Office of Public Sector Information
SCHEDULE 3 continued PART I continued
(2) The amount of tax refunded under this section shall not exceed the amount that would have been payable on the supply involving the removal if it had been a taxable supply by a taxable person and had not been zero-rated.
(3) The Commissioners shall not be entitled to entertain a claim for refund of tax under this section unless the claim—
(a) is made within such time and in such form and manner;
(b) contains such information; and
(c) is accompanied by such documents, whether by way of evidence or otherwise,
as the Commissioners may by regulations prescribe.”
23 (1) In subsection (1) of section 21 (refund of tax to persons constructing buildings)—
(a) the words “or the importation of goods by” shall be omitted; and
(b) after “business” there shall be inserted “on the acquisition of goods by such a person from another member State or on the importation of goods by such a person from a place outside the member States”.
(2) After subsection (2) of that section there shall be inserted the following subsection—
“(2A) This section shall have effect—
(a) as if the reference in subsection (1) above to the tax chargeable on the supply of any goods included a reference to value added tax chargeable on the supply in accordance with the law of another member State; and
(b) in relation to value added tax chargeable in accordance with the law of another member State, as if references to refunding tax to any person were references to paying that person an amount equal to the value added tax chargeable in accordance with the law of that member State;
and the provisions of this Act and of any other enactment or subordinate legislation (whenever passed or made) so far as they relate to a refund under this section shall be construed accordingly.”
24 (1) In subsection (1) of section 23 (repayment of tax to those in business overseas), for “into the United Kingdom” there shall be substituted “from places outside the member States”.
(2) In subsection (2)(a) of that section, for “a member State other than the United Kingdom” there shall be substituted “another member State”.
25 For subsections (1) to (3) of section 24 (application of customs enactments) there shall be substituted the following subsection—
“(1) Subject to such exceptions and adaptations as the Commissioners may by regulations prescribe and except where the contrary intention appears—
(a) the provision made by or under the Customs and Excise Acts 1979 and the other enactments and subordinate legislation for the time being having effect generally in relation to duties of customs and excise charged on the importation of goods into the United Kingdom; and
(b) the Community legislation for the time being having effect in relation to Community customs duties charged on goods entering the territory of the Community,
shall apply (so far as relevant) in relation to any tax chargeable on the importation of goods from places outside the member States as they apply in relation to any such duty of customs or excise or, as the case may be, Community customs duties.”
26 In section 25 (importation of goods by taxable persons)—
(a) after “imported” there shall be inserted “from a place outside the member States”; and
(b) at the end there shall be inserted “or on the acquisition of goods by him from other member States”.
27 In section 26(1) (goods imported for private purposes), after “a taxable person” there shall be inserted “from a place outside the member States”.
28 (1) In subsection (2A) of section 27 (application to the Crown), for “or on the importation of goods by, a Government department and the supply” there shall be substituted “a Government department, on the acquisition of any goods by a Government department from another member State or on the importation of any goods by a Government department from a place outside the member States and the supply, acquisition”.
(2) In subsection (2B) of that section, after “supply” there shall be inserted “acquisition”.
29 In paragraph (c) of section 29(1) (tax on importation payable by representative member)—
(a) for “importation of any goods” there shall be substituted “acquisition of goods from another member State or on the importation of goods from a place outside the member States”; and
(b) for the words from “for the purposes” to the end of the paragraph there shall be substituted—
“(i) in the case of goods acquired from another member State, for the purposes of paragraph 4(6) of Schedule 7 to this Act; and
(ii) in the case of goods imported from a place outside the member States, for those purposes and the purposes of section 25 above,
as acquired or, as the case may be, imported by the representative member;”.
30 (1) In subsection (2) of section 29A (supplies to groups), after the word “and”, in the first place where it occurs, there shall be inserted “acquisitions and”.
(2) In subsection (3) of that section, for “acquired by” there shall be substituted “assets of”.
(3) In subsection (8) of that section, for “acquisition” there shall be substituted “supply to or acquisition or importation”.
31 (1) In subsection (1) of section 30 (partnerships)—
(a) after “partnership” there shall be inserted “or carrying on in partnership any other activities in the course or furtherance of which they acquire goods from other member States”; and
(b) after “such persons” there shall be inserted “or are acquired by such persons from another member State”.
(2) In subsection (2) of that section, at the end there shall be inserted “or on the acquisition of goods by the partnership from another member State.”
(3) In subsection (5) of that section, after the word “period”, in the second place where it occurs, there shall be inserted “or on the acquisition during that period by the firm of any goods from another member State”.
