Value Added Tax Act 1983 (repealed 1.9.1994)

30 Partnerships.

(1) The registration under this Act of persons carrying on a business in partnership or carrying on in partnership any other activities in the course or furtherance of which they acquire goods from other member States may be in the name of the firm; and no account shall be taken, in determining for any purpose of this Act whether goods or services are supplied to or by such persons or are acquired by such persons from another member State, of any change in the partnership. (2) Without prejudice to section 36 of the Partnership Act 1890 (rights of persons dealing with firm against apparent members of firm), until the date on which a change in the partnership is notified to the Commissioners a person who has ceased to be a member of a partnership shall be regarded as continuing to be a partner for the purposes of this Act and, in particular, for the purpose of any liability for tax on the supply of goods or services by the partnership or on the acquisition of goods by the partnership from another member State. (3) Where a person ceases to be a member of a partnership during a prescribed accounting period (or is treated as so doing by virtue of subsection (2) above) any notice, whether of assessment or otherwise, which is served on the partnership and relates to, or to any matter arising in, that period or any earlier period during the whole or part of which he was a member of the partnership shall be treated as served also on him. (4) Without prejudice to section 16 of the Partnership Act 1890 (notice to acting partner to be notice to the firm) any notice, whether of assessment or otherwise, which is addressed to a partnership by the name in which it is registered by virtue of subsection (1) above and is served in accordance with this Act shall be treated for the purposes of this Act as served on the partnership and, accordingly, where subsection (3) above applies, as served also on the former partner. (5) Subsections (1) and (3) above shall not affect the extent to which, under section 9 of the Partnership Act 1890, a partner is liable for tax owed by the firm; but where a person is a partner in a firm during part only of a prescribed accounting period his liability for tax on the supply by the firm of goods or services during that accounting period or on the acquisition during that period by the firm of any goods from another member State shall be such proportion of the firm’s liability as may be just.

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

(1) The registration under this Act of a body corporate carrying on a business in several divisions may, if the body corporate so requests and the Commissioners see fit, be in the names of those divisions. (2) The Commissioners may by regulations make provision for determining by what persons anything required by or under this Act to be done by a person carrying on a business is to be done where a business is carried on in partnership or by a club, association or organisation the affairs of which are managed by its members or a committee or committees of its members. (3) The registration under this Act of any such club, association or organisation may be in the name of the club, association or organisation; and in determining whether goods or services are supplied to or by such a club, association or organisation or whether goods are acquired by such a club, association or organisation from another member State, no account shall be taken of any change in its members. (4) The Commissioners may by regulations make provision for persons who carry on a business of a taxable person who has died or become bankrupt or incapacitated to be treated for a limited time as taxable persons, and for securing continuity in the application of this Act in cases where persons are so treated. (5) In relation to a company which is a taxable person, the reference in subsection (4) above to the taxable person having become bankrupt or incapacitated shall be construed as a reference to its being in liquidation or receivership or to an admission order being in force in relation to it. (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.

32 Agents, etc.

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (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. (3) For the purposes of subsection (2) above a person who is not resident in the United Kingdom and whose place or principal place of business is outside the United Kingdom may be treated as not being a taxable person if as a result he will not be required to be registered under this Act. (4) Where goods or services are supplied through an agent who acts in his own name the Commissioners may, if they think fit, treat the supply both as a supply to the agent and as a supply by the agent.

32A Tax representatives.

(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.

32B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33 Transfers of going concerns.

(1) Where a business carried on by a taxable person is transferred to another person as a going concern, then— (a) for the purpose of determining whether the transferee is liable to be registered under this Act he shall be treated as having carried on the business before as well as after the transfer and supplies by the transferor shall be treated accordingly; and (b) any records relating to the business which, under paragraph 7 of Schedule 7 to this Act, are required to be preserved for any period after the transfer shall be preserved by the transferee instead of by the transferor, unless the Commissioners, at the request of the transferor, otherwise direct. (1A) (2) Without prejudice to subsection (1) above, the Commissioners may by regulations make provision for securing continuity in the application of this Act in cases where a business carried on by a taxable person is transferred to another person as a going concern and the transferee is registered under this Act in substitution for the transferor. (3) Regulations under subsection (2) above may, in particular, provide— (a) for liabilities and duties under this Act of the transferor to become, to such extent as may be provided by the regulations, liabilities and duties of the transferee; and (b) for any right of either of them to repayment or credit in respect of tax to be satisfied by making a repayment or allowing a credit to the other; but no such provision as is mentioned in paragraph (a) or (b) of this subsection shall have effect in relation to any transferor and transferee unless an application in that behalf has been made by them under the regulations.

34 Terminal markets.

(1) The Treasury may by order make provision for modifying the provisions of this Act in their application to dealings on terminal markets and such persons ordinarily engaged in such dealings as may be specified in the order, subject to such conditions as may be so specified. (2) Without prejudice to the generality of subsection (1) above, an order under this section may include provision— (a) for zero-rating the supply of any goods or services or for treating the supply of any goods or services as exempt; (b) for the registration under this Act of any body of persons representing persons ordinarily engaged in dealing on a terminal market and for disregarding such dealings by persons so represented in determining liability to be registered under this Act, and for disregarding such dealings between persons so represented for all the purposes of this Act; (c) for refunding, to such persons as may be specified by or under the order, input tax attributable to such dealings on a terminal market as may be so specified, and may contain such incidental and supplementary provisions as appear to the Treasury to be necessary or expedient. (3) An order under this section may make different provision with respect to different terminal markets and with respect to different commodities.

35 Goods subject to a warehousing regime.

(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.

35A Buildings and land.

(1) Schedule 6A to this Act shall have effect with respect to buildings and land. (2) The Treasury may by order amend Schedule 6A to this Act.

36 Capital goods.

(1) The Treasury may by order make provision for the giving of relief, in such cases, to such extent and subject to such exceptions as may be specified in the order, from tax paid on the supply acquisition or importation for the purpose of a business carried on by any person of machinery or plant or any specified description of machinery or plant in cases where that tax or part of that tax cannot be credited under section 14 above and such other conditions are satisfied as may be specified in the order. (2) Without prejudice to the generality of subsection (1) above, an order under this section may provide for relief to be given by deduction or refunding of tax and for aggregating or excluding the aggregation of value where goods of the same description are supplied acquired or imported together. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

37 Trading stamp schemes.

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 Trading Stamps Act 1964 or the Trading Stamps Act (Northern Ireland) 1965) or under any scheme of an equivalent description which is in operation in another member State.

37A Tour operators.

(1) The Treasury may by order modify the application of this Act in relation to supplies of goods or services by tour operators or in relation to such of those supplies as may be determined by or under the order. (2) Without prejudice to the generality of subsection (1) above, an order under this section may make provision— (a) for two or more supplies of goods or services by a tour operator to be treated as a single supply of services; (b) for the value of that supply to be ascertained, in such manner as may be determined by or under the order, by reference to the difference between sums paid or payable to and sums paid or payable by the tour operator; (c) for account to be taken, in determining the tax chargeable on that supply, of the different rates of tax that would have been applicable apart from this section; (d) excluding any body corporate from the application of section 29 above; (e) as to the time when a supply is to be treated as taking place. (3) In this section “tour operator” includes a travel agent acting as principal and any other person providing for the benefit of travellers services of any kind commonly provided by tour operators or travel agents. (4) Section 45(3) below shall not apply to an order under this section, notwithstanding that it makes provision for excluding any tax from credit under section 14 above.

37B Special treatment for persons involved in farming etc.

