The Value Added Tax (Amendment) (No. 2) Regulations 2002 No. 1142

PART II FLAT-RATE SCHEME FOR SMALL BUSINESSES

9.  In Part IX of the Value Added Tax Regulations 1995 (supplies by retailers)—

(a) immediately before the definition of “notice” insert—

• ““flat-rate trader” has the meaning given in regulation 55A;”;

(b) immediately after regulation 69, insert-

“69A.   No retailer may use a scheme at any time for which he is a flat-rate trader.”; and

(c) in regulation 71, make the existing provision paragraph (1) and after it insert—

“(2) Paragraph (1) shall not apply where a retailer ceases to operate a scheme solely because he becomes a flat-rate trader.”.