PART IPRELIMINARY

Citation and commencement

1. These Regulations may be cited as the Value Added Tax Regulations 1995 and shall come into force on 20th October 1995.

Interpretation—general

2. —

(1) In these Regulations unless the context otherwise requires—

“the Act” means the Value Added Tax Act 1994 and any reference to a Schedule to the Act includes a reference to a Schedule as amended from time to time by Order of the Treasury;

“alphabetical code” means the alphabetical prefix as set out below which shall be used to identify the relevant territory—

• Austria — AT

• Belgium — BE

• Bulgaria — BG

• Cyprus — CY

• Czech Republic — CZ

• Denmark — DK

• Estonia — EE

• Finland — FI

• France — FR

• Germany — DE

• Greece — EL

• Hungary — HU

• Ireland — IE

• Italy — IT

• Latvia — LV

• Lithuania — LT

• Luxembourg — LU

• Malta — MT

• Netherlands — NL

• Poland — PL

• Portugal — PT

• Romania — RO

• Slovakia — SK

• Slovenia — SI

• Spain — ES

• Sweden — SE

• United Kingdom — XI

“Collector” includes Deputy Collector and Assistant Collector;

“the Community” means the European Community;

“continental shelf” means a designated area within the meaning of the Continental Shelf Act 1964(2);

“Controller” means the Controller, Customs and Excise Value Added Tax Central Unit;

...

“fiscal or other warehousing regime” means “fiscal warehousing regime or warehousing regime” , and “Northern Ireland fiscal or other Northern Ireland warehousing regime” means “Northern Ireland fiscal warehousing regime or Northern Ireland warehousing regime”;

“identified for the purposes of VAT in Northern Ireland” has the meaning given by paragraph 7 of Schedule 9ZA to the Act;

“Northern Ireland fiscal warehouse” and “Northern Ireland fiscal warehousing regime” have the meanings given by sub-paragraphs (1) and (2) respectively of paragraph 25 (supplementary provision) of Schedule 9ZB to the Act;

“Northern Ireland warehouse” and “Northern Ireland warehousing regime” have the meanings given by sub-paragraphs (11) and (12) respectively of paragraph 16 (place and time of supply: Northern Ireland warehouses) of Schedule 9ZB to the Act;

...

...

“prescribed accounting period”, subject to regulation 99(1), means a period such as is referred to in regulation 25;

“proper officer” means the person appointed or authorised by the Commissioners to act in respect of any matter in the course of his duties;

...

“registered person” means a person registered by the Commissioners under Schedule 1, 1A,3A, Part 8 or 9 of Schedule 9ZA or Scheduleor 9ZC to the Act;

“registration number” means the number allocated by the Commissioners to a taxable person in the certificate of registration issued to him;

“relevant territory” means, except where otherwise provided, a member State or the United Kingdom;

“return” means a return which is required to be made in accordance with regulation 25;

“specified date” means the date specified in a person’s application for registration for the purpose of VAT as that on which he expects to make his first taxable supply.

...

(2) A reference in these Regulations to “this Part” is a reference to the Part of these Regulations in which that reference is made.

(3) In these Regulations any reference to a form specified in a notice published by the Commissioners shall include a reference to a form which the Commissioners are satisfied is a form to the like effect.

(4)A reference in these Regulations to “another member State” is to be read as a reference to “a member State”, and “other member State” and “other member States” are to be interpreted accordingly.

Revocations and savings

3. —

(1) The Regulations described in Schedule 2 to these Regulations are hereby revoked.

(2) Anything begun under or for the purpose of any Regulations revoked by these Regulations shall be continued under or, as the case may be, for the purpose of the corresponding provision of these Regulations.

(3) Where any document used or required for the purpose of VAT refers to a provision of a regulation revoked by these Regulations, such reference shall, unless the context otherwise requires, be construed as a reference to the corresponding provision of these Regulations.

Requirement, direction, demand or permission

4. Any requirement, direction, demand or permission by the Commissioners, under or for the purposes of these Regulations, may be made or given by a notice in writing, or otherwise.

Electronic communication

4A.—(1)A specified communication may be made to the Commissioners using an electronic communications system.

(2)Where an electronic communications system is used it must take a form approved by the Commissioners in a specific or general direction.

(3)A direction under paragraph (2) may in particular—

(a)modify or dispense with any requirement of a form mentioned in regulation 2(3) used to make a specified communication;

(b)specify different forms of electronic communications system for different cases; and

(c)specify different circumstances in which the electronic communications system may be used, or not used, by or on behalf of the person required to make the communication and specify different circumstances for different cases.

(4)An electronic communications system shall incorporate an electronic validation process.

(5)Subject to paragraph (6) below and unless the contrary is proved—

(a)the use of an electronic communications system shall be presumed to have resulted in the making of a communication to the Commissioners only if this has been successfully recorded as such by the relevant electronic validation process;

(b)the time of making a communication to the Commissioners using an electronic communications system shall be presumed to be the time recorded as such by the relevant electronic validation process; and

(c)the person delivering a communication to the Commissioners shall be presumed to be the person identified as such by any relevant feature of the electronic communications system.

(6)No communication shall be treated as having been made using an electronic communications system unless it is in the form required by paragraph (2).

(7)A communication made using an electronic communications system carries the same consequences as a communication made in paper form.

(8)In paragraph (2) “direction” refers only to a current direction, and a direction is not current to the extent that it is varied, replaced or revoked by another Commissioners’ direction.

4B.—(1)A specified communication is—

(a)an application under section 43B(1), (2)(d) or (3) of the Act (Groups: applications);

(b)a notification under regulation 5(1), (2) or (3) (registration and notification);

(c)an application under regulation 6(1)(d) (transfer of a going concern);

(d)a notification under regulation 10(1) or (4) (VAT representatives);

(e)an application under regulation 52(1) (annual accounting scheme: eligibility);

(f)a notification under regulation 54(2) (annual accounting scheme: termination);

(g)a notification under regulation 55(1)(d) (annual accounting scheme: termination);

(h)a notification under regulation 55B(1)(a) (flat-rate scheme for small businesses: notification of desire to join the scheme); ...

(i)a notification under regulation 55Q(1)(e) (flat-rate scheme for small businesses: notification of decision to withdraw from the scheme); ...

(j)a notification under paragraph (3) , (3A) or (4) of regulation 148A (notification of the arrival in the United Kingdom of motorised land vehicles and payment of VAT); and

(k)claim under regulation 201 (claim for refund of VAT made pursuant to section 35 of, or paragraph 18A of Schedule 9ZA to, the Act.

PART IIREGISTRATION AND PROVISIONS FOR SPECIAL CASES

Registration and notification

5.—(1)Where any person is required under paragraph 5(1) , 6(1) or 7(1) of Schedule 1, paragraph 5(1), 6(1) or (13)(3) of Schedule 1A,paragraph 3(1) or 4(1) of Schedule 3A, paragraph 40(1) or 50(1) of Schedule 9ZA, or paragraph 8 of Schedule 9ZC to the Act to notify the Commissioners of his liability to be registered, the notification shall contain the particulars (including the declaration) set out in the relevant form specified in a notice published by the Commissioners and shall be made in that form; provided that, where the notification is made by a partnership, the notification shall also contain the particulars set out in the relevant form specified in a notice published by the Commissioners.

(2)Every registered person except one to whom paragraph 11, 12, 13(1), (2) or (3) of Schedule 1, paragraph 7, 8 or 9(1) of Schedule 1A,paragraph 5 of Schedule 3A, paragraph 42 or 52 of Schedule 9ZA, or paragraph 10 of Schedule 9ZC of the Act applies, shall, within 30 days of any changes being made in the name, constitution or ownership of his business, or of any other event occurring which may necessitate the variation of the register or cancellation of his registration, notify the Commissioners... of such change or event and furnish them with full particulars thereof.

(3)Every notification by a registered person under paragraph 11 or 12 of Schedule 1, paragraph 5 of Schedule 3A, paragraph 42 or 52 of Schedule 9ZA, or paragraph 10 of Schedule 9ZC to the Act... shall state—

(a)the date on which he ceased to make, or have the intention of making, taxable supplies; or

(b)where paragraph 12(a) of Schedule 1 to the Act applies, the date on which he ceased to make, or have the intention of making, supplies within paragraph 10(2) of that Schedule; or

(c)where paragraph 12(b) of Schedule 1 to the Act applies, the date on which he made, or formed the intention of making, taxable supplies; or

(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f)where paragraph 5(1) of Schedule 3A to the Act applies, the date on which he ceased to make, or have the intention of making, relevant supplies within the meaning of paragraph 9 of that Schedule; or

(fa)where paragraph 42(1) of Schedule 9ZA to the Act applies, the date on which he ceased to be registerable by virtue of paragraph 42(3) of that Schedule; or

(fb)where paragraph 52(1) of Schedule 9ZA to the Act applies, the date on which he ceased to be registerable by virtue of paragraph 52(4) of that Schedule; or

(g)where paragraph 10(1) of Schedule 9ZC to the Act applies, the date on which the person ceased to be registrable under the Act; or

(h)where paragraph 10(2) of Schedule 9ZC to the Act applies, the date on which the person made or facilitated a relevant supply within that paragraph.

(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(13). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(14). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transfer of a going concern

6. —

(1) Where—

(a)a businessor part of a business is transferred as a going concern,

(b)the registration under Schedule 1 or 1A to the Act of the transferor has not already been cancelled,

(c)on the transfer of the businessor part of it the registration of the transferor under either Schedule is to be cancelled and either the transferee becomes liable to be registered under either Schedule or the Commissioners agree to register him under paragraph 9 of Schedule 1 to the Act , and

(d)an application is made in the form specified in a notice published by the Commissioners by or on behalf of both the transferor and the transferee of that businessor the part transferred ,

the Commissioners may as from the date of the said transfer cancel the registration under Schedule 1 or 1A to the Act of the transferor and register the transferee under Schedule 1 or 1A to the Act as appropriate with the registration number previously allocated to the transferor .

(2) An application under paragraph (1) above shall constitute notification for the purposes of paragraph 11 of Schedule 1 or paragraph 7 of Schedule 1A to the Act.

(3) Where the transferee of a businessor part of a business has under paragraph (1) above been registered under Schedule 1 or 1A to the Act in substitution for the transferor of it , and with the transferor’s registration number—

(a)any liability of the transferor existing at the date of the transfer to make a return or to account for or pay VAT under regulation 25 or 40 shall become the liability of the transferee,

(b)any right of the transferor, whether or not existing at the date of the transfer, to credit for, or to repayment of, input tax shall become the right of the transferee, ...

(c)any right of either the transferor, whether or not existing at the date of the transfer, or the transferee to payment by the Commissioners under section 25(3) of the Act shall be satisfied by payment to either of them ,

(d)any right of the transferor, whether or not existing at the date of the transfer, to claim a refund under section 36 of the Act shall become the right of the transferee, and

(e)any liability of the transferor, whether or not existing at the date of the transfer, to account for an amount under Part XIXA of these Regulations, shall become that of the transferee, and

(f)any records relating to the business which, by virtue of these Regulations or a direction made by the Commissioners, are required to be preserved for any period after the transfer shall be preserved by the transferee unless the Commissioners, at the request of the transferor, otherwise direct.

(4) In addition to the provisions set out in paragraph (3) above, where the transferee of a businessor part of a business has been registered in substitution for, and with the registration number of, the transferor during a prescribed accounting periodsubsequent to that in which the transfer took place but with effect from the date of the transfer , and any—

(a)return has been made,

(b)VAT has been accounted for and paid, or

(c)right to credit for input tax has been claimed,

either by or in the name of the transferee or the transferor, it shall be treated as having been done by the transferee.

Notice by partnership

7. —

(1) Where any notice is required to be given for the purposes of the Act or these Regulations by a partnership, it shall be the joint and several liability of all the partners to give such notice, provided that a notice given by one partner shall be a sufficient compliance with any such requirement.

(2) Where, in Scotland, a body of persons carrying on a business which includes the making of taxable supplies is a partnership required to be registered, any notice shall be given and signed in the manner indicated in section 6 of the Partnership Act 1890(3).

Representation of club, association or organisation

8. Anything required to be done by or under the Act, these Regulations or otherwise by or on behalf of a club, association or organisation, the affairs of which are managed by its members or a committee or committees of its members, shall be the joint and several responsibility of—

(a)every member holding office as president, chairman, treasurer, secretary or any similar office; or in default of any thereof,

(b)every member holding office as a member of a committee; or in default of any thereof,

(c)every member,

provided that if it is done by any official, committee member or member referred to above, that shall be sufficient compliance with any such requirement.

Death, bankruptcy or incapacity of taxable person

9. —

(1) If a taxable person dies or becomes bankrupt or incapacitated, the Commissioners may, from the date on which he died or became bankrupt or incapacitated treat as a taxable person any person carrying on that business until some other person is registered in respect of the taxable supplies made or intended to be made by that taxable person in the course or furtherance of his business or the incapacity ceases, as the case may be; and the provisions of the Act and of any Regulations made thereunder shall apply to any person so treated as though he were a registered person.

(2) Any person carrying on such business shall, within 21 days of commencing to do so, inform the Commissioners in writing of that fact and of the date of the death, the date of the bankruptcy order, or of the nature of the incapacity and the date on which it began.

(3) In relation to a company which is a taxable person, the references in paragraph (1) above to the taxable person becoming bankrupt or incapacitated shall be construed as references to the company going into liquidation or receivership or entering administration .

VAT representatives

10. —

(1) Where any person is appointed by virtue of section 48 of the Act to be the VAT representative of another (in this regulation referred to as “his principal”), the VAT representative shall notify the Commissioners of his appointment in the form specified in a notice published by the Commissioners within 30 days of the date on which his appointment became effective and the notification shall contain the particulars (including the declaration) set out in that notice .

(2) The notification referred to in this regulation shall be accompanied by evidence of the VAT representative’s appointment.

(3)Subject to paragraphs (3A) and (3B), where a person is appointed by virtue of section 48 of the Act to be a VAT representative, the Commissioners shall register the name of that VAT representative against the name of his principal in the register kept for the purposes of the Act.

(3A)The Commissioners may refuse to register a person in accordance with paragraph (3) if they are satisfied that the person is not a fit and proper person to act in that capacity.

(3B)Where a person is registered as a VAT representative in accordance with paragraph (3) the Commissioners may cancel that person’s registration if they are satisfied that the person is not, or is no longer, a fit and proper person to act in that capacity.

(4) Every VAT representative who is registered in accordance with this regulation shall, within 30 days of any changes being made in the name, constitution or ownership of his business or of his ceasing to be a person’s VAT representative, or of any other event occurring which may necessitate the variation of the register, notify the Commissioners in writing of such change, cessation or event and furnish them with full particulars thereof.