(1) The Commissioners may, in accordance with such provision as may be contained in regulations made by them, certify for the purposes of this section any person who satisfies them— (a) that he is carrying on a business involving one or more designated activities; (b) that he is of such a description and has complied with such requirements as may be prescribed; and (c) where an earlier certification of that person has been cancelled, that more than the prescribed period has elapsed since the cancellation or that such other conditions as may be prescribed are satisfied. (2) Where a person is for the time being certified under this section, then (whether or not that person is a taxable person) so much of any supply by him of any goods or services as, in accordance with provision contained in regulations, is allocated to the relevant part of his business shall be disregarded for the purpose of determining whether he is, has become or has ceased to be liable or entitled to be registered under Schedule 1 to this Act. (3) The Commissioners may by regulations provide for an amount included in the consideration for any taxable supply which is made— (a) in the course or furtherance of the relevant part of his business by a person who is for the time being certified under this section; (b) at a time when that person is not a taxable person; and (c) to a taxable person, to be treated, for the purpose of determining the entitlement of the person supplied to credit under sections 14 and 15 above, as tax on a supply to that person. (4) The amount which, for the purposes of any provision made under subsection (3) above, may be included in the consideration for any supply shall be an amount equal to such percentage as the Treasury may by order specify of the sum which, with the addition of that amount, is equal to the consideration for the supply. (5) The Commissioners’ power by regulations under section 23 above to provide for the repayment to persons to whom that section applies of tax which would be input tax of theirs if they were taxable persons in the United Kingdom includes power to provide for the payment to persons to whom that section applies of sums equal to the amounts which, if they were taxable persons in the United Kingdom, would be input tax of theirs by virtue of regulations under this section; and references in that section, or in any other enactment, to a repayment of tax shall be construed accordingly. (6) Regulations under this section may provide— (a) for the form and manner in which an application for certification under this section, or for the cancellation of any such certification, is to be made; and (b) for the cases and manner in which the Commissioners may cancel a person’s certification; (c) for entitlement to a credit such as is mentioned in subsection (3) above to depend on the issue of an invoice containing such particulars as may be prescribed, or as may be notified by the Commissioners in accordance with provision contained in regulations; and (d) for the imposition on certified persons of obligations with respect to the keeping, preservation and production of such records as may be prescribed and of obligations to comply with such requirements with respect to any of those matters as may be so notified; and regulations made by virtue of paragraph (b) above may confer on the Commissioners power, if they think fit, to refuse to cancel a person’s certification, and to refuse to give effect to any entitlement of that person to be registered, until the end of such period after the grant of certification as may be prescribed. (7) In this section references, in relation to any person, to the relevant part of his business are references— (a) where the whole of his business relates to the carrying on of one or more designated activities, to that business; and (b) in any other case, to so much of his business as does so relate. (8) In this section “designated activities” means such activities, being activities carried on by a person who, by virtue of carrying them on, falls to be treated as a farmer for the purposes of Article 25 of the directive of the Council of the European Communities dated 17th May 1977 No. 77/388/EEC (common flat-rate scheme for farmers), as the Treasury may by order designate.

37C Customers to account for tax on supplies of gold etc.

(1) Where any person makes a supply of gold to another person and that supply is a taxable supply but not a zero-rated supply, the supply shall be treated for the purposes of Schedule 1 to this Act— (a) as a taxable supply of that other person (as well as a taxable supply of the person who makes it); and (b) in so far as that other person is supplied in connection with the carrying on by him of any business, as a supply made by him in the course or furtherance of that business; but nothing in paragraph (b) above shall require any supply to be disregarded for the purposes of that Schedule on the grounds that it is a supply of capital assets of that other person’s business. (2) Where a taxable person makes a supply of gold to a person who— (a) is himself a taxable person at the time when the supply is made; and (b) is supplied in connection with the carrying on by him of any business, it shall be for the person supplied, on the supplier’s behalf, to account for and pay tax on the supply, and not for the supplier. (3) So much of this Act and of any other enactment or any subordinate legislation as has effect for the purposes of, or in connection with, the enforcement of any obligation to account for and pay value added tax shall apply for the purposes of this section in relation to any person who is required under subsection (2) above to account for and pay any tax as if that tax were tax on a supply made by him. (4) Section 5(1) to (5) above shall not apply for determining when any supply of gold is to be treated as taking place. (5) References in this section to a supply of gold are references to— (a) any supply of goods consisting in gold, including gold coins, or (b) any supply of goods containing gold where the consideration for the supply (apart from any tax) is, or is equivalent to, an amount which does not exceed, or exceeds by no more than a negligible amount, the open market value of the gold contained in the goods. (6) The Treasury may by order provide for this section to apply, as it applies to the supplies specified in subsection (5) above, to such other supplies of— (a) goods consisting in or containing any precious or semi-precious metal or stones; or (b) services relating to, or to anything containing, any precious or semi-precious metal or stones, as may be specified or described in the order.

38 Administration, collection and enforcement.

Schedule 7 to this Act shall have effect subject to section 46A(6) below, with respect to the administration, collection and enforcement of the tax.

38A Interest in certain cases of official error.

(1) Where, due to an error on the part of the Commissioners, a person— (a) has accounted to them for an amount by way of output tax which was not output tax due from him and which they are in consequence liable to repay to him, or (b) has failed to claim credit under section 14 above for an amount for which he was entitled so to claim credit and which they are in consequence liable to pay to him, or (c) has (otherwise than in a case falling within paragraph (a) or (b) above) paid to them by way of value added tax an amount that was not tax due and which they are in consequence liable to repay to him, or (d) has suffered delay in receiving payment of an amount due to him from them in connection with value added tax, then, if and to the extent that they would not be liable to do so apart from this section, they shall pay interest to him on that amount for the applicable period, but subject to the following provisions of this section. (2) Nothing in subsection (1) above requires the Commissioners to pay interest— (a) on any amount which falls to be increased by a supplement under section 20 of the Finance Act 1985 (repayment supplement on certain delayed payments or refunds); or (b) where an amount is increased under that section, on so much of the increased amount as represents the supplement. (3) Interest under this section shall be payable at such rates as may from time to time be prescribed by order made by the Treasury; and any such order— (a) may prescribe different rates for different purposes; and (b) shall apply to interest for periods beginning on or after the date on which the order is expressed to come into force, whether or not interest runs from before that date; and the first such order may prescribe, for cases where interest runs from before the date on which that order is expressed to come into force, rates for periods ending before that date. (4) The “applicable period” in a case falling within paragraph (a) or (b) of subsection (1) above is the period— (a) beginning with the appropriate commencement date, and (b) ending with the date on which the Commissioners authorise payment of the amount on which the interest is payable. (5) In subsection (4) above, the “appropriate commencement date”— (a) in a case where an amount would have been due from the person by way of value added tax in connection with the relevant return, had his input tax and output tax been as stated in that return, means the date on which the Commissioners received payment of that amount; and (b) in a case where no such payment would have been due from him in connection with that return, means the date on which the Commissioners would, apart from the error, have authorised payment of the amount on which the interest is payable; and in this subsection “the relevant return” means the return in which the person accounted for, or (as the case may be) ought to have claimed credit for, the amount on which the interest is payable. (6) The “applicable period” in a case falling within paragraph (c) of subsection (1) above is the period— (a) beginning with the date on which the payment is received by the Commissioners, and (b) ending with the date on which they authorise payment of the amount on which the interest is payable. (7) The “applicable period” in a case falling within paragraph (d) of that subsection is the period— (a) beginning with the date on which, apart from the error, the Commissioners might reasonably have been expected to authorise payment of the amount on which the interest is payable, and (b) ending with the date on which they in fact authorise payment of that amount. (8) In determining in accordance with subsection (4), (6) or (7) above the applicable period for the purposes of subsection (1) above, there shall be left out of account any period referable to the raising and answering of any reasonable inquiry relating to any matter giving rise to, or otherwise connected with, the person’s entitlement to interest under this section. (8A) In determining for the purposes of subsection (8) above whether any period is referable to the raising and answering of such an inquiry as is there mentioned, there shall be taken to be so referable any period which— (a) begins with the date on which the Commissioners first consider it necessary to make such an inquiry, and (b) ends with the date on which the Commissioners— (i) satisfy themselves that they have received a complete answer to the inquiry, or (ii) determine not to make the inquiry or, if they have made it, not to pursue it further, but excluding so much of that period as may be prescribed; and it is immaterial whether any inquiry is in fact made or whether it is or might have been made of the person referred to in subsection (1) above or of an authorised person or of some other person. (9) The Commissioners shall only be liable to pay interest under this section on a claim made in writing for that purpose. (10) No claim shall be made under this section after the expiry of six years from the date on which the claimant discovered the error or could with reasonable diligence have discovered it. (11) In this section— (a) any reference to receiving a payment from the Commissioners includes a reference to the discharge, by way of set-off, of their liability to make it; and (b) any reference to a return is a reference to a return required to be made in accordance with paragraph 2 of Schedule 7 to this Act. (12) This section confers a right to interest in respect of periods before as well as after its coming into force.

38B Interest: general treatment.

(1) Any interest payable by the Commissioners (whether under an enactment or instrument or otherwise) to a person on a sum due to him under or by virtue of— (a) any provision of this Act, (b) section 25 of the Finance Act 1985, or (c) section 24 of the Finance Act 1989, shall be treated as an amount due to him by way of credit under section 14(5) above. (2) Subsection (1) above shall be disregarded for the purpose of determining a person’s entitlement to interest or the amount of interest to which he is entitled.

38C Payments on account.