32 (1) In subsection (3) of section 31 (business carried on in divisions or by unincorporated bodies etc.), after the word “organisation”, in the third place where it occurs, there shall be inserted “or whether goods are acquired by such a club, association or organisation from another member State”.
(2) After subsection (5) of that section there shall be inserted the following subsection—
“(6) References in this section to a business include references to any other activities in the course or furtherance of which any body corporate or any club, association, organisation or other unincorporated body acquires goods from another member State.”
33 In section 32 (agents etc.), for subsection (2) there shall be substituted the following subsection—
“(2) Where—
(a) goods are acquired from another member State by a person who is not a taxable person and a taxable person acts in relation to the acquisition, and then supplies the goods, as agent for the person by whom they are so acquired; or
(b) goods are imported from a place outside the member States by a taxable person who supplies them as agent for a person who is not a taxable person,
the goods may be treated for the purposes of this Act as acquired and supplied or, as the case may be, imported and supplied by the taxable person as principal.”
34 After section 32 there shall be inserted the following sections—
(1) Where any person—
(a) is a taxable person for the purposes of this Act or, without being a taxable person, is a person who makes taxable supplies or who acquires goods in the United Kingdom from one or more other member States;
(b) does not have any business establishment or other fixed establishment in the United Kingdom; and
(c) in the case of an individual, does not have his usual place of residence in the United Kingdom,
the Commissioners may direct that person to appoint another person (in this Act referred to as a “tax representative”) to act on his behalf in relation to value added tax.
(2) With the agreement of the Commissioners, any person who has not been required to appoint a tax representative under subsection (1) above may do so if he is a person in relation to whom the conditions specified in paragraphs (a) to (c) of that subsection are satisfied.
(3) Where any person is appointed by virtue of this section to be the tax representative of another (in this section referred to as his “principal”), then, subject to subsections (4) to (6) below, the tax representative—
(a) shall be entitled to act on his principal’s behalf for any of the purposes of this Act, of any other enactment (whenever passed) relating to value added tax or of any subordinate legislation made under this Act or any such enactment;
(b) shall, subject to such provisions as may be made by the Commissioners by regulations, secure (where appropriate by acting on his principal’s behalf) his principal’s compliance with and discharge of the obligations and liabilities to which his principal is subject by virtue of this Act, any such other enactment or any such subordinate legislation; and
(c) shall be personally liable in respect of—
(i) any failure to secure his principal’s compliance with or discharge of any such obligation or liability; and
(ii) anything done for purposes connected with acting on his principal’s behalf,
as if the obligations and liabilities imposed on his principal were imposed jointly and severally on the tax representative and his principal.
(4) A tax representative shall not be liable by virtue of subsection (3) above himself to be registered under this Act, but regulations made by the Commissioners may—
(a) require the registration of the names of tax representatives against the names of their principals in any register kept for the purposes of this Act; and
(b) make it the duty of a tax representative, for the purposes of registration, to notify the Commissioners, within such period as may be prescribed, that his appointment has taken effect or has ceased to have effect.
(5) A tax representative shall not by virtue of subsection (3) above be guilty of any offence except in so far as—
(a) the tax representative has consented to, or connived in, the commission of the offence by his principal;
(b) the commission of the offence by his principal is attributable to any neglect on the part of the tax representative; or
(c) the offence consists in a contravention by the tax representative of an obligation which, by virtue of that subsection, is imposed both on the tax representative and on his principal.
(6) The Commissioners may by regulations make provision as to the manner and circumstances in which a person is to be appointed, or is to be treated as having ceased to be, another’s tax representative; and regulations under this subsection may include such provision as the Commissioners think fit for the purposes of subsection (4) above with respect to the making or deletion of entries in any register.
(7) Where a person fails to appoint a tax representative in accordance with any direction under subsection (1) above, the Commissioners may require him to provide such security, or further security, as they may think appropriate for the payment of any tax which is or may become due from him.
(8) For the purposes of this Act a person shall not be treated as having been directed to appoint a tax representative, or as having been required to provide security under subsection (7) above, unless the Commissioners have either—
(a) served notice of the direction or requirement on him; or
(b) taken all such other steps as appear to them to be reasonable for bringing the direction or requirement to his attention.
(1) Where—
(a) a person who makes or intends to make taxable supplies of goods requests the Commissioners to allow his supplies to be taxed in accordance with this section; and
(b) the Commissioners are satisfied that that person is a person to whom this section applies,
the Commissioners may, if they think fit, allow that person’s taxable supplies to be so taxed until it appears to them that the person is no longer a person to whom this section applies or that the request is withdrawn or should, for any other reason, no longer be acted upon.
