Value Added Tax Act 1983 (repealed 1.9.1994)

Title and introductory text

Value Added Tax Act 1983 (repealed 1.9.1994) 1983 c. 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 Value added tax.

A tax, to be known as value added tax, shall be charged in accordance with the provisions of this Act on the supply of goods and services in the United Kingdom (including anything treated as such a supply) on the acquisition in the United Kingdom from other member States of any goods and on the importation of goods from places outside the member States.

2 Scope of tax.

(1) Tax shall be charged on any supply of goods or services made in the United Kingdom, where it is a taxable supply made by a taxable person in the course or furtherance of any business carried on by him. (2) . . . a taxable supply is a supply of goods or services made in the United Kingdom other than an exempt supply. (3) Tax on any supply of goods or services is a liability of the person making the supply and (subject to provisions about accounting and payment) becomes due at the time of supply. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2A Scope of tax on acquisitions.

(1) Tax shall be charged on any acquisition from another member State of any goods where— (a) the acquisition is a taxable acquisition and takes place in the United Kingdom; (b) the acquisition is otherwise than in pursuance of a taxable supply; and (c) the person who makes the acquisition is a taxable person or the goods are subject to a duty of excise or consist in a new means of transport. (2) An acquisition of goods from another member State is a taxable acquisition if— (a) it falls within subsection (3) below or the goods consist in a new means of transport; and (b) it is not an exempt acquisition. (3) An acquisition of goods from another member State falls within this subsection if— (a) the goods are acquired in the course or furtherance of— (i) any business carried on by any person; or (ii) any activities carried on otherwise than by way of business by any body corporate or by any club, association, organisation or other unincorporated body; (b) it is the person who carries on that business or, as the case may be, those activities who acquires the goods; and (c) the supplier— (i) is taxable in another member State at the time of the transaction in pursuance of which the goods are acquired; and (ii) in participating in that transaction, acts in the course or furtherance of a business carried on by him. (4) Tax on any acquisition of goods from another member State is a liability of the person who acquires the goods and (subject to provisions about accounting and payment) becomes due at the time of acquisition.

2B Scope of tax on imports.

(1) Tax on the importation of goods from places outside the member States shall be charged and payable as if it were a duty of customs. (2) For the purposes of this Act goods are imported from a place outside the member States where— (a) having been removed from a place outside the member States, they enter the territory of the Community; (b) they enter that territory by being removed to the United Kingdom or are removed to the United Kingdom after entering that territory; and (c) the circumstances are such that it is on their removal to the United Kingdom or subsequently while they are in the United Kingdom that any Community customs debt in respect of duty on their entry into the territory of the Community would be incurred. (3) Accordingly— (a) goods shall not be treated for the purposes of this Act as imported at any time before a Community customs debt in respect of duty on their entry into the territory of the Community would be incurred; and (b) the person who is to be treated for the purposes of this Act as importing any goods from a place outside the member States is the person who would be liable to discharge any such Community customs debt. (4) The preceding provisions of this section shall not apply, except in so far as the context otherwise requires or provision to the contrary is contained in regulations under subsection (1) of section 24 below, for construing any references to importation or to an importer in any enactment or subordinate legislation applied for the purposes of this Act by that subsection.

2C Taxable persons.

(1) A person is a taxable person for the purposes of this Act while he is, or is required to be, registered under this Act. (2) Schedules 1 to 1B to this Act shall have effect with respect to registration. (3) Persons registered under any of those Schedules shall be registered in a single register kept by the Commissioners for the purposes of this Act; and, accordingly, references in this Act to being registered under this Act are references to being registered under any of those Schedules. (4) The Commissioners may by regulations make provision as to the inclusion and correction of information in that register with respect to the Schedule under which any person is registered.

3 Meaning of “supply": alteration by Treasury order.

(1) Schedule 2 to this Act shall apply for determining what is, or is to be treated as, a supply of goods or a supply of services. (2) Subject to any provision made by that Schedule and to Treasury orders under subsections (3) to (6) below— (a) “supply" in this Act includes all forms of supply, but not anything done otherwise than for a consideration; (b) anything which is not a supply of goods but is done for a consideration (including, if so done, the granting, assignment or surrender of any right) is a supply of services. (3) The Treasury may by order provide with respect to any description of transaction— (a) that it is to be treated as a supply of goods and not as a supply of services; or (b) that it is to be treated as a supply of services and not as a supply of goods; or (c) that it is to be treated as neither a supply of goods nor a supply of services; and without prejudice to the foregoing, such an order may provide that paragraph 5(3) of Schedule 2 to this Act is not to apply, in relation to goods of any prescribed description used or made available for use in prescribed circumstances, so as to make that a supply of services under that paragraph and may provide that paragraph 5A of that Schedule shall not apply, in such circumstances as may be described in the order, so as to make a removal of assets a supply of goods under that paragraph.. (4) Without prejudice to subsection (3) above, the Treasury may by order make provision for securing, with respect to services of any description specified in the order, that where— (a) a person carrying on a business does anything which is not a supply of services but would, if done for a consideration, be a supply of services of a description specified in the order; and (b) such other conditions as may be specified in the order are satisfied, such services are treated for the purposes of this Act as being supplied by him in the course or furtherance of that business. (5) The Treasury may by order make provision for securing, subject to any exceptions provided for by or under the order, that where in such circumstances as may be specified in the order goods of a description so specified are taken possession of or produced by a person in the course or furtherance of a business carried on by him and— (a) are neither supplied to another person nor incorporated in other goods produced in the course or furtherance of that business; but (b) are used by him for the purpose of a business carried on by him, the goods are treated for the purposes of this Act as being both supplied to him for the purpose of that business and supplied by him in the course or furtherance of it. (6) The Treasury may by order make provision for securing, with respect to services of any description specified in the order, that where— (a) a person, in the course or furtherance of a business carried on by him, does anything for the purpose of that business which is not a supply of services but would, if done for a consideration, be a supply of services of a description specified in the order; and (b) such other conditions as may be specified in the order are satisfied, such services are treated for the purposes of this Act as being both supplied to him for the purpose of that business and supplied by him in the course or furtherance of it. (7) For the purposes of this section, where goods are manufactured or produced from any other goods those other goods shall be treated as incorporated in the first-mentioned goods. (8) An order under subsection (4) or (6) above may provide for the method by which the value of any supply of services which is treated as taking place by virtue of the order is to be calculated.

4 Time of supply.

(1) The provisions of this section and section 5 below shall apply (subject to section 35 below) for determining the time when a supply of goods or services is to be treated as taking place for the purposes of the charge to tax. (2) Subject to the provisions of section 5 below, a supply of goods shall be treated as taking place— (a) if the goods are to be removed, at the time of the removal; (b) if the goods are not to be removed, at the time when they are made available to the person to whom they are supplied; (c) if the goods (being sent or taken on approval or sale or return or similar terms) are removed before it is known whether a supply will take place, at the time when it becomes certain that the supply has taken place or, if sooner, 12 months after the removal. (3) Subject to the provisions of section 5 below, a supply of services shall be treated as taking place at the time when the services are performed.