(1) The Treasury may make an order under this section if they consider it desirable to do so in the interests of the national economy. (2) An order under this section may provide that a taxable person of a description specified in the order shall be under a duty— (a) to pay, on account of any tax he may become liable to pay in respect of a prescribed accounting period, amounts determined in accordance with the order, and (b) to do so at such times as are so determined. (3) Where an order is made under this section, the Commissioners may make regulations containing such supplementary, incidental or consequential provisions as appear to the Commissioners to be necessary or expedient. (4) A provision of an order or regulations under this section may be made in such way as the Treasury or, as the case may be, the Commissioners think fit (whether by amending provisions of or made under the enactments relating to tax, or otherwise). (5) An order or regulations under this section may make different provision for different circumstances.

39 Offences and penalties.

(1) If any person is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion of tax by him or any other person, he shall be liable— (a) on summary conviction, to a penalty of the statutory maximum or of three times the amount of the tax, whichever is the greater, or to imprisonment for a term not exceeding 6 months or to both; or (b) on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 7 years or to both. (1A) Any reference in subsection (1) above or subsection (3) below to the evasion of tax includes a reference to the obtaining of— (a) a payment under section 14(5) above; or (b) a refund under section 20A, section 21 or section 22 above or section 11 of the Finance Act 1990; or (ba) a refund under any regulations made by virtue of section 8C(5) above; or ; and (c) a repayment under section 23 above; and any reference in those subsections to the amount of the tax shall be construed,— (i) in relation to tax itself or a payment falling within paragraph (a) above, as a reference to the aggregate of the amount (if any) falsely claimed by way of credit for input tax and the amount (if any) by which output tax was falsely understated; and (ii) in relation to a refund or repayment falling within paragraph (b) paragraph (ba) or paragraph (c) above, as a reference to the amount falsely claimed by way of refund or repayment. (2) If any person— (a) with intent to deceive produces, furnishes or sends for the purposes of this Act or otherwise makes use for those purposes of any document which is false in a material particular; or (b) in furnishing any information for the purposes of this Act makes any statement which he knows to be false in a material particular or recklessly makes a statement which is false in a material particular, he shall be liable— (i) on summary conviction, to a penalty of the statutory maximum or, where subsection (2A) or subsection (2B) below applies, to the alternative penalty specified in that subsection if it is greater, or to imprisonment for a term not exceeding 6 months or to both; or (ii) on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 7 years or to both. (2A) In any case where— (a) the document referred to in subsection (2)(a) above is a return required under this Act, or (b) the information referred to in subsection (2)(b) above is contained in or otherwise relevant to such a return, the alternative penalty referred to in subsection (2)(i) above is a penalty equal to three times the aggregate of the amount (if any) falsely claimed by way of credit for input tax and the amount (if any) by which output tax was falsely understated. (2B) In any case where— (a) the document referred to in subsection (2)(a) above is a claim for a refund under section 20A, section 21 or section 22 above for a refund under any regulations made by virtue of section 8C(5) above or for a repayment under section 23 above, or (b) the information referred to in subsection (2)(b) above is contained in or otherwise relevant to such a claim. the alternative penalty referred to in subsection (2)(i) above is a penalty equal to three times the amount falsely claimed. (2C) The reference in subsection (2)(a) above to furnishing, sending or otherwise making use of a document which is false in a material particular, with intent to deceive, includes a reference to furnishing, sending or otherwise making use of such a document, with intent to secure that a machine will respond to the document as if it were a true document. (2D) Any reference in subsection (2)(a) or subsection (2C) above to producing, furnishing or sending a document includes a reference to causing a document to be produced, furnished or sent. (3) Where a person’s conduct during any specified period must have involved the commission by him of one or more offences under the preceding provisions of this section, then, whether or not the particulars of that offence or those offences are known, he shall, by virtue of this subsection, be guilty of an offence and liable— (a) on summary conviction, to a penalty of the statutory maximum or, if greater, three times the amount of any tax that was or was intended to be evaded by his conduct, or to imprisonment for a term not exceeding 6 months or to both; or (b) on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 7 years or to both. (3A) Where an authorised person has reasonable grounds for suspecting that an offence has been committed under the preceding provisions of this section, he may arrest anyone whom he has reasonable grounds for suspecting to be guilty of the offence. (4) If any person acquires possession of or deals with any goods, or accepts the supply of any services having reason to believe that tax on the supply of the goods or services on the acquisition of the goods from another member State or on the importation of the goods from a place outside the member States has been or will be evaded, he shall be liable on summary conviction to a penalty of level 5 on the standard scale or three times the amount of the tax, whichever is the greater. (5) If any person supplies goods or services in contravention of paragraph 5(2) of Schedule 7 to this Act, he shall be liable on summary conviction to a penalty of level 5 on the standard scale. (6) If a person other than— (a) a person registered under this Act; or (b) a body corporate treated for the purposes of section 29 above as a member of a group; or (c) a person treated as a taxable person under regulations made under section 31(4) above; or (d) a person authorised to do so under regulations made under paragraph 2(6) of Schedule 7 to this Act; or (e) a person acting on behalf of the Crown, issues an invoice showing an amount as being tax or as being attributable to tax, he shall be liable on summary conviction to a penalty of level 5 on the standard scale or three times the amount so shown, whichever is the greater. (7) If any person fails to comply with any requirement imposed under paragraph 7 or 8 of Schedule 7 to this Act or any regulations or rules made under this Act, he shall be liable on summary conviction to a penalty of level 3 on the standard scale, together with a penalty of £10 for each day on which the failure continues. (8) Where a person’s failure to comply with any regulations made under this Actconsists— (a) in not paying the tax due in respect of any period within the time required by regulations under section 14(1) above; or (b) in not furnishing a return in respect of any period within the time required by regulations under paragraph 2(1) of Schedule 7 to this Act, that person shall be liable on summary conviction to a penalty of level 3 on the standard scale, together with a penalty of whichever is the greater of £10 andan amount equal to 1/2 per cent. of the tax due in respect of that period, for each day on which the failure continues; and for that purpose the tax due shall, if the person concerned has furnished a return, be taken to be the tax shown in the return as that for which he is accountable for that period and, in any other case, be taken to be such tax as has been assessed and notified to him under paragraph 4(1) of Schedule 7 to this Act. (9) Sections 145 to 155 of the Customs and Excise Management Act 1979 (proceedings for offences, mitigation of penalties and certain other matters) shall apply in relation to offences under this Act (which include any act or omission in respect of which a penalty is imposed) and penalties imposed under this Act as they apply in relation to offences and penalties under the customs and excise Acts as defined in that Act; and accordingly in section 154(2) as it applies by virtue of this subsection the reference to duty shall be construed as a reference to the tax.

