PART 2U.K.Notifiable arrangements - VAT

Offshore supplies – insurance and financeU.K.

5.—(1) An arrangement which meets the following description is a notifiable arrangement.

(2) A person (“D”) who carries on business in the United Kingdom makes a supply of services to a person (“E”) who belongs outside the [F1United Kingdom] and the supply is an exempt supply, or would be an exempt supply if made in the United Kingdom, by virtue of any item of Group 2 or any of items 1 to 6 and 8 of Group 5.

[F2(3) E makes a supply of services to a person (“F”) who belongs in the United Kingdom and—

(a)where the place of supply of the services is the United Kingdom, it is an exempt supply; or

(b)in any other case, it would be an exempt supply if it were made in the United Kingdom.]

(4) The supply which D makes to E is used to make the supply by E to F.

(5) For the purposes of determining whether or not an arrangement meets the description in the preceding paragraphs, a supply of services is made by D to E or E to F notwithstanding that the supply—

(a)is incorporated within a supply made by another person;

(b)is split into separate supplies; F3...

(c)is effected by means of a chain of supplies involving one or more intermediate [F4suppliers; or]

[F5(d)would otherwise fall to be disregarded by virtue of section 43(1)(a) of the Value Added Tax Act 1994.]

(6) In this regulation, “Group 2” and “Group 5” have the meanings given by Schedule 9 to the Value Added Tax Act 1994(1).

(1)

Group 2 as described in Part 2 of Schedule 9 is amended by section 38(1) of the Finance Act 1997 (c. 16), paragraph 285(e)(i) of Part 2 of Schedule 1 to the Corporation Tax Act 2010 (c. 4) and S.I. 2001/3649 and 2004/3083. Group 5 as described in Part 2 of Schedule 9 is amended by paragraph 81 of Part 2 of Schedule 18 to the Financial Services Act 2012 (c. 21) and S.I. 1997/510, 1999/594, 2001/3649, 2003/1568, 2003/1569, 2008/2547, 2013/1402 and 2013/1773.