5 Further provisions relating to time of supply.

(1) If, before the time applicable under subsection (2) or subsection (3) of section 4 above or 37C(4) below, the person making the supply issues a tax invoice in respect of it or if, before the time applicable under paragraph (a) or (b) of subsection (2) or subsection (3) of that section, he receives a payment in respect of it, the supply shall, to the extent covered by the invoice or payment, be treated as taking place at the time the invoice is issued or the payment is received. (2) If, within 14 days after the time applicable under subsection (2) or subsection (3) of section 4 above, the person making the supply issues a tax invoice in respect of it, then, unless he has notified the Commissioners in writing that he elects not to avail himself of this subsection, the supply shall (to the extent that it is not treated as taking place at the time mentioned in subsection (1) above) be treated as taking place at the time the invoice is issued. (3) The Commissioners may, at the request of a taxable person, direct that subsection (2) above shall apply in relation to supplies made by him (or such supplies made by him as may be specified in the direction) as if for the period of 14 days there were substituted such longer period as may be specified in the direction. (3A) Where any supply of goods involves both— (a) the removal of the goods from the United Kingdom; and (b) their acquisition in another member State by a person who is liable for value added tax on the acquisition in accordance with provisions of the law of that member State corresponding, in relation to that member State, to the provisions of section 2A above, section 4(2) above and subsections (1) to (3) and (5) to (7) of this section shall not apply and the supply shall be treated for the purposes of this Act as taking place on whichever is the earlier of the days specified in subsection (3B) below. (3B) The days mentioned in subsection (3A) above are— (a) the fifteenth day of the month following that in which the removal in question takes place; and (b) the day of the issue, in respect of the supply, of a tax invoice or of an invoice of such other description as the Commissioners may by regulations prescribe. (4) Where a taxable person provides a document to himself which— (a) purports to be a tax invoice in respect of a supply of goods or services to him by another taxable person; and (b) is in accordance with regulations under paragraph 2 of Schedule 7 to this Act treated as the tax invoice required by the regulations to be provided by the supplier, subsections (2) and (3) above shall have effect in relation to that supply as if— (i) the provision of the document to himself by the first-mentioned taxable person were the issue by the supplier of a tax invoice in respect of the supply; and (ii) any notice of election given or request made by the first-mentioned taxable person for the purposes of those provisions had been given or made by the supplier. (5) The Commissioners may, at the request of a taxable person, by direction alter the time at which supplies made by him (or such supplies made by him as may be specified in the direction) are to be treated as taking place, either— (a) by directing those supplies to be treated as taking place— (i) at times or on dates determined by or by reference to the occurrence of some event described in the direction; or (ii) at times or on dates determined by or by reference to the time when some event so described would in the ordinary course of events occur, the resulting times or dates being in every case earlier than would otherwise apply; or (b) by directing that, notwithstanding subsections (2) and (3) above, those supplies shall (to the extent that they are not treated as taking place at the time mentioned in subsection (1) above) be treated as taking place— (i) at the beginning of the relevant working period (as defined in his case in and for the purposes of the direction); or (ii) at the end of the relevant working period (as so defined). (6) Where goods are treated as supplied by an order under section 3(5) above, the supply is treated as taking place when they are appropriated to the use mentioned in that section. (7) Where there is a supply of goods by virtue only of paragraph 5(1) of Schedule 2 to this Act, the supply is treated as taking place when the goods are transferred or disposed of as mentioned in that paragraph. (8) Where there is a supply of services by virtue only of paragraph 5(3) of Schedule 2 to this Act, the supply is treated as taking place when the goods are appropriated to the use mentioned in that paragraph. (9) The Commissioners may by regulations make provision with respect to the time at which (notwithstanding section 4 above or 37C(4) below and subsections (1) to (3B) and (6) to (8) above) a supply is to be treated as taking place in cases where it is a supply— (a) of goods or services for a consideration the whole or part of which is determined or payable periodically, or from time to time, or at the end of any period; or (b) of goods for a consideration the whole or part of which is determined at the time when the goods are appropriated for any purpose, or where there is . . . a supply to which section 37C below applies or there isa supply of services by virtue of paragraph 5(3) of Schedule 2 to this Act or an order under section 3(4) above; and for any such case as is mentioned in this subsection the regulations may provide for goods or services to be treated as separately and successively supplied at prescribed times or intervals. (10) In this section “tax invoice” means such an invoice as is required under paragraph 2(1) of Schedule 7 to this Act or would be so required if the person to whom the supply is made were a person to whom such an invoice should be issued..

6 Place of supply.

(1) This section shall apply (subject to sections 8D and 35below) for determining, for the purposes of this Act, whether goods or services are supplied in the United Kingdom. (2) Subject to the following provisions of this section if the supply of any goods does not involve their removal from or to the United Kingdom they shall be treated as supplied in the United Kingdom if they are in the United Kingdom and otherwise shall be treated as supplied outside the United Kingdom. (2A) Goods shall be treated— (a) as supplied in the United Kingdom where their supply involves their installation or assembly at a place in the United Kingdom to which they are removed; and (b) as supplied outside the United Kingdom where their supply involves their installation or assembly at a place outside the United Kingdom to which they are removed. (2B) Goods whose place of supply is not determined under any of the preceding provisions of this section shall be treated as supplied in the United Kingdom where— (a) the supply involves the removal of the goods to the United Kingdom by or under the directions of the person who supplies them; (b) the supply is a transaction in pursuance of which the goods are acquired in the United Kingdom from another member State by a person who is not a taxable person; (c) the supplier— (i) is liable to be registered under Schedule 1A to this Act; or (ii) would be so liable if he were not already registered under this Act or liable to be registered under Schedule 1 to this Act; and (d) the supply is neither a supply of goods consisting in a new means of transport nor anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) or 5A of Schedule 2 to this Act. (2C) Goods whose place of supply is not determined under any of the preceding provisions of this section and which do not consist in a new means of transport shall be treated as supplied outside the United Kingdom where— (a) the supply involves the removal of the goods, by or under the directions of the person who supplies them, to another member State; (b) the person who makes the supply is taxable in another member State; and (c) provisions of the law of that member State corresponding, in relation to that member State, to the provisions made by subsection (2B) above make that person liable to value added tax on the supply; but this subsection shall not apply in relation to any supply in a case where the liability mentioned in paragraph (c) above depends on the exercise by any person of an option in the United Kingdom corresponding to such an option as is mentioned in paragraph 1(2) of Schedule 1A to this Act, unless that person has given, and has not withdrawn, a notification to the Commissioners that he wishes his supplies to be treated as taking place outside the United Kingdom where they are supplies in relation to which the other requirements of this subsection are satisfied. (2D) Goods whose place of supply is not determined under any of the preceding provisions of this section shall be treated as supplied in the United Kingdom where— (a) their supply involves their being imported from a place outside the member States; and (b) the person who supplies them is the person by whom, or under whose directions, they are so imported. (3) Goods whose place of supply is not determined under any of the preceding provisions of this section but whose supply involves their removal to or from the United Kingdom shall be treated— (a) as supplied in the United Kingdom where their supply involves their removal from the United Kingdom without also involving their previous removal to the United Kingdom; and (b) as supplied outside the United Kingdom in any other case. (4) For the purposes of the preceding provisions of this section, where goods, in the course of their removal from a place in the United Kingdom to another place in the United Kingdom, leave and re-enter the United Kingdom the removal shall not be treated as a removal from or to the United Kingdom. (4A) The Commissioners may by regulations provide that a notification for the purposes of subsection (2C) above is not to be given or withdrawn except in such circumstances, and in such form and manner, as may be prescribed. (5) A supply of services shall be treated as made— (a) in the United Kingdom if the supplier belongs in the United Kingdom; and (b) in another country (and not in the United Kingdom), if the supplier belongs in that other country. (6) The Treasury may by order provide, in relation to goods or services generally or to particular goods or services specified in the order, for varying the rules for determining where a supply of goods or services is made.

