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Value Added Tax Act 1994 (c. 23)

(The document as of February, 2008)

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Value Added Tax Act 1994

1994 CHAPTER 23

ARRANGEMENT OF SECTIONS

Content
  1. Part I

    The charge to tax

    1. Imposition and rate of VAT

      1. 1. Value added tax.

      2. 2. Rate of VAT.

      3. 3. Taxable persons and registration.

    2. Supply of goods or services in the United Kingdom

      1. 4. Scope of VAT on taxable supplies.

      2. 5. Meaning of supply: alteration by Treasury order.

      3. 6. Time of supply.

      4. 7. Place of supply.

      5. 8. Reverse charge on supplies received from abroad.

      6. 9. Place where supplier or recipient of services belongs.

    3. Acquisition of goods from member States

      1. 10. Scope of VAT on acquisitions from member States.

      2. 11. Meaning of acquisition of goods from another member State.

      3. 12. Time of acquisition.

      4. 13. Place of acquisition.

      5. 14. Acquisitions from persons belonging in other member States.

    4. Importation of goods from outside the member States

      1. 15. General provisions relating to imported goods.

      2. 16. Application of customs enactments.

      3. 17. Free zone regulations.

    5. Goods subject to a warehousing regime

      1. 18. Place and time of acquisition or supply.

    6. Determination of value

      1. 19. Value of supply of goods or services.

      2. 20. Valuation of acquisitions from other member States.

      3. 21. Value of imported goods.

      4. 22. Value of certain goods.

      5. 23. Gaming machines.

    7. Payment of VAT by taxable persons

      1. 24. Input tax and output tax.

      2. 25. Payment by reference to accounting periods and credit for input tax against output tax.

      3. 26. Input tax allowable under section 25.

      4. 27. Goods imported for private purposes.

      5. 28. Payments on account of VAT.

      6. 29. Invoices provided by recipients of goods or services.

  2. Part II

    Reliefs, exemptions and repayments

    1. Reliefs etc. generally available

      1. 30. Zero-rating.

      2. 31. Exempt supplies and acquisitions.

      3. 32. Relief on supply of certain second-hand goods.

      4. 33. Refunds of VAT in certain cases.

      5. 34. Capital goods.

      6. 35. Refund of VAT to persons constructing certain buildings.

      7. 36. Bad debts.

    2. Imports, overseas businesses etc

      1. 37. Relief from VAT on importation of goods.

      2. 38. Importation of goods by taxable persons.

      3. 39. Repayment of VAT to those in business overseas.

      4. 40. Refunds in relation to new means of transport supplied to other member States.

  3. Part III

    Application of Act in particular cases

    1. 41. Application to the Crown.

    2. 42. Local authorities.

    3. 43. Groups of companies.

    4. 44. Supplies to groups.

    5. 45. Partnerships.

    6. 46. Business carried on in divisions or by unincorporated bodies, personal representatives etc.

    7. 47. Agents etc.

    8. 48. VAT representatives.

    9. 49. Transfers of going concerns.

    10. 50. Terminal markets.

    11. 51. Buildings and land.

    12. 52. Trading stamp schemes.

    13. 53. Tour operators.

    14. 54. Farmers etc.

    15. 55. Customers to account for tax on supplies of gold etc.

    16. 56. Fuel for private use.

    17. 57. Determination of consideration for fuel supplied for private use.

  4. Part IV

    Administration, collection and enforcement

    1. General administrative provisions

      1. 58. General provisions relating to the administration and collection of VAT.

    2. Default surcharges and other penalties and criminal offences

      1. 59. The default surcharge.

      2. 60. VAT evasion: conduct involving dishonesty.

      3. 61. VAT evasion: liability of directors etc.

      4. 62. Incorrect certificates as to zero-rating etc.

      5. 63. Penalty for misdeclaration or neglect resulting in VAT loss for one accounting period equalling or exceeding certain amounts.