(5) For the purposes of this regulation the date upon which the appointment of a VAT representative (“the first VAT representative”) shall be regarded as having ceased shall be treated as being whichever is the earliest of the following times—

(a)when the Commissioners receive any notification in accordance with regulation 5(2), or

(b)when the Commissioners receive a notification of appointment in accordance with paragraph (1) above of a person other than the first VAT representative, or

(c)when the Commissioners receive a notification of cessation in accordance with regulation 5(2), or

(d)when the Commissioners receive a notification of cessation in accordance with paragraph (4) above, or

(e)when a VAT representative dies, becomes insolvent or becomes incapacitated, or

(f)when the Commissioners cancel a VAT representative’s registration in accordance with paragraph (3B),

provided that if the Commissioners have not received a notification such as is mentioned in all or any of sub-paragraphs (a), (c) or (d) above and another person has been appointed as a VAT representative by virtue of section 48 of the Act, the Commissioners may treat the date of cessation as the date of appointment of that other person.

(6) In relation to a company which is a VAT representative, the references in paragraph (5)(e) above to the VAT representative becoming insolvent or incapacitated shall be construed as references to its going into liquidation or receivership or entering administration .

Notification of intended paragraph 6(2) of Schedule 9ZA supplies by intermediate suppliers

11. —

(1) An intermediate supplier who has made or intends to make a supply to which he wishes paragraph 6(2) of Schedule 9ZA to the Act to apply shall notify the Commissioners and the customer in writing of his intention to do so.

(2) A notification under this regulation shall contain the following particulars—

(a)the name and address of the intermediate supplier,

(b)the number including the alphabetical code, by which the intermediate supplier is identified for VAT purposes, which was used or is to be used for the purpose of the supply to him by the original supplier,

(c)the date upon which the goods were first delivered or are intended to be first delivered, and

(d)the name, address and registration number of the customer to whom the goods have been supplied or are to be supplied.

(3) A notification under this regulation shall be made no later than the provision, in accordance with regulation 18, of the first invoice in relation to the supply to which it relates, and sent to—

(a)the office designated by the Commissioners for the receipt of such notifications, and

(b)the customer.

(4) Notifications under this regulation shall be made separately in relation to each customer to whom it is intended to make supplies to which the intermediate supplier wishes paragraph 6(2) of Schedule 9ZA to the Act to apply.

(5) Where an intermediate supplier has complied with the requirements of this regulation in relation to the first supply to a customer to which paragraph 6(2) of Schedule 9ZA to the Act applies, those requirements shall be deemed to have been satisfied in relation to all subsequent supplies to that customer while the intermediate supplier continues to belong in another member State.

Notification of intended paragraph 6(3) of Schedule 9ZA supplies by persons belonging in other member States

12. —

(1) A person belonging in another member State who has made or who intends to make a supply to which he wishes paragraph 6(3) of Schedule 9ZA to the Act to apply shall notify the Commissioners and the registered person in writing of his intention to do so.

(2) A notification under this regulation shall contain the following particulars—

(a)the name and address of the person belonging in another member State,

(b)the number including the alphabetical code by which the person belonging in another member State is identified for VAT purposes in the member State in which he belongs,

(c)the date upon which the installation or assembly of the goods was commenced or is intended to commence, and

(d)the name, address and registration number of the registered person to whom the goods have been supplied or are to be supplied.

(3) A notification under this regulation shall be made no later than the provision, in accordance with regulation 19, of the first invoice in relation to the supply to which it relates, and sent to—

(a)the office designated by the Commissioners for the receipt of such notifications, and

(b)the registered person to whom the goods are to be supplied.

(4) Notifications under this regulation shall be made separately in relation to each registered person to whom it is intended to make supplies to which the person belonging in another member State wishes paragraph 6(3) of Schedule 9ZA to the Act to apply.

(5) Where a person belonging in another member State has complied with the requirements of this regulation in relation to the first supply to a registered person to which paragraph 6(3) of Schedule 9ZA to the Act applies, those requirements shall be deemed to have been satisfied in relation to all subsequent supplies to that registered person while the person making the supply continues to belong in another member State.

PART IIIVAT INVOICES AND OTHER INVOICING REQUIREMENTS

Interpretation of Part 3

A13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Obligation to provide a VAT invoice

13. —

(1)Save as otherwise provided in these Regulations, where a registered person (P)—

(a)makes a taxable supply in the United Kingdom to a taxable person, or

(b)makes a supply of goods to a person in a member State for the purpose of any business activity carried out by that person and P is identified for the purposes of VAT in Northern Ireland; or

(c)receives a payment on account in respect of a supply of goods that P has made or intends to make from a person in a member State and P is identified for the purposes of VAT in Northern Ireland,

P must, unless paragraph (1ZA) applies, provide such persons as are mentioned above with a VAT invoice.

(1ZA)This paragraph applies where P, in relation to the description of supply mentioned in paragraph (1), is entitled to issue and issues a VAT invoice pursuant to section 18C(1)(d) of the Act and regulation 145D(1) in relation to the supply by P of specified services performed on or in relation to goods while those goods are subject to a fiscal or other warehousing regime, or to a Northern Ireland fiscal or other Northern Ireland warehousing regime.

(1A)Paragraph (1)(b) above shall not apply where the supply is an exempt supply which is made to a person in a member State which does not require an invoice to be issued for the supply.

(1B)Paragraph (1)(b) shall not apply in the case of a supply which falls within Group 2 or Group 5 of Schedule 9 to the Act.

(1C)Save as otherwise provided in these Regulations, where a registered person makes a taxable supply of goods to a person who is not a taxable person, if—

(a)that supply is deemed to be a supply by an operator of an online marketplace by virtue of section 5A of the Act, or

(b)the place of supply of those goods is determined by section 7(5B) of the Act,

the registered person must provide the other person with a VAT invoice.

(2) The particulars of the VAT chargeable on a supply of goods described in paragraph 7 of Schedule 4 to the Act shall be provided, on a sale by auction, by the auctioneer, and, where the sale is otherwise than by auction, by the person selling the goods, on a document containing the particulars prescribed in regulation 14(1); and such a document issued to the buyer shall be treated for the purposes of paragraph (1)(a) above as a VAT invoice provided by the person by whom the goods are deemed to be supplied in accordance with the said paragraph 7.

(3)Where a registered person provides a document to himself (“a self-billed invoice”) that purports to be a VATinvoice in respect of a supply of goods or services to him by another registered person, that document shall be treated as the VATinvoice required to be provided by the supplier under paragraph (1)(a) if it complies with the conditions set out in paragraph (3A) and with any further conditions that may be contained in a notice published by the Commissioners or may be imposed in a particular case.

(3A)The following conditions must be complied with if a self-billed invoice is to be treated as a VATinvoice—

(a)it must have been provided pursuant to a prior agreement (“a self-billing agreement”) entered into between the supplier of the goods or services to which it relates and the recipient of the goods or services (“the customer”) and which satisfies the requirements in paragraph (3B);

(b)it must contain the particulars required under regulation 14(1) or (2);

(c)it must relate to a supply or supplies made by a supplier who is a taxable person.

(3B)A self-billing agreement must—

(a)authorise the customer to produce self-billed invoices in respect of supplies made by the supplier for a specified period ...

(b)specify that the supplier will not issue VATinvoices in respect of supplies covered by the agreement;

(c)specify that the supplier will accept each self-billed invoice created by the customer in respect of supplies made to him by the supplier;

(d)specify that the supplier will notify the customer if he ceases to be a taxable person or if he changes his registration number.

(3C)Without prejudice to any term of a self-billing agreement, it shall be treated as having expired when—

(a)the business of the supplier is transferred as a going concern;

(b)the business of the customer is transferred as a going concern;

(c)the supplier ceases to be registered for VAT.

(3D)In addition to the matters set out in paragraph (3B)—

(a)conditions that must be complied with may be set out in a notice published by the Commissioners;

(b)the Commissioners may impose further conditions in particular cases.

(3E)Where a customer (C) in a member State provides a document to C in respect of a supply of goods to C by a registered person who is identified for the purposes of VAT in Northern Ireland, that document is to be treated as the VAT invoice required to be provided by the supplier under paragraph (1)(b) or (c) if it complies with the conditions set out in paragraph (3A).

(3F)For the purposes of the following, a self-billed invoice will not be treated as issued by the supplier (however the supplier may be described in the provision concerned)—

(a)regulation 84(2)(b)(ii);

(b)regulation 85(1)(b);

(c)regulation 85(2);

(d)regulation 86(1);

(e)regulation 86(2)(b);

(f)regulation 86(3);

(g)regulation 88(1)(b);

(h)regulation 89(b)(ii);

(i)regulation 90(1)(b);

(j)regulation 90(2);

(k)regulation 91;

(l)regulation 92(b);

(m)regulation 93(1)(b);

(n)regulation 94B(6)(a).

(4) Where the person who makes a supply to which regulation 93 relates gives an authenticated receipt containing the particulars required under regulation 14(1) to be specified in a VAT invoice in respect of that supply, that document shall be treated as the VAT invoice required to be provided under paragraph (1)(a) above on condition that no VAT invoice or similar document which was intended to be or could be construed as being a VAT invoice for the supply to which the receipt relates is issued.

(5)With the exception of the supplies referred to in paragraph (6), the documents specified in paragraphs (1), (2), (3) and (4) above shall be provided within 30 days of the time when the supply is treated as taking place under section 6 of the Act, or within such longer period as the Commissioners may allow in general or special directions.

(6)The documents specified in paragraphs (1), (2), (3) and (4) shall—

(a)in the case of a supply of goods falling within paragraph 28(1) of Schedule 9ZB to the Act, be provided by the 15th day of the month following that in which the removal in question takes place; and

(b)in the case of a supply of services falling within regulation 82, be provided by the 15th day of—

(i)the month following the month in which the services are treated as being performed under regulation 82(2),

(ii)the month following the month during which the services are treated as separately and successively made as a result of payments being made under regulation 82(4), or

(iii)the January following the 31st December on which the services are treated as being supplied under regulation 82(6).

(7)Both the supplier and the customer shall ensure the authenticity of the origin, the integrity of the content and the legibility of an invoice for such time as the invoice is required to be preserved.

(8)In this regulation—

(a)“authenticity of the origin” of an invoice means the assurance of either the identity of the supplier of the underlying goods or services or the issuer of that invoice;

(b)“integrity of the content” of an invoice means that the content required by regulation 14 has not been altered.

Electronic invoicing

13A.—(1)This regulation applies where a document is provided by a registered personin any electronic format that purports to be a VATinvoice in respect of a supply of services or relevant goods.

(2)The document is not to be treated as the VATinvoice required to be provided by the supplier under regulation 13(1) unless the use of the electronic invoice is accepted by the customer.

(3)When the document is a self-billed invoice that purports to be a VATinvoice, paragraph (2) applies as if the reference to the supplier is to the customer and the reference to the customer is to the supplier.

(4)In this regulation “electronic invoice” means an invoice that contains the particulars required by regulation 14 and which has been issued and received in any electronic format.

(5)In this regulation, “relevant goods” means all goods other than goods—

(a)the supply of which is deemed to be a supply by an operator of an online marketplace by virtue of section 5A of the Act, or

(b)the place of supply of which is determined by section 7(5B) of the Act.

13B.Where a VATinvoice or part of a VATinvoice is in a language other than English the Commissioners may, by notice in writing, require that an English translation of the invoice is provided to them by a person who has received such an invoice in the United Kingdom within 30 days of the date of the notice.

Contents of VAT invoice

14. —

(1) Subject to paragraph (2) below and regulation 16... and save as the Commissioners may otherwise allow, a registered person providing a VAT invoice in accordance with regulation 13 shall state thereon the following particulars—

(a) a sequential number based on one or more series which uniquely identifies the document ,

(b)the time of the supply,

(c)the date of the issue of the document,

(d)the name, address and registration number of the supplier,

(e)the name and address of the person to whom the goods or services are supplied,

(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(g)a description sufficient to identify the goods or services supplied,

(h)for each description, the quantity of the goods or the extent of the services, and the rate of VAT and the amount payable, excluding VAT, expressed in any currency ,

(i)the gross total amount payable, excluding VAT, expressed in any currency ,

(j)the rate of any cash discount offered,

(k). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(l)the total amount of VAT chargeable, expressed in sterling.

(m)the unit price.

(n)where a margin scheme is applied under section 50A or section 53 of the Act, the reference “margin scheme: works of art”, “margin scheme: antiques or collectors’ items”, “margin scheme: second-hand goods”, or “margin scheme: tour operators” as appropriate,

(o)where a VATinvoice relates in whole or part to a supply where the person supplied is liable to pay the tax, the reference “reverse charge”.

(p)where a VAT invoice relates in whole or in part to a supply falling within Item 1 of Group 22 of Schedule 8 to the Act (free zones), the reference “free zone”.

(2) Save as the Commissioners may otherwise allow, where a registered personwho is identified for the purposes of VAT in Northern Ireland provides a person in another member State with a VATinvoice or any document that refers to a VATinvoice and is intended to amend it, he must ensure that it states thereon the following particulars—

(a)the information specified in sub-paragraphs (a) to (e), (g), (j), (m), (n) and (o) of paragraph (1) above,

(b)the letters “ XI ” as a prefix to his registration number,

(c)the registration number, if any, of the recipient of the supply of goods ... and which registration number, if any, shall contain the alphabetical code of the relevant territory in which that recipient is registered,

(d)the gross amount payable, excluding VAT,

(e)where the supply is of a new means of transport (as defined in paragraph 83 of Schedule 9ZA to the Act) a description sufficient to identify it as such,

(f)for each description, the quantity of the goods ..., and where a positive rate of VAT is chargeable, the rate of VAT and the amount payable, excluding VAT, expressed in sterling, ...

(g)where the supply of goods is a taxable supply, the information as specified in sub-paragraph (l) of paragraph (1) above , and

(h)where the supply is an exempt or zero-rated supply, a relevant reference or any indication that the supply is exempt or zero-rated as appropriate.

(3) Where a taxable supply takes place as described in section 6(2)(c) or section 6(5) of the Act, any consignment or delivery note or similar document or any copy thereof issued by the supplier before the time of supply shall not, notwithstanding that it may contain all the particulars set out in paragraph (1) above, be treated as a VAT invoice provided it is endorsed “This is not a VAT invoice”.

(4) Where a registered person provides an invoice containing the particulars specified in paragraphs (1) and (3) above, and specifies thereon any goods or services which are the subject of an exempt or zero-rated supply, he shall distinguish on the invoice between the goods or services which are the subject of an exempt, zero-rated or other supply and state separately the gross total amount payable in respect of each supply and rate.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)Where a registered person provides a VATinvoice relating in whole or in part to a supply of the letting on hire of a motor car other than for self-drive hire, he shall state on the invoice whether that motor car is a qualifying vehicle under article 7(2A) of the Value Added Tax (Input Tax) Order 1992.

