Citation and commencement

1. These Regulations may be cited as the Value Added Tax (Amendment) Regulations 2020 and come into force on 1st January 2021.

Amendment of the Value Added Tax Regulations 1995

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

(2) In regulation 202—

(a) the existing text becomes paragraph (1);

(b) in paragraph (1), before the definition of “certified person” insert—

“ “certification anniversary” means, in relation to a person, an anniversary of the date on which that person’s certification takes effect pursuant to regulation 205; ” ;

(c) after paragraph (1) insert—

“ (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 the other person 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) In regulation 204—

(a) omit “and” at the end of paragraph (c);

(b) for paragraph (d) substitute—

“ (d) he satisfies the Commissioners that the total value of taxable supplies made by him in the course or furtherance of the relevant part of his business in the period of one year ending with the date of the application is £150,000 or less, and

(e) he is not, and has not been within the past 24 months—

(i) eligible to be registered for VAT in the name of a group under section 43A of the Act,

(ii) registered for VAT in the name of a division under section 46(1) of the Act, or

(iii) associated with another person. ” .

(4) In regulation 206—

(a) in paragraph (1)—

(i) for sub-paragraph (i) substitute—

“ (i) the total value of taxable supplies made by him in the course or furtherance of the relevant part of his business in the period of one year ending on a certification anniversary is more than £230,000,

(ia) at the end of any month, the total value of taxable supplies made by him in the course or furtherance of the relevant part of his business in the period of 30 days then ending is more than £230,000,

(ib) he becomes—

(i) eligible to be registered for VAT in the name of a group under section 43A of the Act,

(ii) registered for VAT in the name of a division under section 46(1) of the Act, or

(iii) associated with another person, or ” ;

(ii) in sub-paragraph (j), for “(h)” substitute “(ib)”;

(b) in paragraph (2)—

(i) for sub-paragraph (i) substitute—

“ (i) the certification anniversary on which the total value of taxable supplies made by him in the course or furtherance of the relevant part of his business for a period of one year then ending is more than £230,000,

(ia) the date on which the total value of taxable supplies made by him in the course or furtherance of the relevant part of his business in the period of 30 days then ending is more than £230,000,

(ib) the date he becomes—

(i) eligible to be registered for VAT in the name of a group under section 43A of the Act,

(ii) registered for VAT in the name of a division under section 46(1) of the Act, or

(iii) associated with another person, or ” ;

(ii) in sub-paragraph (j), for “(h)” substitute “(ib)”.

(5) After regulation 206 insert—

“ Notification to Commissioners

206A. —(1) A person must notify the Commissioners in writing if—

(a) on any certification anniversary, the total value of taxable supplies made in the course or furtherance of the relevant part of that person’s business in the period of one year then ending is more than £230,000,

(b) at the end of any month, the total value of taxable supplies made in the course or furtherance of the relevant part of that person’s business in the period of 30 days then ending is more than £230,000, or

(c) that person becomes—

(i) eligible to be registered for VAT in the name of a group under section 43A of the Act,

(ii) registered for VAT in the name of a division under section 46(1) of the Act, or

(iii) associated with another person.

(2) If a person is required to notify the Commissioners under this regulation, that person must do so within 30 days of—

(a) in the case of paragraph (1)(a), the relevant certification anniversary,

(b) in the case of paragraph (1)(b), the end of the relevant month, or

(c) in the case of paragraph (1)(c), the date on which the relevant event occurs. ” .