      6. 64. Repeated misdeclarations.

      7. 65. Inaccuracies in EC sales statements.

      8. 66. Failure to submit EC sales statement.

      9. 67. Failure to notify and unauthorised issue of invoices.

      10. 68. Breaches of walking possession agreements.

      11. 69. Breaches of regulatory provisions.

      12. 70. Mitigation of penalties under sections 60, 63, 64 and 67.

      13. 71. Construction of sections 59 to 70.

      14. 72. Offences.

    3. Assessments of VAT and other payments due

      1. 73. Failure to make returns etc.

      2. 74. Interest on VAT recovered or recoverable by assessment.

      3. 75. Assessments in cases of acquisitions of certain goods by non-taxable persons.

      4. 76. Assessment of amounts due by way of penalty, interest or surcharge.

      5. 77. Assessments: time limits and supplementary assessments.

    4. Interest, repayment supplements etc. payable by Commissioners

      1. 78. Interest in certain cases of official error.

      2. 79. Repayment supplement in respect of certain delayed payments or refunds.

      3. 80. Recovery of overpaid VAT.

      4. 81. Interest given by way of credit and set-off of credits.

  5. Part V

    Appeals

    1. 82. Appeal tribunals.

    2. 83. Appeals.

    3. 84. Further provisions relating to appeals.

    4. 85. Settling appeals by agreement.

    5. 86. Appeals to Court of Appeal.

    6. 87. Enforcement of registered or recorded tribunal decisions etc.

  6. Part VI

    Supplementary provisions

    1. Change in rate of VAT etc. and disclosure of information

      1. 88. Supplies spanning change of rate etc.

      2. 89. Adjustments of contracts on changes in VAT.

      3. 90. Failure of resolution under Provisional Collection of Taxes Act 1968.

      4. 91. Disclosure of information for statistical purposes.

    2. Interpretative provisions

      1. 92. Taxation under the laws of other member States etc.

      2. 93. Territories included in references to other member States etc.

      3. 94. Meaning of "business" etc.

      4. 95. Meaning of "new means of transport".

      5. 96. Other interpretative provisions.

    3. Supplementary provisions

      1. 97. Orders, rules and regulations.

      2. 98. Service of notices.

      3. 99. Refund of VAT to Government of Northern Ireland.

      4. 100. Savings and transitional provisions, consequential amendments and repeals.

      5. 101. Commencement and extent.

      6. 102. Short title.

    1. Schedule 1

      Registration in respect of taxable supplies.

    2. Schedule 2

      Registration in respect of supplies from other member States.

    3. Schedule 3

      Registration in respect of acquisitions from other member States.

    4. Schedule 4

      Matters to be treated as supply of goods or services.

    5. Schedule 5

      Services supplied where received.

    6. Schedule 6

      Valuation: special cases.

    7. Schedule 7

      Valuation of acquisitions from other member states: special cases.

    8. Schedule 8

      Zero-rating.

      1. Part I

        Index to zero-rated supplies of goods and services.

      2. Part II

        The Groups.

    9. Schedule 9

      Exemptions.

      1. Part I

        Index to exempt supplies of goods and services.

      2. Part II

        The Groups.

    10. Schedule 10

      Buildings and land.

    11. Schedule 11

      Administration, collection and enforcement.

    12. Schedule 12

      Constitution and procedure of tribunals.

    13. Schedule 13

      Transitional provisions and savings.

    14. Schedule 14

      Consequential amendments.

    15. Schedule 15

      Repeals.

An Act to consolidate the enactments relating to value added tax, including certain enactments relating to VAT tribunals.

[5th July 1994]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:--



Part I The charge to tax

Imposition and rate of VAT

1 Value added tax

(1) Value added tax shall be charged, in accordance with the provisions of this Act--

(a) on the supply of goods or services in the United Kingdom (including anything treated as such a supply),

(b) on the acquisition in the United Kingdom from other member States of any goods, and

(c) on the importation of goods from places outside the member States,

and references in this Act to VAT are references to value added tax.