(2) This section applies to a person if—
(a) he does not have any business establishment or other fixed establishment in the United Kingdom and does not have his usual place of residence in the United Kingdom;
(b) he is for the time being neither registered under this Act nor required to be registered under Schedule 1A to this Act;
(c) he does not have a tax representative and is not for the time being required under section 32A above to appoint one; and
(d) he intends that his taxable supplies should be confined to supplies of goods made to taxable persons who are willing to account for and pay the tax chargeable thereon.
(3) A person whose taxable supplies for the time being fall to be taxed in accordance with this section—
(a) shall be a taxable person for the purposes of this Act; but
(b) shall not, by virtue of any provision of this Act, be registered, or be or become liable to be registered, under Schedule 1 to this Act.
(4) Where—
(a) any person’s taxable supplies for the time being fall to be taxed in accordance with this section; and
(b) that person makes a taxable supply of goods to a taxable person who has given, and not withdrawn, an undertaking to account for and pay any tax chargeable on supplies of goods made to him by the supplier in question,
it shall be for the person supplied, on the supplier’s behalf, to account for and pay any tax on the supply of those goods, and not for the supplier.
(5) Where any person’s taxable supplies for the time being fall to be taxed in accordance with this section, any acquisition from another member State by that person of any goods the first supply of which after their acquisition is to a person who under this section is required to account for and pay the tax on that supply shall be treated for the purposes of this Act as taking place outside the United Kingdom.
(6) The Commissioners may by regulations provide—
(a) for the form and manner in which any request under subsection (1) above, or any undertaking such as is mentioned in subsection (4)(b) above, is to be made or withdrawn;
(b) for the manner in which the making or withdrawal of any such undertaking is to be notified to the Commissioners;
(c) for a person whose taxable supplies for the time being fall to be taxed in accordance with this section to be under an obligation to notify the Commissioners if he makes any taxable supply to which subsection (4) above does not apply and which is not zero-rated;
(d) for prescribed provisions of this Act and of any other enactment (whenever passed) relating to value added tax to have effect, where under this section a person supplied with any goods is required to account for and pay any tax on the supply, as if that tax were on supplies or acquisitions made by him.”
35 For section 35 (supplies of dutiable goods in warehouse) there shall be substituted the following section—
(1) Where—
(a) any goods have been removed from a place outside the member States and have entered the territory of the Community;
(b) the material time for any acquisition of those goods from another member State or for any supply of those goods is while they are subject to a warehousing regime and before the duty point; and
(c) those goods are not mixed with any dutiable goods which were produced or manufactured in the United Kingdom or acquired from another member State,
then the acquisition or supply mentioned in paragraph (b) above shall be treated for the purposes of this Act as taking place outside the United Kingdom.
(2) Subsection (3) below applies where—
(a) any dutiable goods are acquired from another member State; or
(b) any person makes a supply of—
(i) any dutiable goods which were produced or manufactured in the United Kingdom or acquired from another member State; or
(ii) any goods comprising a mixture of goods falling within sub-paragraph (i) above and other goods.
(3) Where this subsection applies and the material time for the acquisition or supply mentioned in subsection (2) above is while the goods in question are subject to a warehousing regime and before the duty point, that acquisition or supply shall be treated for the purposes of this Act as taking place outside the United Kingdom if the material time for any subsequent supply of those goods is also while the goods are subject to the warehousing regime and before the duty point.
(4) Where the material time for any acquisition or supply of any goods in relation to which subsection (3) above applies is while the goods are subject to a warehousing regime and before the duty point but the acquisition or supply nevertheless falls, for the purposes of this Act, to be treated as taking place in the United Kingdom—
(a) that acquisition or supply shall be treated for the purposes of this Act as taking place at the earlier of the following times, that is to say, the time when the goods are removed from the warehousing regime and the duty point; and
(b) in the case of a supply, any tax payable on the supply shall be paid (subject to any regulations under subsection (5) below)—
(i) at the time when the supply is treated as taking place under paragraph (a) above; and
(ii) by the person by whom the goods are so removed or, as the case may be, together with the duty or agricultural levy, by the person who is required to pay the duty or levy.
(5) The Commissioners may by regulations make provision—
(a) for enabling goods to be removed from a warehousing regime by a taxable person without payment of tax chargeable in respect of those goods by virtue of subsection (4)(a) above; and
(b) for that tax to be accounted for together with the tax chargeable on supplies of goods and services by that person.
