(This note is not part of the Regulations)
These Regulations, which come into force on 1st March 2007, amend regulations 170A (rules of attribution of payments received under certain credit agreements), 171(1) (repayment of a refund) and 172J (repayment of input tax where consideration not paid - attribution of payments) of the Value Added Tax Regulations 1995 (S. I. 1995/2518).
Regulation 3 amends regulation 170A and introduces a new formula for the attribution of a payment between a supply of goods and a supply of credit where the goods are supplied on or after 1st September 2006 and a claim for bad debt relief is made. The regulation also contains transitional measures for supplies made on or after 1st September 2006 and before 1st September 2007.
Regulation 4 amends regulation 171(1) to require the repayment to the Commissioners of a refund of tax where there is a reduction in the consideration for the supply in accordance with regulation 38 of the Value Added Tax Regulations 1995 following the accordance of bad debt relief.
Regulation 5 makes a consequential amendment to regulation 172J.
A full Regulatory Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.