(7)Where a registered person provides documents in batches to the same recipient in any electronic format that purport to be VATinvoices in respect of supplies of goods or services made to, or received by, him, as an exception to the requirements in regulation 14(1) and 14(2), details common to each such document need only be stated once for each batch file.

(8)In this regulation, a “relevant reference” is—

(a)a reference to the appropriate provision of Council Directive 2006/112/EC, or

(b)a reference to the corresponding provision of the Act.

Change of rate, credit notes

15.—(1) Where there is a change in the rate of VAT in force under section 2 or 29A of the Act or in the descriptions of exempt , zero-rated or reduced-ratesupplies, and a VAT invoice which relates to a relevantsupply in respect of which an election is made under section 88 of the Act was issued before the election was made, the person making the supply shall, within 45 days after any such change or within such longer period as the Commissioners may allow in general or special , provide the person to whom the supply was made with a credit note headed “Credit note-change of VAT rate” and containing the following particulars—

(a)the identifying number and date of issue of the credit note,

(b)the name, address and registration number of the supplier,

(c)the name and address of the person to whom the supply is made,

(d)the identifying number and date of issue of the VAT invoice,

(e)a description sufficient to identify the goods or services supplied, and

(f)the amount being credited in respect of VAT.

(2)In this regulation, “relevant supply” means a supply of goods or services other than a supply of goods to a person who is not a taxable person.

Change of rate, supplementary charge invoices

15A.Where a supplementary charge is due under Schedule 3 to the Finance Act 2009or Schedule 2 to the Finance (No. 2) Act 2010 in respect of a supply and a VATinvoice has been issued in relation to that supply which invoice does not include the supplementary charge, the person making the supply shall, within 45 days after the date when the supplementary charge becomes due, provide the person to whom the supply is made with an invoice headed “Supplementary charge invoice” and containing the following particulars—

(a)the identifying number and date of issue of the supplementary charge invoice,

(b)the amount of the supplementary charge to VAT,

(c)the name, address and registration number of the supplier,

(d)the name and address of the person to whom the supply is made, and

(e)the identifying number and date of issue of the VATinvoice.

Change of liability: anti-forestalling invoices

15B.—(1)Where—

(a)an anti-forestalling charge is due under Schedule 27 to the Finance Act 2012 in relation to any supply,

(b)the person making the supply (“the supplier”) would have been required to provide the person to whom the supply is made (“the recipient”) with a VATinvoice under regulation 13 in respect of the supply at the time it was made had the supply been subject to the standard rate of VAT at that time, and

(c)where the supply has been included in a VATinvoice, the supplier has not included the anti-forestalling charge in that VATinvoice,

the supplier shall, within 45 days after the date when the anti-forestalling charge becomes due, provide the recipient with an invoice headed “Anti-forestalling charge invoice” and containing the particulars specified in paragraph (2) or (3) as appropriate.

(2)Where the supply has not been included in a VATinvoice, the particulars are the particulars required in regulation 14.

(3)Where the supply has been included in a VATinvoice which does not include the anti-forestalling charge, the particulars are—

(a)the identifying number and date of issue of the anti-forestalling charge invoice,

(b)the amount of the anti-forestalling charge to VAT,

(c)the name, address and registration number of the supplier,

(d)the name and address of the recipient, and

(e)the identifying number and date of issue of the VATinvoice in which the supply was previously included.

Changes in consideration: debit notes and credit notes

15C.—(1)This regulation applies to increases and decreases in consideration as described in regulation 24A , subject to paragraph (1A).

(1A)This regulation does not apply in relation to a case where the original supply was a supply of goods to a person who was not a taxable person.

(2)Where there is an increase in consideration, the supplier must, no later than the end of the period of 14 days beginning with the day on which the increase occurs, provide to the recipient of the supply a debit note as specified in paragraph (3).

(3)For the purposes of this regulation, a “debit note” is a document which includes the following particulars—

(a)the identifying number of the document,

(b)the date of issue of the document,

(c)the name, address and registration number of the supplier,

(d)the name and address of the recipient of the supply,

(e)the identifying number and date of issue of the VAT invoice or invoices relating to the supply for which there is an increase in consideration,

(f)a description sufficient to identify the goods or services supplied,

(g)the amount of the increase in consideration excluding VAT,

(h)the rate and the amount (expressed in sterling) of the VAT chargeable in respect of the increase in consideration.

(4)The requirement in paragraph (2) to provide a debit note does not apply in cases where, in relation to the increase in consideration, a document having the same purpose as a debit note has been provided by the supplier to the recipient of the supply before 1st September 2019.

(5)Where there is a decrease in consideration, the supplier must, no later than the end of the period of 14 days beginning with the day on which the decrease occurs, provide to the recipient of the supply a credit note as specified in paragraph (6).

(6)For the purposes of this regulation, a “credit note” is a document which includes the following particulars—

(a)the identifying number of the document,

(b)the date of issue of the document,

(c)the name, address and registration number of the supplier,

(d)the name and address of the recipient of the supply,

(e)the identifying number and date of issue of the VAT invoice or invoices relating to the supply for which there is a decrease in consideration,

(f)a description sufficient to identify the goods or services supplied,

(g)the amount of the decrease in consideration excluding VAT,

(h)the rate and the amount (expressed in sterling) of the VAT credited in respect of the decrease in consideration.

(7)The requirement in paragraph (5) to provide a credit note does not apply in cases where, in relation to the decrease in consideration, a document having the same purpose as a credit note has been provided by the supplier to the recipient of the supply before 1st September 2019.

(8)In cases where a supplier was not required by these regulations to provide a VAT invoice in relation to the original supply, the requirement in paragraph (2) to provide a debit note and the requirement in paragraph (5) to provide a credit note do not apply unless the recipient of the supply is a taxable person and requests a debit note or a credit note (as the case may be) from the supplier.

(9)Where a request described in paragraph (8) has been made—

(a)the period specified in paragraph (2) or (5) (as the case may be) begins with the day on which the request is made; and

(b)paragraph (3)(e) or (6)(e) (as the case may be) does not apply.

(10)In relation to any increase or decrease in consideration for supplies to which regulation 16A applies, paragraph (3)(a), (d) and (e) or (6)(a), (d) and (e) (as the case may be) does not apply.

(11)Where there is a decrease in consideration to which regulation 38ZA applies—

(a)paragraphs (5) to (10) do not apply; and

(b)if the final consumer requests an accounting document in relation to the decrease in consideration, the first supplier must, no later than the end of the period of 14 days beginning with the day on which the request is made, provide to the final consumer a document which includes the following particulars—

(i)the date of issue of the document,

(ii)the name, address and registration number of the person issuing the document,

(iii)a description sufficient to identify the goods supplied,

(iv)the amount of the decrease in consideration excluding VAT,

(v)the rate and the amount (expressed in sterling) of the VAT credited in respect of the decrease in consideration.

(12)Where the recipient of the supply or, in cases where it is applicable, the final consumer agrees, the documents described in paragraphs (3), (6) and (11)(b) may be provided in electronic format.

(13)For the purposes of this regulation—

(a)an increase or decrease in consideration occurs at the time specified in regulation 24B; and

(b)“final consumer” and “first supplier” have the meanings given by regulation 38ZA(2).

(14)The Commissioners may, in such cases as they think fit, dispense with or relax the requirements in this regulation in such manner as they think fit.

Retailers' invoices

16. —

(1) Subject to paragraph (2) below, a registered person who is a retailer shall not be required to provide a VAT invoice, except that he shall provide such an invoice at the request of a customer who is a taxable person in respect of any supply to him; but, in that event, if, but only if, the consideration for the supply does not exceed £250 and , where the retailer is identified for the purposes of VAT in Northern Ireland, the supply is other than to a person in another member State, the VAT invoice need contain only the following particulars—

(a)the name, address and registration number of the retailer,

(b)the time of the supply,

(c)a description sufficient to identify the goods or services supplied,

(d)the total amount payable including VAT, and

(e)for each rate of VAT chargeable, the gross amount payable including VAT, and the VAT rate applicable.

(2) Where a registered person provides an invoice in accordance with this regulation, the invoice shall not contain any reference to any exempt supply.

Simplified invoices

16A.In any case where the consideration for a supply does not exceed £250 and , where the registered person is identified for the purposes of VAT in Northern Ireland, the supply is other than to a person in another member State, the VATinvoice that a registered person is required to provide need contain only the following particulars—

(a)the name, address and registration number of the supplier;

(b)the time of the supply;

(c)a description sufficient to identify the goods or services supplied;

(d)the total amount payable including VAT; and

(e)for each rate of VAT chargeable, the gross amount payable including VAT, and the VAT rate applicable.

Retailers' and simplified invoices: exceptions

16BRegulations 16 and 16A do not apply in relation to a supply of goods if—

(a)that supply is deemed to be a supply by an operator of an online marketplace by virtue of section 5A of the Act, or

(b)the place of supply of those goods is determined by section 7(5B) of the Act.

Paragraph 6(9) of Schedule 9ZA supplies to persons belonging in other member States

17. —

(1) Where a registered person makes a supply such as is mentioned in paragraph 6(9) of Schedule 9ZA to the Act he shall provide the person supplied with an invoice in respect of that supply.

(2)An invoice provided under this regulation shall comply with the requirements of regulations 13 and 14.

Paragraph 6(2) of Schedule 9ZA supplies by intermediate suppliers

18. —

(1) On each occasion that an intermediate supplier makes or intends to make a supply to which he wishes paragraph 6(2) of Schedule 9ZA to the Act to apply he shall, subject to paragraph (3) below, provide the customer with an invoice.

(2) An invoice provided under this regulation by an intermediate supplier shall—

(a)comply with the provisions of the law corresponding, in relation to the member State which provided the intermediate supplier with the identification number for VAT purposes used or to be used by him for the purpose of the supply to him by the original supplier of the goods which were subsequently removed to the United Kingdom, to regulation 17,

(b)be provided no later than 15 days after the time that the supply of the goods would, but for paragraph 6(2) of Schedule 9ZA to the Act, have been treated as having taken place by or under section 6 of the Act,

(c)cover no less than the extent of the supply which would, but for paragraph 6(2) of Schedule 9ZA to the Act, have been treated as having taken place by or under section 6 of the Act at the time that such an invoice is provided, ...

(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Where an intermediate supplier makes a supply such as is mentioned in paragraph (1) above, and he has already provided the customer with an invoice that complies with the requirements of sub-paragraphs (a), (c) and (d) of paragraph (2) above, he shall not be required to provide the customer with a further invoice in relation to that supply.

(4) Where an intermediate supplier makes a supply such as is mentioned in paragraph (1) above and he provides the customer with an invoice such as is described in paragraphs (2) and (3) above, that invoice shall be treated as if it were an invoice for the purpose of regulation 83.

(5) Where an intermediate supplier makes a supply such as is mentioned in paragraph (1) above and he provides the customer with an invoice that complies only with the requirements of paragraph (2)(a) above, that invoice shall, for the purposes of this regulation only, be treated as if it were a VAT invoice.

Paragraph 6(3) of Schedule 9ZA supplies by persons belonging in other member States

19. —

(1) On each occasion that a person belonging in another member State makes or intends to make a supply to which he wishes paragraph 6(3) of Schedule 9ZA to the Act to apply he shall, subject to paragraph (3) below, provide the registered person with an invoice.

(2) An invoice provided under this regulation by a person belonging in another member State shall—

(a)comply with the provisions of the law of the member State in which he belongs corresponding in relation to that member State to the provisions of regulation 14,

(b)be provided no later than 15 days after the time that the supply of the goods would, but for paragraph 6(3) of Schedule 9ZA to the Act, have been treated as having taken place by or under section 6 of the Act,

(c)cover no less than the extent of the supply which would, but for paragraph 6(3) of Schedule 9ZA to the Act, have been treated as having taken place by or under section 6 of the Act at the time that such an invoice is provided, ...

(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Where a person belonging in another member State makes a supply such as is mentioned in paragraph (1) above, and he has already provided the registered person with an invoice that complies with the requirements of sub-paragraphs (a), (c) and (d) of paragraph (2) above, he shall not be required to provide the registered person with a further invoice in relation to that supply.

(4) Where a person belonging in another member State makes a supply such as is mentioned in paragraph (1) above and he provides the registered person with an invoice such as is described in paragraphs (2) and (3) above, that invoice shall be treated as if it were an invoice for the purpose of regulation 83.

(5) Where a person belonging in another member State makes a supply such as is mentioned in paragraph (1) above, and he provides the registered person with an invoice that complies only with the requirements of paragraph (2)(a) above, that invoice shall, for the purposes of this regulation only, be treated as if it were a VAT invoice.

General

20.Regulations 13, 14, 15, 16, 17, 18 and 19 shall not apply to the following supplies made in the United Kingdom—

(a)any zero-rated supply other than a supply for the purposes of an acquisition in another member State,

(b)any supply to which an order made under section 25(7) of the Act applies,

(c)any supply on which VAT is charged although it is not made for consideration, or

(d)any supply to which an order made under section 32 of the Act applies.

PART IV EC SALES STATEMENTS

Interpretation of Part IV

21.—(1)In this Part—

...

...

“first relevant figure” means, up to and including 31st December 2011, £70,000 excluding VAT and thereafter £35,000 excluding VAT;

“new means of transport” has the same meaning as in paragraph 83(1) and (2) of Schedule 9ZA to the Act

“NMT supply of goods” means a supply falling within regulation 22C(1) and “NMT supplies of goods” shall be construed accordingly;

“registered in a member State” means registered in accordance with the measures adopted by the competent authority in a member State for the purposes of the EU common system of VAT and “registered in that member State”, “registered in another member State” and “registered in member States” shall be construed accordingly;

...

“relevant supply of goods” means a supply falling within regulation 22(1) and “relevant supplies of goods” shall be construed accordingly;

“second relevant figure” means the sum of the amount mentioned in paragraph 1(1)(a) of Schedule 1 to the Act as that paragraph has effect from time to time and £25,500;

“supply of goods” does not include either a supply of gas supplied through the natural gas distribution network or a supply of electricity;

“value” in the phrases “value of relevant supplies”, “value of the taxable person's taxable supplies” and “value of the taxable person's supplies” means the consideration for the supplies and includes the costs of any freight transport services and services ancillary to the transport of the goods charged by the supplier to the customer;

(1A)For the purposes of this Part—

(a)goods are removed from Northern Ireland under call-off stock arrangements if they are removed in circumstances where the conditions in paragraphs (a) to (g) of paragraph 57(1) of Schedule 9ZA to the Act are met,

(b)references to “the customer” or “the destination territory”, in relation to goods removed from Northern Ireland under call-off stock arrangements, are to be construed in accordance with Part 10 of Schedule 9ZA to the Act, and

(c)“call-off stock goods”, in relation to a taxable person, means goods that have been removed from Northern Ireland under call-off stock arrangements by or under the directions of the taxable person.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Submission of statements

22.—(1)Every taxable personwho is identified for the purposes of VAT in Northern Ireland who makes a supply of goods—

(a)to a person who, at the time of the supply, was registered in a member State and those goods were dispatched or transported to that or a different member State, or

(b)to which paragraph 6(9) of Schedule 9ZA to the Act applies, or

(c)which falls within paragraph 30 of Schedule 9ZB to the Act to a person who, at the time of the supply, was registered in another member State,

shall submit a statement to the Commissioners.