7 Reverse charge on supplies received from abroad.

(1) Subject to subsection (3) below, where relevant services are— (a) supplied by a person who belongs in a country other than the United Kingdom; and (b) received by a person (in this section referred to as “the recipient”)who belongs in the United Kingdom for the purposes of any business carried on by him, then all the same consequences shall follow under this Act (and particularly so much as charges tax on a supply and entitles a taxable person to credit for input tax) as if the recipienthad himself supplied the services in the United Kingdom in the course or furtherance of his business, and that supply were a taxable supply. (2) In this section “relevant services” means services of any of the descriptions specified in Schedule 3 to this Act, not being services within any of the descriptions specified in Schedule 6 to this Act. (3) Supplies which are treated as made by the recipienttaxable person under subsection (1) above are not to be taken into account as supplies made by him when determining any allowanceof input tax in his case under section 15(1) below. (4) In applying subsection (1) above, the supply of services treated as made by the recipientshall be assumed to have been made— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) at a time to be determined in accordance with regulations prescribing rules for attributing a time of supply in cases within that subsection. (5) The Treasury may by order add to, or vary, Schedule 3 to this Act. (6) The power of the Treasury by order to add to or vary Schedule 3 to this Act shall include power, where any services whose place of supply is determined by an order under section 6(6) above are added to that Schedule, to provide that subsection (1) above shall have effect in relation to those services as if a person belongs in the United Kingdom for the purposes of paragraph (b) of that subsection if, and only if, he is a taxable person.

8 Place where supplier or recipient of services belongs.

(1) Subsection (2) below shall apply for determining, in relation to any supply of services, whether the supplier belongs in one country or another and subsections (3) and (4) below shall apply (subject to any provision made under section 7(6) above) for determining, in relation to any supply of services, whether the recipient belongs in one country or another. (2) The supplier of services shall be treated as belonging in a country if— (a) he has there a business establishment or some other fixed establishment and no such establishment elsewhere; or (b) he has no such establishment (there or elsewhere) but his usual place of residence is there; or (c) he has such establishments both in that country and elsewhere and the establishment of his which is most directly concerned with the supply is there. (3) If the supply of services is made to an individual and received by him otherwise than for the purposes of any business carried on by him, he shall be treated as belonging in whatever country he has his usual place of residence. (4) Where subsection (3) above does not apply, the person to whom the supply is made shall be treated as belonging in a country if— (a) either of the conditions mentioned in paragraphs (a) and (b) of subsection (2) above is satisfied; or (b) he has such establishments as are mentioned in subsection (2) above both in that country and elsewhere and the establishment of his at which, or for the purposes of which, the services are most directly used or to be used is in that country. (5) For the purposes of this section (but not for any other purposes)— (a) a person carrying on a business through a branch or agency in any country shall be treated as having a business establishment there; and (b) “usual place of residence”, in relation to a body corporate, means the place where it is legally constituted.

8A Meaning of acquisition of goods from another member State.

(1) Subject to the following provisions of this section, references in this Act to the acquisition of goods from another member State shall be construed as references to any acquisition of goods in pursuance of a transaction in relation to which the following conditions are satisfied, that is to say— (a) the transaction is a supply of goods (including anything treated for the purposes of this Act as a supply of goods); and (b) the transaction involves the removal of the goods from another member State; and references in this Act, in relation to such an acquisition, to the supplier shall be construed accordingly. (2) It shall be immaterial for the purposes of subsection (1) above whether the removal of the goods from the other member State is by or under the directions of the supplier or by or under the directions of the person who acquires them or any other person. (3) Where the person with the property in any goods does not change in consequence of anything which is treated for the purposes of this Act as a supply of goods, that supply shall be treated for the purposes of this Act as a transaction in pursuance of which there is an acquisition of goods by the person making it. (4) The Treasury may by order provide with respect to any description of transaction that the acquisition of goods in pursuance of a transaction of that description is not to be treated for the purposes of this Act as the acquisition of goods from another member State.

8B Time of acquisition.

(1) Subject to section 35 below and any regulations under subsection (3) below, where goods are acquired from another member State, the acquisition shall be treated for the purposes of this Act as taking place on whichever is the earlier of— (a) the fifteenth day of the month following that in which the event occurs which, in relation to that acquisition, is the first relevant event for the purposes of taxing the acquisition; and (b) the day of the issue, in respect of the transaction in pursuance of which the goods are acquired, of an invoice of such a description as the Commissioners may by regulations prescribe. (2) For the purposes of this Act the event which, in relation to any acquisition of goods from another member State, is the first relevant event for the purposes of taxing the acquisition is the first removal of the goods which is involved in the transaction in pursuance of which they are acquired. (3) The Commissioners may by regulations make provision with respect to the time at which an acquisition is to be treated as taking place in prescribed cases where the whole or part of any consideration comprised in the transaction in pursuance of which the goods are acquired is determined or payable periodically, or from time to time, or at the end of a period; and any such regulations may provide, in relation to any case to which they apply, for goods to be treated as separately and successively acquired at prescribed times or intervals.

8C Place of acquisition.

(1) This section shall apply (subject to section 35 below) for determining for the purposes of this Act whether goods acquired from another member State are acquired in the United Kingdom. (2) The goods shall be treated as acquired in the United Kingdom if they are acquired in pursuance of a transaction which involves their removal to the United Kingdom and does not involve their removal from the United Kingdom, and (subject to the following provisions of this section) shall otherwise be treated as acquired outside the United Kingdom. (3) Subject to subsection (4) below, the goods shall be treated as acquired in the United Kingdom if they are acquired by a person who, for the purposes of their acquisition, makes use of a number assigned to him for the purposes of value added tax in the United Kingdom. (4) Subsection (3) above shall not require any goods to be treated as acquired in the United Kingdom where it is established, in accordance with regulations made by the Commissioners for the purposes of this section— (a) that value added tax has been paid in another member State on the acquisition of those goods; and (b) that that tax fell to be paid by virtue of provisions of the law of that member State corresponding, in relation to that member State, to the provision made by subsection (2) above. (5) The Commissioners may by regulations make provision for the purposes of this section— (a) for the circumstances in which a person is to be treated as having been assigned a number for the purposes of value added tax in the United Kingdom; (b) for the circumstances in which a person is to be treated as having made use of such a number for the purposes of the acquisition of any goods; and (c) for the refund, in prescribed circumstances, of tax paid in the United Kingdom on acquisitions of goods in relation to which the conditions specified in subsection (4)(a) and (b) above are satisfied.

8D Acquisitions from persons belonging in other member States.

(1) Subject to subsection (3) below, where— (a) a person ( “the original supplier”) makes a supply of goods to a person who belongs in another member State ( “the intermediate supplier”); (b) that supply involves the removal of the goods from another member State and their removal to the United Kingdom but does not involve the removal of the goods from the United Kingdom; (c) both that supply and the removal of the goods to the United Kingdom are for the purposes of the making of a supply by the intermediate supplier to another person ( “the customer”) who is registered under this Act; (d) neither of those supplies involves the removal of the goods from a member State in which the intermediate supplier is taxable at the time of the removal without also involving the previous removal of the goods to that member State; and (e) there would be a taxable acquisition by the customer if the supply to him involved the removal of goods from another member State to the United Kingdom, the supply by the original supplier to the intermediate supplier shall be disregarded for the purposes of this Act and the supply by the intermediate supplier to the customer shall be treated for the purposes of this Act, other than Schedule 1B, as if it did involve the removal of the goods from another member State to the United Kingdom. (2) Subject to subsection (3) below, where— (a) a person belonging in another member State makes such a supply of goods to a person who is registered under this Act as involves their installation or assembly at a place in the United Kingdom to which they are removed; and (b) there would be a taxable acquisition by the registered person if that supply were treated as not being a taxable supply but as involving the removal of the goods from another member State to the United Kingdom, that supply shall be so treated except for the purposes of Schedule 1B to this Act. (3) Neither subsection (1) nor subsection (2) above shall apply in relation to any supply unless the intermediate supplier or, as the case may be, the person making the supply complies with such requirements as to the furnishing (whether before or after the supply is made) of invoices and other documents, and of information, to— (a) the Commissioners, and (b) the person supplied, as the Commissioners may by regulations prescribe; and regulations under this subsection may provide for the times at which, and the form and manner in which, any document or information is to be furnished and for the particulars which it is to contain. (4) Where this section has the effect of treating a taxable acquisition as having been made, section 8B(1) above shall apply in relation to that acquisition with the omission of the words from “whichever" to “acquisition; and" at the end of paragraph (a). (5) For the purposes of this section a person belongs in another member State if— (a) he does not have any business establishment or other fixed establishment in the United Kingdom and does not have his usual place of residence in the United Kingdom; (b) he is neither registered under this Act nor required to be so registered; (c) he does not have a tax representative and is not for the time being required to appoint one; and (d) he is taxable in another member State; but, in determining for the purposes of paragraph (b) above whether a person is required to be registered under this Act, there shall be disregarded any supplies which, if he did belong in another member State and complied with the requirements prescribed under subsection (3) above, would fall to be disregarded by virtue of this section. (6) Without prejudice to section 8C(4) above, where— (a) any goods are acquired from another member State in a case which corresponds, in relation to another member State, to the case specified in relation to the United Kingdom in subsection (1) above; and (b) the person who acquires the goods is registered under this Act and would be the intermediate supplier in relation to that corresponding case, the supply to him of those goods and the supply by him of those goods to the person who would be the customer in that corresponding case shall both be disregarded for the purposes of this Act, other than the purposes of the information provisions referred to in section 46A(7) below. (7) References in this section to a person being taxable in another member State shall not include references to a person who is so taxable by virtue only of provisions of the law of another member State corresponding to the provisions of this Act by virtue of which a person who is not registered under this Act is a taxable person if he is required to be so registered.

