The Value Added Tax Regulations 1995

VAT to be accounted for on returns and payment of VAT U.K.

[F1 40.— (1) Any person making a return shall in respect of the period to which the return relates account in that return for—

(a) all his output tax,

[F2 (aa) all VAT which he is required to pay on behalf of the supplier.]

(b) all VAT for which he is accountable by virtue of Part XVI of these Regulations,

(c) all VAT which he is required to pay as a result of the removal of goods from a fiscal warehousing regime, and

(d) all VAT which he is required to pay as a result of a supply of specified services (performed on or in relation to goods at a time when they are subject to a warehousing regime) being zero-rated under section 18C(1) of the Act where—

(i) that warehousing regime is one where goods are stored without payment of any duty of excise,

(ii) those goods are subject to a duty of excise,

(iii) those goods have been the subject of an acquisition from another member State and the material time for that acquisition was while those goods were subject to that warehousing regime, and,

(iv) there was no supply of those goods while they were subject to that warehousing regime.

The amounts to be entered on that return shall be determined in accordance with these Regulations.

(2) Any person required to make a return shall pay to the Controller such amount of VAT as is payable by him in respect of the period to which the return relates not later than the last day on which he is required to make that return.

[F3 (2A) Where a return is made [F4 or is required to be made] in accordance with [F5 regulations 25 and 25A] above using an electronic return system [F6 or a compatible software return system], the relevant payment to the Controller required by paragraph (2) above shall be made solely by means of electronic communications that are acceptable to the Commissioners for this purpose.]

[F7 (2B) With effect from 1st April 2010, where a person makes any payment to the Controller required by paragraph (2) above by cheque (whether or not in contravention of paragraph (2A) above)—

(a) the payment shall be treated as made on the day when the cheque clears to the account of the Controller, and

(b) that shall be the day when payment of any VAT shown as due on the return is to be treated as received by the Commissioners for the purposes of section 59 of the Act.

(2C) For the purposes of this regulation, the day on which a cheque clears to the account of the Controller is the second business day following but not including the date of its receipt.

(2D) In this regulation a “business day” is any day except—

(a) Saturday, Sunday, Good Friday or Christmas Day;

(b) a bank holiday under the Banking and Financial Dealings Act 1971;

(c) a day appointed by Royal proclamation as a public fast or thanksgiving day;

(d) a day declared by an order under section 2(1) of the Banking and Financial Dealings Act 1971 to be a non-business day.]

(3) The requirements of paragraphs (1) or (2) above shall not apply where the Commissioners allow or direct otherwise.]

[F8 (4) A direction under paragraph (3) may in particular allow additional time for a payment mentioned in paragraph (2) that is made by means of electronic communications.

• The direction may allow different times for different means of payment.

(5) Later payment so allowed does not of itself constitute a default for the purposes of section 59 of the Act (default surcharge).]

Textual Amendments

F1 Reg. 40 substituted (28.4.1996) by The Value Added Tax (Amendment) (No. 3) Regulations 1996 (S.I. 1996/1250), regs. 1(1)(2), 9

F2 Reg. 40(1)(aa) inserted (1.6.2007) by The Value Added Tax (Amendment) (No.3) Regulations 2007 (S.I. 2007/1418), regs. 1, 4(d)

F3 Reg. 40(2A) inserted (1.3.2000) by The Value Added Tax (Amendment) Regulations 2000 (S.I. 2000/258), regs. 1(2), 4

F4 Words in reg. 40(2A) inserted (1.12.2009) by The Value Added Tax (Amendment) (No. 4) Regulations 2009 (S.I. 2009/2978), regs. 1, 5(a)(i)

F5 Words in reg. 40(2A) substituted (1.12.2009) by The Value Added Tax (Amendment) (No. 4) Regulations 2009 (S.I. 2009/2978), regs. 1, 5(a)(ii)

F6 Words in reg. 40(2A) inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by virtue of The Value Added Tax (Amendment) Regulations 2018 (S.I. 2018/261), regs. 1, 8

F7 Reg. 40(2B)-(2D) inserted (1.12.2009) by The Value Added Tax (Amendment) (No. 4) Regulations 2009 (S.I. 2009/2978), regs. 1, 5(b)

F8 Reg. 40(4)(5) inserted (22.7.2004) by The Value Added Tax (Amendment) (No. 3) Regulations 2004 (S.I. 2004/1675), regs. 1(1), 5

Commencement Information

I1 Reg. 40 in force at 20.10.1995, see reg. 1