The Value Added Tax Regulations 1995

Made: 27th September 1995

Laid before the House of Commons: 28th September 1995

Coming into force: 20th October 1995

The Commissioners of Customs and Excise, in exercise of the powers conferred on them by sections 3(4), 6(14), 7(9), 8(4), 12(3), 14(3), 16(1) and (2), 18(5) and (5A), 24(3), (4) and (6), 25(1), (4) and (6), 26(1), (3) and (4), 28(3), (4) and (5), 30(8), 35(2), 36(5), 37(3) and (4), 38, 39(1), 40(3), 46(2) and (4), 48(3)(b), (4) and (6), 49(2) and (3), 52, 54(1), (2), (3) and (6), 58, 79(3), 80(6), 88(3) and (5), 92(4), 93(1) and (2), 95(5) and 97(1) of, and paragraph 17 of Schedule 1, paragraph 9 of Schedule 2, paragraph 10 of Schedule 3, paragraphs 2(1) and (2) of Schedule 7, and paragraphs 2(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11) and (12), 5(4) and (9), 6(1) and (2) and 7(1) of Schedule 11 to, the Value Added Tax Act 1994[^f00001] and of all other powers enabling them in that behalf, hereby make the following Regulations:

PART I — PRELIMINARY

Citation and commencement

1

These Regulations may be cited as the Value Added Tax Regulations 1995 and shall come into force on 20th October 1995.

Interpretation—general

2

—

• (1) In these Regulations unless the context otherwise requires—

• “the Act” means the Value Added Tax Act 1994 and any reference to a Schedule to the Act includes a reference to a Schedule as amended from time to time by Order of the Treasury;

• “alphabetical code” means the alphabetical prefix as set out below which shall be used to identify the relevant territory—Austria — ATBelgium — BE Bulgaria — BG Cyprus — CYCzech Republic — CZDenmark — DKEstonia — EEFinland — FIFrance — FRGermany — DEGreece — ELHungary — HUIreland — IEItaly — ITLatvia — LVLithuania — LTLuxembourg — LUMalta — MTNetherlands — NLPoland — PLPortugal — PT Romania — RO Slovakia — SKSlovenia — SISpain — ESSweden — SEUnited Kingdom — XI

• “Collector” includes Deputy Collector and Assistant Collector;

• “the Community” means the European Community;

• “continental shelf” means a designated area within the meaning of the Continental Shelf Act 1964[^f00002];

• “Controller” means the Controller, Customs and Excise Value Added Tax Central Unit;

• ...

• “fiscal or other warehousing regime” means “fiscal warehousing regime or warehousing regime” , and “Northern Ireland fiscal or other Northern Ireland warehousing regime” means “Northern Ireland fiscal warehousing regime or Northern Ireland warehousing regime”;

• “identified for the purposes of VAT in Northern Ireland” has the meaning given by paragraph 7 of Schedule 9ZA to the Act;

• “Northern Ireland fiscal warehouse” and “Northern Ireland fiscal warehousing regime” have the meanings given by sub-paragraphs (1) and (2) respectively of paragraph 25 (supplementary provision) of Schedule 9ZB to the Act;

• “Northern Ireland warehouse” and “Northern Ireland warehousing regime” have the meanings given by sub-paragraphs (11) and (12) respectively of paragraph 16 (place and time of supply: Northern Ireland warehouses) of Schedule 9ZB to the Act;

• ...

• ...

• “prescribed accounting period”, subject to regulation 99(1), means a period such as is referred to in regulation 25;

• “proper officer” means the person appointed or authorised by the Commissioners to act in respect of any matter in the course of his duties;

• ...

• “registered person” means a person registered by the Commissioners under Schedule 1, 1A, 3A, Part 8 or 9 of Schedule 9ZA or Schedule or 9ZC to the Act;

• “registration number” means the number allocated by the Commissioners to a taxable person in the certificate of registration issued to him;

• “relevant territory” means, except where otherwise provided, a member State or the United Kingdom;

• “return” means a return which is required to be made in accordance with regulation 25;

• “specified date” means the date specified in a person’s application for registration for the purpose of VAT as that on which he expects to make his first taxable supply.

• ...

• (2) A reference in these Regulations to “this Part” is a reference to the Part of these Regulations in which that reference is made.

• (3) In these Regulations any reference to a form specified in a notice published by the Commissioners shall include a reference to a form which the Commissioners are satisfied is a form to the like effect.

• (4) A reference in these Regulations to “another member State” is to be read as a reference to “a member State”, and “other member State” and “other member States” are to be interpreted accordingly.

Revocations and savings

3

—

• (1) The Regulations described in Schedule 2 to these Regulations are hereby revoked.

• (2) Anything begun under or for the purpose of any Regulations revoked by these Regulations shall be continued under or, as the case may be, for the purpose of the corresponding provision of these Regulations.