(6) In this section—
“dutiable goods” means any goods which are subject—
to a duty of excise; or
in accordance with any provision for the time being having effect for transitional purposes in connection with the accession of any State to the European Communities, to any Community customs duty or agricultural levy of the Economic Community;
“the duty point”, in relation to any goods, means—
in the case of goods which are subject to a duty of excise, the time when the requirement to pay the duty on those goods takes effect; and
in the case of goods which are not so subject, the time when any Community customs debt in respect of duty on the entry of the goods into the territory of the Community would be incurred or, as the case may be, the corresponding time in relation to any such duty or levy as is mentioned in paragraph (b) of the definition of dutiable goods;
“material time”—
in relation to any acquisition or supply the time of which is determined in accordance with regulations under section 5(9) or 8B(3) above, means such time as may be prescribed for the purpose of this section by those regulations;
in relation to any other acquisition, means the time of the event which, in relation to the acquisition, is the first relevant event for the purposes of taxing it; and
in relation to any other supply, means the time when the supply would be treated as taking place in accordance with subsection (2) of section 4 above if paragraph (c) of that subsection were omitted;
“warehouse” means any warehouse where goods may be stored in any member State without payment of any one or more of the following, that is to say—
Community customs duty;
any agricultural levy of the Economic Community;
value added tax on the importation of the goods into any member State;
any duty of excise or any duty which is equivalent in another member State to a duty of excise.
(7) References in this section to goods being subject to a warehousing regime is a reference to goods being kept in a warehouse or being transported between warehouses (whether in the same or different member States) without the payment in a member State of any duty, levy or tax; and references to the removal of goods from a warehousing regime shall be construed accordingly.”
36 (1) In subsection (1) of section 36 (capital goods), after “supply” there shall be inserted “acquisition”.
(2) In subsection (2) of that section, after “supplied” there shall be inserted “acquired”.
37 For section 37 (trading stamp schemes) there shall be substituted the following section—
The Commissioners may by regulations modify sections 10 and 10A of this Act and Schedules 4 and 4A to this Act for the purpose of providing (in place of the provision for the time being contained in those sections and Schedules) for the manner of determining for the purposes of this Act the value of—
(a) a supply of goods, or
(b) a transaction in pursuance of which goods are acquired from another member State,
in a case where the goods are supplied or acquired under a trading stamp scheme (within the meaning of the [1964 c. 71.] Trading Stamps Act 1964 or the [1965 c. 6 (N.I.).] Trading Stamps Act (Northern Ireland) 1965) or under any scheme of an equivalent description which is in operation in another member State.”
38 In section 38 (which gives effect to Schedule 7), after “effect” there shall be inserted “subject to section 46A(6) below,”.
39 (1) In subsection (1A) of section 39—
(a) in paragraph (b) (evasion by obtaining refund), after “under” there shall be inserted “section 20A,”;
(b) after that paragraph there shall be inserted the following paragraph—
“(ba) a refund under any regulations made by virtue of section 8C(5) above; or”; and
(c) in sub-paragraph (ii), after “paragraph (b)” there shall be inserted “paragraph (ba)”.
(2) In subsection (2B)(a) of that section (penalties in the case of refunds)—
(a) after “under”, in the first place where it occurs, there shall be inserted “section 20A,”; and
(b) after “22 above” there shall be inserted “for a refund under any regulations made by virtue of section 8C(5) above”.
(3) In subsection (4) of that section (handling goods in respect of which there is evasion), for “or on the importation of the goods” there shall be substituted “on the acquisition of the goods from another member State or on the importation of the goods from a place outside the member States”.
40 In subsection (1) of section 40 (appeals)—
(a) in paragraph (b), for the words from “or, subject” to the end of the paragraph there shall be substituted “on the acquisition of goods from another member State or, subject to subsection (5) below, on the importation of goods from a place outside the member States”;
(b) after paragraph (d) there shall be inserted the following paragraph—
“(da) the amount of any refunds under section 20A above;”
(c) after paragraph (f) there shall be inserted the following paragraph—
“(fa) any claim for a refund under any regulations made by virtue of section 8C(5) above;”
(d) after paragraph (j) there shall be inserted the following paragraph—
“(ja) any direction under paragraph 1 of Schedule 4A to this Act;”
(e) in paragraph (m), at the end of sub-paragraph (ii) there shall be inserted “or
(iii) under paragraph 4A of that Schedule,”;
(f) in paragraph (n), after “under” there shall be inserted “section 32A(7) above or”;
(g) in paragraph (o), for “17” there shall be substituted “17A”.