(2) VAT on any supply of goods or services is a liability of the person making the supply and (subject to provisions about accounting and payment) becomes due at the time of supply.

(3) VAT on any acquisition of goods from another member State is a liability of the person who acquires the goods and (subject to provisions about accounting and payment) becomes due at the time of acquisition.

(4) VAT on the importation of goods from places outside the member States shall be charged and payable as if it were a duty of customs.

2 Rate of VAT

(1) Subject to the following provisions of this section and paragraph 7 of Schedule 13, VAT shall be charged at the rate of 17.5 per cent. and shall be charged--

(a) on the supply of goods or services, by reference to the value of the supply as determined under this Act; and

(b) on the acquisition of goods from another member State, by reference to the value of the acquisition as determined under this Act; and

(c) on the importation of goods from a place outside the member States, by reference to the value of the goods as determined under this Act.

(2) The Treasury may by order increase or decrease the rate of VAT for the time being in force by such percentage thereof not exceeding 25 per cent. as may be specified in the order, but any such order shall cease to be in force at the expiration of a period of one year from the date on which it takes effect, unless continued in force by a further order under this subsection.

(3) In relation to an order made under subsection (2) above to continue, vary or replace a previous order, the reference in that subsection to the rate for the time being in force is a reference to the rate which would be in force if no order under that subsection had been made.

3 Taxable persons and registration

(1) A person is a taxable person for the purposes of this Act while he is, or is required to be, registered under this Act.

(2) Schedules 1 to 3 shall have effect with respect to registration.

(3) Persons registered under any of those Schedules shall be registered in a single register kept by the Commissioners for the purposes of this Act; and, accordingly, references in this Act to being registered under this Act are references to being registered under any of those Schedules.

(4) The Commissioners may by regulations make provision as to the inclusion and correction of information in that register with respect to the Schedule under which any person is registered.



Supply of goods or services in the United Kingdom

4 Scope of VAT on taxable supplies

(1) VAT shall be charged on any supply of goods or services made in the United Kingdom, where it is a taxable supply made by a taxable person in the course or furtherance of any business carried on by him.

(2) A taxable supply is a supply of goods or services made in the United Kingdom other than an exempt supply.

5 Meaning of supply: alteration by Treasury order

(1) Schedule 4 shall apply for determining what is, or is to be treated as, a supply of goods or a supply of services.

(2) Subject to any provision made by that Schedule and to Treasury orders under subsections (3) to (6) below--

(a) "supply" in this Act includes all forms of supply, but not anything done otherwise than for a consideration;

(b) anything which is not a supply of goods but is done for a consideration (including, if so done, the granting, assignment or surrender of any right) is a supply of services.

(3) The Treasury may by order provide with respect to any description of transaction--

(a) that it is to be treated as a supply of goods and not as a supply of services; or

(b) that it is to be treated as a supply of services and not as a supply of goods; or

(c) that it is to be treated as neither a supply of goods nor a supply of services;

and without prejudice to the foregoing, such an order may provide that paragraph 5(4) of Schedule 4 is not to apply, in relation to goods of any prescribed description used or made available for use in prescribed circumstances, so as to make that a supply of services under that paragraph and may provide that paragraph 6 of that Schedule shall not apply, in such circumstances as may be described in the order, so as to make a removal of assets a supply of goods under that paragraph.

(4) Without prejudice to subsection (3) above, the Treasury may by order make provision for securing, with respect to services of any description specified in the order, that where--

(a) a person carrying on a business does anything which is not a supply of services but would, if done for a consideration, be a supply of services of a description specified in the order; and

(b) such other conditions as may be specified in the order are satisfied,

such services are treated for the purposes of this Act as being supplied by him in the course or furtherance of that business.

