Citation and commencement

1. —(1) These Regulations may be cited as the Value Added Tax (Amendment) (No.3) Regulations 2014.

(2) This regulation and regulations 2 and 9 come into force on 1st October 2014.

(3) The remaining regulations come into force on 1st January 2015.

Amendment of the Value Added Tax Regulations 1995

2.The Value Added Tax Regulations 1995( 2 ) are amended as follows.

3. In regulation 43A (reimbursement arrangements: interpretation of Part 5A) for the definition of “claim” substitute—

“ “claim” means—

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

4. In regulation 165 (bad debt relief: interpretation of Part 19)—

(a) in the definition of “claim”, after “166” insert “or 166AA,”,

(b) in the definition of “return”, after “25” insert “but “relevant non-UK return” has the meaning given by paragraph 20(3) of Schedule 3BA to the Act and “relevant special scheme return” has the meaning given by paragraph 16(3) of Schedule 3B to the Act”,

(c) after the definition of “security” insert—

“ “tax period” has the meaning given by paragraph 23(1) of Schedule 3B or paragraph 38(1) of Schedule 3BA (as the case may require) to the Act. ” .

5. —(1) At the start of paragraph (1) of regulation 166 (bad debt relief: the making of a claim to the Commissioners) insert “Subject to regulation 166AA, and”.

(2) After regulation 166 insert—

“ The making of a claim to the Commissioners: special accounting schemes

166AA. —(1) This regulation applies where the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return.

(2) Where this regulation applies, the claimant must make the claim by—

(a) amending, in accordance with Article 61 of the Implementing Regulation ( 3 ) , that relevant non-UK return or relevant special scheme return; or

(b) (where the period during which a person is entitled to make such an amendment has expired) notifying the Commissioners of the claim in writing in the English language. ” .

6. In regulation 168 (bad debt relief: records to be kept by the claimant) insert after paragraph (3)—

“ (4) Where regulation 166AA applies, “prescribed accounting period” in this regulation is to be read as “tax period”. ” .

7. —(1) At the start of paragraph (1) of regulation 171 (bad debt relief: repayment of a refund) insert “Subject to regulation 171A,”.

(2) At the start of paragraph (2) of regulation 171 insert “Subject to regulation 171B,”.

(3) At the start of paragraph (3) of regulation 171 insert “Subject to regulation 171B and,”.

(4) After regulation 171 insert—

“ Calculation of repayment where reduction in consideration: special accounting schemes

171A. —In a case falling within sub-paragraph (b)(iii) of regulation 171(1) where the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return, the amount to be repaid is such an amount as is equal to the amount by which the VAT chargeable on the relevant supply is reduced.

Timing and method of repayments: special accounting schemes

171B. —(1) Where—

(a) the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return, and

(b) a repayment is required by regulation 171(1),

that repayment must be made no later than twenty days after the end of the tax period in which the payment for the relevant supply is received or the reduction in consideration is accounted for in the claimant’s business accounts.

(2) Where—

(a) the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return, and

(b) a repayment is required by regulation 171(3),

that repayment must be made no later than twenty days after the end of the tax period in which the failure to comply first occurred.

(3) In either case the repayment must be made by—

(a) amending (in accordance with Article 61 of the Implementing Regulation) the relevant non-UK return or the relevant special scheme return for the tax period in which the VAT on the relevant supply was brought into account, or

(b) (where the period during which a person is entitled to make such an amendment has expired) sending the sum due to the Commissioners. ” .

8. —(1) In—

(a) paragraph (2)(c) of regulation 173B (repayments to Community traders: repayments of VAT); and

(b) paragraph (2) of regulation 173L (repayments to Community traders: contents of a repayment application),

for “or (iii)” substitute “, (iii) or (iv)”.

(2) In regulation 173E (repayments to Community traders: persons to whom this Part applies) after paragraph (b)(iii) insert—

“ (iv) scheme services within paragraph 2 of Schedule 3BA to the Act supplied by a person who—

(a) is required to account for the VAT on those supplies on a non-UK return; and

(b) is not a registered person. ” .

9. After Part 25 (distress and diligence) insert—

“ PART 26 UK UNION AND NON-UNION SPECIAL ACCOUNTING SCHEMES: REGISTRATION

Interpretation

214. —(1) In this Part—

“applicant” means a person making a registration request under paragraph 4 of Schedule 3B or paragraph 5 of Schedule 3BA to the Act;

“principal VAT Directive” means Council ( Directive 2006/112/EC 4 ) .

(2) In regulations 215 and 216, references to a number allocated under Article 362 ( 5 ) of the principal VAT Directive mean a number allocated at any time under that Article.

Registration requests: Non-Union scheme

215. A registration request under paragraph 4 of Schedule 3B to the Act must contain details of—

(a) any VAT identification number or tax reference number by which the applicant is identified for VAT purposes by any member State in accordance with Article 214 ( 6 ) , Article 239 or Article 240 of the principal VAT Directive, and the name of that member State;

(b) any number previously allocated to the applicant by any member State under Article 362 of the principal VAT Directive, or otherwise for the purposes of Article 369d ( 7 ) of the principal VAT Directive, and the name of that member State.

