(This note is not part of the Order)
This Order, which has effect in relation to supplies made on or after 14th June 2019, applies a reverse charge to specified supplies of a kind used in missing trader intra-community fraud.
As a general rule, the supplier of goods or services is required to account for value added tax on that supply. Section 55A of the Value Added Tax Act 1994 (c. 23) (‘section 55A’) requires the recipient of the supply rather than the supplier to account for and pay any value added tax due on supplies of goods or services which are of a description specified in an order made by the Treasury under that section for that purpose. This accounting requirement is commonly referred to as a ‘reverse charge’. Section 55A also permits such an order to except certain supplies from the supplies that are so specified but this Order does not except any supplies.
Article 2 defines certain terms that appear in this Order.
Article 3 provides that the reverse charge will apply to services of a description specified in article 4.
Article 4 describes the services which are specified services for the purposes of section 55A.
A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.