(2)The statement shall—

(a)be made in the form specified in a notice published by the Commissioners,

(b)contain, in respect of the relevantsupplies of goods which have been made within the period in respect of which the statement is made, such information as the Commissioners shall from time to time prescribe, and

(c)contain a declaration that the information provided in the statement is true and complete.

(3)(a)Subject to paragraphs (4) to (6) below, the statement shall be submitted in respect of the month in which the relevantsupply of goods is made.

(b)Where during the period specified in sub-paragraph (a) above the taxable person (A)—

(i)ceases to be registered under Schedule 1 to the Act, and

(ii)no other person has been registered with the registration number of and in substitution for A,

the last day of that period is to be treated as being the same date as the effective date of A’s deregistration.

(4)(a)This sub-paragraph applies where, in each of the four quarters preceding the quarter in which the supply is made (“the relevant quarter”), the total value of relevantsupplies of goods made by the taxable person (A) did not exceed the first relevant figure.

(b)This sub-paragraph applies where, in the relevant quarter, the total value of relevantsupplies of goods made by A did not exceed the first relevant figure.

(c)Where sub-paragraphs (a) and (b) above apply, A may submit the statement in respect of the relevant quarter.

(d)Where –

(i)sub-paragraph (a) above applies, and

(ii)sub-paragraph (b) above does not apply,

A may submit a statement in respect of the period beginning with the first day of the relevant quarter and ending on the last day of the month in which the total value of relevantsupplies of goods made by A in that quarter first exceeded the relevant figure.

(e)Where during the relevant quarter specified in sub-paragraph (c) above A—

(i)ceases to be registered under Schedule 1 to the Act, and

(ii)no other person has been registered with the registration number of and in substitution for A,

the last day of that period is to be treated as being the same date as the effective date of A’s deregistration.

(5)(a)A statement may be submitted in respect of the year mentioned in sub-paragraphs (i) to (iv) below provided that the taxable person making the statement (A) has not, during that year, made a supply of a new means of transportthat involved the removal of those goods from Northern Ireland to a member State and the Commissioners are satisfied either that—

(i)at the end of any month, the value of A’s taxable supplies in the period of one year then ending is less than the second relevant figure, or

(ii)at any time there are reasonable grounds for believing that the value of A’s taxable supplies in the period of one year beginning at that or any later time will not exceed the second relevant figure,

and either that—

(iii)at the end of any month, the value of A’s supplies to persons registered in other member States in the period of one year then ending is less than £11,000, or

(iv)at any time, there are reasonable grounds for believing that the value of A’s supplies to persons registered in other member States in the period of one year beginning at that or any later time will not exceed £11,000.

(b)Where during a period specified in sub-paragraph (a) above A—

(i)ceases to be registered under Schedule 1 to the Act, and

(ii)no other person has been registered with the registration number of and in substitution for A,

the last day of that period is to be treated as being the same date as the effective date of A’s deregistration.

(6)A taxable person (A) who is permitted under regulation 25 to make a return in respect of a period longer than 3 months may submit a statement under paragraph (1) above in respect of a period identical to the period permitted for the making of the return provided that A has not, during that period, made a supply of a new means of transportthat involved the removal of those goods from Northern Ireland to a member State and the Commissioners are satisfied either that—

(a)at the end of any month, the value of A’s taxable supplies in the period of one year then ending is less than £145,000, or

(b)at any time, there are reasonable grounds for believing that the value of A’s taxable supplies in the period of one year beginning at that or any later time will not exceed £145,000,

and either that—

(c)at the end of any month, the value of A’s supplies to persons registered in other member States in the period of one year then ending is less than £11,000, or

(d)at any time, there are reasonable grounds for believing that the value of A’s supplies to persons registered in other member States in the period of one year beginning at that or any later time will not exceed £11,000.

22ZZA.—(1)A taxable person must submit a statement to the Commissioners if any of the following events occurs—

(a)goods are removed from Northern Ireland under call-off stock arrangements by or under the directions of the taxable person;

(b)call-off stock goods are returned to Northern Ireland by or under the directions of the taxable person at any time during the period of 12 months beginning with their arrival in the destination territory;

(c)the taxable person forms an intention to supplycall-off stock goods to a person (“the substitute”) other than the customer in circumstances where—

(i)the taxable person forms that intention during the period of 12 months beginning with the arrival of the goods in the destination territory, and

(ii)the substitute is identified for VAT purposes in accordance with the law of the destination territory.

(2)The statement must—

(a)be made in the form specified in a notice published by the Commissioners,

(b)contain, in respect of each event mentioned in paragraph (1) which has occurred within the period in respect of which the statement is made, such information as may from time to time be specified in a notice published by the Commissioners, and

(c)contain a declaration that the information provided in the statement is true and complete.

(3)Paragraphs (3), (4) and (6) of regulation 22 have effect for the purpose of determining the period in respect of which the statement must be made, but as if—

(a)in paragraph (3)(a) of that regulation—

(i)for “paragraphs (4) to (6)” there were substituted “ paragraphs (4) and (6) ”, and

(ii)for “the relevant supply of goods is made” there were substituted “ the event occurs ”;

(c)in paragraph (4)(a) of that regulation, for “the supply is made” there were substituted “ the event occurs ”, and

(d)in paragraph (6) of that regulation, the reference to paragraph (1) were a reference to paragraph (1) of this regulation.

(4)In determining the period in respect of which the statement must be made, the time at which an event mentioned in paragraph (1)(a) of this regulation is to be taken to occur is the time the goods concerned are removed from Northern Ireland rather than the time the condition mentioned in paragraph (g) of paragraph 57(1) to Schedule 9ZA to the Act is met in respect of the removal.

22ZA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22A.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22B.—(1)Where statements are to be submitted under regulation 22 and 22ZZA in respect of periods ending on the same day, the statements may be submitted on a single form.

(2)A taxable person may submit a statement under regulation22 or 22ZZA on paper or on-line using an electronic portal provided by the Commissioners for that purpose.

(3)A taxable person who is required to submit a statement under regulation22 or 22ZZA must do so—

(a)where the statement is submitted on-line, not later than 21 days from the end of the period to which the statement relates,

(b)in every other case, not later than 14 days from the end of the period to which the statement relates.

22C.—(1)Every taxable person who in any quarter makes a supply of a new means of transportwhich involves the removal of those goods from Northern Ireland to a member State to a person (“the acquirer”)—

(a)for the purposes of acquisition by that acquirer in another member State, and

(b)where the acquirer is not, at the time of the acquisition, registered in that member State,

shall submit a statement to the Commissioners.

(a)(2)(a)The statement shall be submitted in respect of the quarter in which the NMT supply of goods is made.

(b)Where during the period mentioned in sub-paragraph (a) above the taxable person (A)—

(i)ceases to be registered under Schedule 1 to the Act, and

(ii)no other person has been registered with the registration number of and in substitution for A,

the last day of that period is to be treated as being the same date as the effective date of A’s deregistration.

(3)The statement shall—

(a)be made in the form specified in a notice published by the Commissioners,

(b)contain, in respect of the NMT supplies of goods which have been made within the period in respect of which the statement is made, such information as the Commissioners shall from time to time prescribe,

(c)contain a declaration that the information provided in the statement is true and complete, and

(d)be submitted within 42 days of the end of the period to which it relates.

Final statements

23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 4AREVERSE CHARGE SALES STATEMENTS

Interpretation of Part 4A

23A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notification of first relevant supply

23B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Submission of Statements

23C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notification of cessation and recommencement of relevant supplies

23D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART4BPROVISION OF INFORMATION RELATING TO ARRIVALS AND DISPATCHES

Interpretation of Part 4B

23E.—(1)In this Part—

“establishing Regulation” means the Council and European Parliament Regulation(EC) No. 638/2004;

“implementing Regulation” means the Commission Regulation (EC) No. 1982/20044);

“statistics Regulations” means the Statistics of Trade (Customs and Excise) Regulations 1992(5);

(2)In this Part—

“arrivals and dispatches” means those arrivals and dispatches for which a responsible party is required to provide information under the establishing Regulation, implementing Regulation and the statistics Regulations;

“for Intrastat purposes” means for any purpose under the establishing Regulation, implementing Regulation or the statistics Regulations;

“reference period” means the period applicable under Article 6(1) of the establishing Regulation or such other period directed by the Commissioners pursuant to regulation 4(3) of the statistics Regulations;

“responsible party” means a taxable person who is required by Article 7 of the establishing Regulation and regulation 3 of the statistics Regulations to provide information in relation to arrivals and dispatches;

“supplementary declaration” means the relevant form set out in the Schedule to the statistics Regulations;

“delivery terms”, “nature of the transaction”, “partner Member State”, “quantity of the goods” and “value of the goods” shall have the same meaning as in the establishing Regulation and implementing Regulation.

23F.—(1)A responsible party shall provide the information in paragraph (2) relating to arrivals and dispatches to the Commissioners.

(2)The information is—

(a)the registration number of the responsible party,

(b)the reference period,

(c)whether the information relates to arrival or dispatch,

(d)the commodity, identified by the eight digit code of the Combined Nomenclature as defined in Council Regulation (EEC) No.2658/87 of 23 July 1987(6) as amended on the tariff and statistical nomenclature and the Common Customs Tariff,

(e)the partner Member State,

(f)the value of the goods,

(g)the quantity of the goods,

(h)the nature of the transaction.

(3)A responsible party to whom regulation 4(2) of the statistics Regulations applies shall also provide the delivery terms relating to arrivals and dispatches to the Commissioners.

(4)The information required by paragraphs (2) and (3) shall be provided in the supplementary declaration in which, and for the same reference period as, information is provided relating to those arrivals and dispatchesfor Intrastat purposes.

PART VACCOUNTING, PAYMENT AND RECORDS

Interpretation of Part V

24. In this Part—

“API platform” means the application programming interface that enables electronic communication with HMRC, as specified by the Commissioners in a specific or general direction;

“functional compatible software” means a software program or set of compatible software programs the functions of which include—

...

“insolvent person” means—

“investment gold” has the same meaning as that expression has for the purposes of Group 15 of Schedule 9 to the Act;

“negative entry” means an amount entered into the VAT account as a negative amount;

“positive entry” means an amount entered into the VAT account as a positive amount;

“VAT allowable portion”, “VAT payable portion” and “VAT account” have the meanings given in regulation32 ;

“the Removal Order” means the Value Added Tax (Removal of Goods) Order 1992(5);

“the owner” has the same meaning as in article 2 of the Removal Order.

24A.For the purposes of this Part—

(a)an increase in consideration is an increase in the consideration for a supply made by a taxable person in respect of which the recipient of the supply or another person acting on behalf of, or pursuant to an arrangement with, the recipient of the supplypays or becomes liable to pay the amount of the increase to the supplier;

(b)a decrease in consideration is a decrease in the consideration for a supply made by a taxable person in respect of which the supplierpays the amount of the decrease to the recipient of the supply or to any other person entitled to receive the payment;

(c)where there is a decrease in consideration in respect of which the supplier makes a part payment on account to the recipient of the supply (or to any other person entitled to receive the part payment)—

(i)the decrease is to be treated as a decrease in consideration only to the extent covered by the part payment; and

(ii)each part payment on account is to be treated as being made in relation to a separate decrease in consideration.

24B.For the purposes of this Part—

(a)an increase in consideration occurs when it is agreed by the supplier and the recipient of the supply; and

(b)a decrease in consideration occurs when the supplierpays the amount of the decrease to the recipient of the supply or to any other person who is entitled to receive the payment.

24C.—(1)For the purposes of regulations 24A and 24B, “payment”—

(a)means a payment in money and “pay” and “pays” are to be construed accordingly; and

(b)includes cases where a person—

(i)sets off an amount against a corresponding monetary liability of another person; or

(ii)makes a “relevant payment” as defined in regulation 38ZA(2).

(2)For the purposes of applying regulation 38ZA, the reference in regulation 24A(b) and (c) and in regulation 24B(b) to—

(a)“the supplier” includes a reference to the “first supplier” as defined in regulation 38ZA(2); and

(b)“the recipient of the supply” includes a reference to the “final consumer” as defined in regulation 38ZA(2).

Making of returns

25. —

(1) Every person who is registered or was or is required to be registered shall, in respect of every period of a quarter or in the case of a person who is registered, every period of 3 months ending on the dates notified either in the certificate of registration issued to him or otherwise, not later than the last day of the month next following the end of the period to which it relates, make to the Controller a returnin the manner prescribed in regulation 25A showing the amount of VAT payable by or to him and containing full information in respect of the other matters specified in the form and a declaration, signed by that person or by a person authorised to sign on that person’s behalf , that the return is correct and complete;

provided that—

(a)the Commissioners may allow or direct a person to make returns in respect of periods of one month and to make those returns within one month of the periods to which they relate;

(b)the first return shall be for the period which includes the effective date determined in accordance with Schedules 1, 1A,3A, Parts 8 and 9 of Schedule 9ZA and Scheduleand 9ZC to the Act upon which the person was or should have been registered, and the said period shall begin on that date;

(c)where the Commissioners consider it necessary in any particular case to vary the length of any period or the date on which any period begins or ends or by which any return shall be made, they may allow or direct any person to make returns accordingly, whether or not the period so varied has ended;

(d)where the Commissioners consider it necessary in any particular case, they may allow or direct a person to make returns to a specified address.

(2) Any person to whom the Commissioners give any direction in pursuance of the proviso to paragraph (1) above shall comply therewith.

(3) Where for the purposes of this Part the Commissioners have made a requirement of any person pursuant to regulation 30—

(a)the period in respect of which taxable supplies were being made by the person who died or became incapacitated shall end on the day previous to the date when death or incapacity took place; and

(b)subject to sub-paragraph (1)(c) above, a return made on his behalf shall be made in respect of that period no later than the last day of the month next following the end of that period; and

(c)the next period shall start on the day following the aforesaid period and it shall end, and all subsequent periods shall begin and end, on the dates previously determined under paragraph (1) above.