40 Appeals.

(1) An appeal shall lie to a value added tax tribunal constituted in accordance with Schedule 8 to this Act against the decision of the Commissioners with respect to any of the following matters— (a) the registration or cancellation of registration of any person under this Act; (b) the tax chargeable on the supply of any goods or services 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; (c) the amount of any input tax which may be credited to a person; (d) the proportion of input tax allowable under section 15 above; (da) the amount of any refunds under section 20A above; (e) the amount of any refunds under section 21 above; (f) a claim for a refund under section 22 above or section 11 of the Finance Act 1990; (fa) any claim for a refund under any regulations made by virtue of section 8C(5) above; (g) a claim by a taxable person under section 26 above; (h) any refusal of an application under section 29 above; (hza) any refusal or cancellation of certification under section 37B above or any refusal to cancel such certification; (ha) any liability of the Commissioners to pay interest under section 38A above or the amount of interest so payable; (hh) any direction or supplementary direction made under paragraph 1A of Schedule 1 to this Act (i) (j) any direction under paragraph 1, . . . or 3 of Schedule 4 to this Act; (ja) any direction under paragraph 1 of Schedule 4A to this Act; (k) any refusal to permit the value of supplies to be determined by a method described in a notice published under paragraph 2(3) of Schedule 7 to this Act; (l) any requirements imposed by the Commissioners in a particular case under paragraph 3(2)(b) of Schedule 7 to this Act; (m) an assessment— (i) under sub-paragraph (1) or (2) of paragraph 4 of Schedule 7 to this Act in respect of a period for which the appellant has made a return under this Act; or (ii) under sub-paragraph (6) of that paragraph, or (iii) under paragraph 4A of that Schedule, or the amount of such an assessment; (n) the requirement of any security under section 32A(7) above or paragraph 5(2) of Schedule 7 to this Act. (o) any liability to a penalty or surcharge by virtue of any of sections 13 to 17A and 19 of the Finance Act 1985; (p) the amount of any penalty, interest or surcharge specified in an assessment under section 21 of that Act; (q) the making of an assessment on the basis set out in section 22(4) of that Act. (r) any refusal of authorisation or termination of authorisation in connection with the scheme made under paragraph 2(3A) of Schedule 7 to this Act; (s) a claim for the repayment of an amount under section 24 of the Finance Act 1989 (recovery of overpaid tax). (1A) Without prejudice to section 15A of the Finance Act 1985, nothing in subsection (1)(p) above shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty, interest or surcharge except in so far as it is necessary to reduce it to the amount which is appropriate under sections 13 to 19 of that Act. (2) An appeal under this section shall not be entertained unless the appellant has made all the returns which he was required to make under paragraph 2(1) of Schedule 7 to this Act and except in the case of an appeal against a decision with respect to the matter mentioned in subsection (1)(n) above, unless hehas paid the amounts shown in those returns as payable by him. (3) Where the appeal is against a decision with respect to any of the matters mentioned in any of paragraphs (b), (m), (o) and (p)of subsection (1) above it shall not be entertained unless— (a) the amount which the Commissioners have determined to be payable as tax has been paid or deposited with them; or (b) on being satisfied that the appellant would otherwise suffer hardship the Commissioners agree or the value added tax tribunal decides that it should be entertained notwithstanding that that amount has not been so paid or deposited. (3ZA) Where— (a) there is an appeal against a decision of the Commissioners with respect to, or to so much of any assessment as concerns, the amount of input tax that may be credited to any person or the proportion of input tax allowable under section 15 above, (b) that appeal relates, in whole or in part, to any determination by the Commissioners— (i) as to the purposes for which any goods or services were or were to be used by any person, or (ii) as to whether or to what extent the matters to which any input tax was attributable were or included matters other than the making of supplies within section 15(2) above, and (c) tax for which, in pursuance of that determination, there is no entitlement to a credit is tax on the supply, acquisition or importation of something in the nature of a luxury, amusement or entertainment, the tribunal shall not allow the appeal or, as the case may be, so much of it as relates to that determination unless it considers that the determination is one which it was unreasonable to make or which it would have been unreasonable to make if information brought to the attention of the tribunal that could not have been brought to the attention of the Commissioners had been available to be taken into account when the determination was made. (3A) Where there is an appeal against a decision to make such a direction as is mentioned in subsection (1) (hh) above, the tribunal shall not allow the appeal unless it considers that the Commissioners could not reasonably have been satisfied as to the matters in paragraph (a) to (d) of sub-paragraph (2) of paragraph 1A of Schedule 1 to this Act or, as the case may be, as to the matters in sub-paragraph (4) of that paragraph. (3B) Where, on an appeal against a decision with respect to any of the matters mentioned in subsection (1)(m) above;- (a) it is found that the amount specified in the assessment is less than it ought to have been, and (b) the tribunal gives a direction specifying the correct amount, the assessment shall have effect as an assessment of the amount specified in the direction and that amount shall be deemed to have been notified to the appellant. (4) Where on an appeal under this section it is found— (a) that the whole or part of any amount paid or deposited in pursuance of subsection (3) above is not due; or (b) that the whole or part of any amount due to the appellant under section 14(5) above has not been paid, so much of that amount as is found not to be due or not to have been paid shall be repaid (or, as the case may be, paid) with interest at such rate as the value added tax tribunal may determine; and where the appeal has been entertained notwithstanding that an amount determined by the Commissioners to be payable as tax has not been paid or deposited and it is found on the appeal that that amount is due the tribunal may, if it thinks fit, direct that that amount shall be paid with interest at such rate as may be specified in the direction. (5) No appeal shall lie under this section with respect to any matter that has been or could have been referred to arbitration under section 127 of the Customs and Excise Management Act 1979 as applied by section 24 above. (6) Where an appeal under this section is against a decision of the Commissioners which depended upon a prior decision taken by them in relation to the appellant, the fact that the prior decision is not within subsection (1) above shall not prevent the tribunal from allowing the appeal on the ground that it would have allowed an appeal against the prior decision.

41 Supplies spanning change of rate, etc.

(1) This section applies where there is a change in the rate of tax in force under section 9 above or in the descriptions of exempt or zero-rated supplies or exempt or zero-rated acquisitions. (2) Where— (a) a supply affected by the change would, apart from section 5(1), (2), (3) or (5) above, be treated under section 4(2) or (3) above as made wholly or partly at a time when it would not have been affected by the change; or (b) a supply not so affected would apart from section 5(1), (2), (3) or (5) above be treated under section 4(2) or (3) above as made wholly or partly at a time when it would have been so affected, the rate at which tax is chargeable on the supply, or any question whether it is zero-rated or exempt, shall if the person making it so elects be determined without regard to section 5(1), (2), (3) or (5) above. (3) Any power to make regulations under this Act with respect to the time when a supply is to be treated as taking place shall include power to provide for this section to apply as if the references in subsection (2) above to section 5(1), (2), (3) and (5) included references to specified provisions of the regulations. (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. (4) Regulations under paragraph 2 of Schedule 7 to this Act may make provision for the replacement or correction of any tax invoice which— (a) relates to a supply in respect of which an election is made under this section, but (b) was issued before the election was made. (5) No election may be made under this section in respect of a supply to which section 5(4) above or paragraph 6 of Schedule 2 to this Act applies. (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 Adjustment of contracts on changes in tax.

(1) Where, after the making of a contract for the supply of goods or services and before the goods or services are supplied, there is a change in the tax charged on the supply, then, unless the contract otherwise provided, there shall be added to or deducted from the consideration for the supply an amount equal to the change. (1A) Subsection (1) above shall apply in relation to a tenancy or lease as it applies in relation to a contract except that a term of a tenancy or lease shall not be taken to provide that the rule contained in that subsection is not to apply in the case of the tenancy or lease if the term does not refer specifically to value added tax or this section. (2) References in this section to a change in the tax charged on a supply include references to a change to or from no tax being charged on the supply (including a change attributable to the making of an election under paragraph 2 of Schedule 6A to this Act).

43 Failure of resolution under Provisional Collection of Taxes Act 1968.

(1) Where— (a) by virtue of a resolution having effect under the Provisional Collection of Taxes Act 1968 value added tax has been paid at a rate specified in the resolution on the supply of any goods or services by reference to a value determined under section 10(2) above or on the acquisition of goods from another member State by reference to a value determined under section 10A(3) above, and (b) by virtue of section 1(6) or (7) or 5(3) of the said Act of 1968 any of that tax is repayable in consequence of the restoration in relation to that supply or acquisition of a lower rate, the amount repayable shall be the difference between the tax paid by reference to that value at the rate specified in the resolution and the tax that would have been payable by reference to that value at the lower rate. (2) Where— (a) by virtue of such a resolution value added tax is chargeable at a rate specified in the resolution on the supply of any goods or services by reference to a value determined under the said section 10(2) or on the acquisition of goods from another member State by reference to a value determined under the said section 10A(3), but, (b) before the tax is paid it ceases to be chargeable at that rate in consequence of the restoration in relation to that supply or acquisition of a lower rate, the tax chargeable at the lower rate shall be charged by reference to the same value as that by reference to which tax would have been chargeable at the rate specified in the resolution. (3) The tax that may be credited as input tax under section 14 above or refunded under section 20 20A or 21 above does not include tax that has been repaid by virtue of any of the provisions mentioned in subsection (1)(b) above or that would be repayable by virtue of any of those provisions if it had been paid.

44 Disclosure of information for statistical purposes.

(1) For the purpose of the compilation or maintenance by the Department of Trade and Industry or the Central Statistical Office of the Chancellor of the Exchequerof a central register of businesses, or for the purpose of any statistical survey conducted or to be conducted by that Department or Office, the Commissioners or an authorised officer of the Commissioners may disclose to an authorised officer of that Department or Officeparticulars of the following descriptions obtained or recorded by them in pursuance of this Act— (a) numbers allocated by the Commissioners on the registration of persons under this Act and reference numbers for members of a group; (b) names, trading styles and addresses of persons so registered or of members of groups and status and trade classifications of businesses; and (c) actual or estimated value of supplies. (2) Subject to subsection (3) below, no information obtained by virtue of this section by an officer of the Department of Trade and Industry or the Central Statistical Officemay be disclosed except to an officer of a Government department (including a Northern Ireland department) for the purpose for which the information was obtained, or for a like purpose. (3) Subsection (2) above does not prevent the disclosure— (a) of any information in the form of a summary so framed as not to enable particulars to be identified as particulars relating to a particular person or to the business carried on by a particular person; or (b) with the consent of any person, of any information enabling particulars to be identified as particulars relating only to him or to a business carried on by him. (4) If any person who has obtained any information by virtue of this section discloses it in contravention of this section he shall be liable— (a) on summary conviction to a fine not exceeding the statutory maximum; and (b) on conviction on indictment to imprisonment for a term not exceeding 2 years or to a fine of any amount or to both. (5) In this section references to the Department of Trade and Industry or the Central Statistical Office of the Chancellor of the Exchequerinclude references to any Northern Ireland department carrying out similar functions.