• (3) Where any document used or required for the purpose of VAT refers to a provision of a regulation revoked by these Regulations, such reference shall, unless the context otherwise requires, be construed as a reference to the corresponding provision of these Regulations.

Requirement, direction, demand or permission

4

Any requirement, direction, demand or permission by the Commissioners, under or for the purposes of these Regulations, may be made or given by a notice in writing, or otherwise.

PART II — REGISTRATION AND PROVISIONS FOR SPECIAL CASES

Registration and notification

5

• (1) Where any person is required under paragraph 5(1) , 6(1) or 7(1) of Schedule 1, paragraph 5(1), 6(1) or (13)(3) of Schedule 1A, paragraph 3(1) or 4(1) of Schedule 3A, paragraph 40(1) or 50(1) of Schedule 9ZA , or paragraph 8 of Schedule 9ZC to the Act to notify the Commissioners of his liability to be registered, the notification shall contain the particulars (including the declaration) set out in the relevant form specified in a notice published by the Commissioners and shall be made in that form; provided that, where the notification is made by a partnership, the notification shall also contain the particulars set out in the relevant form specified in a notice published by the Commissioners.

• (2) Every registered person except one to whom paragraph 11, 12, 13(1), (2) or (3) of Schedule 1, paragraph 7, 8 or 9(1) of Schedule 1A, paragraph 5 of Schedule 3A, paragraph 42 or 52 of Schedule 9ZA , or paragraph 10 of Schedule 9ZC of the Act applies, shall, within 30 days of any changes being made in the name, constitution or ownership of his business, or of any other event occurring which may necessitate the variation of the register or cancellation of his registration, notify the Commissioners ... of such change or event and furnish them with full particulars thereof.

• (3) Every notification by a registered person under paragraph 11 or 12 of Schedule 1, paragraph 5 of Schedule 3A, paragraph 42 or 52 of Schedule 9ZA , or paragraph 10 of Schedule 9ZC to the Act ... shall state—

• (a) the date on which he ceased to make, or have the intention of making, taxable supplies; or

• (b) where paragraph 12(a) of Schedule 1 to the Act applies, the date on which he ceased to make, or have the intention of making, supplies within paragraph 10(2) of that Schedule; or

• (c) where paragraph 12(b) of Schedule 1 to the Act applies, the date on which he made, or formed the intention of making, taxable supplies; or

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (f) where paragraph 5(1) of Schedule 3A to the Act applies, the date on which he ceased to make, or have the intention of making, relevant supplies within the meaning of paragraph 9 of that Schedule; or

• (fa) where paragraph 42(1) of Schedule 9ZA to the Act applies, the date on which he ceased to be registerable by virtue of paragraph 42(3) of that Schedule; or

• (fb) where paragraph 52(1) of Schedule 9ZA to the Act applies, the date on which he ceased to be registerable by virtue of paragraph 52(4) of that Schedule; or

• (g) where paragraph 10(1) of Schedule 9ZC to the Act applies, the date on which the person ceased to be registrable under the Act; or

• (h) where paragraph 10(2) of Schedule 9ZC to the Act applies, the date on which the person made or facilitated a relevant supply within that paragraph.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transfer of a going concern

6

—

• (1) Where—

• (a) a business or part of a business is transferred as a going concern,

• (b) the registration under Schedule 1 or 1A to the Act of the transferor has not already been cancelled,

• (c) on the transfer of the business or part of it the registration of the transferor under either Schedule is to be cancelled and either the transferee becomes liable to be registered under either Schedule or the Commissioners agree to register him under paragraph 9 of Schedule 1 to the Act, and

• (d) an application is made in the form specified in a notice published by the Commissioners by or on behalf of both the transferor and the transferee of that business or the part transferred,

the Commissioners may as from the date of the said transfer cancel the registration under Schedule 1 or 1A to the Act of the transferor and register the transferee under Schedule 1 or 1A to the Act as appropriate with the registration number previously allocated to the transferor.

• (2) An application under paragraph (1) above shall constitute notification for the purposes of paragraph 11 of Schedule 1 or paragraph 7 of Schedule 1A to the Act.

• (3) Where the transferee of a business or part of a business has under paragraph (1) above been registered under Schedule 1 or 1A to the Act in substitution for the transferor of it, and with the transferor’s registration number—

• (a) any liability of the transferor existing at the date of the transfer to make a return or to account for or pay VAT under regulation 25 or 40 shall become the liability of the transferee,

• (b) any right of the transferor, whether or not existing at the date of the transfer, to credit for, or to repayment of, input tax shall become the right of the transferee, ...

• (c) any right of either the transferor, whether or not existing at the date of the transfer, or the transferee to payment by the Commissioners under section 25(3) of the Act shall be satisfied by payment to either of them,

• (d) any right of the transferor, whether or not existing at the date of the transfer, to claim a refund under section 36 of the Act shall become the right of the transferee, and

• (e) any liability of the transferor, whether or not existing at the date of the transfer, to account for an amount under Part XIXA of these Regulations, shall become that of the transferee, and

• (f) any records relating to the business which, by virtue of these Regulations or a direction made by the Commissioners, are required to be preserved for any period after the transfer shall be preserved by the transferee unless the Commissioners, at the request of the transferor, otherwise direct.

