Office of Public Sector Information
SCHEDULE 3 continued PART I continued
(1) The Commissioners may by regulations provide for the territory of the Community, or for the member States, to be treated for any of the purposes of this Act as including or excluding such territories as may be prescribed.
(2) Without prejudice to the generality of the powers conferred by subsection (1) and section 24(1) above, the Commissioners may, for any of the purposes of this Act, by regulations provide for prescribed provisions of any customs and excise legislation to apply in relation to cases where any territory is treated under subsection (1) above as excluded from the territory of the Community, with such exceptions and adaptations as may be prescribed.
(3) In subsection (2) above the reference to customs and excise legislation is a reference to any enactment or subordinate or Community legislation (whenever passed, made or adopted) which has effect in relation to, or to any assigned matter connected with, the importation or exportation of goods.
(4) In subsection (3) above “assigned matter” has the same meaning as in the [1979 c. 2.] Customs and Excise Management Act 1979.”
45 After section 47 there shall be inserted the following section—
(1) In this Act “means of transport” in the expression “new means of transport” means any of the following, that is to say—
(a) any ship exceeding 7.5 metres in length;
(b) any aircraft the take-off weight of which exceeds 1550 kilograms;
(c) any motorized land vehicle which—
(i) has an engine with a cylinder capacity exceeding 48 cubic centimetres; or
(ii) is constructed or adapted to be electrically propelled using more than 7.2 kilowatts.
(2) For the purposes of this Act a means of transport shall be treated as new at any time unless at that time—
(a) a period of more than three months has elapsed since its first entry into service; and
(b) it has, since its first entry into service, travelled under its own power—
(i) in the case of a ship, for more than 100 hours;
(ii) in the case of an aircraft, for more than 40 hours; and
(iii) in the case of a land vehicle, for more than 3000 kilometres.
(3) The Treasury may by order vary this section—
(a) by adding or deleting any ship, aircraft or vehicle of a description specified in the order to or from those which are for the time being specified in subsection (1) above; and
(b) by altering, omitting or adding to the provisions of subsection (2) above for determining whether a means of transport is new.
(4) The Commissioners may by regulations make provision specifying the circumstances in which a means of transport is to be treated for the purposes of this section as having first entered into service.”
46 (1) In subsection (1) of section 48 (interpretation)—
(a) after “in this Act-” there shall be inserted the following definition—
““another member State” means, subject to section 46B(1) above, any member State other than the United Kingdom, and “other member States” shall be construed accordingly;”
(b) after the definition of “ship” there shall be inserted the following definition—
““subordinate legislation” has the same meaning as in the [1978 c. 30.] Interpretation Act 1978;”
(c) in the definition of “tax”, at the end there shall be inserted “charged in accordance with the provisions of this Act”;
(d) for the definition of “taxable person” there shall be substituted the following definition—
““taxable person” means (subject to section 32B(3) above) a person who is a taxable person under section 2C above;”.
(2) After subsection (1) of that section there shall be inserted the following subsections—
“(1A) Subject to section 46B above—
(a) the question whether or not goods have entered the territory of the Community;
(b) the time when any Community customs debt in respect of duty on the entry of any goods into the territory of the Community would be incurred; and
(c) the person by whom any such debt would fall to be discharged,
shall for the purposes of this Act be determined (whether or not the goods in question are themselves subject to any such duties) according to the Community legislation applicable to goods which are in fact subject to such duties.
(1B) Any reference in this Act to the amount of any duty of excise on any goods shall be taken to be a reference to the amount of duty charged on those goods with any addition or deduction falling to be made under section 1 of the [1979 c. 8.] Excise Duties (Surcharges or Rebates) Act 1979.”
(3) In subsection (5) of that section, after “determined” there shall be inserted “(subject to any provision made under section 7(6) above)”.
(4) After subsection (8) of that section there shall be inserted the following subsection—
“(9) References in this Act to being registered shall be construed in accordance with section 2C(3) of this Act and, (without prejudice to paragraph 2 of Schedule 10 to this Act) shall, in relation to registration under Schedule 1 to this Act or any provision of that Schedule, include a reference to being registered under the corresponding provision of any enactment re-enacted in that Schedule.”