45 Orders, rules and regulations.

(1) Any order made by the Treasury under this Act and any regulations or rules under this Act shall be made by statutory instrument. (2) Subject to subsection (3) below and section 27(3)(c) of the Finance Act 1985, any statutory instrument made under this Act shall be subject to annulment in pursuance of a resolution of the Commons House of Parliament. (3) An order to which this subsection applies shall be laid before the Commons House of Parliament; and unless it is approved by that House before the expiration of a period of twenty-eight days beginning with the date on which it was made, it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done thereunder or to the making of a new order. In reckoning any such period no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the Commons House of Parliament is adjourned for more than four days. (4) Subject to section 37A(4) abovesubsection (3) above applies to— (a) an order under section 3(4) or 38C above; (b) an order as a result of which goods of any description become goods to which section 12(3) above applies; (c) an order under this Act making provision— (i) for increasing the rate of tax in force at the time of the making of the order; (ii) for excluding any tax from credit under section 14 above; (iii) for varying Schedule 5 or Schedule 6 to this Act so as to abolish the zero-rating of a supply or to abolish the exemption of a supply without zero-rating it. (d) an order under section 35A above, except one making only such amendments as are necessary or expedient in consequence of provisions of an order under this Act which- (i) vary Schedule 5 or Schedule 6 to this Act; but (ii) are not within paragraph (c) above. (e) an order under section 37B(4) or (8) above.

46 Service of notices.

Any notice, notification, requirement or demand to be served on, given to or made of any person for the purposes of this Act may be served, given or made by sending it by post in a letter addressed to that person or his tax representative at the last or usual residence or place of business of that person or representative.

46A Taxation under the laws of other member States etc.

(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.

46B Territories included in references to other member States etc.

(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 Customs and Excise Management Act 1979.

47 Meaning of “business", etc.

(1) In this Act “business” includes any trade, profession or vocation. (2) Without prejudice to the generality of anything else in this Act, the following are deemed to be the carrying on of a business— (a) the provision by a club, association or organisation (for a subscription or other consideration) of the facilities or advantages available to its members; and (b) the admission, for a consideration, of persons to any premises. (3) Where a body has objects which are in the public domain and are of a political, religious, philanthropic, philosophical or patriotic nature, it is not to be treated as carrying on a business only because its members subscribe to it, if a subscription obtains no facility or advantage for the subscriber other than the right to participate in its management or receive reports on its activities. (4) Where a person, in the course or furtherance of a trade, profession or vocation, accepts any office, services supplied by him as the holder of that office are treated as supplied in the course or furtherance of the trade, profession or vocation. (5) Anything done in connection with the termination or intended termination of a business is treated as being done in the course or furtherance of that business. (6) The disposition of a business as a going concern, or of its assets or liabilities (whether or not in connection with its reorganisation or winding up), is a supply made in the course or furtherance of the business.

47A Meaning of “new means of transport".

(1) In this Act “means of transport" in the expression “new means of transport” means subject to subsection (1A) below 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 displacement or cylinder capacity exceeding 48 cubic centimetres; or (ii) is constructed or adapted to be electrically propelled using more than 7.2 kilowatts. (1A) A ship, aircraft or motorized land vehicle does not fall within subsection (1) above unless it is intended for the transport of persons or goods. (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.

48 Interpretation.

(1) In this Act— “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; “assignment”, in relation to Scotland, means assignation; “authorised person” means any person acting under the authority of the Commissioners; “the Commissioners” means the Commissioners of Customs and Excise; “fee simple”— in relation to Scotland, means the estate or interest of the proprietor of the dominium utile or, in the case of land not held on feudal tenure, the estate or interest of the owner; in relation to Northern Ireland, includes the estate of a person who holds land under a fee farm grant; “invoice” includes any document similar to an invoice; “input tax” has the meaning assigned to it by section 14 above; “major interest”, in relation to land, means the fee simple or a tenancy for a term certain exceeding 21 years, and in relation to Scotland means— (a) the estate or interest of the proprietor of the dominium utile, or (b) in the case of land not held on feudal tenure, the estate or interest of the owner, or the lessee’s interest under a lease for a period exceeding 21 years; “money” includes currencies other than sterling; “prescribed” means prescribed by regulations; “prescribed accounting period” has the meaning assigned to it by section 14(1) above; “quarter” means a period of three months ending at the end of March, June, September or December; “regulations” means regulations made by the Commissioners under this Act; “ship” includes hovercraft; “subordinate legislation” has the same meaning as in the Interpretation Act 1978; “tax” means value added tax charged in accordance with the provisions of this Act; “taxable person” means . . . a person who is a taxable person under section 2C above; “taxable supply” has the meaning assigned to it by section 2(2) above. (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 Excise Duties (Surcharges or Rebates) Act 1979. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Subject to paragraph 3(2) of Schedule 7 to this Act, in any provision contained in or having effect under this Act “document", “copy" and “computer" shall have the same meanings— (a) in relation to England and Wales, as by virtue of section 10 of the Civil Evidence Act 1968 they have in Part I of that Act; (b) in relation to Scotland, as by virtue of section 17 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1968 they have in Part III of that Act; and (c) in relation to Northern Ireland, as by virtue of section 6 of the Civil Evidence Act (Northern Ireland) 1971 they have in Part I of that Act. (5) The question whether, in relation to any supply of services, the supplier or the recipient of the supply belongs in one country or another shall be determined (subject to any provision made under section 7(6) above) in accordance with section 8 above. (6) Schedules 5 and 6 to this Act shall be interpreted in accordance with the notes contained in those Schedules; and accordingly the powers conferred by this Act to vary those Schedules include a power to add to, delete or vary those notes. (7) The descriptions of Groups in those Schedules are for ease of reference only and shall not affect the interpretation of the descriptions of items in those Groups. (8) References in this Act to the United Kingdom include the territorial sea of the United Kingdom. (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.

49 Refund of tax to Government of Northern Ireland.

The Commissioners shall refund to the Government of Northern Ireland the amount of the tax charged on the supply of goods or services to, 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, after deducting therefrom so much of that amount as may be agreed between them and the Department of Finance and Personnel for Northern Ireland as attributable to supplies acquisitions and importations for the purpose of a business carried on by the Government of Northern Ireland.

50 Consequential, transitional and saving provisions and repeals.

(1) Schedule 9 (consequential amendments) and Schedule 10 (savings and transitional provisions) to this Act shall have effect but without prejudice to the operation of sections 15 to 17 of the Interpretation Act 1978 (which relate to the effect of repeals). (2) The enactments specified in Schedule 11 to this Act are hereby repealed to the extent mentioned in the third column of that Schedule.

51 Short title, commencement and extent.

(1) This Act may be cited as the Value Added Tax Act 1983. (2) This Act shall come into force at the expiry of the period of three months beginning with the day on which it is passed. (3) This Act shall extend to Northern Ireland. (4) Paragraph 3 of Schedule 9 and paragraph 18 of Schedule 10 to this Act shall extend to the Isle of Man but no other provision of this Act shall extend there.