(5) The Treasury may by order make provision for securing, subject to any exceptions provided for by or under the order, that where in such circumstances as may be specified in the order goods of a description so specified are taken possession of or produced by a person in the course or furtherance of a business carried on by him and--

(a) are neither supplied to another person nor incorporated in other goods produced in the course or furtherance of that business; but

(b) are used by him for the purpose of a business carried on by him,

the goods are treated for the purposes of this Act as being both supplied to him for the purpose of that business and supplied by him in the course or furtherance of it.

(6) The Treasury may by order make provision for securing, with respect to services of any description specified in the order, that where--

(a) a person, in the course or furtherance of a business carried on by him, does anything for the purpose of that business which is not a supply of services but would, if done for a consideration, be a supply of services of a description specified in the order; and

(b) such other conditions as may be specified in the order are satisfied,

such services are treated for the purposes of this Act as being both supplied to him for the purpose of that business and supplied by him in the course or furtherance of it.

(7) For the purposes of this section, where goods are manufactured or produced from any other goods, those other goods shall be treated as incorporated in the first-mentioned goods.

(8) An order under subsection (4) or (6) above may provide for the method by which the value of any supply of services which is treated as taking place by virtue of the order is to be calculated.

6 Time of supply

(1) The provisions of this section shall apply, subject to section 18, for determining the time when a supply of goods or services is to be treated as taking place for the purposes of the charge to VAT.

(2) Subject to subsections (4) to (14) below, a supply of goods shall be treated as taking place--

(a) if the goods are to be removed, at the time of the removal;

(b) if the goods are not to be removed, at the time when they are made available to the person to whom they are supplied;

(c) if the goods (being sent or taken on approval or sale or return or similar terms) are removed before it is known whether a supply will take place, at the time when it becomes certain that the supply has taken place or, if sooner, 12 months after the removal.

(3) Subject to subsections (4) to (14) below, a supply of services shall be treated as taking place at the time when the services are performed.

(4) If, before the time applicable under subsection (2) or (3) above, the person making the supply issues a VAT invoice in respect of it or if, before the time applicable under subsection (2)(a) or (b) or (3) above, he receives a payment in respect of it, the supply shall, to the extent covered by the invoice or payment, be treated as taking place at the time the invoice is issued or the payment is received.

(5) If, within 14 days after the time applicable under subsection (2) or (3) above, the person making the supply issues a VAT invoice in respect of it, then, unless he has notified the Commissioners in writing that he elects not to avail himself of this subsection, the supply shall (to the extent that it is not treated as taking place at the time mentioned in subsection (4) above) be treated as taking place at the time the invoice is issued.

(6) The Commissioners may, at the request of a taxable person, direct that subsection (5) above shall apply in relation to supplies made by him (or such supplies made by him as may be specified in the direction) as if for the period of 14 days there were substituted such longer period as may be specified in the direction.

(7) Where any supply of goods involves both--

(a) the removal of the goods from the United Kingdom; and

(b) their acquisition in another member State by a person who is liable for VAT on the acquisition in accordance with provisions of the law of that member State corresponding, in relation to that member State, to the provisions of section 10,

subsections (2), (4) to (6) and (10) to (12) of this section shall not apply and the supply shall be treated for the purposes of this Act as taking place on whichever is the earlier of the days specified in subsection (8) below.

(8) The days mentioned in subsection (7) above are--

(a) the 15th day of the month following that in which the removal in question takes place; and

(b) the day of the issue, in respect of the supply, of a VAT invoice or of an invoice of such other description as the Commissioners may by regulations prescribe.

(9) Where a taxable person provides a document to himself which--

(a) purports to be a VAT invoice in respect of a supply of goods or services to him by another taxable person; and

(b) is in accordance with regulations under paragraph 2 of Schedule 11 treated as the VAT invoice required by the regulations to be provided by the supplier,

subsections (5) and (6) above shall have effect in relation to that supply as if--

(i) the provision of the document to himself by the first-mentioned taxable person were the issue by the supplier of a VAT invoice in respect of the supply; and

(ii) any notice of election given or request made by the first-mentioned taxable person for the purposes of those provisions had been given or made by the supplier.