47 In section 49 (refund of tax to Government of Northern Ireland)—
(a) for “or on the importation of goods by, that Government” there shall be substituted “that Government, on the acquisition of any goods by that Government from another member State or on the importation of any goods by that Government from a place outside the member States”; and
(b) after “supplies” there shall be inserted “acquisitions”.
48 (1) In sub-paragraph (1) of paragraph 1 of Schedule 1 (registration in respect of taxable supplies), for “registered becomes liable to be registered” there shall be substituted “registered under this Act becomes liable to be registered under this Schedule”.
(2) In sub-paragraph (2) of that paragraph—
(a) after the word “registered”, in the first place where it occurs, there shall be inserted “under this Act”;
(b) after that word, in the second place where it occurs, there shall be inserted “under this Schedule”.
(3) In sub-paragraph (4) of that paragraph—
(a) after “registered” there shall be inserted “under this Act”; and
(b) in paragraph (a), after “10 below” there shall be inserted “paragraph 6(2) of Schedule 1A to this Act or paragraph 6(3) of Schedule 1B to this Act”.
(4) After sub-paragraph (4) of that paragraph there shall be inserted the following sub-paragraphs—
“(4A) A person shall be treated as having become liable to be registered under this Schedule at any time when he would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 10 below, paragraph 6(2) of Schedule 1A to this Act or paragraph 6(3) of Schedule 1B to this Act.
(4B) A person shall not cease to be liable to be registered under this Schedule except in accordance with paragraph 1A(5), 1B or 2 below.”
(5) In sub-paragraph (5) of that paragraph, after “supplied” there shall be inserted “and any taxable supplies which would not be taxable supplies apart from section 6(2B) of this Act.”
49 (1) In each of sub-paragraphs (1) and (4)(b) of paragraph 1A of that Schedule (further provisions as to liability to be registered), after “registered” there shall be inserted “under this Schedule”.
(2) In sub-paragraph (7) of that paragraph, after paragraph (b) there shall be inserted the following paragraph—
“(ba) any acquisition of goods from another member State by one of the constituent members in the course of the activities of the taxable person shall be treated as an acquisition by that person;”.
50 After paragraph 1A of that Schedule there shall be inserted the following paragraph—
“1B A person who has become liable to be registered under this Schedule shall cease to be so liable at any time if the Commissioners are satisfied in relation to that time that he—
(a) has ceased to make taxable supplies; or
(b) is not at that time a person in relation to whom any of the conditions specified in paragraphs 1(1)(a) and (b) and (2)(a) and (b) above is satisfied.”
51 (1) In sub-paragraph (1) of paragraph 2 of that Schedule (cases where person ceases to be registered), for the words from “registered person” to “time” there shall be substituted “person who has become liable to be registered under this Schedule shall cease to be so liable at any time after being registered”.
(2) In sub-paragraph (2) of that paragraph, after “be registered” there shall be inserted “under this Schedule”.
(3) In sub-paragraph (3) of that paragraph, after “supplied” there shall be inserted “and any taxable supplies which would not be taxable supplies apart from section 6(2B) of this Act”.
52 In paragraph 3(3) of that Schedule (notification of liability to be registered)—
(a) after the word “registered”, in the first place where it occurs, there shall be inserted “by virtue of paragraph 1(1)(a) above”; and
(b) before that word, in the second place where it occurs, there shall be inserted “so”.
53 In each of paragraphs 5 and 5A(1) of that Schedule (entitlement to be registered), after “registered” there shall be inserted “under this Act and is not already so registered”.
54 In paragraph 7 of that Schedule (notification of end of liability or entitlement), at the end there shall be inserted “unless he would, when he so ceases, be otherwise liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded.”
55 In paragraph 7A of that Schedule (notification of end of liability or entitlement), at the end there shall be inserted “unless, in the case of a person ceasing as mentioned in sub-paragraph (a) above, he would, when he so ceases, be otherwise liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded.”
56 (1) In sub-paragraph (1) of paragraph 8A of that Schedule (cancellation of registration on request)—
(a) at the beginning there shall be inserted “Subject to sub-paragraph (1A) below”; and
(b) after “be registered” there shall be inserted “under this Schedule”.
(2) After sub-paragraph (1) of that paragraph there shall be inserted the following sub-paragraphs—
“(1A) The Commissioners shall not under this paragraph cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement to be registered under this Act.