(4) Any person who—

(a)ceases to be liable to be registered, or

(b)ceases to be entitled to be registered under either or both of paragraphs 9 and 10 of Schedule 1 , paragraph 41 or 51 of Schedule 9ZAor Schedule 9ZC to the Act,

shall, unless another person has been registered with his registration number in substitution for him under regulation 6, make to the Controller a final returnin the manner prescribed in regulation 25A and any such return shall contain full information in respect of the matters specified in the form and a declaration, signed by that person or by a person authorised to sign on that person’s behalf , that the return is correct and complete and shall be made, in the case of a person who was or is registered, within one month of the effective date for cancellation of his registration, and in the case of any other person, within one month of the date upon which he ceases to be liable to be registered, and in either case shall be in respect of the final period ending on the date aforementioned and be in substitution for the return for the period in which such date occurs.

(4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4E) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4F) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4G) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4H) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4I) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4J) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4K) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4L) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4M) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) The Commissioners may allow VAT chargeable in any period to be treated as being chargeable in such later period as they may specify.

25A.—(A1)Where a person makes a return required by regulation 25 by means of electronic communications using functional compatible software, such a method of making a return shall be referred to in this Part as a “compatible software return system”.

(1)Where a person makes a return required by regulation 25 using electronic communications other than functional compatible software, such a method of making a return shall be referred to in this Part as an “electronic return system”.

(2)Where a person makes a returnor a final return on the relevant form specified in a notice published by the Commissioners, such a method of making a return shall be referred to in this Part as a “paper return system”.

(2A)A person who is subject to the requirements of regulation 32A, including by virtue of an election in accordance with regulation 32C, must make a return required by regulation 25 using a compatible software return system.

(3)Subject to paragraphs (2A) above and (6) below, a person who is registered for VAT must make a return required by regulation 25 using an electronic return systemthat that person is required or authorised to use whether or not such a person is registered in substitution for another person under regulation 6 (transfer of a going concern).

(4)In any case where an electronic return systemor a compatible software return system is not used, a return must be made using a paper return system.

(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)... A person—

(a)who the Commissioners are satisfied is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications, or

(b)to whom an insolvency procedure as described in any of paragraphs (a) to (f) of section 81(4B) of the Act is applied ... , or

(c)for whom the Commissioners are satisfied that it is not reasonably practicable to make a return using an electronic return system (including any electronic return system that that person is authorised to use) for reasons of disability, age, remoteness of location or any other reason

is not required to make a return required by regulation 25 using an electronic return system.

(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8)Where an electronic return systemor a compatible software return system is used, it must take a form approved by the Commissioners in a specific or general direction.

(9)Where a paper return system is used, a return required by regulation 25(1) or 25(4) must be made on the relevant form specified in a notice published by the Commissioners.

(10)A direction under paragraph (8) above may in particular—

(a)modify or dispense with any requirement of the relevant form specified in a notice published by the Commissioners,

(b)specify circumstances in which the electronic return systemor a compatible software return system may be used, or not used, by or on behalf of the person required to make the return,

(c)approve telephone filing as a form of electronic return system for use by specified categories of persons.

For the purposes of sub-paragraph (b), the direction may specify different circumstances for different cases.

(11)An electronic return systemor a compatible software return system shall incorporate an electronic validation process.

(12)Subject to paragraph (13) below and unless the contrary is presumed—

(a)the use of an electronic return systemor a compatible software return system shall be proved to have resulted in the making of the return to the Controller only if this has been successfully recorded as such by the relevant electronic validation process,

(b)the time of making the return to the Controller using an electronic return systemor a compatible software return system shall be ... presumed to be the time recorded as such by the relevant electronic validation process, and

(c)the person delivering the return to the Controller shall be presumed to be the person identified as such by any relevant feature of the electronic return systemor a compatible software return system.

(13)No return shall be treated as having been made using an electronic return systemor a compatible software return system unless it is in the form required by paragraph (8) above.

The requirement in paragraph (8) above incorporates the matters mentioned in paragraph (10) above.

(14)A return made using an electronic return systemor a compatible software return system carries the same consequences as a return made using a paper return system, except in relation to any matter for which alternative or additional provision is made by or under this regulation.

(15)Subject to paragraph (15A) in relation to returns made for prescribed accounting periods which end on or after 31 March 2011, a ... person who fails to comply with paragraph (2A) or (3) above is liable to a penalty.

(15A)A person who—

(a)on 31 March 2012 was registered for VAT with an effective date of registration before that date,

(b)was not as at 31 March 2012 required to make a return required by regulation 25 using an electronic return system, and

(c)fails to comply with paragraph (3),

is only liable to a penalty in relation to returns made for prescribed accounting periods which end on or after 31 March 2013.

(16)But a ... person who has a reasonable excuse for so failing to comply is not liable to a penalty.

(17)The table below sets out the penalties depending on the level of turnover.

(18)A person may appeal against the Commissioners’ decision to impose a penalty only on the ground that—

(a)that person is not a person required to make a return required by regulation 25 using an electronic return systemor a compatible software return system,

(b)the amount of the penalty is incorrect,

(c)paragraph (3) above was complied with, or

(d)paragraph (16) above applies.

(19)In calculating a person’s annual VAT exclusive turnover for the purposes of ... the table in paragraph (17) above, the Commissioners shall use any available figures which they determine to be fair and reasonable in the circumstances and such figures shall be taken to be the correct figures for the purposes of the calculation.

(20)Additional time is allowed to make—

(a)a return using an electronic return system, a compatible software return system or a paper return system for which any related payment is made solely by means of electronic communications (see regulation 25(1) – time for making return, and regulations 40(2) to 40(4) – payment of VAT), or

(b)a return using an electronic return systemor a compatible software return system for which no payment is required to be made.

That additional time is only as the Commissioners may allow in a specific or general direction, and such a direction may allow different times for different means of payment.

The Commissioners need not give a direction pursuant to this paragraph.

(21)Where a corporate body is registered in the names of its divisions pursuant to section 46(1) of the Act, each such separately registered division is “a person” for the purposes of paragraphs ... (12) and (19) above.

(22)In this regulation—

(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)a reference to an appeal is a reference to an appeal made under section 83(1)(zc) of the Act,

(c)“reasonable excuse” shall have the same limitation as it does in section 71(1)(b) of the Act.

(23)In paragraphs (8) and (20) above “direction” and “direct” refer only to a current direction, and a direction is not current to the extent that it is varied, replaced or revoked by another Commissioners’ direction.

Accounting for VAT on an acquisition by reference to the value shown on an invoice

26. Where the time of the acquisition of any goods from another member State is determined by reference to the issue of an invoice such as is described in regulation 83, VAT shall be accounted for and paid in respect of the acquisition only on so much of its value as is shown on that invoice.

Supplies under Schedule 4, paragraph 7

27. Where goods are deemed to be supplied by a taxable person by virtue of paragraph 7 of Schedule 4 to the Act, the auctioneer on a sale by auction or, where the sale is otherwise than by auction, the person selling the goods, shall, whether or not registered under the Act, within 21 days of the sale—

(a)furnish to the Controller a statement showing—

(i)his name and address and, if registered, his registration number,

(ii)the name, address and registration number of the person whose goods were sold,

(iii)the date of the sale,

(iv)the description and quantity of goods sold at each rate of VAT, and

(v)the amount for which they were sold and the amount of VAT charged at each rate,

(b)pay the amount of VAT due, and

(c)send to the person whose goods were sold a copy of the statement referred to in sub-paragraph (a) above, and the auctioneer or person selling the goods, as the case may be, and the person whose goods were sold shall exclude the VAT chargeable on that supply of those goods from any return made under these Regulations.

Estimation of output tax

28. Where the Commissioners are satisfied that a person is not able to account for the exact amount of output tax chargeable in any period, he may estimate a part of his output tax for that period, provided that any such estimated amount shall be adjusted and exactly accounted for as VAT chargeable in the next prescribed accounting period or, if the exact amount is still not known and the Commissioners are satisfied that it could not with due diligence be ascertained, in the next but one prescribed accounting period.

Claims for input tax

29. —

(1)Subject to paragraph (1A) below and save as the Commissioners may otherwise allow or direct either generally or specially, a person claiming deduction of input tax under section 25(2) of the Act shall do so on a return made by him for the prescribed accounting period in which the VAT became chargeable save that, where he does not at that time hold the document or invoice required by paragraph (2) below, he shall make his claim on the return for the first prescribed accounting period in which he holds that document or invoice .

(1A)Subject to paragraph (1B) the Commissioners shall not allow or direct a person to make any claim for deduction of input tax in terms such that the deduction would fall to be claimed more than 4 years after the date by which the return for the first prescribed accounting period in which he was entitled to claim that input tax in accordance with paragraph (1) above is required to be made.

(1B)The Commissioners shall not allow or direct a person to make any claim for deduction of input tax where the return for the first prescribed accounting period in which the person was entitled to claim that input tax in accordance with paragraph (1) above was required to be made on or before 31st March 2006.

(2) At the time of claiming deduction of input tax in accordance with paragraph (1) above, a person shall, if the claim is in respect of—

(a)a supply from another taxable person, hold the document which is required to be provided under regulation 13;

(b)a supply under section 8(1) of the Act, hold the relative invoice from the supplier;

(c)an importation of goods, hold a document authenticated or issued by the proper officer, showing the claimant as importer, consignee or owner and showing the amount of VAT charged on the goods;

(d)goods which have been removed from warehouse or Northern Ireland warehouse , hold a document authenticated or issued by the proper officer showing the claimant’s particulars and the amount of VAT charged on the goods;

(e)an acquisition by him from another member State of any goods other than a new means of transport, hold a document required by the authority in that other member State to be issued showing his registration number including the prefix “ XI ”, the registration number of the supplier including the alphabetical code of the member State in which the supplier is registered, the consideration for the supply exclusive of VAT, the date of issue of the document and description sufficient to identify the goods supplied; or

(f)an acquisition by him from another member State of a new means of transport, hold a document required by the authority in that other member State to be issued showing his registration number including the prefix “ XI ”, the registration number of the supplier including the alphabetical code of the member State in which the supplier is registered, the consideration for the supply exclusive of VAT, the date of issue of the document and description sufficient to identify the acquisition as a new means of transport as specified in paragraph 83 of Schedule 9ZA to the Act;

provided that where the Commissioners so direct, either generally or in relation to particular cases or classes of cases, a claimant shall hold or provide such other ... evidence of the charge to VAT as the Commissioners may direct.

(3) Where the Commissioners are satisfied that a person is not able to claim the exact amount of input tax to be deducted by him in any period, he may estimate a part of his input tax for that period, provided that any such estimated amount shall be adjusted and exactly accounted for as VAT deductible in the next prescribed accounting period or, if the exact amount is still not known and the Commissioners are satisfied that it could not with due diligence be ascertained, in the next but one prescribed accounting period.

(4)Nothing in this regulation shall entitle a taxable person to deduct more than once input tax incurred on goods imported or acquired by him or on goods or services supplied to him.

Persons acting in a representative capacity

30. Where any person subject to any requirements under this Part dies or becomes incapacitated and control of his assets passes to another person, being a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting in a representative capacity, that other person shall, if the Commissioners so require and so long as he has such control, comply with these requirements, provided that any requirement to pay VAT shall only apply to that other person to the extent of the assets of the deceased or incapacitated person over which he has control; and save to the extent aforesaid this Part shall apply to such a person, so acting, in the same way as it would have applied to the deceased or incapacitated person had that person not been deceased or incapacitated.

Records

31. —

(1) Every taxable person shall, for the purpose of accounting for VAT, keep the following records—

(a)his business and accounting records,

(b)his VAT account,

(c)copies of all VAT invoices issued by him,

(d)all VAT invoices received by him,

(da)all certificates—

(i)prepared by him relating to acquisitions by him of goods from other member States, or

(ii)given to him relating to supplies by him of goods or services,

provided that, owing to provisions in force which concern fiscal or other warehousing regimes, or Northern Ireland fiscal or other Northern Ireland warehousing regimes, those acquisitions or supplies are either zero-rated or treated for the purposes of the Act as taking place outside the United Kingdom,

(e)documentation received by him relating to acquisitions by him of any goods from other member States,

(f)copy documentation issued by him relating to the transfer, dispatch or transportation of goods by him to other member States,

(g)documentation received by him relating to the transfer, dispatch or transportation of goods by him to other member States,

(h)documentation relating to importations and exportations by him, ...

(i)all documents received in accordance with regulation 15C and copies of such documents provided in accordance with that regulation,

(j)a copy of any self-billing agreement within regulation 13(3A) to which he is a party;

(k)where he is a customer, party to a self-billing agreement within regulation 13(3A), the name, address and VATregistration number of each supplier with whom he has entered into a self-billing agreement.

(l)where the taxable person is subject to the requirements of regulation 32A, the electronic account required by that regulation.

(2) The Commissioners may—

(a)in relation to a trade or business of a description specified by them, or

(b)for the purposes of any scheme established by, or under, Regulations made under the Act,

supplement the list of records required in paragraph (1) above by a notice published by them for that purpose.

(3) Every person who, at a time when he is not a taxable person, acquires in the United Kingdom from another member State any goods which are subject to a duty of excise or consist of a new means of transport shall, for the purposes of accounting for VAT, keep such records with respect to the acquisition as may be specified in any notice published by the Commissioners in pursuance of this regulation.

31A.—(1)This regulation applies where a person—

(a)makes a supply of investment gold of a description falling within item 1 of Group 15 of Schedule 9 to the Act, or

(b)makes a supply of a description falling within item 2 of Group 15 of Schedule 9 to the Act, which subsequently results in the transfer of the possession of the investment gold.

(2)Subject to paragraph (6) below (and save as the Commissioners may otherwise allow in relation to supplies where the value is less than an amount equivalent to £13,000 at a rate specified in any notice published by the Commissioners for the purposes of this regulation) in addition to the requirements upon every taxable person under this Part, a person making a supply of a description falling within paragraph (1) above shall—

(a)without prejudice to regulations 13 and 14, issue an invoice in respect of the supply containing such details as may be specified in a notice published by the Comissioners for the purposes of this regulation;

(b)keep and maintain a record of the supply containing such details as may be specified in a notice published by the Commissioners for the purposes of this regulation;

(c)retain such documents in relation to the supply as may be specified in a notice published by the Commissioners for the purposes of this regulation;

(d)keep and maintain a record of the recipient of the supply containing such particulars pertaining to the recipient as may be specified in a notice published by the Commissioners for the purposes of this regulation;

(e)keep and maintain such other records and documents as may be specified in a notice published by the Commissioners for the purposes of this regulation to allow the proper identification of each recipient of the supply;

(f)notify the Commissioners in writing that he is making such supplies within 28 days of the first supply;

(g)furnish to the Commissioners such information in relation to his making of the supply as may be specified in a notice published by them.

(3)A taxable person shall keep and maintain, together with the account he is required to keep and maintain under regulation 32 below, a record of exempt supplies of a description falling within item 1 or 2 of Group 15 of Schedule 9 to the Act, that he makes to another taxable person.

