Value Added Tax Act 1994, section 1

Value added tax

Part I The charge to tax

(1)Value added tax shall be charged, in accordance with the provisions of this Act—

(a)on the supply of goods or services in the United Kingdom (including anything treated as such a supply),

F1(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F2 (c)on the importation of goods into the United Kingdom,F2]

and references in this Act to VAT are references to value added tax.

(2)VAT on any supply of goods or services is a liability of the person making the supply and (subject to provisions about accounting and payment) becomes due at the time of supply.

F3(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)VAT on the importation of goods [F4into the United KingdomF4] shall be charged and payable as if it were [F5import dutyF5] .

Definitions used in section 1 3

tax

“tax” means VAT;

Defined in s.96(1) · see it in the full Act
VAT

“VAT” means value added tax charged in accordance with this Act;

Defined in s.96(1) · see it in the full Act
import duty

“import duty” means import duty charged in accordance with Part 1 of TCTA 2018;

Defined in s.96(1) · see it in the full Act

Cases considering section 1 39

ELS Group Ltd, R (on the application of) v HM Revenue and Customs

[2016] EWCA Civ 663 · 5 July 2016

The statutory default is that VAT is charged on taxable supplies. The concession operates against that default and cannot be extended beyond its fair meaning. (see paras [24]; [35]) VAT became due when the supplies were made. The timing informed the construction that the concessionary election was prospective. (see paras [24]; [28]-[30])

Mobilx Ltd & Ors v HM Revenue & Customs

[2010] EWCA Civ 517 · 12 May 2010Interprets

Section 1 charges VAT on supplies and places the accounting obligation on the supplier. The court held that it transposes Directive concepts that form part of the objective criteria relevant to entitlement to deduct. (see paras [46]-[47])

Church Schools Foundation Ltd v Commissioners of Customs & Excise

[2001] EWCA Civ 1745 · 20 November 2001

Applies the charging provision alongside the Sixth Directive. Liability depended on whether the grants formed consideration for a taxable supply, which the majority held they did not (see [37]; [60]).

19 more judgments, and what each says about section 1, are in the case-law panel in the full Act.

Amendments and notes

5 notes from legislation.gov.uk

Amendments

  1. F1S. 1(1)(b) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), ss. 41(2)(a), 57(3) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.
  2. F2S. 1(1)(c) substituted (28.1.2019 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Cross-border Trade) Act 2018 (c. 22), ss. 41(2)(b), 57(3) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2019/104, reg. 2; S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.
  3. F3S. 1(3) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 2(2) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.
  4. F4Words in s. 1(4) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 2(3)(a) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.
  5. F5Words in s. 1(4) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 2(3)(b) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.