9 Rate of tax.

(1) Subject to the following provisions of this section, tax shall be charged at the rate of 17.50 per cent.. and shall be charged— (a) on the supply of goods or services, by reference to the value of the supply as determined under this Act; . . . (aa) on the acquisition of goods from another member State, by reference to the value of the acquisition as determined under this Act; and (b) on the importation of goods from a place outside the member States, by reference to the value of the goods as determined under this Act. (2) The Treasury may by order increase or decrease the rate of tax for the time being in force by such percentage thereof not exceeding 25 per cent. as may be specified in the order, but any such order shall cease to be in force at the expiration of a period of one year from the date on which it takes effect, unless continued in force by a further order under this subsection. (3) In relation to an order made under subsection (2) above to continue, vary or replace a previous order, the reference in that subsection to the rate for the time being in force is a reference to the rate which would be in force if no order under that subsection had been made.

10 Value of supply of goods or services.

(1) For the purposes of this Act the value of any supply of goods or services shall, except as otherwise provided by or under this Act, be determined in accordance with this section and Schedule 4 to this Act, and for those purposes subsections (2) to (4) below have effect subject to that Schedule. (2) If the supply is for a consideration in money its value shall be taken to be such amount as, with the addition of the tax chargeable, is equal to the consideration. (3) If the supply is for a consideration not consisting or not wholly consisting of money, its value shall be taken to be such amount in money as, with the addition of the tax chargeable, is equivalent to the consideration. (4) Where a supply of any goods or services is not the only matter to which a consideration in money relates the supply shall be deemed to be for such part of the consideration as is properly attributable to it. (5) For the purposes of this Act the open market value of a supply of goods or services shall be taken to be the amount that would fall to be taken as its value under subsection (2) above if the supply were for such consideration in money as would be payable by a person standing in no such relationship with any person as would affect that consideration. (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10A Valuation of acquisitions from other member States.

(1) For the purposes of this Act the value of any acquisition of goods from another member State shall be taken to be the value of the transaction in pursuance of which they are acquired. (2) Where goods are acquired from another member State otherwise than in pursuance of a taxable supply, the value of the transaction in pursuance of which they are acquired shall be determined for the purposes of subsection (1) above in accordance with this section and Schedule 4A to this Act, and for those purposes— (a) subsections (3) to (5) below have effect subject to Schedule 4A to this Act; and (b) section 10 above and Schedule 4 to this Act shall not apply in relation to the transaction. (3) If the transaction is for a consideration in money, its value shall be taken to be such amount as is equal to the consideration. (4) If the transaction is for a consideration not consisting or not wholly consisting of money, its value shall be taken to be such amount in money as is equivalent to the consideration. (5) Where a transaction in pursuance of which goods are acquired from another member State is not the only matter to which a consideration in money relates, the transaction shall be deemed to be for such part of the consideration as is properly attributable to it.

11 Value of imported goods.

(1) For the purposes of this Act, the value of goods imported from a place outside the member States shall (subject to subsections (2) and (2A) below) be determined according to the rules applicable in the case of Community customs duties, whether or not the goods in question are subject to any such duties.. (2) For the purposes of this Act the value of any goods imported from a place outside the member States shall be taken to include the following so far as they are not already included in that value in accordance with the rules mentioned in subsection (1) above, that is to say- (a) all taxes, duties and other charges levied either outside or, by reason of importation, within the United Kingdom (except value added tax); and (b) all costs by way of commission, packing, transport and insurance up to the port or place of importation. (2A) Subject to subsection (2) above, where— (a) goods are imported from a place outside the member States for a consideration which is or includes a price in money payable as on the transfer of property; (b) the terms on which those goods are so imported allow a discount for prompt payment of that price; (c) those terms do not include provision for payment of that price by instalments; and (d) payment of that price is made in accordance with those terms so that the discount falls to be allowed, the value of the goods shall be taken for the purposes of this Act to be reduced by the amount of the discount. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12 Value of certain goods.

(1) Where a person makes a supply on which tax is chargeable by applying, or causing to be applied, any treatment or process to another person’s goods, then if the goods— (a) are not goods to which subsection (3) below applies, but (b) become as a result of the treatment or process goods to which that subsection applies, the amount of the tax chargeable shall, subject to the following provisions of this section, be determined as if the supply had been a sale for full consideration of the goods resulting from the treatment or process. (2) Subsection (1) above does not apply where the person to whom the supply is made— (a) is registered under this Act; and (b) gives to the person making the supply a certificate, in such form and containing such particulars as the Commissioners may by regulations prescribe, that the supply is for the purpose of a business carried on or to be carried on by him. (3) This subsection applies to aircraft of a weight of 8,000 kilogrammes or more, and hovercraft, if (in each case) they have been adapted, but were not designed, for use for recreation or pleasure. (4) The Treasury may by order vary subsection (3) above by adding to or deleting from it any description of goods or by varying any description of goods for the time being specified in it. (5) The Treasury may by order make provision for securing a reduction of the tax chargeable on supplies to which subsection (1) above applies in cases where— (a) tax was previously chargeable on a supply or importation of the goods to which the treatment or process is applied; and (b) such other conditions are satisfied as may be specified in the order or as may be imposed by the Commissioners in pursuance of the order. (6) A person who applies or causes to be applied a treatment or process to another person’s goods shall, if the goods satisfy the conditions of paragraphs (a) and (b) of subsection (1) above, be treated for the purposes of paragraph 2 of Schedule 2 to this Act as producing the resulting goods by applying the treatment or process, whether or not he would otherwise fall to be so treated.

13 Gaming machines.

(1) Where a person plays a game of chance by means of a gaming machine, then for the purposes of the tax (but without prejudice to subsection (2) below) the amount paid by him to play shall be treated as the consideration for a supply of services to him. (2) The value to be taken as the value of supplies made in the circumstances mentioned in subsection (1) above in any period shall be determined as if the consideration for the supplies were reduced by an amount equal to the amount (if any) received in that period by persons (other than the person making the supply and persons acting on his behalf) playing successfully. (3) The insertion of a token into a machine shall be treated for the purposes of subsection (1) above as the payment of an amount equal to that for which the token can be obtained; and the receipt of a token by a person playing successfully shall be treated for the purposes of subsection (2) above— (a) if the token is of a kind used to play the machine, as the receipt of an amount equal to that for which such a token can be obtained; (b) if the token is not of such a kind but can be exchanged for money, as the receipt of an amount equal to that for which it can be exchanged. (4) In this section— “game of chance” has the same meaning as in the Gaming Act 1968; and “gaming machine” means a machine in respect of which the following conditions are satisfied, namely— (a) it is constructed or adapted for playing a game of chance by means of it; and (b) a player pays to play the machine (except where he has an opportunity to play payment-free as the result of having previously played successfully), either by inserting a coin or token into the machine or in some other way; and (c) the element of chance in the game is provided by means of the machine.