(4)Where there is a sale of investment gold, which would if that person were supplying investment gold in the course or furtherance of any business, fall within item 1 or 2 of Group 15 of Schedule 9 to the Act, by a person who is not trading in investment gold, to a person who is so trading, the purchaser shall issue on behalf of the seller an invoice containing such particulars as may be set out in a notice published by the Commissioners for the purposes of this regulation and the seller shall sign such form of declaration as may be set out in a notice published by the Commissioners for the purposes of this regulation.

(5)The records required to be kept and the documents required to be retained under paragraphs (1) to (4) above shall be preserved for a minimum period of 6 years.

(6)Paragraphs (2) to (5) above shall not apply to any person in respect of a supply by him of a description falling within item 1 or 2 of Goup 15 of Schedule 9 to the Act the value of which does not exceed £5,000, unless the total value of those supplies to any person over the last 12 months exceeds £10,000.

Preservation of records

31AA—(1)Subject to paragraph (2) the electronic account required to be kept pursuant to regulation 31(1)(l) must be preserved using functional compatible software.

(2)The obligation under paragraph (1) does not apply to a person to whom the requirements of regulation 32A have ceased to apply.

(3)Subject to paragraph (1) the duty to preserve records required to be kept pursuant to regulations 31 and 31A may be discharged by—

(a)preserving them in any form or by any means; or

(b)preserving the information in them by any means,

subject to any conditions or exceptions specified in writing by the Commissioners.

(4)The functional compatible software must take a form approved by the Commissioners in a specific or general direction.

(5)A direction under paragraph (4) may also specify the circumstances in which functional compatible software may be used or not used.

31B.Where a person receives a supply of a description falling within article 31A(1) above that person shall retain the purchase invoice in relation to that supply for a minimum period of 6 years.

31C.Paragraph 10(2) of Schedule 11 to the Act shall apply in relation to supplies of a description falling within items 1 and 2 of Group 15 of Schedule 9 to the Act as it applies in relation to the supply of goods under taxable supplies.

The VAT account

32. —

(1) Every taxable person shall keep and maintain, in accordance with this regulation, an account to be known as the VAT account.

(2) The VAT account shall be divided into separate parts relating to the prescribed accounting periods of the taxable person and each such part shall be further divided into 2 portions to be known as “the VAT payable portion” and “the VAT allowable portion”.

(3) The VAT payable portion for each prescribed accounting period shall comprise—

(a)a total of the output tax due from the taxable person for that period,

(b)a total of the output tax due on acquisitions from other member States by the taxable person for that period,

(ba)a total of the tax which the taxable person is required to account for and pay on behalf of the supplier,

(baa)a total of the import VAT which the taxable person is accounting for on his return for that period in accordance with the Value Added Tax (Accounting Procedures for Import VAT for VAT Registered Persons and Amendment) (EU Exit) Regulations 2019,

(c)every correction or adjustment to the VAT payable portion which is required or allowed by regulation 34, 35 , 38 or 38A , and

(d)every adjustment to the amount of VAT payable by the taxable person for that period which is required, or allowed, by or under any Regulations made under the Act.

(4) The VAT allowable portion for each prescribed period shall comprise—

(a)a total of the input tax allowable to the taxable person for that period by virtue of section 26 of the Act,

(b)a total of the input tax allowable in respect of acquisitions from other member States by the taxable person for that period by virtue of section 26 of the Act,

(c)every correction or adjustment to the VAT allowable portion which is required or allowed by regulation 34, 35 or 38, and

(d)every adjustment to the amount of input tax allowable to the taxable person for that period which is required, or allowed, by or under any Regulations made under the Act.

Recording and keeping of information in electronic form

32A—(1)Subject to regulation 32B a taxable person shall keep and maintain the information specified in paragraphs (2) and (3) in an electronic form (“the electronic account”).

(2)The information specified for the purposes of paragraph (1) is—

(a)the name of the taxable person;

(b)the address of the taxable person’s principal place of business;

(c)the taxable person’s VATregistration number; and

(d)any VAT accounting schemes used by the taxable person.

(3)Subject to paragraph (4) the information specified for the purposes of paragraph (1) for each accounting period is—

(a)subject to sub-paragraph (c), for each supply made within the period—

(i)the time of supply,

(ii)the value of the supply, and

(iii)the rate of VAT charged;

(b)subject to sub-paragraph (c), for each supply received within the period—

(i)the time of supply,

(ii)the value of the supply, and

(iii)the total amount of input tax for which credit is allowable under section 26 of the Act;

(c)where more than one supply is recorded on a taxinvoice and those supplies are either—

(i)supplies made which are required to be accounted for in respect of the same prescribed accounting period and are subject to the same rate of VAT, or

(ii)supplies received for which credit is allowable in the same prescribed accounting period,

they may be treated as a single supply for the purposes of either sub-paragraph (a) or (b), whichever is relevant;

(d)the information specified in each sub-paragraph of paragraphs (3) and (4) of regulation 32;

(e)where adjustment or correction is made to the VAT account which is required or allowed by any provision of the Act, or any regulations made under the Act, the total amount adjusted or corrected for the period pursuant to that provision or those regulations;

(f)the proportions of the total of the VAT exclusive value of all outputs for the period which are attributable in each case to standard rated, reduced rated, zero-rated, exempt or outside the scope outputs.

(4)The information specified in paragraph (3) may be varied by direction of the Commissioners to make provision about—

(a)supplies of investment gold which are subject to the provisions of regulation 31A;

(b)the operation of the flat-rate scheme under Part 7A of these Regulations (flat-rate scheme for small businesses);

(c)the operation of retail schemes under Part 9 of these Regulations (supplies by retailers);

(d)cases where the Commissioners are satisfied that keeping and maintaining information as specified in this regulation is likely to be impossible, impractical or unduly onerous.

(5)The electronic account must be kept and maintained using functional compatible software.

(6)The functional compatible software must take a form approved by the Commissioners in a specific or general direction.

(7)A direction under paragraph (6) may also specify the circumstances in which functional compatible software may be used or not used.

(8)The information specified in paragraph (3) must be entered in the electronic account for the relevant prescribed accounting period no later than the earlier of the date by which the taxable person is required to make the return or the date the return is made for that prescribed accounting period.

(9)Changes to the information specified in paragraph (2) must be made no later than the end of the prescribed accounting period in which those changes occur.

(10)Where a taxable person discovers an error or omission in the electronic account that person must correct the electronic account as soon as possible but in any event no later than the end of the prescribed accounting period in which the error is discovered.

Exemption from the electronic recording requirements

32B—(1)The requirements imposed by regulation 32A do not apply to a person—

(a)who the Commissioners are satisfied is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications, or

(b)for whom an insolvency procedure as described in any of paragraphs (a) to (f) of section 81(4B) of the Act is applied, or

(c)for whom the Commissioners are satisfied that it is not reasonably practicable to make a return using a compatible software return system for reasons of disability, age, remoteness of location or any other reason.

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)The exemption under paragraph (1)(b) does not apply if a person has elected not to be exempt in accordance with regulation 32C.

Election not to be exempt

32C—(1)An election not to be exempt under regulation 32B must—

(a)be made before the start of the next prescribed accounting period (“the period”) in which the exemption would otherwise apply, and

(b)specify the date that the next period begins.

(2)An election has effect for the next period referred to in paragraph (1)(b) and for subsequent periods in which the exemption would otherwise apply.

(3)An election may be withdrawn and the withdrawal shall have effect for the period which immediately follows the period in which it is notified and for subsequent periods.

(4)An election and withdrawal of an election must be made by notice to the Commissioners.

The register of temporary movement of goods to and from other member States

33. —

(1) Every taxable person shall keep and maintain, in accordance with this regulation, a register to be known as the register of temporary movement of goods to and from other member States.

(2) Where goods have been moved to or received from another member State and they are to be returned within a period of 2 years of the date of their first removal or receipt, as the case may be, the register shall contain the following information—

(a)the date of removal of goods to another member State,

(b)the date of receipt of the goods mentioned in sub-paragraph (a) above when they are returned from the member State mentioned in that sub-paragraph or a different member State ,

(c)the date of receipt of goods from another member State,

(d)the date of removal of the goods mentioned in sub-paragraph (c) above when they are returned to the member State mentioned in that sub-paragraph or another member State,

(e)a description of the goods sufficient to identify them,

(f)a description of any process, work or other operation carried out on the goods either in the United Kingdom or in another member State,

(g)the consideration for the supply of the goods, and

(h)the consideration for the supply of any processing, work or other operation carried out on the goods either in the United Kingdom or another member State.

(3) The Commissioners may in relation to a trade or business of a description specified by them supplement the list of information required in paragraph (2) above by a notice published by them for that purpose.

33A.A person making supplies of a description falling within article 4 of the Value Added Tax (Terminal Markets) Order 1973 shall not be required to keep in relation to those supplies the records specified in regulations 31 (save for paragraph (1)(a) of that regulation), 31A, 32 and 33 of these Regulations.

33B.Where a person of a description in article 6 of the Value Added Tax (Terminal Markets) Order 1973 who makes or receives supplies of a description falling within that article, the following Parts of these Regulations shall not apply in relation to those supplies, that is to say—

(a)Part IV;

(b)Part V.

Correction of errors

34. —

(1)Subject to paragraph (1A) below, this regulation applies where a taxable person has made a return, or returns, to the Controller which overstated or understated his liability to VAT or his entitlement to a payment under section 25(3) of the Act.

(1A)Subject to paragraph (1B) and (1C) below, any overstatement or understatement in a return where—

(a)a period of 4 years has elapsed since the end of the prescribed accounting period for which the return was made; and

(b)the taxable person has not (in relation to that overstatement or understatement) corrected his VAT account in accordance with this regulation before the end of the prescribed accounting period during which that period of 4 years has elapsed,

shall be disregarded for the purposes of this regulation; and in paragraphs (2) to (6) of this regulation “overstatement”, “understatement” and related expressions shall be construed accordingly.

(1B)Paragraph (1A) above does not apply where—

(a)the overstatement or understatement is discovered in a prescribed accounting period which begins before 1st May 1997; and

(b)the return for that prescribed accounting period has not been made, and was not required to have been made, before that date.

(1C)Where paragraph (1B) above does not apply, any overstatement or understatement in a return shall be disregarded for the purposes of this regulation where the prescribed accounting period for which the return was made or required to be made ended on or before 31st March 2006.

(2) In this regulation—

(a)“under-declarations of liability” means the aggregate of—

(i)the amount (if any) by which credit for input tax was overstated in any return, and

(ii)the amount (if any) by which output tax was understated in any return;

(b)“over-declarations of liability” means the aggregate of—

(i)the amount (if any) by which credit for input tax was understated in any return, and

(ii)the amount (if any) by which output tax was overstated in any return.

(3) Where, in relation to all such overstatements or understatements discovered by the taxable person during a prescribed accounting period, the difference between—

(a)under-declarations of liability, and

(b)over-declarations of liability,

does not exceed £50,000, the taxable person may correct his VAT account in accordance with this regulation.

But if Box 6 of the taxable person’s return for the prescribed accounting period must contain a total less than £5,000,000, the difference must not for these purposes exceed 1% of that total unless the difference is £10,000 or less.

(Box 6 must contain the total value of sales and all other outputs excluding any VAT– see regulations 25 and 25A and the relevant forms specified in a notice published by the Commissioners.)

(4) In the VAT payable portion—

(a)where the amount of any overstatements of output tax is greater than the amount of any understatements of output tax a negative entry shall be made for the amount of the excess; or

(b)where the amount of any understatements of output tax is greater than the amount of any overstatements of output tax a positive entry shall be made for the amount of the excess.

(5) In the VAT allowable portion—

(a)where the amount of any overstatements of credit for input tax is greater than the amount of any understatements of credit for input tax a negative entry shall be made for the amount of the excess; or

(b)where the amount of any understatements of credit for input tax is greater than the amount of any overstatements of credit for input tax a positive entry shall be made for the amount of the excess.

(6) Every entry required by this regulation shall—

(a)be made in that part of the VAT account which relates to the prescribed accounting period in which the overstatements or understatements in any earlier returns were discovered,

(b)make reference to the returns to which it applies, and

(c)make reference to any documentation relating to the overstatements or understatements.

(7) Where the conditions referred to in paragraph (3) above do not apply, the VAT account may not be corrected by virtue of this regulation.

35. Where a taxable person has made an error—

(a)in accounting for VAT, or

(b)in any return made by him,

then, unless he corrects that error in accordance with regulation 34, he shall correct it in such manner and within such time as the Commissioners may require.

Notification of acquisition of goods subject to excise duty by non-taxable persons and payment of VAT

36. —

(1) Where—

(a)a taxable acquisition of goods subject to excise duty takes place in the United Kingdom,

(b)the acquisition is not in pursuance of a taxable supply, and

(c)the person acquiring the goods is not a taxable person at the time of the acquisition,

the person acquiring the goods shall notify the Commissioners of the acquisition at the time of the acquisition or the arrival of the goods in the United Kingdom, whichever is the later.

(2) The notification shall be in writing in the English language and shall contain the following particulars—

(a)the name and current address of the person acquiring the goods,

(b)the time of the acquisition,

(c)the date when the goods arrived in the United Kingdom,

(d)the value of the goods including any excise duty payable, and

(e)the VAT due upon the acquisition.

(3) The notification shall include a declaration, signed by the person who is required to make the notification, that all the information entered in it is true and complete.

(4) Any person required to notify the Commissioners of an acquisition of goods subject to excise duty shall pay the VAT due upon the acquisition at the time of notification and, in any event, no later than the last day on which he is required by this regulation to make such notification.

(5) Where a person required to make notification dies or becomes incapacitated and control of his assets passes to another person, being a personal representative, trustee in bankruptcy, receiver, liquidator or person otherwise acting in a representative capacity, that other person shall, so long as he has such control, be required to make the notification referred to in this regulation, provided that the requirement to pay the VAT due upon the acquisition shall apply to that other person only to the extent of the assets of the deceased or incapacitated person over which he has control and, save to the extent aforesaid, this regulation shall apply to such person so acting in the same way as it would have applied to the deceased or incapacitated person had that person not been deceased or incapacitated.

Claims for credit for, or repayment of, overstated or overpaid VAT

37. Any claim under section 80 of the Act shall be made in writing to the Commissioners and shall, by reference to such documentary evidence as is in the possession of the claimant, state the amount of the claim and the method by which that amount was calculated.

Adjustments in the course of business

38. —

(1) ... This regulation applies where—

(a)there is an increase in consideration for a supply, or

(b)there is a decrease in consideration for a supply,

which includes an amount of VAT and the increase or decrease occurs after the end of the prescribed accounting period in which the original supply took place.

(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1C)Where an increase or decrease in consideration relates to a supply in respect of which it is for the recipient, on the supplier’s behalf, to account for and pay the tax, the prescribed accounting period referred to in paragraph (1) is that of the recipient, and not the maker, of the supply.