Registration requests: Union scheme

216. A registration request under paragraph 5 of Schedule 3BA to the Act must contain the following information—

(a) any VAT identification number or tax reference number by which the applicant is identified for VAT purposes by any member State in accordance with Article 214, Article 239 or Article 240 of the principal VAT Directive, and the name of that member State;

(b) any number previously allocated to the applicant by any member State under Article 362 of the principal VAT Directive, or otherwise for the purposes of Article 369d of the principal VAT Directive, and the name of that member State;

(c) where the applicant has previously been identified under a non-UK special scheme, the date the applicant ceased to be so identified;

(d) whether the applicant is treated as a member of a group under any of sections 43A to 43D of the Act ( 8 ) ; and

(e) the name of any member States in which the applicant has a fixed establishment, and the address of each such fixed establishment.

Registration requests: declaration

217. A registration request under paragraph 4 of Schedule 3B or paragraph 5 of Schedule 3BA to the Act must also contain a declaration by the applicant that the information the applicant has provided in the registration request is accurate and complete to the best of the applicant’s knowledge.

Communications with the Commissioners

218. A registration request under paragraph 4 of Schedule 3B or paragraph 5 of Schedule 3BA to the Act must be made by using the electronic portal set up by the Commissioners for the purpose of implementing Sections 2 and 3 of Chapter 6 of Title XII to the principal VAT Directive. ” .

10. —(1) In Part 26 (UK Union and Non-Union Special Accounting Schemes: Registration), as inserted by regulation 9, for regulation 218 substitute—

“ 218. The following communications must be made by using the electronic portal set up by the Commissioners for the purpose of implementing Sections 2 and 3 of Chapter 6 of Title XII to the principal VAT Directive —

(a) a registration request under paragraph 4 of Schedule 3B or paragraph 5 of Schedule 3BA to the Act;

(b) the information required by paragraph 7 of Schedule 3B or paragraph 6 of Schedule 3BA to the Act;

(c) a return required under paragraph 11 of Schedule 3B or paragraph 9 of Schedule 3BA to the Act. ” .

(2) For the heading of Part 26, substitute “UK Union and Non-Union Special Accounting Schemes: Registration, Notification of Changes, and Returns”.

11. After Part 26 (UK Union and Non-Union Special Accounting Schemes: Registration) insert—

“ PART 27 NON-UK UNION AND NON-UNION SPECIAL ACCOUNTING SCHEMES: ADJUSTMENTS, CLAIMS AND ERROR CORRECTION

219. In this Part, “tax period” has the meaning given by paragraph 23(1) of Schedule 3B or paragraph 38(1) of Schedule 3BA (as the case may require) to the Act.

Correction of errors on non-UK and special scheme returns more than 3 years after the date the original return was required to be made

220. —(1) In this regulation “notice” means a notice given under paragraph 16C(3) of Schedule 3B or paragraph 23(3) of Schedule 3BA to the Act.

(2) A person giving a notice (P) must do so—

(a) no later than 4 years after the end of the tax period in respect of which the return identified in the notice was required to be made; and

(b) in writing in the English language.

(3) P must also provide such documentary evidence in support of the notice as P possesses.

Claims in respect of overpaid VAT

221. —(1) A person making a claim under paragraph 16I(1) of Schedule 3B, or paragraph 29(1) of Schedule 3BA, to the Act must provide to the Commissioners at the time of making the claim a statement in writing in the English language explaining how the claim is calculated.

(2) A person making a claim under any other provision of paragraph 16I of Schedule 3B, or paragraph 29 of Schedule 3BA, to the Act must-

(i) make that claim to the Commissioners; and

(ii) provide to the Commissioners at the time of making the claim a statement in writing in the English language explaining how the claim is calculated.

Increases or decreases in consideration occurring more than 3 years after the end of the affected tax period

222. —(1) A claim or other notice made under paragraph 16K(2)(b) of Schedule 3B or paragraph 31(2)(b) of Schedule 3BA to the Act must be made in writing in the English language.

(2) A person making a payment–

(a) under paragraph 16K(3) of Schedule 3B to the Act in a case falling within paragraph 16K(2)(b) of that Schedule; or

(b) under paragraph 31(3) of Schedule 3BA to the Act in a case falling within paragraph 31(2)(b) of that Schedule,

must do so no later than twenty days after the end of the tax period in which the increase in consideration is accounted for in the person’s business accounts.

Scheme participants who are also taxable persons: disapplication of paragraph 17(1)

223. —(1) Paragraph 17(1) of Schedule 3BA to the Act is not to apply in the case of an input tax obligation.

(2) In this regulation “input tax obligation” means an obligation imposed on a taxable person relating to a claim to deduction under section 25(2) of the Act or to payment of a VAT credit. ” .