(1B) In determining for the purposes of sub-paragraph (1A) above whether a person would be subject to a requirement to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable to be registered when he is already registered or when he is so liable under any other provision shall be disregarded.”
(3) In sub-paragraph (2) of that paragraph (meaning of “registered person”), for the words from “includes” onwards there shall be substituted “is a reference to any person who is registered under this Schedule (including a person who was so registered before the coming into force of the paragraph in which the reference is contained)”.
57 (1) In sub-paragraph (1) of paragraph 9 of that Schedule (cancellation of registration by the Commissioners), at the beginning there shall be inserted “Subject to sub-paragraph (1A) below”.
(2) After sub-paragraph (1) of that paragraph there shall be inserted the following sub-paragraphs—
“(1A) The Commissioners shall not under this paragraph cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement, or entitled, to be registered under this Act.
(1B) In determining for the purposes of sub-paragraph (1A) above whether a person would be subject to a requirement, or entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when he is already registered or when he is so liable under any other provision shall be disregarded.”
(3) In sub-paragraph (2) of that paragraph, at the end there shall be inserted “under this Schedule”.
58 (1) In sub-paragraph (1) of paragraph 11 of that Schedule (exemption from registration), after “registration” there shall be inserted “under this Schedule”.
(2) In sub-paragraph (2) of that paragraph, for “from registration under this paragraph” there shall be substituted “under this paragraph from registration under this Schedule”.
59 After Schedule 1 there shall be inserted the following Schedules—
1 (1) A person who—
(a) is not registered under this Act; and
(b) is not liable to be registered under Schedule 1 to this Act,
becomes liable to be registered under this Schedule on any day if, in the period beginning with 1st January of the year in which that day falls, that person has made relevant supplies whose value exceeds £70,000.
(2) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) above becomes liable to be registered under this Schedule where—
(a) that person has exercised any option, in accordance with the law of any other member State where he is taxable, for treating relevant supplies made by him as taking place outside that member State;
(b) the supplies to which the option relates involve the removal of goods from that member State and, apart from the exercise of the option, would be treated, in accordance with the law of that member State, as taking place in that member State; and
(c) that person makes a relevant supply at a time when the option is in force in relation to him.
(3) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) above becomes liable to be registered under this Schedule if he makes a supply in relation to which the following conditions are satisfied, that is to say—
(a) it is a supply of goods subject to a duty of excise;
(b) it involves the removal of the goods to the United Kingdom by or under the directions of the person making the supply;
(c) it 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;
(d) it is made at a time after the coming into force of this Schedule and in the course or furtherance of a business carried on by the supplier; and
(e) it is not anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) or 5A of Schedule 2 to this Act.
(4) A person shall be treated as having become liable to be registered under this Schedule at any time when he would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 6(2) below, paragraph 10 of Schedule 1 to this Act or paragraph 6(3) of Schedule 1B to this Act.
(5) A person shall not cease to be liable to be registered under this Schedule except in accordance with paragraph 2 below.
(6) In determining for the purposes of this paragraph the value of any relevant supplies so much of the consideration for any supply as represents any liability of the supplier, under the law of another member State, for value added tax on that supply shall be disregarded.
2 (1) Subject to sub-paragraph (2) below, a person who has become liable to be registered under this Schedule shall cease to be so liable if at any time—
(a) the relevant supplies made by him in the year ending with 31st December last before that time did not have a value exceeding £70,000 and did not include any supply in relation to which the conditions mentioned in paragraph 1(3) above were satisfied; and
(b) the Commissioners are satisfied that the value of his relevant supplies in the year immediately following that year will not exceed £70,000 and that those supplies will not include a supply in relation to which those conditions are satisfied.
(2) A person shall not cease to be liable to be registered under this Schedule at any time when such an option as is mentioned in paragraph 1(2) above is in force in relation to him.
3 (1) A person who becomes liable to be registered under this Schedule shall notify the Commissioners of the liability within the period of thirty days after the day on which the liability arises.
(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the day on which the liability arose or from such earlier time as may be agreed between them and him.
