PART VACCOUNTING, PAYMENT AND RECORDS

F1Adjustments where a supply becomes, or ceases to be, a supply to which section 55A(6) of the Act applies (customers to account for tax on supplies of goods F2or services of a kind used in missing trader intra-community fraud)38A

1

Where regulation 38 applies and—

a

as a result of an increase in consideration for a supply it becomes one to which section 55A(6) of the Act applies; or

b

as a result of a decrease in consideration for a supply it ceases to be one to which that section applies,

both the maker, and the recipient, of the supply shall make such entries in the VAT payable portion of their VAT accounts as are necessary to account for that fact.

2

Paragraphs (5) and (6) of regulation 38 shall apply to any entry required by this regulation as they apply to any entry required by that regulation.

3

None of the circumstances to which this regulation applies is to be regarded as giving rise to any application of regulations 34 and 35.