14 Credit for input tax against output tax.

(1) A taxable person shall, in respect of supplies made by him and in respect of the acquisition by him from other member States of any goods, account for and pay tax by reference to such periods (in this Act referred to as “prescribed accounting periods”), at such time and in such manner as may be determined by or under regulations , and regulations may make different provision for different circumstances. (2) Subject to the provisions of this section, he is entitled at the end of each such period to credit for so much of his input tax as is allowable under section 15 below, and then to deduct that amount from any output tax that is due from him. (3) Subject to subsection (4) below, “input tax”, in relation to a taxable person, means the following tax, that is to say— (a) tax on the supply to him of any goods or services; . . . (aa) tax on the acquisition by him from another member State of any goods; and (b) tax paid or payable by him on the importation of any goods from a place outside the member States, being (in each case) goods or services used or to be used for the purpose of any business carried on or to be carried on by him; and “output tax” means tax on supplies which he makes or on the acquisition by him from another member State of goods (including tax which is also to be counted as input tax by virtue of paragraph (aa) above). (3A) For the purposes of subsection (3) above, where goods or services are supplied to a company, goods are acquired by a company from another member State or goods are imported by a company from a place outside the member States and the goods or services which are so supplied, acquired or imported are used or to be used in connection with the provision of accommodation by the company, they shall not be treated as used or to be used for the purpose of any business carried on by the company to the extent that the accommodation is used or to be used for domestic purposes by— (a) a director of the company, or (b) a person connected with a director of the company. (3B) The Treasury may by order provide with respect to any description of goods or services that, where goods or services of that description are supplied to a person who is not a taxable person, they shall, in such circumstances as may be specified in the order, be treated for the purposes of subsection (3) above as supplied to such other person as may be determined in accordance with the order. (4) Where goods or services supplied to a taxable person, goods acquired by a taxable person from another member State or goods imported by a taxable person from a place outside the member States, are used or to be used partly for the purposes of a business carried on or to be carried on by him and partly for other purposes, tax on supplies acquisitions and importations shall be apportioned so that only so much as is referable to his business purposes is counted as his input tax. (5) If either no output tax is due at the end of the period, or the amount of the credit exceeds that of the tax, then, subject to subsections (6) and (7) below, the amount of the credit or, as the case may be, the amount of the excess shall be paid to the taxable person by the Commissioners. (6) The whole or any part of the credit may, subject to and in accordance with regulations, be held over to be credited in and for a subsequent period; and the regulations may allow for it to be so held over either on the taxable person’s own application or in accordance with general or special directions given by the Commissioners from time to time. (7) Where at the end of any period an amount is due under subsection (5) above to a taxable person who has failed to submit returns . . . for any earlier period as required by this Act, the Commissioners may withhold payment of that amount until he has complied with that requirement. (8) No deduction shall be made under subsection (2) above nor shall any payment be made under subsection (5) above, except on a claim made in such manner and at such time as may be determined by or under regulations; and, in the case of a person who has made no taxable supplies in the period concerned or any previous period, payment under subsection (5) above shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to repayment in specified circumstances. (9) Regulations may provide— (a) for tax on the supply of goods or services to a taxable person, tax on the acquisition of goods by a taxable person from other member States and tax paid or payable by a taxable person on the importation of goods from places outside the member States, to be treated as his input tax only if and to the extent that the charge to tax is evidenced and quantified by reference to such documents as may be specified in the regulations or the Commissioners may direct either generally or in particular cases or classes of cases; (b) for a taxable person to count as his input tax, in such circumstances, to such extent and subject to such conditions as may be prescribed, tax on the supply to him of goods or services or on the acquisition of goods by him from another member State or paid by him on the importation of goods from places outside the member States notwithstanding that he was not a taxable person at the time of the supply, acquisition or payment; (c) for a taxable person that is a body corporate to count as its input tax, in such circumstances, to such extent and subject to such conditions as may be prescribed, tax on the supply acquisition or importation of goods before the company’s incorporation for appropriation to the company or its business or on the supply of services before that time for its benefit or in connection with its incorporation; (d) in the case of a person who has been, but is no longer, a taxable person, for him to be paid by the Commissioners the amount of any tax on a supply of services made to him for the purposes of the business carried on by him when he was a taxable person. (10) The Treasury may by order provide, in relation to such supplies acquisitions, and importations as the order may specify, that tax charged on them is to be excluded from any credit under this section; and— (a) any such provision may be framed by reference to the description of goods or services supplied or goods acquired or imported, the person by whom they are supplied acquired, or imported or to whom they are supplied, the purposes for which they are supplied acquired, or imported, or any circumstances whatsoever; and (b) such an order may contain provision for consequential relief from output tax. (11) For the purposes of this section “director” means— (a) in relation to a company whose affairs are managed by a board of directors or similar body, a member of that board or similar body; (b) in relation to a company whose affairs are managed by a single director or similar person, that director or person; (c) in relation to a company whose affairs are managed by the members themselves, a member of the company; and a person is connected with a director if that person is the director’s wife or husband, or is a relative, or the wife or husband of a relative, of the director or of the director’s wife or husband.

15 Input tax allowable under section 14.

(1) The amount of input tax for which a taxable person is entitled to credit at the end of any period shall be so much of the input tax for the period (that is input tax on supplies acquisitions and importations in the period) as is allowable by or under regulations as being attributable to supplies within subsection (2) below. (2) The supplies within this subsection are the following supplies made or to be made by the taxable person in the course or furtherance of his business— (a) taxable supplies; (b) supplies outside the United Kingdom which would be taxable supplies if made in the United Kingdom; (ba) such other supplies outside the United Kingdom and such exempt supplies as the Treasury may by order specify for the purposes of this subsection. (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) The Commissioners shall make regulations for securing a fair and reasonable attribution of input tax to supplies within subsection (2) above, and any such regulations may provide for— (a) determining a proportion by reference to which input tax for any prescribed accounting period is to be provisionally attributed to those supplies; (b) adjusting, in accordance with a proportion determined in like manner for any longer period comprising two or more prescribed accounting periods or parts thereof, the provisional attribution for any of those periods; and (c) the making of payments in respect of input tax, by the Commissioners to a taxable person (or a person who has been a taxable person) or by a taxable person (or a person who has been a taxable person) to the Commissioners, in cases where events prove inaccurate an estimate on the basis of which an attribution was made (d) preventing input tax on a supply which, under or by virtue of any provision of this Act, a person makes to himself from being allowable as attributable to that supply. (4) Regulations under subsection (3) above may make different provision for different circumstances and, in particular (but without prejudice to the generality of that subsection) for different descriptions of goods or services; and may contain such incidental and supplementary provisions as appear to the Commissioners necessary or expedient.

