gaseous state.
Regulation 115(3) (adjustment of input tax on capital items) now requires the adjustment of input tax also when a capital item is disposed of, and its disposal is not deemed to be a supply in the course or furtherance of a business under paragraph 8(1) of Schedule 6 to the Act, because the VAT on the deemed supply (whether by virtue of its value or because it is zero-rated or exempt) would not be more than £250.
Regulation 136 includes a new paragraph in consequence of the accession to the European Union of Finland, providing that the Aland Islands shall be treated for the purposes of the Act as excluded from the territory of the Community.
Regulations 193 (deduction of bank charges), 196 and 197 (false, altered or incorrect claims) apply to third country traders new provisions parallel to those contained in regulations 180, 183 and 184 in relation to Community traders.
Schedule 1 contains revised forms 1 (application for registration), 2 (partnership particulars at registration), 3 (transfer of a going concern), 4 (VAT return) and 5 (final VAT return).