But this paragraph does not apply to the circumstances referred to in regulation 38A.

(2)Where this regulation applies, both the taxable person who makes the supply and a taxable person who receives the supply shall adjust their respective VAT accounts in accordance with the provisions of this regulation.

(3)Subject to paragraph (3A) below, the maker of the supply shall—

(a)in the case of an increase in consideration, make a positive entry; or

(b)in the case of a decrease in consideration, make a negative entry,

for the relevant amount of VAT in the VAT payable portion of his VAT account.

(3A)Where an increase or decrease in consideration relates to a supply on which the VAT has been accounted for and paid by the recipient of the supply, any entry required to be made under paragraph (3) shall be made in the recipient’s VAT account and not that of the supplier.

(4) The recipient of the supply, if he is a taxable person, shall—

(a)in the case of an increase in consideration, make a positive entry; or

(b)in the case of a decrease in consideration, make a negative entry,

for the relevant amount of VAT in the VAT allowable portion of his VAT account.

(4A)In the case of an increase in consideration, no entry may be made under paragraph (4) unless the recipient of the supply holds the debit note which the supplier is required to provide under regulation 15C(2).

(5)Every entry required by this regulation must be made in that part of the VAT account which relates to the prescribed accounting period in which the increase in consideration or decrease in consideration occurs.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) None of the circumstances to which this regulation applies is to be regarded as giving rise to any application of regulations 34 and 35 except insofar as there is an error arising from a failure to make any entry required by this regulation .

(8)Paragraphs (4A) and (5) do not apply in cases where an adjustment in relation to an increase or decrease in consideration has been made in accordance with this regulation before 1st September 2019.

38ZA.—(1)Where—

(a)there is a decrease in consideration for a supply of goods which includes an amount of VAT and the decrease occurs after the end of the prescribed accounting period in which the original supply took place,

(b)the supply is the final supply in a chain of supplies made by taxable persons which relates to the same goods,

(c)the decrease in consideration is as a result of a relevant payment (which may form part of a larger payment that includes an element of compensation) that reduces the taxable amount which serves as a basis for determination of the VAT payable by the first supplier, and

(d)the amount of the relevant payment equates to the whole, or a proportion, of the price paid for the goods by the final consumer to the final supplier and does not exceed the amount so paid,

then, in regulation 38(2), the reference to “the taxable person who makes the supply” shall include a reference to the first supplier and the reference to “a taxable person who receives the supply” shall include a reference to a final consumer who is a taxable person.

(2)In this regulation—

“cash refund” includes a payment made by cheque or equivalent but does not include the provision of a face-value voucher falling within Schedule 10A to the Actor a voucher falling within Schedule 10B to the Act;

“final consumer” means the recipient of the supply referred to in paragraph (1)(b);

“final supplier” means the person who makes the supply referred to in paragraph (1)(b);

“first supplier” means the first person in the chain of supplies that ends with the final consumer;

“relevant payment” means—

(3)Where the rate of VAT applicable to the supply made by the first supplier differs from the rate of VAT applicable to the supply made by the final supplier, the adjustment made by the first supplier shall be at the rate of VAT applied by the final supplier.

Adjustments where a supply becomes, or ceases to be, a supply to which section 55A(6) of the Act applies (customers to account for tax on supplies of goods or services of a kind used in missing trader ... fraud)

38A.—(1)Where regulation 38 applies and—

(a)as a result of an increase in consideration for a supply it becomes one to which section 55A(6) of the Act applies; or

(b)as a result of a decrease in consideration for a supply it ceases to be one to which that section applies,

both the maker, and the recipient, of the supply shall make such entries in the VAT payable portion of their VAT accounts as are necessary to account for that fact.

(2)Paragraph (5) of regulation 38 applies to any entry required by this regulation as it applies to any entry required by that regulation.

(3)None of the circumstances to which this regulation applies is to be regarded as giving rise to any application of regulations 34 and 35 except insofar as there is an error arising from a failure to make any entry required by this regulation.

Calculation of returns

39. —

(1) Where a person is required by regulations made under the Act to make a return to the Controller, the amounts to be entered on that return shall be determined in accordance with this regulationand any further requirements that may be contained in a notice published by the Commissioners .

(2) In Box 1 shall be entered the aggregate of all the entries in the VAT payable portion of that part of the VAT account which relates to the prescribed accounting period for which the return is made... except that the total of the output tax due in that period on acquisitions of goods made in Northern Ireland from EU member States shall be entered instead in Box 2 .

(3) In Box 4 shall be entered the aggregate of all the entries in the VAT allowable portion of that part of the VAT account which relates to the prescribed accounting period for which the return is made.

(4) Where any correction has been made and a return calculated in accordance with these Regulations then any such return shall be regarded as correcting any earlier returns to which regulations 34 and 35 apply.

VAT to be accounted for on returns and payment of VAT

40.—(1)Any person making a return shall in respect of the period to which the return relates account in that return for—

(a)all his output tax,

(aa)all VAT which he is required to pay on behalf of the supplier.

(b)all VAT for which he is accountable by virtue of Part XVI of these Regulations,

(ba)all import VAT for which he is accounting on that return in accordance with the Value Added Tax (Accounting Procedures for Import VAT for VAT Registered Persons and Amendment) (EU Exit) Regulations 2019,

(c)all VAT which he is required to pay as a result of the removal of goods from a fiscal warehousing regime, or Northern Ireland fiscal warehousing regime, and

(d)all VAT which he is required to pay as a result of a supply of specified services (performed on or in relation to goods at a time when they are subject to a warehousing regime or Northern Ireland warehousing regime) being zero-rated under section 18C(1) of the Act where—

(i)that warehousing regime or Northern Ireland warehousing regime is one where goods are stored without payment of any duty of excise,

(ii)those goods are subject to a duty of excise,

(iii)those goods have been the subject of an acquisition from another member State and the material time for that acquisition was while those goods were subject to that warehousing regime or Northern Ireland warehousing regime, and,

(iv)there was no supply of those goods while they were subject to that warehousing regime or Northern Ireland warehousing regime.

The amounts to be entered on that return shall be determined in accordance with these Regulations.

(2)Any person required to make a return shall pay to the Controller such amount of VAT as is payable by him in respect of the period to which the return relates not later than the last day on which he is required to make that return.

(2A)Where a return is made or is required to be made in accordance with regulations 25 and 25A above using an electronic return systemor a compatible software return system, the relevant payment to the Controller required by paragraph (2) above shall be made solely by means of electronic communications that are acceptable to the Commissioners for this purpose.

(2B)With effect from 1st April 2010, where a person makes any payment to the Controller required by paragraph (2) above by cheque (whether or not in contravention of paragraph (2A) above)—

(a)the payment shall be treated as made on the day when the cheque clears to the account of the Controller, and

(b)that shall be the day when payment of any VAT shown as due on the return is to be treated as received by the Commissioners for the purposes of section 59 of the Act.

(2C)For the purposes of this regulation, the day on which a cheque clears to the account of the Controller is the second business day following but not including the date of its receipt.

(2D)In this regulation a “business day” is any day except—

(a)Saturday, Sunday, Good Friday or Christmas Day;

(b)a bank holiday under the Banking and Financial Dealings Act 1971;

(c)a day appointed by Royal proclamation as a public fast or thanksgiving day;

(d)a day declared by an order under section 2(1) of the Banking and Financial Dealings Act 1971 to be a non-business day.

(3)The requirements of paragraphs (1) or (2) above shall not apply where the Commissioners allow or direct otherwise.

(4)A direction under paragraph (3) may in particular allow additional time for a payment mentioned in paragraph (2) that is made by means of electronic communications.

• The direction may allow different times for different means of payment.

(5)Later payment so allowed does not of itself constitute a default for the purposes of section 59 of the Act (default surcharge).

40A.Where the Commissioners in exercise of their power under section 28(2A) of the Act have directed the manner in which payments on account under section 28 of the Act are to be made, a person who is liable to make such payments shall also pay any amount of VAT payable in respect of a return for any prescribed accounting period in the like manner.

Accounting etc. by reference to the duty point, and prescribed accounting period in which VAT on certain supplies is to be treated as being chargeable

41. —

(1) Where in respect of—

(a)any supply by a taxable person of dutiable goods, or

(b)an acquisition by any person from another member State of dutiable goods,

the time of supply or acquisition, as the case may be, precedes the duty point in relation to those goods, the VAT in respect of that supply or acquisition shall be accounted for and paid, and any question as to the inclusion of any duty in the value of the supply or acquisition shall be determined, by reference to the duty point or by reference to such later time as the Commissioners may allow.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accounting for VAT on the removal of goods

42. —

(1)This regulation applies—

(a)where goods have been removed—

(i)from Northern Ireland to a member State, or

(ii)from a member State to a different Member State or to Northern Ireland; and

(b)the removal falls within paragraph (f) or (g) of article 4 of the Removal Order.

(2) Except where paragraph (3) below applies in respect of the same prescribed accounting period, the owner shall not make any entry in the VAT payable portion of that part of his VAT account which relates to the prescribed accounting period in which he would be liable to account for any VAT chargeable in respect of the removal.

(3) Where—

(a)the condition described in article 5 of the Removal Order has not been complied with, and

(b)an amount of VAT has become payable,

the owner shall make a positive entry for the relevant amount of VAT in the VAT payable portion of that part of his VAT account which relates to the prescribed accounting period in which the condition was not complied with.

Goods removed from warehousing regime

43. —

(1) This regulation applies to a registered person who is an approved person within the meaning of the Excise Duties (Deferred Payment) Regulations 1992(6) in respect of goods which are at a specified warehouse or Northern Ireland warehouse .

(2)Where a person to whom this regulation applies is—

(a)the person who is liable under section 18(4)(b) of , or paragraph 16(8) of Schedule 9ZB to,the Act to pay VAT on a supply of goods while the goods are subject to a warehousing regime or Northern Ireland warehousing regime, as the case may be, or

(b)liable under section 18D(2) of the Act to pay VAT on a supply of services to which section 18C(3) of the Act applies (specified services performed on or in relation to goods which are subject to a warehousing regime),

he may pay that VAT at or before the relevant time determined in accordance with paragraph (3) below instead of at the time provided for by sections 18(4)(b) or 18D(2)(a) of, or paragraph 16(8) of Schedule 9ZB to, the Act.

(3) For the purposes of paragraph (2) above the relevant time means—

(a)in relation to hydrocarbon oils, the 15th day of the month immediately following the month in which the hydrocarbon oils were removed from the warehousing regime;

(b)in relation to any other goods subject to a duty of excise, the day (payment day) on which the registered person is required to pay the excise duty on the goods in accordance with regulation 5 of the Excise Duties (Deferred Payment) Regulations 1992.

(4) Where any goods of a kind chargeable to a duty of excise qualify for any relief of that duty, that relief shall be disregarded for the purposes of determining the relevant time under paragraph (3) above.

PART VAREIMBURSEMENT ARRANGEMENTS

Interpretation of Part VA

43A.In this Part—

“claim” means—

and “claimed” and “claimant” are to be construed accordingly;.

“reimbursement arrangements” means any arrangements (whether made before, on or after 30th January 1998) for the purposes of a claim which—

“relevant amount” means that part (which may be the whole) of the amount of a claim which the claimant has reimbursed or intends to reimburse to consumers.

Reimbursement arrangements—general

43B.Without prejudice to regulation 43H below, for the purposes of section 80(3) of the Act (defence by the Commissioners that repaymentcrediting by them of an amount claimed would unjustly enrich the claimant) reimbursement arrangements made by a claimant shall be disregarded except where they—

(a)include the provisions described in regulation 43C below; and

(b)are supported by the undertakings described in regulation 43G below.

Reimbursement arrangements—provisions to be included

43C.The provisions referred to in regulation 43B(a) above are that—

(a)reimbursement for which the arrangements provide will be completed by no later than 90 days after the repaymentcrediting of the amount to which it relates;

(b)no deduction will be made from the relevant amount by way of fee or charge (howsoever expressed or effected);

(c)reimbursement will be made only in cash or by cheque;

(d)any part of the relevant amount that is not reimbursed by the time mentioned in paragraph (a) above will be repaid by the claimant to the Commissioners;

(d)any part of the relevant amount credited to the claimant that is not reimbursed by the time mentioned in paragraph (a) above will be notified by the claimant to the Commissioners;

(da)any part of the relevant amount paid (or repaid) to the claimant that is not reimbursed by the time mentioned in paragraph (a) above will be repaid by the claimant to the Commissioners;

(e)any interest paid by the Commissioners on any relevant amountrepaidpaid (or repaid) by them will also be treated by the claimant in the same way as the relevant amount falls to be treated under paragraphs (a) and (b) above; and

(f)the records described in regulation 43E below will be kept by the claimant and produced by him to the Commissioners, or to an officer of theirs in accordance with regulation 43F below.

Repayments to the CommissionersNotifications and repayments to the Commissioners

43D.The claimant shall, without prior demand, make any repayment to the Commissioners that he is required to make by virtue of regulation 43C(d) and (e) above within 14 days of the expiration of the period of 90 days referred to in regulation 43C(a) above.

The claimant shall give any notification to the Commissioners that he is required to give by virtue of regulation 43C(d) above and, without any prior demand, make any repayment to the Commissioners that he is required to make by virtue of regulation 43C(da) and (e) above within 14 days of the expiration of the 90 days referred to in regulation 43C(a) above.

Records

43E.The claimant shall keep records of the following matters—

(a)the names and addresses of those consumers whom he has reimbursed or whom he intends to reimburse;

(b)the total amount reimbursed to each such consumer;

(c)the amount of interest included in each total amount reimbursed to each consumer;

(d)the date that each reimbursement is made.

Production of records

43F.—(1)Where a claimant is given notice in accordance with paragraph (2) below, he shall, in accordance with such notice produce to the Commissioners, or to an officer of theirs, the records that he is required to keep pursuant to regulation 43E above.

(2)A notice given for the purposes of paragraph (1) above shall—

(a)be in writing;

(b)state the place and time at which, and the date on which the records are to be produced; and

(c)be signed and dated by the Commissioners, or by an officer of theirs,

and may be given before or after, or both before and after the Commissioners have paidcredited the relevant amount to the claimant.

Undertakings

43G.—(1)Without prejudice to regulation 43H(b) below, the undertakings referred to in regulation 43B(b) above shall be given to the Commissioners by the claimant no later than the time at which he makes the claim for which the reimbursement arrangements have been made.