SCHEDULE 1 Registration

Section 2(5). Liability to be registered 1 (1) Subject to sub-paragraphs (3) to (5) below, a person who makes taxable supplies but is not registered under this Act becomes liable to be registered under this Schedule- (a) at the end of any month, if the value of his taxable supplies in the period of one year then ending has exceeded £45,000; or (b) at any time, if there are reasonable grounds for believing that the value of his taxable supplies in the period of thirty days then beginning will exceed £45,000. (2) Where a business carried on by a taxable person is transferred to another person as a going concern and the transferee is not registered under this Act at the time of the transfer, then, subject to sub-paragraphs (3) to (5) below, the tranferee becomes liable to be registered under this Schedule at that time if- (a) the value of his taxable supplies in the period of one year ending at the time of the transfer has exceeded £45,000; or (b) there are reasonable grounds for believing that the value of his taxable supplies in the period of thirty days beginning at the time of the transfer will exceed £45,000. (3) A person does not become liable to be registered by virtue of sub-paragraph (1)(a) or (2)(a) above if the Commissioners are satisfied that the value of his taxable supplies in the period of one year beginning at the time at which, apart from this sub-paragraph, he would become liable to be registered will not exceed £43,000. (4) In determining the value of a person’s supplies for the purposes of sub-paragraph (1)(a) or (2)(a)above, supplies made at a time when he was previously registered under this Act shall be disregarded if- (a) his registration was cancelled otherwise than under paragraph 10 below paragraph 6(2) of Schedule 1A to this Act or paragraph 6(3) of Schedule 1B to this Act, and (b) the Commissioners are satisfied that before his registration was cancelled he had given them all the information they needed in order to determine whether to cancel the registration. (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 determining the value of a person’s supplies for the purposes of sub-paragraph (1) or (2)above, supplies of goods or servicesthat are capital assets of the business in the course or furtherance of which they are supplied and any taxable supplies which would not be taxable supplies apart from section 6(2B) of this Act. shall be disregarded. (6) Where, apart from this sub-paragraph, an interest in, right over or licence to occupy any land would under sub-paragraph (5) above be disregarded for the purposes of sub-paragraph (1) or (2)above, it shall not be if it is supplied on a taxable supply which is not zero-rated. 1A (1) Without prejudice to paragraph 1 above, if the Commissioners make a direction under this paragraph, the persons named in the direction shall be treated as a single taxable person carrying on the activities of a business described in the direction and that taxable person shall be liable to be registered under this Schedule with effect from the date of the direction or, if the direction so provides, from such later date as may be specified therein. (2) The Commissioners shall not make a direction under this paragraph naming any person unless they are satisfied- (a) that he is making or has made taxable supplies; and (b) that the activities in the course of which he makes or made those taxable supplies form only part of certain activities which should properly be regarded as those of the business described in the direction, the other activities being carried on concurrently or previously (or both) by one or more other persons; and (c) that, if all the taxable supplies of that business were taken into account, a person carrying on that business would at the time of the direction be liable to be registered by virtue of paragraph 1 above; and (d) that the main reason or one of the main reasons for the person concerned carrying on the activities first referred to in paragraph (b) above in the way he does is the avoidance of a liability to be registered (whether that liability would be his, another person’s or that of two or more persons jointly). (3) A direction made under this paragraph shall be served on each of the persons named in it. (4) Where, after a direction has been given under this paragraph specifying a description of business, it appears to the Commissioners that a person who was not named in that direction is making taxable supplies in the course of activities which should properly be regarded as part of the activities of that business, the Commissioners may make and serve on him a supplementary direction referring to the earlier direction and the description of business specified in it and adding that person’s name to those of the persons named in the earlier direction with effect from- (a) the date on which he began to make those taxable supplies, or (b) if it was later, the date with effect from which the single taxable person referred to in the earlier direction became liable to be registered under this Schedule. (5) If, immediately before a direction (including a supplementary direction) is made under this paragraph, any person named in the direction is registered in respect of the taxable supplies made by him as mentioned in sub-paragraph (2) or sub-paragraph (4) above, he shall cease to be liable to be so registered with effect from whichever is the later of- (a) the date with effect from which the single taxable person concerned became liable to be registered; and (b) the date of the direction. (6) In relation to a business specified in a direction under this paragraph, the persons named in the direction, together with any person named in a supplementary direction relating to that business (being the persons who together are to be treated as the taxable person), are in sub-paragraphs (7) and (8) below referred to as “the constituent members". (7) Where a direction is made under this paragraph then, for the purposes of this Act,- (a) the taxable person carrying on the business specified in the direction shall be registrable in such name as the persons named in the direction may jointly nominate by notice in writing given to the Commissioners not later than fourteen days after the date of the direction or, in default of such a nomination, in such name as may be specified in the direction; (b) any supply of goods or services by or to one of the constituent members in the course of the activities of the taxable person shall be treated as a supply by or to that person; (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; (c) each of the constituent members shall be jointly and severally liable for any tax due from the taxable person; (d) without prejudice to paragraph (c) above, any failure by the taxable person to comply with any requirement imposed by or under this Act shall be treated as a failure by each of the constituent members severally; and (e) subject to paragraphs (a) to (d) above, the constituent members shall be treated as a partnership carrying on the business of the taxable person and any question as to the scope of the activities of that business at any time shall be determined accordingly. (8) If it appears to the Commissioners that any person who is one of the constituent members should no longer be regarded as such for the purposes of paragraphs (c) and (d) of sub-paragraph (7) above and they give notice to that effect, he shall not have any liability by virtue of those paragraphs for anything done after the date specified in that notice and, accordingly, on that date he shall be treated as having ceased to be a member of the partnership referred to in paragraph (e) of that sub-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. 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 at any time after being registered if the Commissioners are satisfied that the value of his taxable supplies in the period of one year then beginning will not exceed £43,000. (2) A person shall not cease to be liable to be registered under this Schedule by virtue of sub-paragraph (1) above if the Commissioners are satisfied that the reason the value of his taxable supplies will not exceed £43,000 is that in the period in question he will cease making taxable supplies, or will suspend making them for a period of thirty days or more. (3) In determining the value of a person’s supplies for the purposes of sub-paragraph (1) above, supplies of goods or servicesthat are capital assets of the business in the course or furtherance of which they are supplied and any taxable supplies which would not be taxable supplies apart from section 6(2B) of this Act shall be disregarded. (4) Where, apart from this sub-paragraph, an interest in, right over or licence to occupy any land would under sub-paragraph (3) above be disregarded for the purposes of sub-paragraph (1) above, it shall not be if it is supplied on a taxable supply which is not zero-rated. Notification of liability and registration 3 (1) A person who becomes liable to be registered by virtue of paragraph 1(1)(a) above shall notify the Commissioners of the liability within thirty days of the end of the relevant month. (2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the end of the month following the relevant month or from such earlier date as may be agreed between them and him. (3) In this paragraph “the relevant month", in relation to a person who becomes liable to be registered by virtue of paragraph 1(1)(a) above, means the month at the end of which he becomes liable to be so registered. 4 (1) A person who becomes liable to be registered by virtue of paragraph 1(1)(b) above shall notify the Commissioners of the liability 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 beginning of the period by reference to which the liability arises. 4A (1) A person who becomes liable to be registered by virtue of paragraph 1(2) above shall notify the Commissioners of the liability within thirty days of the time when the business is transferred. (2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the time when the business is transferred. 4B Where a person becomes liable to be registered by virtue of paragraph 1(1)(a) above and by virtue of paragraph 1(1)(b) or 1(2) above at the same time, the Commissioners shall register him in accordance with paragraph 4(2) or 4A(2) above, as the case may be, rather than paragraph 3(2) above. Entitlement to be registered 5 Where a person who is not liable to be registered under this Act and is not already so registered satisfies the Commissioners that he- (a) makes taxable supplies; or (b) is carrying on a business and intends to make such supplies in the course or furtherance of that business, 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. 5A (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- (a) makes supplies within sub-paragraph (2) below; or (b) is carrying on a business and intends to make such supplies in the course or furtherance of that business, and (in either case) is within sub-paragraph (3) below, 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) A supply is within this sub-paragraph if- (a) it is made outside the United Kingdom but would be a taxable supply if made in the United Kingdom; . . . (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) A person is within this sub-paragraph if- (a) he has a business establishment in the United Kingdom or his usual place of residence is in the United Kingdom; and (b) he does not make and does not intend to make taxable supplies. (4) For the purposes of this paragraph- (a) a person carrying on a business through a branch or agency in the United Kingdom shall be treated as having a business establishment in the United Kingdom; and (b) “usual place of residence", in relation to a body corporate, means the place where it is legally constituted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Notification of end of liability or entitlement etc. 7 A person registered under paragraph 3, 4 or 5 above who ceases to make or have the intention of making taxable supplies shall notify the Commissioners of that fact within thirty days of the day on which he does so 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. 7A A person registered under paragraph 5A above who- (a) ceases to make or have the intention of making supplies within sub-paragraph (2) of that paragraph; or (b) makes or forms the intention of making taxable supplies, shall notify the Commissioners of that fact within thirty days of the day on which he does so 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.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Cancellation of registration 8A (1) Subject to sub-paragraph (1A) belowwhere a registered person satisfies the Commissioners that he is not liable to be registered under this Schedule, 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. (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. (2) In this paragraph and paragraphs 9 and 10 below, any reference to a registered person 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). 9 (1) Subject to sub-paragraph (1A) below where the Commissioners are satisfied that a registered person has ceased to be registrable, they may cancel his registration with effect from the day on which he so ceased or from such later date as may be agreed between them and him. (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. (2) In this paragraph and paragraph 10 below, “registrable”means liable or entitled to be registered under this Schedule. 10 Where the Commissioners are satisfied that on the day on which a registered person was registered he was not registrable, they may cancel his registration with effect from that day. Exemption from registration 11 (1) Notwithstanding the preceding provisions of this Schedule, where a person who makes or intends to make taxable supplies satisfies the Commissioners that any such supply is zero-rated or would be zero-rated if he were a taxable person, they may, if he so requests and they think fit, exempt him from registration under this Schedule until it appears to them that the request should no longer be acted upon or is withdrawn. (2) Where there is a material change in the nature of the supplies made by a person exempted under this paragraph from registration under this Schedule, he shall notify the Commissioners of the change- (a) within thirty days of the date on which it occurred; or (b) if no particular day is identifiable as the day on which it occurred, within thirty days of the end of the quarter in which it occurred. (3) Where there is a material alteration in any quarter in the proportion of taxable supplies of such a person that are zero-rated, he shall notify the Commissioners of the alteration within thirty days of the end of the quarter. Power to vary specified sums by order 12 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. Supplementary 13 The value of a supply of goods or services shall be determined for the purposes of this Schedule on the basis that no tax is chargeable on the supply. 14 Any notification required under this Schedule shall be made in such form and shall contain such particulars as the Commissioners may by regulations prescribe. 15 . . . References in this Schedule to supplies are references to supplies made in the course or furtherance of a business.