41 (1) In subsection (1) of section 41 (supplies spanning change of rate), at the end there shall be inserted “or exempt or zero-rated acquisitions”.
(2) After subsection (3) of that section there shall be inserted the following subsection—
“(3A) Where—
(a) any acquisition of goods from another member State which is affected by the change would not have been affected (in whole or in part) if it had been treated as taking place at the time of the event which, in relation to that acquisition, is the first relevant event for the purposes of taxing the acquisition; or
(b) any acquisition of goods from another member State which is not so affected would have been affected (in whole or in part) if it had been treated as taking place at the time of that event,
the rate at which tax is chargeable on the acquisition, or any question whether it is zero-rated or exempt, shall, if the person making the acquisition so elects, be determined as at the time of that event.”
(3) After subsection (5) of that section there shall be inserted the following subsection—
“(6) References in this section to an acquisition being zero-rated are references to an acquisition of goods from another member State being one in relation to which section 16(3) above provides for no tax to be chargeable.”
42 (1) In subsection (1) of section 43 (failure of resolution under the [1968 c. 2.] Provisional Collection of Taxes Act 1968)—
(a) in paragraph (a), after “section 10(2) above” there shall be inserted “or on the acquisition of goods from another member State by reference to a value determined under section 10A(3) above”; and
(b) in paragraph (b), after “supply” there shall be inserted “or acquisition”.
(2) In subsection (2) of that section—
(a) in paragraph (a), after “the said section 10(2)” there shall be inserted “or on the acquisition of goods from another member State by reference to a value determined under the said section 10A(3)”; and
(b) in paragraph (b), after “supply” there shall be inserted “or acquisition”.
(3) In subsection (3) of that section, after “20” there shall be inserted “20A”.
43 In section 46 (service of notices), for the words from “at his” onwards there shall be substituted “or his tax representative at the last or usual residence or place of business of that person or representative.”
44 After section 46 there shall be inserted the following sections—
(1) Subject to the following provisions of this section, references in this Act, in relation to another member State, to the law of that member State shall be construed as confined to so much of the law of that member State as for the time being has effect for the purposes of any Community instrument relating to value added tax.
(2) Subject to the following provisions of this section—
(a) references in this Act to a person being taxable in another member State are references to that person being taxable under so much of the law of that member State as makes provision for purposes corresponding, in relation to that member State, to the purposes of so much of this Act as makes provision as to whether a person is a taxable person; and
(b) references in this Act to goods being acquired by a person in another member State are references to goods being treated as so acquired in accordance with provisions of the law of that member State corresponding, in relation to that member State, to so much of this Act as makes provision for treating goods as acquired in the United Kingdom from another member State.
(3) Without prejudice to subsection (5) below, the Commissioners may by regulations make provision for the manner in which any of the following are to be or may be proved for any of the purposes of this Act, that is to say—
(a) the effect of any provisions of the law of any other member State;
(b) that provisions of any such law correspond or have a purpose corresponding, in relation to any member State, to or to the purpose of any provision of this Act.
(4) The Commissioners may by regulations provide—
(a) for a person to be treated for prescribed purposes of this Act as taxable in another member State only where he has given such notification, and furnished such other information, to the Commissioners as may be prescribed;
(b) for the form and manner in which any notification or information is to be given or furnished under the regulations and the particulars which it is to contain;
(c) for the proportion of any consideration for any transaction which is to be taken for the purposes of this Act as representing a liability, under the law of another member State, for value added tax to be conclusively determined by reference to such invoices or in such other manner as may be prescribed.
(5) In any proceedings (whether civil or criminal), a certificate of the Commissioners—
(a) that a person was or was not, at any date, taxable in another member State; or
(b) that any value added tax payable under the law of another member State has or has not been paid,
shall be sufficient evidence of that fact until the contrary is proved, and any document purporting to be a certificate under this subsection shall be deemed to be such a certificate until the contrary is proved.
(6) Without prejudice to the generality of any of the powers of the Commissioners under the information provisions of Schedule 7 to this Act, those powers shall, for the purpose of facilitating compliance with any Community obligations, be exercisable with respect to matters that are relevant to a charge to value added tax under the law of another member State, as they are exercisable with respect to matters that are relevant for any of the purposes of this Act.
(7) The reference in subsection (6) above to the information provisions of Schedule 7 to this Act is a reference to the provisions of that Schedule relating to—
(a) the keeping of accounts;
(b) the making of returns and the submission of other documents to the Commissioners;
(c) the production, use and contents of invoices;
(d) the keeping and preservation of records; and
(e) the furnishing of information and the production of documents.
Finance (No. 2) Act 1992