4 (1) Where a person who is not liable to be registered under this Act and is not already so registered—
(a) satisfies the Commissioners that he intends—
(i) to exercise an option such as is mentioned in paragraph 1(2) above and, from a specified date, to make relevant supplies to which that option will relate;
(ii) from a specified date to make relevant supplies to which any such option that he has exercised will relate; or
(iii) from a specified date to make supplies in relation to which the conditions mentioned in paragraph 1(3) above will be satisfied;
and
(b) requests to be registered under this Schedule,
the Commissioners may, subject to such conditions as they think fit to impose, register him with effect from such date as may be agreed between them and him.
(2) Conditions imposed under sub-paragraph (1) above—
(a) may be so imposed wholly or partly by reference to, or without reference to, any conditions prescribed for the purposes of this paragraph; and
(b) may, whenever imposed, be subsequently varied by the Commissioners.
(3) Where a person who is entitled to be registered under paragraph 5 or 5A of Schedule 1 to this Act requests registration under this paragraph, he shall be registered under that Schedule, and not under this Schedule.
5 (1) Any person registered under this Schedule who ceases to be registrable under this Act shall notify the Commissioners of that fact within thirty days of the day on which he does so.
(2) A person registered under paragraph 4 above by reference to any intention of his to exercise any option or to make supplies of any description shall notify the Commissioners, within thirty days of exercising that option or, as the case may be, of the first occasion after his registration when he makes such a supply, that he has exercised the option or made such a supply.
(3) A person who has exercised such an option as is mentioned in paragraph 1(2) above which, as a consequence of its revocation or otherwise, ceases to have effect in relation to any relevant supplies by him shall notify the Commissioners, within thirty days of the option’s ceasing so to have effect, that it has done so.
(4) For the purposes of this paragraph a person ceases to be registrable under this Act where—
(a) he ceases to be a person who would be liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded; or
(b) in the case of a person who (having been registered under paragraph 4 above) has not been such a person during the period of his registration, he ceases to have any such intention as is mentioned in sub-paragraph (1)(a) of that paragraph.
6 (1) Subject to paragraph 7 below, where a person registered under this Schedule satisfies the Commissioners that he is not liable to be so registered, they shall, if he so requests, cancel his registration with effect from the day on which the request is made or from such later date as may be agreed between them and him.
(2) Where the Commissioners are satisfied that, on the day on which a person was registered under this Schedule, he—
(a) was not liable to be registered under this Schedule; and
(b) in the case of a person registered under paragraph 4 above, did not have the intention by reference to which he was registered,
they may cancel his registration with effect from that day.
(3) Subject to paragraph 7 below, where the Commissioners are satisfied that a person who has been registered under paragraph 4 above and is not for the time being liable to be registered under this Schedule—
(a) has not, by the date specified in his request to be registered, begun to make relevant supplies, exercised the option in question or, as the case may be, begun to make supplies in relation to which the conditions mentioned in paragraph 1(3) above are satisfied; or
(b) has contravened any condition of his registration,
they may cancel his registration with effect from the date so specified or, as the case may be, the date of the contravention or from such later date as may be agreed between them and him.
7 (1) The Commissioners shall not, under paragraph 6(1) above, cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement to be registered under this Act.
(2) The Commissioners shall not, under paragraph 6(3) above, cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement, or entitled, to be registered under this Act.
(3) The registration of a person who has exercised such an option as is mentioned in paragraph 1(2) above shall not be cancelled with effect from any time before the 1st January which is, or next follows, the second anniversary of the date on which his registration took effect.
(4) In determining for the purposes of this paragraph whether a person would be subject to a requirement, or entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when he is already registered or when he is so liable under any other provision shall be disregarded.
8 The Treasury may by order substitute for any of the sums for the time being specified in this Schedule such greater sums as they think fit.
9 Any notification required under this Schedule shall be made in such form and shall contain such particulars as the Commissioners may by regulations prescribe.
10 For the purposes of this Schedule a supply of goods is a relevant supply where—
(a) the supply involves the removal of the goods to the United Kingdom by or under the directions of the person making the supply;
(b) the supply does not involve the installation or assembly of the goods at a place in the United Kingdom;
(c) the supply is a transaction in pursuance of which goods are acquired in the United Kingdom from another member State by a person who is not a taxable person;
(d) the supply is made at a time after the coming into force of this Schedule and in the course or furtherance of a business carried on by the supplier; and
(e) the supply is neither an exempt supply nor a supply of goods which are subject to a duty of excise or consist in a new means of transport and is not anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) or 5A of Schedule 2 to this Act.