SCHEDULE 1A Registration in respect of Supplies from other member States

Liability to be registered 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. Notification of liability and registration 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. Request to be registered 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. Notification of matters affecting continuance of registration 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. Cancellation of registration 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. Conditions of cancellation 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. Power to vary specified sums by order 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. Supplementary 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.

SCHEDULE 1B Registration in respect of Acquisitions from other member States

Liability to be registered 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 £45,000. (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 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 £45,000. (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 £45,000; and (b) the Commissioners are satisfied that the value of his relevant acquisitions in the year immediately following that year will not exceed £45,000. (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 £45,000. Notification of liability and registration 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. Entitlement to be registered etc. 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. Notification of matters affecting continuance of registration 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. Cancellation of registration 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) Subject to paragraph 7 below, where the Commissioners are satisfied that a person registered under this Schedule has ceased since his registration to be registrable under this Schedule, they may cancel his registration with effect from the day on which he so ceased or from such later date as may be agreed between them and him. (3) Where the Commissioners are satisfied that, on the day on which a person was registered under this Schedule, he— (a) was not registrable under this Schedule; and (b) in the case of a person registered under paragraph 4(2) above, did not have the intention by reference to which he was registered, they may cancel his registration with effect from that day. (4) Subject to paragraph 7 below, where the Commissioners are satisfied that a person who has been registered under paragraph 4(2) above and is not for the time being liable to be registered under this Schedule— (a) has not begun, by the date specified in his request to be registered, to make relevant acquisitions; 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. (5) For the purposes of this paragraph a person is registrable under this Schedule at any time when he is liable to be registered under this Schedule or is a person who makes relevant acquisitions. Conditions of cancellation 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(2) or (4) 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) Subject to sub-paragraph (4) below, the registration of a person who— (a) is registered under paragraph 4 above; or (b) would not, if he were not registered, be liable or entitled to be registered under any provision of this Act except paragraph 4 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) Sub-paragraph (3) above does not apply to cancellation under paragraph 6(3) or (4) above. (5) 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. Exemption from registration 8 (1) Notwithstanding the preceding provisions of this Schedule, where a person who makes or intends to make relevant acquisitions satisfies the Commissioners that any such acquisition would be an acquisition in pursuance of a transaction which would be zero-rated if it were a taxable supply by a taxable person, they may, if he so requests and they think fit, exempt him from registration under this Schedule until it appears to them that the request should no longer be acted upon or is withdrawn. (2) Where a person who is exempted under this paragraph from registration under this Schedule makes any relevant acquisition in pursuance of any transaction which would, if it were a taxable supply by a taxable person, be chargeable to tax otherwise than as a zero-rated supply, he shall notify the Commissioners of the change within thirty days of the date on which he made the acquisition. Power to vary specified sums by order 9 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. Supplementary 10 Any notification required under this Schedule shall be made in such form and shall contain such particulars as the Commissioners may by regulations prescribe. 11 For the purposes of this Schedule an acquisition of goods from another member State is a relevant acquisition where— (a) it is a taxable acquisition of goods other than goods which are subject to a duty of excise or consist in a new means of transport; (b) it is an acquisition otherwise than in pursuance of a taxable supply and is treated, for the purposes of this Act, as taking place in the United Kingdom; and (c) the event which, in relation to that acquisition, is the first relevant event for the purposes of taxing that acquisition occurs after the coming into force of this Schedule.

SCHEDULE 2 Matters to be Treated as Supply of Goods or Services

Section 3. 1 (1) Any transfer of the whole property in goods is a supply of goods; but, subject to sub-paragraph (2) below, the transfer— (a) of any undivided share of the property, or (b) of the possession of goods, is a supply of services. (2) If the possession of goods is transferred— (a) under an agreement for the sale of the goods, or (b) under agreements which expressly contemplate that the property also will pass at some time in the future (determined by, or ascertainable from, the agreements but in any case not later than when the goods are fully paid for), it is then in either case a supply of the goods. 2 Where a person produces goods by applying to another person’s goods a treatment or process, he shall be treated as supplying those goods. 3 The supply of any form of power, heat, refrigeration or ventilation is a supply of goods. 4 The grant, assignment or surrender of a major interest in land is a supply of goods. 5 (1) Subject to sub-paragraph (2) below, where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, that is a supply by him of goods. (2) Sub-paragraph (1) above does not apply where the transfer or disposal is— (a) a gift of goods made in the course or furtherance of the business (otherwise than as one forming part of a series or succession of gifts made to the same person from time to time) where the cost to the donor is not more than £10; (b) subject to sub-paragraph (2A) below, a gift to any person of a sample of any goods. (2A) Where— (a) a person is given a number of samples by the same person (whether all on one occasion or on different occasions), and (b) those samples are identical or do not differ in any material respect from each other, sub-paragraph (1) above shall apply to all except one of those samples or, as the case may be, to all except the first to be given. (3) Where by or under the directions of a person carrying on a business goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, that is a supply of services. (3A) Neither sub-paragraph (1) nor sub-paragraph (3) above shall require anything which a person carrying on a business does otherwise than for a consideration in relation to any goods to be treated as a supply except in a case where that person is entitled under sections 14 and 15 of this Act to credit for the whole or any part of the tax on the supply, acquisition or importation of those goods or of anything comprised in them. (4) Anything which is a supply of goods or services by virtue of sub-paragraph (1) or (3) above is to be treated as made in the course or furtherance of the business (if it would not otherwise be so treated); and in the case of a business carried on by an individual— (a) sub-paragraph (1) above applies to any transfer or disposition of goods in favour of himself personally; and (b) sub-paragraph (3) above applies to goods used, or made available for use, by himself personally. 5A (1) Where, in a case not falling within paragraph 5(1) above, goods forming part of the assets of any business— (a) are removed from any member State by or under the directions of the person carrying on the business; and (b) are so removed in the course or furtherance of that business for the purpose of being taken to a place in a member State other than that from which they are removed, then, whether or not the removal is or is connected with a transaction for a consideration, that is a supply of goods by that person. (2) Sub-paragraph (1) above does not apply— (a) to the removal of goods from any member State in the course of their removal from one part of that member State to another part of the same member State; or (b) to goods which have been removed from a place outside the member States for entry into the territory of the Community and are removed from a member State before the time when any Community customs debt in respect of any Community customs duty on their entry into that territory would be incurred. 6 Where in the case of a business carried on by a taxable person, goods forming part of the assets of the business are, under any power exercisable by another person, sold by the other in or towards satisfaction of a debt owed by the taxable person, they shall be deemed to be supplied by the taxable person in the course or furtherance of his business. 7 (1) Where a person ceases to be a taxable person, any goods then forming part of the assets of a business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless— (a) the business is transferred as a going concern to another taxable person; or (b) the business is carried on by another person who, under regulations made under section 31(4) above, is treated as a taxable person; or (c) the tax on the deemed supply would not be more than £250. (2) This paragraph does not apply to any goods in the case of which the taxable person can show to the satisfaction of the Commissioners— (a) that no credit for input tax has been allowed to him in respect of the supply of the goods, their acquisition from another member State or their importation from a place outside the member States; (b) that the goods did not become his as part of the assets of a business which was transferred to him as a going concern by another taxable person; and (c) that he has not obtained relief in respect of the goods under section 4 of the Finance Act 1973. (2A) This paragraph does not apply where a person ceases to be a taxable person in consequence of having been certified under section 37B of this Act. (3) The Treasury may by order increase or further increase the sum specified in sub-paragraph (1)(c) above. 8 (1) Subject to sub-paragraphs (2) and (3) below, paragraphs 5 to 7 above have effect in relation to land forming part of the assets of, or held or used for the purposes of, a business as if it were goods forming part of the assets of, or held or used for the purposes of, a business. (2) In the application of those paragraphs by virtue of sub-paragraph (1) above, references to transfer, disposition or sale shall have effect as references to the grant or assignment of any interest in, right over or licence to occupy the land concerned. (3) Except in relation to- (a) the grant or assignment of a major interest; or (b) a grant or assignment otherwise than for a consideration, in the application of paragraph 5(1) above by virtue of sub-paragraph (1) above the reference to a supply of goods shall have effect as a reference to a supply of services.