16 Zero-rating.

(1) Where a taxable person supplies goods or services and the supply is zero-rated, then, whether or not tax would be chargeable on the supply apart from this section,— (a) no tax shall be charged on the supply; but (b) it shall in all other respects be treated as a taxable supply; and accordingly the rate at which tax is treated as charged on the supply shall be nil. (2) A supply of goods or services is zero-rated by virtue of this subsection if the goods or services are of a description for the time being specified in Schedule 5 to this Act or the supply is of a description for the time being so specified. (3) Where goods of a description for the time being specified in Schedule 5 to this Act, or of a description forming part of a description of supply for the time being so specified, are acquired in the United Kingdom from another member State or imported from a place outside the member States, no tax shall be chargeable on their acquisition or importation, except as otherwise provided in that Schedule. (4) The Treasury may by order vary Schedule 5 to this Act by adding to or deleting from it any description or by varying any description for the time being specified in it. (5) Where a description included in Schedule 5 to this Act (whether by virtue of an order under subsection (4) above or otherwise) is of a transaction which would not otherwise be a supply of goods or services, the supply or transaction shall for the purposes of this Act be treated as a supply of goods or services in the United Kingdom. (6) A supply of goods is zero-rated by virtue of this subsection if the Commissioners are satisfied that the person supplying the goods— (a) has exported them to a place outside the member States; or (b) has shipped them for use as stores on a voyage or flight to an eventual destination outside the United Kingdom, or as merchandise for sale by retail to persons carried on such a voyage or flight in a ship or aircraft and, in either case, if such other conditions, if any, as may be specified in regulations or the Commissioners may impose are fulfilled. (6A) Subsection (6)(b) above shall not apply in the case of goods shipped for use as stores on a voyage or flight to be made by the person to whom the goods were supplied and to be made for a purpose which is private. (7) Regulations may provide for the zero-rating of supplies of goods, or of such goods as may be specified in the regulations, in cases where— (a) the Commissioners are satisfied that the goods have been or are to be exported to a place outside the member States or that the supply in question involves both— (i) the removal of the goods from the United Kingdom; and (ii) their acquisition in another member State by a person who is liable for value added tax on the acquisition in accordance with provisions of the law of that member State corresponding, in relation to that member State, to the provisions of section 2A above; and (b) such other conditions, if any, as may be specified in the regulations or the Commissioners may impose are fulfilled. (8) Regulations may provide for the zero-rating of a supply of services which is made where goods are let on hire and the Commissioners are satisfied that the goods have been or are to be removed from the United Kingdom during the period of the letting, and such other conditions, if any, as may be specified in the regulations or the Commissioners may impose are fulfilled. (9) Where the supply of any goods has been zero-rated by virtue of subsection (6) above or in pursuance of regulations made under subsection (7) or (8) above and— (a) the goods are found in the United Kingdom after the date on which they were alleged to have been or were to be exported or shipped or otherwise removed from the United Kingdom; or (b) any condition specified in the relevant regulations under subsection (6), (7) or (8) aboveor imposed by the Commissioners is not complied with, and the presence of the goods in the United Kingdom after that date or the non-observance of the condition has not been authorised for the purposes of this subsection by the Commissioners, the goods shall be liable to forfeiture under the Customs and Excise Management Act 1979 and the tax that would have been chargeable on the supply but for the zero-rating shall become payable forthwith by the person to whom the goods were supplied or by any person in whose possession the goods are found in the United Kingdom; but the Commissioners may, if they think fit, waive payment of the whole or part of that tax.

17 Exemptions.

(1) A supply of goods or services is an exempt supply if it is of a description for the time being specified in Schedule 6 to this Act and an acquisition of goods from another member State is an exempt acquisition if the goods are acquired in pursuance of an exempt supply. (2) The Treasury may by order vary that Schedule by adding to or deleting from it any description of supply or by varying any description of supply for the time being specified in it and the Schedule may be varied so as to describe a supply of goods by reference to the use which has been made of them or to other matters unrelated to the characteristics of the goods themselves.

18 Relief on supply of certain second-hand goods.

(1) The Treasury may by order make provision for securing a reduction of the tax chargeable on the supply of goods of such descriptions as may be specified in the order in cases where no tax was chargeable on a previous supply of the goods and such other conditions are satisfied as may be specified in the order or as may be imposed by the Commissioners in pursuance of the order. (2) The amount of the reduction that may be secured by an order under this section shall not exceed the amount of tax that would have been chargeable on the previous supply had tax been chargeable on it at the same rate as that at which the tax to be reduced would be chargeable but for the reduction. (3) An order under this section making provision for reducing the tax chargeable on the supply of goods of any description may include provision— (a) for giving relief from the tax chargeable on the acquisition of goods of that description from another member State or the importation of goods of that description from a place outside the member States; and (b) for securing the like reduction where no tax was chargeable on the acquisition of goods of that description from another member State or the importation of goods of that description from a place outside the member States as where no tax was chargeable on a previous supply of the goods. (4) An order under this section may extend to cases where the previous supply or the acquisition or importation took place before tax was chargeable on any supply acquisition , or importation. (5) The preceding provisions of this section shall, with the necessary modifications, apply in relation to cases where consequential relief from tax was given on a previous supply by an order under section 14(10) above but the relief did not extend to the whole amount of the tax. (6) An order under this section may make different provision for goods of different descriptions and for different circumstances. (7) In this section references to a supply on which no tax was chargeable include references to a transaction treated by virtue of an order under section 3(3) above as neither a supply of goods nor a supply of services.

19 Relief from tax on importation of goods.

(1) The Treasury may by order make provision for giving relief from the whole or part of the tax chargeable on the importation of goods from places outside the member States, subject to such conditions (including conditions prohibiting or restricting the disposal of or dealing with the goods) as may be imposed by or under the order, if and so far as the relief appears to the Treasury to be necessary or expedient, having regard to any international agreement or arrangements. (1A) In any case where— (a) it is proposed that goods which have been imported from a place outside the member States by any person (in this subsection referred to as “the original importer”) with the benefit of relief under subsection (1) above shall be transferred to another person (in this subsection referred to as “the transferee”), and (b) on an application made by the transferee, the Commissioners direct that this subsection shall apply, this Act shall have effect as if, on the date of the transfer of the goods (and in place of the transfer), the goods were exported by the original importer and imported by the transferee and, accordingly, where appropriate, provision made under subsection (1) above shall have effect in relation to the tax chargeable on the importation of the goods by the transferee. (2) The Commissioners may by regulations make provision for remitting or repaying, if they think fit, the whole or part of the tax chargeable on the importation of any goods from places outside the member States which are shown to their satisfaction to have been previously exported from the United Kingdom or removed from any member State. (3) The Commissioners may by regulations make provision for remitting or repaying the whole or part of the tax chargeable on the importation of any goods from places outside the member States if they are satisfied that the goods have been or are to be re-exported or otherwise removed from the United Kingdom and they think fit to do so in all the circumstances and having regard— (a) to the tax chargeable on the supply of like goods in the United Kingdom; (b) to any value added tax which may have become chargeable in another member State in respect of the goods.