(10) The Commissioners may, at the request of a taxable person, by direction alter the time at which supplies made by him (or such supplies made by him as may be specified in the direction) are to be treated as taking place, either--

(a) by directing those supplies to be treated as taking place--

(i) at times or on dates determined by or by reference to the occurrence of some event described in the direction; or

(ii) at times or on dates determined by or by reference to the time when some event so described would in the ordinary course of events occur,

the resulting times or dates being in every case earlier than would otherwise apply; or

(b) by directing that, notwithstanding subsections (5) and (6) above, those supplies shall (to the extent that they are not treated as taking place at the time mentioned in subsection (4) above) be treated as taking place--

(i) at the beginning of the relevant working period (as defined in his case in and for the purposes of the direction); or

(ii) at the end of the relevant working period (as so defined).

(11) Where goods are treated as supplied by an order under section 5(5), the supply is treated as taking place when they are appropriated to the use mentioned in that section.

(12) Where there is a supply of goods by virtue only of paragraph 5(1) of Schedule 4, the supply is treated as taking place when the goods are transferred or disposed of as mentioned in that paragraph.

(13) Where there is a supply of services by virtue only of paragraph 5(4) of Schedule 4, the supply is treated as taking place when the goods are appropriated to the use mentioned in that paragraph.

(14) The Commissioners may by regulations make provision with respect to the time at which (notwithstanding subsections (2) to (8) and (11) to (13) above or section 55(4)) a supply is to be treated as taking place in cases where--

(a) it is a supply of goods or services for a consideration the whole or part of which is determined or payable periodically, or from time to time, or at the end of any period, or

(b) it is a supply of goods for a consideration the whole or part of which is determined at the time when the goods are appropriated for any purpose, or

(c) there is a supply to which section 55 applies, or

(d) there is a supply of services by virtue of paragraph 5(4) of Schedule 4 or an order under section 5(4);

and for any such case as is mentioned in this subsection the regulations may provide for goods or services to be treated as separately and successively supplied at prescribed times or intervals.

(15) In this Act"VAT invoice" means such an invoice as is required under paragraph 2(1) of Schedule 11, or would be so required if the person to whom the supply is made were a person to whom such an invoice should be issued.

7 Place of supply

(1) This section shall apply (subject to sections 14 and 18) for determining, for the purposes of this Act, whether goods or services are supplied in the United Kingdom.

(2) Subject to the following provisions of this section, if the supply of any goods does not involve their removal from or to the United Kingdom they shall be treated as supplied in the United Kingdom if they are in the United Kingdom and otherwise shall be treated as supplied outside the United Kingdom.

(3) Goods shall be treated--

(a) as supplied in the United Kingdom where their supply involves their installation or assembly at a place in the United Kingdom to which they are removed; and

(b) as supplied outside the United Kingdom where their supply involves their installation or assembly at a place outside the United Kingdom to which they are removed.

(4) Goods whose place of supply is not determined under any of the preceding provisions of this section shall be treated as supplied in the United Kingdom where--

(a) the supply involves the removal of the goods to the United Kingdom by or under the directions of the person who supplies them;

(b) the supply is a transaction in pursuance of which the goods are acquired in the United Kingdom from another member State by a person who is not a taxable person;

(c) the supplier--

(i) is liable to be registered under Schedule 2; or

(ii) would be so liable if he were not already registered under this Act or liable to be registered under Schedule 1; and

(d) the supply is neither a supply of goods consisting in a new means of transport nor anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) or 6 of Schedule 4.