SCHEDULE 3 Services Supplied Where Received

Section 7 1 Transfers and assignments of copyright, patents, licences, trademarks and similar rights. 2 Advertising services. 3 Services of consultants, engineers, consultancy bureaux, lawyers, accountants and other similar services; data processing and provision of information (but excluding from this head any services relating to land). 4 Acceptance of any obligation to refrain from pursuing or exercising, in whole or part, any business activity or any such rights as are referred to in paragraph 1 above. 5 Banking, financial and insurance services (including reinsurance, but not including the provision of safe deposit facilities). 6 The supply of staff. 6A The letting on hire of goods other than means of transport. 7 The services rendered by one person to another in procuring for the other any of the services mentioned in paragraphs 1 to 6Aabove. 8 Any services not of a description specified in paragraphs 1 to 7 above when supplied to a recipient who is registered under this Act.

SCHEDULE 4 Valuation—Special Cases

Sections 10(6) and 11(4). 1 (1) Where— (a) the value of a supply made by a taxable person for a consideration in money is (apart from this paragraph) less than its open market value, and (b) the person making the supply and the person to whom it is made are connected, and (c) if the supply is a taxable supply,the person to whom the supply is made is not entitled under sections 14 and 15 of this Act to credit for all the tax on the supply, the Commissioners may direct that the value of the supply shall be taken to be its open market value. (2) A direction under this paragraph shall be given by notice in writing to the person making the supply, but no direction may be given more than three years after the time of the supply. (3) A direction given to a person under this paragraph in respect of a supply made by him may include a direction that the value of any supply— (a) which is made by him after the giving of the notice, or after such later date as may be specified in the notice, and (b) as to which the conditions in paragraphs (a) to (c) of sub-paragraph (1) above are satisfied, shall be taken to be its open market value. (4) For the purposes of this paragraph any question whether a person is connected with another shall be determined in accordance with section 533 of the Income and Corporation Taxes Act 1970. (5) This paragraph does not apply to a supply to which paragraph 10 below applies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Where— (a) the whole or part of a business carried on by a taxable person consists in supplying to a number of persons goods to be sold, whether by them or others, by retail, and (b) those persons are not taxable persons, the Commissioners may by notice in writing to the taxable person direct that the value of any such supply by him after the giving of the notice or after such later date as may be specified in the notice shall be taken to be its open market value on a sale by retail. 3A (1) Where— (a) any goods whose supply involves their removal to the United Kingdom— (i) are charged in connection with their removal to the United Kingdom with a duty of excise . . .; or (ii) on that removal are subject, 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; or (b) the time of supply of any dutiable goods, or of any goods which comprise a mixture of dutiable goods and other goods, is determined under section 35(4) of this Act to be the duty point, then the value of the supply shall be taken for the purposes of this Act to be the sum of its value apart from this paragraph and the amount, so far as not already included in that value, of the duty, . . . or, as the case may be, agricultural levy which has been or is to be paid in respect of the goods. (2) In this paragraph “dutiable goods” and “duty point” have the same meanings as in section 35 of this Act. 4 (1) Where goods or services are supplied for a consideration in money and on terms allowing a discount for prompt payment, the consideration shall be taken for the purposes of section 10 of this Act as reduced by the discount, whether or not payment is made in accordance with those terms. (2) This paragraph does not apply where the terms include any provision for payment by instalments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Where a right to receive goods or services for an amount stated on any token, stamp or voucher is granted for a consideration, the consideration shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds that amount. 7 (1) Where there is a supply of goods by virtue of— (a) a Treasury order under section 3(5) of this Act; or (b) paragraph 5(1) or 5A of Schedule 2 to this Act (but otherwise than for a consideration); or (c) paragraph 7 of that Schedule, then, except where paragraph 10 below applies, the value of the supply shall be determined as follows. (2) The value of the supply shall be taken to be— (a) such consideration in money as would be payable by the person making the supply if he were, at the time of the supply, to purchase goods identical in every respect (including age and condition) to the goods concerned; or (b) where the value cannot be ascertained in accordance with paragraph (a) above, such consideration in money as would be payable by that person if he were, at that time, to purchase goods similar to, and of the same age and condition as, the goods concerned; or (c) where the value can be ascertained in accordance with neither paragraph (a) nor paragraph (b) above, the cost of producing the goods concerned if they were produced at that time. (3) For the purposes of sub-paragraph (2) above the amount of consideration in money that would be payable by any person if he were to purchase any goods shall be taken to be the amount that would be so payable after the deduction of any amount included in the purchase price in respect of value added tax on the supply of the goods to that person. 8 Where there is a supply of services by virtue of— (a) a Treasury order under section 3(4) of this Act; or (b) paragraph 5(3) of Schedule 2 to this Act (but otherwise than for a consideration), the value of the supply shall be taken to be the full cost to the taxable person of providing the services except where paragraph 10 below applies. 8A Where any supply of services is treated by virtue of section 7 of this Act as made by the person by whom they are received, the value of the supply shall be taken— (a) in a case where the consideration for which the services were in fact supplied to him was a consideration in money, to be such amount as is equal to that consideration; and (b) in a case where that consideration did not consist or not wholly consist of money, to be such amount in money as is equivalent to that consideration. 9 (1) This paragraph applies where a supply of services consists in the provision of accommodation falling within paragraph (c)of item 1 of Group 1 in Schedule 6 to this Act and- (a) that provision is made to an individual for a period exceeding four weeks; and (b) throughout that period the accommodation is provided for the use of the individual either alone or together with one or more other persons who occupy the accommodation with him otherwise than at their own expense (whether incurred directly or indirectly). (2) Where this paragraph applies (a) the value of so much of the supply as is in excess of four weeks shall be taken to be reduced to such part thereof as is attributable to facilities other than the right to occupy the accommodation; and (b) that part shall be taken to be not less than 20 per cent. 10 (1) This paragraph applies to a supply of goods or services, whether or not for a consideration, which is made by an employer and consists of— (a) the provision in the course of catering of food or beverages to his employees, or (b) the provision of accommodation for his employees in a hotel, inn, boarding house or similar establishment. (2) The value of a supply to which this paragraph applies shall be taken to be nil unless the supply is for a consideration consisting wholly or partly of money, and in that case its value shall be determined without regard to any consideration other than money. 11 (1) Subject to the following provisions of this paragraph, where— (a) there is a supply of goods or services; and (b) any sum relevant for determining the value of the supply is expressed in a currency other than sterling, then, for the purpose of valuing the supply, that sum is to be converted into sterling at the market rate which, on the relevant day, would apply in the United Kingdom to a purchase with sterling by the person to whom they are supplied of that sum in the currency in question. (2) Where the Commissioners have published a notice which, for the purposes of this paragraph, specifies— (a) rates of exchange; or (b) methods of determining rates of exchange, a rate specified in or determined in accordance with the notice, as for the time being in force, shall apply (instead of the rate for which sub-paragraph (1) above provides) in the case of any supply by a person who opts, in such manner as may be allowed by the Commissioners, for the use of that rate in relation to that supply. (3) An option for the purposes of sub-paragraph (2) above for the use of a particular rate or method of determining a rate— (a) shall not be exercised by any person except in relation to all such supplies by him as are of a particular description or after a particular date; and (b) shall not be withdrawn or varied except with the consent of the Commissioners and in such manner as they may require. (4) In specifying a method of determining a rate of exchange a notice published by the Commissioners under sub-paragraph (2) above may allow a person to apply to the Commissioners for the use, for the purpose of valuing some or all of his supplies, of a rate of exchange which is different from any which would otherwise apply. (5) On an application made in accordance with provision contained in a notice under sub-paragraph (4) above, the Commissioners may authorise the use with respect to the applicant of such a rate of exchange, in such circumstances, in relation to such supplies and subject to such conditions as they think fit. (6) A notice published by the Commissioners for the purposes of this paragraph may be withdrawn or varied by a subsequent notice published by the Commissioners. (7) The time by reference to which the appropriate rate of exchange is to be determined for the purpose of valuing any supply is the time when the supply takes place; and, accordingly, the day on which it takes place is the relevant day for the purposes of sub-paragraph (1) above. 12 Regulations may require that in prescribed circumstances there is to be taken into account, as constituting part of the consideration for the purposes of section 10(2) of this Act (where it would not otherwise be so taken into account), money paid in respect of the supply by persons other than those to whom the supply is made. 13 A direction under paragraph 1 . . . or 3 above may be varied or withdrawn by the Commissioners by a further direction given by notice in writing.