20 Refund of tax in certain cases.

(1) Subject to the following provisions of this section, where tax is chargeable on the supply of goods or services to, . . . a body to which this section applies and on the acquisition of any goods by such a body from another member State or on the importation of any goods by such a body from a place outside the member States and the supply, acquisition or importation is not for the purpose of any business carried on by the body, the Commissioners shall, on a claim made by the body at such time and in such form and manner as the Commissioners may determine, refund to it the amount of the tax so chargeable. (2) Where goods or services so supplied to or acquired or imported by the body cannot be conveniently distinguished from goods or services supplied to or acquired or imported by it for the purpose of a business carried on by it, the amount to be refunded under this section shall be such amount as remains after deducting from the whole of the tax chargeable on any supply to or acquisition or importation by the body such proportion thereof as appears to the Commissioners to be attributable to the carrying on of the business; but where the tax so attributable is or includes tax attributable, in accordance with regulations under section 15 above, to exempt supplies by the body and the tax attributable to the exempt supplies is in the opinion of the Commissioners an insignificant proportion of the tax so chargeable they may include it in the tax refunded under this section. (3) The bodies to which this section applies are— (a) a local authority; (b) a water authority, a river purification board established under section 135 of the Local Government (Scotland) Act 1973, a statutory water undertaker within the meaning of the Water Act 1973 and a water development board within the meaning of section 109 of the Water (Scotland) Act 1980; (c) an internal drainage board within the meaning of the Land Drainage Act 1976; (d) the London Transport Executive anda passenger transport authority or executive established under Part II of the Transport Act 1968; (e) a port health authority constituted under Part I of the Public Health Act 1936, and a port local authority and joint port local authority constituted under Part X of the Public Health (Scotland) Act 1897; (f) a police authority and the Receiver for the Metropolitan Police District; (g) a development corporation within the meaning of the New Towns Act 1981 or the New Towns (Scotland) Act 1968, a new town commission within the meaning of the New Towns Act (Northern Ireland) 1965 and the Commission for the New Towns; (h) a general lighthouse authority within the meaning of Part XI of the Merchant Shipping Act 1894; (i) the British Broadcasting Corporation; (j) a nominated news provider, as defined by section 31(3) of the Broadcasting Act 1990 (k) any body specified for the purposes of this section by an order made by the Treasury. (4) No tax shall be refunded under this section to a general lighthouse authority which in the opinion of the Commissioners is attributable to activities other than those concerned with the provision, maintenance or management or lights or other navigational aids. (4A) No tax shall be refunded under this section to a nominated news provider which in the opinion of the Commissioners is attributable to activities other than the provision of news programmes for broadcasting by holders of regional Channel 3 licences (within the meaning of Part I of the Broadcasting Act 1990). (5) References in this section to tax chargeable do not include any tax which, by virtue of any order under section 14(10) above, is excluded from credit under that section. (6) In this section “local authority” means the council of a county, district, London borough, parish or group of parishes (or, in Wales, community or group of communities), the Common Council of the City of London, the Council of the Isles of Scilly, and any joint committee or joint board established by two or more of the foregoing and, in relation to Scotland, a regional, islands or district council within the meaning of the Local Government (Scotland) Act 1973, any combination and any joint committee or joint board established by two or more of the foregoing and any joint board to which section 226 of that Act applies.

20A Refunds in relation to new means of transport supplied to other member States.

(1) Subject to subsection (2) below, where a person who is not a taxable person makes such a supply of goods consisting in a new means of transport as involves the removal of the goods to another member State, the Commissioners shall, on a claim made in that behalf, refund to that person, as the case may be— (a) the amount of any tax on the supply of that means of transport to that person; or (b) the amount of any tax paid by that person on the acquisition of that means of transport from another member State or on its importation from a place outside the member States. (2) The amount of tax refunded under this section shall not exceed the amount that would have been payable on the supply involving the removal if it had been a taxable supply by a taxable person and had not been zero-rated. (3) The Commissioners shall not be entitled to entertain a claim for refund of tax under this section unless the claim— (a) is made within such time and in such form and manner; (b) contains such information; and (c) is accompanied by such documents, whether by way of evidence or otherwise, as the Commissioners may by regulations prescribe.

21 Refund of tax to persons constructing certain buildings.

(1) Subject to subsection (2) below, where tax is chargeable on the supply of goods to, . . . a person constructing a building lawfully and otherwise than in the course of furtherance of any business on the acquisition of goods by such a person from another member State or on the importation of goods by such a person from a place outside the member States, and— (a) the goods are incorporated in the building or its site; and (b) the supply of the goods would have been zero-rated by virtue of item 3 of Group 8 of Schedule 5 to this Act if they had been supplied by a supplier making to the same person supplies within item 2 of that Group of services including their use or installation, and any required certificate had been given, the Commissioners shall, on a claim made in that behalf, refund to the person the amount of the tax so chargeable. (2) The Commissioners shall not be required to entertain a claim for a refund of tax under this section unless the claim— (a) is made within such time and in such form and manner; (b) contains such information; and (c) is accompanied by such documents, whether by way of evidence or otherwise, as the Commissioners may by regulations prescribe. (2A) This section shall have effect— (a) as if the reference in subsection (1) above to the tax chargeable on the supply of any goods included a reference to value added tax chargeable on the supply in accordance with the law of another member State; and (b) in relation to value added tax chargeable in accordance with the law of another member State, as if references to refunding tax to any person were references to paying that person an amount equal to the value added tax chargeable in accordance with the law of that member State; and the provisions of this Act and of any other enactment or subordinate legislation (whenever passed or made) so far as they relate to a refund under this section shall be construed accordingly.

22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23 Repayment of tax to those in business overseas.

(1) The Commissioners may, by means of a scheme embodied in regulations, provide for the repayment, to persons to whom this section applies, of tax on supplies to them in the United Kingdom or on the importation of goods by them into the United Kingdomwhich would be input tax of theirs if they were taxable persons in the United Kingdom. (2) This section— (a) applies to persons carrying on business in a member State other than the United Kingdom, and (b) shall apply also to persons carrying on business in other countries, if, pursuant to any Community Directive, rules are adopted by the Council of the Communities about refunds of tax to persons established elsewhere than in the member States, but does not apply to persons carrying on business in the United Kingdom. (3) Repayment shall be made in such cases only, and subject to such conditions, as the scheme may prescribe (being conditions specified in the regulations or imposed by the Commissioners either generally or in particular cases); and the scheme may provide— (a) for claims and repayments to be made only through agents in the United Kingdom; (b) either generally or for specified purposes— (i) for the agents to be treated under this Act as if they were taxable persons; and (ii) for treating claims as if they were returns under this Act and repayments as if they were repayments of input tax; and (c) for generally regulating the methods by which the amount of any repayment is to be determined and the repayment is to be made.

24 Application of customs enactments.

(1) Subject to such exceptions and adaptations as the Commissioners may by regulations prescribe and except where the contrary intention appears— (a) the provision made by or under the Customs and Excise Acts 1979 and the other enactments and subordinate legislation for the time being having effect generally in relation to duties of customs and excise charged on the importation of goods into the United Kingdom; and (b) the Community legislation for the time being having effect in relation to Community customs duties charged on goods entering the territory of the Community, shall apply (so far as relevant) in relation to any tax chargeable on the importation of goods from places outside the member States as they apply in relation to any such duty of customs or excise or, as the case may be, Community customs duties. (4) Regulations under section 16 of the Post Office Act 1953 (which provides for the application of customs enactments to postal packets) may make special provision in relation to value added tax.

25 Importation of goods by taxable persons.

The Commissioners may by regulations make provision for enabling goods imported from a place outside the member States by a taxable person in the course of furtherance of any business carried on by him to be delivered or removed, subject to such conditions or restrictions as the Commissioners may impose for the protection of the revenue, without payment of the tax chargeable on the importation, and for that tax to be accounted for together with the tax chargeable on the supply of goods or services by him or on the acquisition of goods by him from other member States.

26 Goods imported for private purposes.

(1) Where goods are imported by a taxable person from a place outside the member States and— (a) at the time of importation they belong wholly or partly to another person; and (b) the purposes for which they are to be used include private purposes either of himself or of the other, tax paid or payable by the taxable person on the importation of the goods shall not be regarded as input tax to be deducted or credited under section 14 above; but he may make a separate claim to the Commissioners for it to be repaid. (2) The Commissioners shall allow the claim if they are satisfied that to disallow it would result, in effect, in a double charge to tax; and where they allow it they shall do so only to the extent necessary to avoid the double charge. (3) In considering a claim under this section, the Commissioners shall have regard to the circumstances of the importation and, so far as appearing to them to be relevant, things done with, or occurring in relation to, the goods at any subsequent time. (4) Any amount allowed by the Commissioners on the claim shall be paid by them to the taxable person. (5) The reference above to a person’s private purposes is to purposes which are not those of any business carried on by him.