(2)The undertakings shall be in writing, shall be signed and dated by the claimant, and shall be to the effect that—

(a)at the date of the undertakings he is able to identify the names and addresses of those consumers whom he has reimbursed or whom he intends to reimburse;

(b)he will apply the whole of the relevant amountrepaidcredited to him, without any deduction by way of fee or charge or otherwise, to the reimbursement in cash or by cheque, of such consumers by no later than 90 days after his receipt of that amount (except insofar as he has already so reimbursed them);

(c)he will apply any interest paid to him on the relevant amountrepaidpaid (or repaid) to him wholly to the reimbursement of such consumers by no later than 90 days after his receipt of that interest;

(d)he will repay to the Commissioners without demand the whole or such part of the relevant amount repaid to him or of any interest paid to him as he fails to apply in accordance with the undertakings mentioned in sub-paragraphs (b) and (c) above;

he will notify the Commissioners of the whole or such part of the relevant amount credited to him as he fails to apply in accordance with the undertakings mentioned in sub-paragraphs (b) and (c) above;

(da)he will repay to the Commissioners without demand the whole or such part of the relevant amount paid (or repaid) to him or of any interest paid to him as he fails to apply in accordance with the undertakings mentioned in sub-paragraphs (b) and (c) above;

(e)he will keep the records described in regulation 43E above; and

(f)he will comply with any notice given to him in accordance with regulation 43F above concerning the production of such records.

Reimbursement arrangements made before 11th February 1998

43H.Reimbursement arrangements made by a claimant before 11th February 1998 shall not be disregarded for the purposes of section 80(3) of the Act if, not later than 11th March 1998—

(a)he includes in those arrangements (if they are not already included) the provisions described in regulation 43C above; and

(b)gives the undertakings described in regulation 43G above.

PART VIPAYMENTS ON ACCOUNT

Interpretation of Part VI

44. In this Part—

“body corporate” means a body corporate which is under a duty to make payments on account by virtue of the Value Added Tax (Payments on Account) Order 1993(7) and “relevant division” means a division of a body corporate by reference to the business of which that body corporate is under such a duty;

“payments on account” has the same meaning as in the Value Added Tax (Payments on Account) Order 1993.

Payments on Account

45. Save in a case to which regulation 48 applies, the Commissioners shall give to a taxable person who is under a duty to make payments on account notification in writing of—

(a)the amounts that he is under a duty to pay,

(b)how those amounts have been calculated, and

(c)the times for payment of those amounts.

46. Save in a case to which regulation 48 applies, if in respect of a prescribed accounting period the total amount of the payment on account made by the taxable person exceeds the amount of VAT due from him in respect of that period, the amount of excess shall be paid to him by the Commissioners if and to the extent that it is not required by section 81 of the Act to be set against any sum which he is liable to pay to them.

46A.—(1)A payment on account and a payment in respect of a return to which regulation 40A above applies shall not be treated as having been made by the last day on which it is required to be made unless it is made in such a manner as secures that all the transactions can be completed that need to be completed before the whole of the amount becomes available to the Commissioners.

(2)For the purposes of this regulation and regulation 47 below, references to a payment being made by any day include references to its being made on that day.

47. Where a taxable person fails to make a payment on account by the last day by which he is required to make it, that payment on account shall be recoverable as if it were VAT due from him.

48. —

(1) The Commissioners shall notify a relevant division in writing of—

(a)the amounts of the payments on account that the body corporate is under a duty to make by reference to the business of that division,

(b)how those amounts have been calculated, and

(c)the times for payment of those amounts.

(2) If in respect of a prescribed accounting period the total amount of the payments on account made by a body corporate by reference to the business of a particular relevant division exceeds the amount of VAT due from the body corporate in respect of that period by reference to that business, the amount of the excess shall be paid to the body corporate through that division by the Commissioners if and to the extent that it is not required by section 81 of the Act to be set against any sum which the body corporate is liable to pay to them.

(3) Section 81 of the Act shall not require any amount which is due to be paid by the Commissioners to a body corporate under paragraph (2) above by reference to the business of a particular relevant division to be set against any sum due from the body corporate otherwise than by reference to that business or to the liabilities of the body corporate arising in connection with that division.

PART VIIANNUAL ACCOUNTING

Interpretation of Part VII

49.In this Part—

“authorised person” means a person who has been authorised by the Commissioners in accordance with regulation 50(1), and “authorised” and “authorisation” shall be construed accordingly;

“transitional accounting period” means the period commencing on the first day of a person’s prescribed accounting period in which the Commissioners authorise him to use the scheme, and ending on the day immediately preceding the first day of that person’s first current accounting year, and is a prescribed accounting period within the meaning of section 25(1) of the Act;

“current accounting year” means the period of 12 months commencing on a date indicated by the Commissioners in their notification of authorisation of a person, or while a person remains authorised the most recent anniversary thereof, and is a prescribed accounting period within the meaning of section 25(1) of the Act;

“the scheme” means the annual accounting scheme established by regulations 50 and 51;

“credit transfer” means the transfer of funds from one bank account to another under a mandate given by the payer to the bank making the transfer;

“the quarterly sum” means—

“the agreed quarterly sum” means a sum agreed with the Commissioners, not being less than 25 per cent of a taxable person’s estimated liability for VAT in his current accounting year;

“the monthly sum” means—

“the agreed monthly sum” means a sum agreed with the Commissioners, not being less than 10 per cent of a taxable person’s estimated liability for VAT, in his current accounting year;

“working day” means any day of the week other than Saturday, Sunday, a bank holiday or a public holiday;

“relevant quarterly date” means the last working day of the fourth and, where a period has such months, the seventh and the tenth months of a transitional accounting period;

“relevant monthly date” means the last working day of the fourth and each successive month of a transitional accounting period.

Annual accounting scheme

50.—(1)The Commissioners may, subject to the requirements of this Part, authorise a taxable person to pay and account for VAT by reference to any transitional accounting period, and any subsequent current accounting year at such times, and for such amounts, as may be determined in accordance with the scheme.

(2)A taxable personauthorised to pay and account for VAT in accordance with the scheme shall—

(a)pay to the Commissioners by credit transfer—

(i)where the taxable person and Commissioners agree to such payment pattern, the quarterly sum, or as the case may be the agreed quarterly sum, no later than the last working day of each of the fourth, seventh and tenth months of his current accounting year;

(ii)in all other cases, the monthly sum, or as the case may be, the agreed monthly sum, in nine equal monthly instalments, commencing on the last working day of the fourth month of his current accounting year; and

(b)make by the last working day of the second month following the end of that current accounting year a return in respect of that year, together with any outstanding payment due to the Commissioners in respect of his liability for VAT for the current accounting year declared on that return.

(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

51.An authorised person shall, where in any given case the transitional accounting period is—

(a)4 months or more—

(i)where the taxable person and Commissioners agree to such payment pattern, pay to the Commissioners by credit transfer on each relevant quarterly date the quarterly sum; or

(ii)in all other cases, pay to the Commissioners by credit transfer on each relevant monthly date the monthly sum; and

(iii)make by the last working day of the second month following the end of his transitional accounting period a return in respect of that period, together with any outstanding payment due to the Commissioners in respect of his liability for VAT declared on that return; or

(b)less than 4 months, make by the last working day of the first month following the end of his transitional accounting period a return in respect of that period, together with any outstanding payment due to the Commissioners in respect of his liability for VAT declared on that return.

Admission to the scheme

52.—(1)A taxable person shall be eligible to apply for authorisation under regulation 50(1) if—

(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)he has reasonable grounds for believing that the value of taxable supplies made or to be made by him in the period of 12 months beginning on the date of his application for authorisation will not exceed £1,350,000;

(c)his registration is not in the name of a group under section 43(1) of the Act;

(d)his registration is not in the name of a division under section 46(1) of the Act; and

(e)he has not in the 12 months preceding the date of his application for authorisation ceased to operate the scheme.

(1A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)The Commissioners may refuse to authorise a person under regulation 50(1) where they consider it necessary to do so for the protection of the revenue.

53.—(1)An authorised person shall continue to account for VAT in accordance with the scheme until he ceases to be authorised.

(2)An authorised person ceases to be authorised when—

(a)at the end of any transitional accounting period or current accounting year the value of taxable supplies made by him in that period or, as the case may be, year has exceeded £1,600,000; or

(b)his authorisation is terminated in accordance with regulation 54 below;

(c)he—

(i)becomes insolvent and ceases to trade, other than for the purpose of disposing of stocks and assets; or

(ii)ceases business or ceases to be registered; or

(iii)dies, becomes bankrupt or incapacitated;

(d)he ceases to operate the scheme of his own volition.

54.—(1)The Commissioners may terminate an authorisation in any case where—

(a)a false statement has been made by or on behalf of an authorised person in relation to his application for authorisation; or

(b)an authorised person fails to make by the due date a return in accordance with regulation 50(2)(b) or regulation 51(a)(iii) or (b); or

(c)an authorised person fails to make any payment prescribed in regulation 50 or 51; or

(d)where they receive a notification in accordance with paragraph (2) below; or

(e)at any time during an authorised person’s transitional accounting period or current accounting year they have reason to believe, that the value of taxable supplies he will make during the period or as the case may be year, will exceed £1,600,000; or

(f)it is necessary to do so for the protection of the revenue; or

(g)an authorised person has not, in relation to a return made by him prior to authorisation, paid to the Commissioners all such sums shown as due thereon; or

(h)an authorised person has not, in relation to any assessment made under either section 73 or section 76 of the Act, paid to the Commissioners all such sums shown as due thereon.

(2)Where an authorised person has reason to believe that the value of taxable supplies made by him during a transitional accounting period or current accounting year will exceed £1,600,000, he shall within 30 days notify the Commissioners in writing.

55.—(1)The date from which an authorised person ceases to be authorised in accordance with Regulation 53(2) shall be —

(a)where regulation 53(2)(a) applies, the day following the last day of the relevant transitional accounting period or current accounting year;

(b)where regulation 53(2)(b) applies, the day on which the Commissioners terminate his authorisation;

(c)where regulation 53(2)(c) applies, the day on which any one of the events mentioned in that paragraph occurs; and

(d)where regulation 53(2)(d) applies, the date on which the Commissioners are notified in writing of the authorised persons decision to cease using the scheme.

(2)Where an authorised person ceases to be authorised, he or as the case may be, his representative, shall—

(a)if his authorisation ceases before the end of his transitional accounting period or current accounting year, make a return within 2 months of the date specified in paragraph (1)(b), (1)(c) or (1)(d) above, together with any outstanding payment due to the Commissioners in respect of his liability for VAT for that part of the period or year arising before the date he ceased to be authorised; or

(b)if his authorisation ceases at the end of his transitional accounting period or current accounting year, make a return together with any outstanding payment due to the Commissioners in respect of his liability for VAT in accordance with regulation 51 or 50 above; and

in either case, from the day following the day on which he ceases to be authorised, account for and pay VAT as provided for otherwise than under this Part.

PART VIIAFLAT-RATE SCHEME FOR SMALL BUSINESSES

Interpretation of Part VIIA

55A.—(1)In this Part—

• ...

• “capital expenditure goods” means any goods of a capital nature but does not include any goods acquired by a flat-rate trader (whether before he is a flat-rate trader or not)—

  (a)

  for the purpose of resale or incorporation into goods supplied by him,

  (b)

  for consumption by him within one year, or

  (c)

  to generate income by being leased, let or hired;

• ...

• “EDR” means the day with effect from which a person is registered under the Act;

• “end date” has the meaning given in regulation 55Q(2);

• “flat-rate trader” means a person who is, for the time being, authorised by the Commissioners in accordance with regulation 55B(1);

• “relevant purchase” has the meaning given in regulation 55C;

• “start date” has the meaning given in regulation 55B(2);

• “the scheme” means the flat-rate scheme for small businesses established by this Part;

• “the Table” means the table set out in regulation 55K.

(2)For the purposes of this Part, a person is associated with another person at any time if that other person makes supplies in the course or furtherance of a business carried on by him, and—

(a)the business of one is under the dominant influence of the other, or

(b)the persons are closely bound to one another by financial, economic and organisational links.

(3)For the purposes of this Part, “relevant date”, in relation to a flat-rate trader, means any of the following—

(a)his start date;

(b)the first day of the prescribed accounting period current at any anniversary of his start date;

(c)any day on which he first carries on a new business activity;

(d)any day on which he no longer carries on an existing business activity;

(e)any day with effect from which the Table is amended in relation to him;

(f)where regulation 55JB (reduced rate for newly registered period) applies—

(i)the day that his newly registered period begins, and

(ii)the first anniversary of his EDR.

(4)For the purposes of this Part, “limited-cost trader” is a flat-rate trader whose expenditure on relevant goods in any prescribed accounting period, together with any VAT chargeable on that expenditure, is less than the specified amount, and—

(a)“relevant goods” are goods used or to be used by a flat-rate trader exclusively for the purposes of the trader’s business but excluding the following—

(i)vehicles, vehicle parts and fuel except where the category of business applicable to the flat-rate trader in the Table is, in that prescribed accounting period, “Transport or storage, including couriers, freight, removals and taxis” and the flat-rate trader owns or leases a vehicle for that business;

(ii)food or beverages for consumption by the flat-rate trader or employees of the flat-rate trader;

(iii)capital expenditure goods;

(iv)goods for the purpose of resale, leasing, letting or hiring out except where the main business activity of the flat-rate trader ordinarily consists of selling, leasing, letting or hiring out such goods;

(v)goods for disposal as promotional items, gifts or donations;

(b)“specified amount” is the higher of—

(i)2 per cent of the trader’s relevant turnover in the prescribed accounting period; and

(ii)where the prescribed accounting period is one year, £1000, and, in any other case, such proportion of £1000 as the length of the accounting period bears to the period of one year.

Flat-rate scheme for small businesses

55B.—(1)The Commissioners may, subject to the requirements of this Part, authorise a taxable person to account for and pay VAT in respect of his relevant supplies in accordance with the scheme with effect from—

(a)the beginning of his next prescribed accounting period after the date on which the Commissioners are notified ... of his desire to be so authorised, or

(b)such earlier or later date as may be agreed between him and the Commissioners.

(2)The date with effect from which a person is so authorised shall be known as his start date.

(3)The Commissioners may refuse to so authorise a person if they consider it is necessary for the protection of the revenue that he is not so authorised.

(4)A flat-rate trader shall continue to account for VAT in accordance with the scheme until his end date.

Relevant supplies and purchases

55C.—(1)Subject to paragraphs (3) , (5) and (6), any—

(a)supply of any goods or services to,

(b)acquisition of any goods from another member State by, or

(c)importation of any goods ... by,

a flat-rate trader is a relevant purchase of his.

(2)Subject to the following provisions of this regulation, any supply made by a person when he is not a flat-rate trader is not a relevant supply of his.

(3)Subject to paragraphs (4) and (6) below, where—

(a)a supply is made to, or made by, a person at a time when he is not a flat-rate trader, and

(b)the operative date for VAT accounting purposes is, by virtue of regulation 57 (cash accounting scheme), a date when he is a flat-rate trader,