(5) Goods whose place of supply is not determined under any of the preceding provisions of this section and which do not consist in a new means of transport shall be treated as supplied outside the United Kingdom where--

(a) the supply involves the removal of the goods, by or under the directions of the person who supplies them, to another member State;

(b) the person who makes the supply is taxable in another member State; and

(c) provisions of the law of that member State corresponding, in relation to that member State, to the provisions made by subsection (4) above make that person liable to VAT on the supply;

but this subsection shall not apply in relation to any supply in a case where the liability mentioned in paragraph (c) above depends on the exercise by any person of an option in the United Kingdom corresponding to such an option as is mentioned in paragraph 1(2) of Schedule 2 unless that person has given, and has not withdrawn, a notification to the Commissioners that he wishes his supplies to be treated as taking place outside the United Kingdom where they are supplies in relation to which the other requirements of this subsection are satisfied.

(6) Goods whose place of supply is not determined under any of the preceding provisions of this section shall be treated as supplied in the United Kingdom where--

(a) their supply involves their being imported from a place outside the member States; and

(b) the person who supplies them is the person by whom, or under whose directions, they are so imported.

(7) Goods whose place of supply is not determined under any of the preceding provisions of this section but whose supply involves their removal to or from the United Kingdom shall be treated--

(a) as supplied in the United Kingdom where their supply involves their removal from the United Kingdom without also involving their previous removal to the United Kingdom; and

(b) as supplied outside the United Kingdom in any other case.

(8) For the purposes of the preceding provisions of this section, where goods, in the course of their removal from a place in the United Kingdom to another place in the United Kingdom, leave and re-enter the United Kingdom the removal shall not be treated as a removal from or to the United Kingdom.

(9) The Commissioners may by regulations provide that a notification for the purposes of subsection (5) above is not to be given or withdrawn except in such circumstances, and in such form and manner, as may be prescribed.

(10) A supply of services shall be treated as made--

(a) in the United Kingdom if the supplier belongs in the United Kingdom; and

(b) in another country (and not in the United Kingdom) if the supplier belongs in that other country.

(11) The Treasury may by order provide, in relation to goods or services generally or to particular goods or services specified in the order, for varying the rules for determining where a supply of goods or services is made.

8 Reverse charge on supplies received from abroad

(1) Subject to subsection (3) below, where relevant services are--

(a) supplied by a person who belongs in a country other than the United Kingdom, and

(b) received by a person ("the recipient") who belongs in the United Kingdom for the purposes of any business carried on by him,

then all the same consequences shall follow under this Act (and particularly so much as charges VAT on a supply and entitles a taxable person to credit for input tax) as if the recipient had himself supplied the services in the United Kingdom in the course or furtherance of his business, and that supply were a taxable supply.

(2) In this section"relevant services" means services of any of the descriptions specified in Schedule 5, not being services within any of the descriptions specified in Schedule 9.

(3) Supplies which are treated as made by the recipient under subsection (1) above are not to be taken into account as supplies made by him when determining any allowance of input tax in his case under section 26(1).

(4) In applying subsection (1) above, the supply of services treated as made by the recipient shall be assumed to have been made at a time to be determined in accordance with regulations prescribing rules for attributing a time of supply in cases within that subsection.

(5) The Treasury may by order add to, or vary, Schedule 5.

(6) The power of the Treasury by order to add to or vary Schedule 5 shall include power, where any services whose place of supply is determined by an order under section 7(11) are added to that Schedule, to provide that subsection (1) above shall have effect in relation to those services as if a person belongs in the United Kingdom for the purposes of paragraph (b) of that subsection if, and only if, he is a taxable person.

9 Place where supplier or recipient of services belongs

(1) Subsection (2) below shall apply for determining, in relation to any supply of services, whether the supplier belongs in one country or another and subsections (3) and (4) below shall apply (subject to any provision made under section 8(6)) for determining, in relation to any supply of services, whether the recipient belongs in one country or another.

(2) The supplier of services shall be treated as belonging in a country if--

(a) he has there a business establishment or some other fixed establishment and no such establishment elsewhere; or

(b) he has no such establishment (there or elsewhere) but his usual place of residence is there; or

(c) he has such establishments both in that country and elsewhere and the establishment of his which is most directly concerned with the supply is there.