27 Application to Crown.

(1) This Act shall apply in relation to taxable supplies by the Crown as it applies in relation to taxable supplies by taxable persons. (2) Where the supply by a Government department of any goods or services does not amount to the carrying on of a business but it appears to the Treasury that similar goods or services are or might be supplied by taxable persons in the course or furtherance of any business, then, if and to the extent that the Treasury so direct, the supply of those goods or services by that department shall be treated for the purposes of this Act as a supply in the course or furtherance of any business carried on by it. (2A) Where tax is chargeable on the supply of goods or services to, a Government department, on the acquisition of any goods by a Government department from another member State or on the importation of any goods by a Government department from a place outside the member States and the supply, acquisition or importation is not for the purpose— (a) of any business carried on by the department, or (b) of a supply by the department which, by virtue of a direction under subsection (2) above, is treated as a supply in the course of furtherance a business, then, if and to the extent that the Treasury so direct and subject to subsection (2B) below, the Commissioners shall, on a claim made by the department at such time and in such form and manner as the Commissioners may determine, refund to it the amount of the tax so chargeable. (2B) The Commissioners may make the refunding of any amount due under subsection (2A) above conditional upon compliance by the claimant with requirements with respect to the keeping, preservation and production of records relating to the supply acquisition or importation in question. (3) For the purposes of this section goods or services obtained by one Government department from another Government department shall be treated, if and to the extent that the Treasury so direct, as supplied by that other department and similarly as regards goods or services obtained by or from the Crown Estate Commissioners. (4) In this section “Government department” includes a Northern Ireland department , a Northern Ireland health and social services body, any body of persons exercising functions on behalf of a Minister of the Crown including a health service body, as defined in section 60(7) of the National Health Service and Community Care Act 1990, and any part of a Government department (as defined in the foregoing) designated for the purposes of this subsection by a direction of the Treasury. (5) For the purposes of subsection (4) above a National Health Service trust established under Part I of the National Health Service and Community Care Act 1990 or the National Health Service (Scotland) Act 1978 shall be regarded as a body of persons exercising functions on behalf of a Minister of the Crown. (6) In subsection (4) “Northern Ireland health and social services body" means— (a) a health and social services body as defined in Article 7(6) of the Health and Personal Social Services (Northern Ireland) Order 1991; and (b) a Health and Social Services trust established under that Order.

28 Local authorities.

(1) A local authority which makes taxable supplies is liable to be registered under this Act, whatever the value of the supplies; and accordingly Schedule 1 to this Act shall apply, in a case where the value of the taxable supplies made by a local authority in any period of one year does not exceed the sum for the time being specified in paragraph 1(1)(a)of that Schedule, as if that value exceeded that sum. (2) In this section “local authority” has the same meaning as in section 20 above.

29 Groups of companies.

(1) Where, under the following provisions of this section, any bodies corporate are treated as members of a group any business carried on by a member of the group shall be treated as carried on by the representative member, and— (a) any supply of goods or services by a member of the group to another member of the group shall be disregarded; and (b) any other supply of goods or services by or to a member of the group shall be treated as a supply by or to the representative member; and (c) any tax paid or payable by a member of the group on the acquisition of goods from another member State or on the importation of goods from a place outside the member States shall be treated as paid or payable by the representative member and the goods shall be treated (i) in the case of goods acquired from another member State, for the purposes of paragraph 4(6) of Schedule 7 to this Act; and (ii) in the case of goods imported from a place outside the member States, for those purposes and the purposes of section 25 above, as acquired or, as the case may be, imported by the representative member; (2) An order under section 3(5) or (6) above may make provision for securing that any goods or services which, if all the members of the group were one person, would fall to be treated under that section as supplied to and by that person, are treated as supplied to and by the representative member. (3) Two or more bodies corporate are eligible to be treated as members of a group if each of them falls within subsection (3A) below and— (a) one of them controls each of the others; or (b) one person (whether a body corporate or an individual) controls all of them; or (c) two or more individuals carrying on a business in partnership control all of them. (3A) A body falls within this subsection if it is resident in the United Kingdom or it has an established place of business in the United Kingdom. (4) Where an application to that effect is made to the Commissioners with respect to two or more bodies corporate eligible to be treated as members of a group, then, from the beginning of a prescribed accounting period they shall be so treated, and one of them shall be the representative member, unless the Commissioners refuse the application; but they shall not refuse it unless it appears to them necessary to do so for the protection of the revenue. (5) Where any bodies corporate are treated as members of a group and an application to that effect is made to the Commissioners, then, from the beginning of a prescribed accounting period— (a) a further body eligible to be so treated shall be included among the bodies so treated; or (b) a body corporate shall be excluded from the bodies so treated; or (c) another member of the group shall be substituted as the representative member; or (d) the bodies corporate shall no longer be treated as members of a group, unless the application is to the effect mentioned in paragraph (a) or paragraph (c) above and the Commissioners refuse the application; but they shall not refuse it unless it appears to them necessary to do so for the protection of the revenue. (6) Where a body corporate is treated as a member of a group as being controlled by any person and it appears to the Commissioners that it has ceased to be so controlled, they shall, by notice given to that person, terminate that treatment from such date as may be specified in the notice. (7) An application under this section with respect to any bodies corporate must be made by one of those bodies or by the person controlling them and must be made not less than 90 days before the date from which it is to take effect, or at such later time as the Commissioners may allow. (8) For the purposes of this section a body corporate shall be taken to control another body corporate if it is empowered by statute to control that body’s activities or if it is that body’s holding company within the meaning of section 736 ofthe Companies Act 1985; and an individual or individuals shall be taken to control a body corporate if he or they, were he or they a company, would be that body’s holding company within the meaning of that Act.

29A Supplies to groups.

(1) Subject to subsections (2) to (3A)below, subsection (4) below applies where— (a) a business, or part of a business, carried on by a taxable person is transferred as a going concern to a body corporate treated as a member of a group under section 29 above; (b) on the transfer of the business or part, chargeable assests of the business are transferred to the body corporate; and (c) the transfer of the assets is treated by virtue of section 3(3)(c) above as neither a supply of goods nor a supply of services. (2) Subsection (4) below shall not apply if the representative member of the group is entitled to credit for the whole of the input tax on supplies to it and acquisitions and importations by it— (a) during the prescribed accounting period in which the assets are transferred, and (b) during any longer period to which regulations under section 15(3)(b) above relate and in which the assets are transferred. (3) Subsection (4) below shall not apply if the Commissioners are satisfied that the assets were assets of the taxable person transferring them more than three years before the day on which they are transferred. (3A) Subsection (4) below shall not apply to the extent that the chargeable assets consist of capital items in respect of which regulations made under section 15(3) and (4) above, and in force when the assets are transferred, provide for adjustment to the deduction of input tax. (4) The chargeable assets shall be treated for the purposes of this Act as being, on the day on which they are transferred, both supplied to the representative member of the group for the purpose of its business and supplied by that member in the course or furtherance of its business. (5) A supply treated under subsection (4) above as made by a representative member shall not be taken into account as a supply made by him when determining the allowance of input tax in his case under section 15 above. (6) The value of a supply treated under subsection (4) above as made to or by a representative member shall be taken to be the open market value of the chargeable assets. (7) For the purposes of this section, the open market value of any chargeable assets shall be taken to be the price that would be paid on a sale (on which no tax is payable) between a buyer and a seller who are not in such a relationship as to affect the price. (8) The Commissioners may reduce the tax chargeable by virtue of subsection (4) above in a case where they are satisfied that the person by whom the chargeable assets are transferred has not received credit for the full amount of input tax arising on the supply to or acquisition or importation by him of the chargeable assets. (9) For the purposes of this section, assets are chargeable assets if their supply in the United Kingdom by a taxable person in the course or furtherance of his business would be a taxable supply (and not a zero-rated supply).