• (4) In addition to the provisions set out in paragraph (3) above, where the transferee of a business or part of a business has been registered in substitution for, and with the registration number of, the transferor during a prescribed accounting period subsequent to that in which the transfer took place but with effect from the date of the transfer, and any—

• (a) return has been made,

• (b) VAT has been accounted for and paid, or

• (c) right to credit for input tax has been claimed,

either by or in the name of the transferee or the transferor, it shall be treated as having been done by the transferee.

Notice by partnership

7

—

• (1) Where any notice is required to be given for the purposes of the Act or these Regulations by a partnership, it shall be the joint and several liability of all the partners to give such notice, provided that a notice given by one partner shall be a sufficient compliance with any such requirement.

• (2) Where, in Scotland, a body of persons carrying on a business which includes the making of taxable supplies is a partnership required to be registered, any notice shall be given and signed in the manner indicated in section 6 of the Partnership Act 1890[^f00003].

Representation of club, association or organisation

8

Anything required to be done by or under the Act, these Regulations or otherwise by or on behalf of a club, association or organisation, the affairs of which are managed by its members or a committee or committees of its members, shall be the joint and several responsibility of—

• (a) every member holding office as president, chairman, treasurer, secretary or any similar office; or in default of any thereof,

• (b) every member holding office as a member of a committee; or in default of any thereof,

• (c) every member,

provided that if it is done by any official, committee member or member referred to above, that shall be sufficient compliance with any such requirement.

Death, bankruptcy or incapacity of taxable person

9

—

• (1) If a taxable person dies or becomes bankrupt or incapacitated, the Commissioners may, from the date on which he died or became bankrupt or incapacitated treat as a taxable person any person carrying on that business until some other person is registered in respect of the taxable supplies made or intended to be made by that taxable person in the course or furtherance of his business or the incapacity ceases, as the case may be; and the provisions of the Act and of any Regulations made thereunder shall apply to any person so treated as though he were a registered person.

• (2) Any person carrying on such business shall, within 21 days of commencing to do so, inform the Commissioners in writing of that fact and of the date of the death, the date of the bankruptcy order, or of the nature of the incapacity and the date on which it began.

• (3) In relation to a company which is a taxable person, the references in paragraph (1) above to the taxable person becoming bankrupt or incapacitated shall be construed as references to the company going into liquidation or receivership or entering administration.

VAT representatives

10

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• (1) Where any person is appointed by virtue of section 48 of the Act to be the VAT representative of another (in this regulation referred to as “his principal”), the VAT representative shall notify the Commissioners of his appointment in the form specified in a notice published by the Commissioners within 30 days of the date on which his appointment became effective and the notification shall contain the particulars (including the declaration) set out in that notice.

• (2) The notification referred to in this regulation shall be accompanied by evidence of the VAT representative’s appointment.

• (3) Subject to paragraphs (3A) and (3B), where a person is appointed by virtue of section 48 of the Act to be a VAT representative, the Commissioners shall register the name of that VAT representative against the name of his principal in the register kept for the purposes of the Act.

• (3A) The Commissioners may refuse to register a person in accordance with paragraph (3) if they are satisfied that the person is not a fit and proper person to act in that capacity.

• (3B) Where a person is registered as a VAT representative in accordance with paragraph (3) the Commissioners may cancel that person’s registration if they are satisfied that the person is not, or is no longer, a fit and proper person to act in that capacity.

• (4) Every VAT representative who is registered in accordance with this regulation shall, within 30 days of any changes being made in the name, constitution or ownership of his business or of his ceasing to be a person’s VAT representative, or of any other event occurring which may necessitate the variation of the register, notify the Commissioners in writing of such change, cessation or event and furnish them with full particulars thereof.

• (5) For the purposes of this regulation the date upon which the appointment of a VAT representative (“the first VAT representative”) shall be regarded as having ceased shall be treated as being whichever is the earliest of the following times—

• (a) when the Commissioners receive any notification in accordance with regulation 5(2), or

• (b) when the Commissioners receive a notification of appointment in accordance with paragraph (1) above of a person other than the first VAT representative, or

• (c) when the Commissioners receive a notification of cessation in accordance with regulation 5(2), or

• (d) when the Commissioners receive a notification of cessation in accordance with paragraph (4) above, or

• (e) when a VAT representative dies, becomes insolvent or becomes incapacitated, or

• (f) when the Commissioners cancel a VAT representative’s registration in accordance with paragraph (3B),

provided that if the Commissioners have not received a notification such as is mentioned in all or any of sub-paragraphs (a), (c) or (d) above and another person has been appointed as a VAT representative by virtue of section 48 of the Act, the Commissioners may treat the date of cessation as the date of appointment of that other person.