(3) If the supply of services is made to an individual and received by him otherwise than for the purposes of any business carried on by him, he shall be treated as belonging in whatever country he has his usual place of residence.

(4) Where subsection (3) above does not apply, the person to whom the supply is made shall be treated as belonging in a country if--

(a) either of the conditions mentioned in paragraphs (a) and (b) of subsection (2) above is satisfied; or

(b) he has such establishments as are mentioned in subsection (2) above both in that country and elsewhere and the establishment of his at which, or for the purposes of which, the services are most directly used or to be used is in that country.

(5) For the purposes of this section (but not for any other purposes)--

(a) a person carrying on a business though a branch or agency in any country shall be treated as having a business establishment there; and

(b) "usual place of residence", in relation to a body corporate, means the place where it is legally constituted.



Acquisition of goods from member States

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10 Scope of VAT on acquisitions from member States

(1) VAT shall be charged on any acquisition from another member State of any goods where--

(a) the acquisition is a taxable acquisition and takes place in the United Kingdom;

(b) the acquisition is otherwise than in pursuance of a taxable supply; and

(c) the person who makes the acquisition is a taxable person or the goods are subject to a duty of excise or consist in a new means of transport.

(2) An acquisition of goods from another member State is a taxable acquisition if--

(a) it falls within subsection (3) below or the goods consist in a new means of transport; and

(b) it is not an exempt acquisition.

(3) An acquisition of goods from another member State falls within this subsection if--

(a) the goods are acquired in the course or furtherance of--

(i) any business carried on by any person; or

(ii) any activities carried on otherwise than by way of business by any body corporate or by any club, association, organisation or other unincorporated body;

(b) it is the person who carries on that business or, as the case may be, those activities who acquires the goods; and

(c) the supplier--

(i) is taxable in another member State at the time of the transaction in pursuance of which the goods are acquired; and

(ii) in participating in that transaction, acts in the course or furtherance of a business carried on by him.

11 Meaning of acquisition of goods from another member State

(1) Subject to the following provisions of this section, references in this Act to the acquisition of goods from another member State shall be construed as references to any acquisition of goods in pursuance of a transaction in relation to which the following conditions are satisfied, that is to say--

(a) the transaction is a supply of goods (including anything treated for the purposes of this Act as a supply of goods); and

(b) the transaction involves the removal of the goods from another member State;

and references in this Act, in relation to such an acquisition, to the supplier shall be construed accordingly.

(2) It shall be immaterial for the purposes of subsection (1) above whether the removal of the goods from the other member State is by or under the directions of the supplier or by or under the directions of the person who acquires them or any other person.

(3) Where the person with the property in any goods does not change in consequence of anything which is treated for the purposes of this Act as a supply of goods, that supply shall be treated for the purposes of this Act as a transaction in pursuance of which there is an acquisition of goods by the person making it.

(4) The Treasury may by order provide with respect to any description of transaction that the acquisition of goods in pursuance of a transaction of that description is not to be treated for the purposes of this Act as the acquisition of goods from another member State.

12 Time of acquisition

(1) Subject to section 18 and any regulations under subsection (3) below, where goods are acquired from another member State, the acquisition shall be treated for the purposes of this Act as taking place on whichever is the earlier of--

(a) the 15th day of the month following that in which the event occurs which, in relation to that acquisition, is the first relevant event for the purposes of taxing the acquisition; and

(b) the day of the issue, in respect of the transaction in pursuance of which the goods are acquired, of an invoice of such a description as the Commissioners may by regulations prescribe.

(2) For the purposes of this Act the event which, in relation to any acquisition of goods from another member State, is the first relevant event for the purposes of taxing the acquisition is the first removal of the goods which is involved in the transaction in pursuance of which they are acquired.

