Value Added Tax Act 1994, section 47

Agents etc

Part III Application of Act in particular cases

[F429 (1) Where goods are imported by a taxable person (“T”) who supplies them as agent for a person who is not a taxable person, then, if T acts in relation to the supply in T's own name, the goods are to be treated for the purposes of this Act as imported and supplied by T as principal. F429]

(2)For the purposes of subsection (1) above a person who is not resident in the United Kingdom and whose place or principal place of business is outside the United Kingdom may be treated as not being a taxable person if as a result he will not be required to be registered under this Act.

[F430 (2A)Where, in the case of any supply of goods to which subsection (1) above does not apply, goods are supplied through an agent who acts in his own name, the supply shall be treated both as a supply to the agent and as a supply by the agent.F430]

(3)F431Where . . . services [F432, other than electronically supplied services and telecommunication services,F432] are supplied through an agent who acts in his own name the Commissioners may, if they think fit, treat the supply both as a supply to the agent and as a supply by the agent.

[F433 (4)Where electronically supplied services or telecommunication services are supplied through an agent, [F434 acting in the agent's own name,F434] the supply is to be treated both as a supply to the agent and as a supply by the agent.

F435(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) In this section “electronically supplied services” and “telecommunication services” have the same meaning as in Schedule 4A (see paragraph 9(3) and (4) and [F436 paragraph 9E(2) F436] of that Schedule). F433]

Definitions used in section 47 5

taxable person

“taxable person” means a person who is a taxable person under section 3;

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

(3) In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act ).

Defined in Sch.7A para.A1 · see it in the full Act

(3) In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act ).

Defined in Sch.8 para.3 · see it in the full Act
subsection (1) above

(a) the reference in subsection (2) to “subsection (1) above” were to “subsection (1) and paragraph 24(1) of Schedule 9ZA”;

Defined in Sch.9ZA para.24(2) · see it in the full Act

(b) the reference in subsection (2A) to “subsection (1) above” were to “subsection (1) or paragraph 24(1) of Schedule 9ZA”.

Defined in Sch.9ZA para.24(2) · see it in the full Act
business

(1) In this Act “business” includes any trade, profession or vocation.

Defined in s.94(1) · see it in the full Act
the Commissioners

“the Commissioners” means the Commissioners of Customs and Excise;

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

Cases considering section 47 4

Telewest Communications Plc & Anor v Customs and Excise

[2005] EWCA Civ 102 · 10 February 2005Interprets

Section 47(2A) applies where goods are supplied through an agent acting in its own name. The regional companies acted as disclosed agents for Publications and did not adopt the posture of principals in supplying the magazine, so the subsection did not apply (see para [32]).

United Utilities Plc v Customs & Excise

[2004] EWCA Civ 245 · 8 March 2004Interprets

Interprets: Section 47(3) concerns services supplied through an agent acting in his own name and permits the supply to be treated as made both to and by the agent. It does not govern the agent’s separate supply of services to the principal. (see paras [18]-[19]; [43]-[44])

Telewest Communications Plc & Anor v Customs & Excise

[2003] EWHC 3176 (Ch) · 19 December 2003Disapplies

Confirms that section 47(2A) does not apply. The magazines were not supplied through an agent acting in its own name for an undisclosed principal, and the regional companies were not agents making the supply for Publications (see paras [83]-[87]).

What each judgment says about section 47 is in the case-law panel in the full Act.

Amendments and notes

8 notes from legislation.gov.uk

Amendments

  1. F429S. 47(1) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 50(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.
  2. F430S. 47(2A) inserted (1.5.1995 with effect as mentioned in s. 23(4)(b) of the amending Act) by 1995 c. 4, s. 23(2)
  3. F431Words in s. 47(3) repealed (1.5.1995 with effect as mentioned in s. 23(4)(b) of the amending Act) by 1995 c. 4, ss. 23(3), 162, Sch. 29 Pt. VI(2) Note
  4. F432Words in s. 47(3) inserted (with effect in accordance with s. 106(4) of the amending Act) by Finance Act 2014 (c. 26), s. 106(2)
  5. F433S. 47(4)-(6) inserted (with effect in accordance with s. 106(4) of the amending Act) by Finance Act 2014 (c. 26), s. 106(3)
  6. F434Words in s. 47(4) inserted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 50(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.
  7. F435S. 47(5) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 50(4) (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.
  8. F436Words in s. 47(6) substituted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Place of Supply of Services) (Telecommunication Services) Order 2017 (S.I. 2017/778), arts. 1(1), 5