1 (1) A person who—
(a) is not registered under this Act; and
(b) is not liable to be registered under Schedule 1 or 1A to this Act,
becomes liable to be registered under this Schedule at the end of any month if, in the period beginning with 1st January of the year in which that month falls, that person has made relevant acquisitions whose value exceeds £36,600.
(2) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) above becomes liable to be registered under this Schedule at any time if there are reasonable grounds for believing that the value of his relevant acquisitions in the period of thirty days then beginning will exceed £36,600.
(3) A person shall be treated as having become liable to be registered under this Schedule at any time when he would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 6(3) below, paragraph 10 of Schedule 1 to this Act or paragraph 6(2) of Schedule 1A to this Act.
(4) A person shall not cease to be liable to be registered under this Schedule except in accordance with paragraph 2 below.
(5) In determining the value of any person’s relevant acquisitions for the purposes of this paragraph, so much of the consideration for any acquisition as represents any liability of the supplier, under the law of another member State, for value added tax on the transaction in pursuance of which the acquisition is made, shall be disregarded.
2 (1) Subject to sub-paragraph (2) below, a person who has become liable to be registered under this Schedule shall cease to be so liable if at any time—
(a) his relevant acquisitions in the year ending with 31st December last before that time did not have a value exceeding £36,600; and
(b) the Commissioners are satisfied that the value of his relevant acquisitions in the year immediately following that year will not exceed £36,600.
(2) A person shall not cease to be liable to be registered under this Schedule at any time if there are reasonable grounds for believing that the value of that person’s relevant acquisitions in the period of thirty days then beginning will exceed £36,600.
3 (1) A person who becomes liable to be registered under this Schedule shall notify the Commissioners of the liability—
(a) in the case of a liability under sub-paragraph (1) of paragraph 1 above, within thirty days of the end of the month when he becomes so liable; and
(b) in the case of a liability under sub-paragraph (2) of that paragraph, before the end of the period by reference to which the liability arises.
(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the relevant time or from such earlier time as may be agreed between them and him.
(3) In this paragraph “the relevant time”—
(a) in a case falling within paragraph (a) of sub-paragraph (1) above, means the end of the month following the month at the end of which the liability arose; and
(b) in a case falling within paragraph (b) of that sub-paragraph, means the beginning of the period by reference to which the liability arose.
4 (1) Where a person who is not liable to be registered under this Act and is not already so registered satisfies the Commissioners that he makes relevant acquisitions, they shall, if he so requests, register him with effect from the day on which the request is made or from such earlier date as may be agreed between them and him.
(2) Where a person who is not liable to be registered under this Act and is not already so registered—
(a) satisfies the Commissioners that he intends to make relevant acquisitions from a specified date; and
(b) requests to be registered under this Schedule,
the Commissioners may, subject to such conditions as they think fit to impose, register him with effect from such date as may be agreed between them and him.
(3) Conditions imposed under sub-paragraph (2) above—
(a) may be so imposed wholly or partly by reference to, or without reference to, any conditions prescribed for the purposes of this paragraph; and
(b) may, whenever imposed, be subsequently varied by the Commissioners.
(4) Where a person who is entitled to be registered under paragraph 5 or 5A of Schedule 1 to this Act requests registration under this paragraph, he shall be registered under that Schedule, and not under this Schedule.
5 (1) Any person registered under this Schedule who ceases to be registrable under this Act shall notify the Commissioners of that fact within thirty days of the day on which he does so.
(2) A person registered under paragraph 4(2) above shall notify the Commissioners, within thirty days of the first occasion after his registration when he makes a relevant acquisition, that he has done so.
(3) For the purposes of this paragraph a person ceases to be registrable under this Act where—
(a) he ceases to be a person who would be liable or entitled to be registered under this Act if his registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded; or
(b) in the case of a person who (having been registered under sub-paragraph (2) of paragraph 4 above) has not been such a person during the period of his registration, he ceases to have any intention of making relevant acquisitions.
Finance (No. 2) Act 1992