(3) The Commissioners may by regulations make provision with respect to the time at which an acquisition is to be treated as taking place in prescribed cases where the whole or part of any consideration comprised in the transaction in pursuance of which the goods are acquired is determined or payable periodically, or from time to time, or at the end of a period; and any such regulations may provide, in relation to any case to which they apply, for goods to be treated as separately and successively acquired at prescribed times or intervals.

13 Place of acquisition

(1) This section shall apply (subject to section 18) for determining for the purposes of this Act whether goods acquired from another member State are acquired in the United Kingdom.

(2) The goods shall be treated as acquired in the United Kingdom if they are acquired in pursuance of a transaction which involves their removal to the United Kingdom and does not involve their removal from the United Kingdom, and (subject to the following provisions of this section) shall otherwise be treated as acquired outside the United Kingdom.

(3) Subject to subsection (4) below, the goods shall be treated as acquired in the United Kingdom if they are acquired by a person who, for the purposes of their acquisition, makes use of a number assigned to him for the purposes of VAT in the United Kingdom.

(4) Subsection (3) above shall not require any goods to be treated as acquired in the United Kingdom where it is established, in accordance with regulations made by the Commissioners for the purposes of this section that VAT--

(a) has been paid in another member State on the acquisition of those goods; and

(b) fell to be paid by virtue of provisions of the law of that member State corresponding, in relation to that member State, to the provision made by subsection (2) above.

(5) The Commissioners may by regulations make provision for the purposes of this section--

(a) for the circumstances in which a person is to be treated as having been assigned a number for the purposes of VAT in the United Kingdom;

(b) for the circumstances in which a person is to be treated as having made use of such a number for the purposes of the acquisition of any goods; and

(c) for the refund, in prescribed circumstances, of VAT paid in the United Kingdom on acquisitions of goods in relation to which the conditions specified in subsection (4)(a) and (b) above are satisfied.

14 Acquisitions from persons belonging in other member States

(1) Subject to subsection (3) below, where--

(a) a person ("the original supplier") makes a supply of goods to a person who belongs in another member State ("the intermediate supplier");

(b) that supply involves the removal of the goods from another member State and their removal to the United Kingdom but does not involve the removal of the goods from the United Kingdom;

(c) both that supply and the removal of the goods to the United Kingdom are for the purposes of the making of a supply by the intermediate supplier to another person ("the customer") who is registered under this Act;

(d) neither of those supplies involves the removal of the goods from a member State in which the intermediate supplier is taxable at the time of the removal without also involving the previous removal of the goods to that member State; and

(e) there would be a taxable acquisition by the customer if the supply to him involved the removal of goods from another member State to the United Kingdom,

the supply by the original supplier to the intermediate supplier shall be disregarded for the purposes of this Act and the supply by the intermediate supplier to the customer shall be treated for the purposes of this Act, other than Schedule 3, as if it did involve the removal of the goods from another member State to the United Kingdom.

(2) Subject to subsection (3) below, where--

(a) a person belonging in another member State makes such a supply of goods to a person who is registered under this Act as involves their installation or assembly at a place in the United Kingdom to which they are removed; and

(b) there would be a taxable acquisition by the registered person if that supply were treated as not being a taxable supply but as involving the removal of the goods from another member State to the United Kingdom,

that supply shall be so treated except for the purposes of Schedule 3.

(3) Neither subsection (1) nor subsection (2) above shall apply in relation to any supply unless the intermediate supplier or, as the case may be, the person making the supply complies with such requirements as to the furnishing (whether before or after the supply is made) of invoices and other documents, and of information, to--

(a) the Commissioners, and

(b) the person supplied,

as the Commissioners may by regulations prescribe; and regulations under this subsection may provide for the times at which, and the form and manner in which, any document or information is to be furnished and for the particulars which it is to contain.

(4) Where this section has the effect of treating a taxable acquisition as having been made, section 12(1) shall apply in relation to that acquisition with the omission of the words from "whichever" to "acquisition; and" at the end of paragraph (a).

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15

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