Value Added Tax Act 1994, section 29A

Reduced rate

Part II Reliefs, exemptions and repayments

(1)VAT charged on—

(a)any supply that is of a description for the time being specified in Schedule 7A, or

(b)any equivalent F204... importation,

shall be charged at the rate of 5 per cent.

[F205 (2)The reference in subsection (1) to an equivalent importation, in relation to any supply that is of a description for the time being specified in Schedule 7A, is a reference to any importation of any goods the supply of which would be such a supply.F205]

(3)The Treasury may by order vary Schedule 7A by adding to or deleting from it any description of supply or by varying any description of supply for the time being specified in it.

(4)The power to vary Schedule 7A conferred by subsection (3) above may be exercised so as to describe a supply of goods or services by reference to matters unrelated to the characteristics of the goods or services themselves. In the case of a supply of goods, those matters include, in particular, the use that has been made of the goods.F203]

Definitions used in section 29A 1

VAT

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

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

Cases considering section 29A 5

Greenspace (UK) Ltd v The Commissioners for HMRC

[2023] EWCA Civ 106 · 10 February 2023

The court treated the reduced rate as applying only to supplies falling within Schedule 7A, an exception to the standard-rate rule that must be construed strictly but not restrictively. (see paras [5]; [33]-[37]) The court noted that this subsection gives the Treasury power to amend Schedule 7A by statutory instrument; it did not apply or construe that power. (see para [10])

Colaingrove Ltd v Revenue And Customs

[2017] EWCA Civ 332 · 4 May 2017Limits

Section 29A applies the reduced rate to a supply of a description specified in Schedule 7A. The fuel charge is not defined solely by the use to which fuel is put. (see paras [45]-[47]; [51]) The power to describe supplies by reference to use does not make the fuel charge a mere use-based test or displace the composite-supply analysis. (see paras [47]; [51])

Cunningham (t/a Urban Developments) v Buckley & Anor

[2017] EWCA Civ 224 · 4 April 2017

Applies section 29A as providing the statutory mechanism for a 5% reduced rate on supplies specified in Schedule 7A. The reduced rate was unavailable because the relevant statutory approval condition was not proved (see paras [15]-[16]).

What each judgment says about section 29A is in the case-law panel in the full Act.

Amendments and notes

3 notes from legislation.gov.uk

Amendments

  1. F203S. 29A inserted (11.5.2001 with effect as mentioned in s. 99(7)(c) of the amending Act) by 2001 c. 9, s. 99(4)
  2. F204Words in s. 29A(1)(b) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 28(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.
  3. F205S. 29A(2) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 28(3) (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.