Legalize / United Kingdom / Statutory-Instrument

The Value Added Tax Regulations 1995

Type Statutory-Instrument

Publication 1995-09-27

Last updated 2025-06-13

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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Category of business	Appropriate percentage
(1)“Labour-only building or construction services” means building or construction services where the value of materials supplied is less than 10 per cent of relevant turnover from such services; any other building or construction services are “general building or construction services”.	(1)“Labour-only building or construction services” means building or construction services where the value of materials supplied is less than 10 per cent of relevant turnover from such services; any other building or construction services are “general building or construction services”.
Accountancy or book-keeping	14.5
Advertising	11
Agricultural services	11
Any other activity not listed elsewhere	12
Architect, civil and structural engineer or surveyor	14.5
Boarding or care of animals	12
Business services that are not listed elsewhere	12
Catering services including restaurants and takeaways	4.5
Computer and IT consultancy or data processing	14.5
Computer repair services	10.5
Dealing in waste or scrap	10.5
Entertainment or journalism	12.5
Estate agency or property management services	12
Farming or agriculture that is not listed elsewhere	6.5
Film, radio, television or video production	13
Financial services	13.5
Forestry or fishing	10.5
General building or construction services[^f01000]	9.5
Hairdressing or other beauty treatment services	13
Hiring or renting goods	9.5
Hotel or accommodation	0
Investigation or security	12
Labour-only building or construction services[^f01000]	14.5
Laundry or dry-cleaning services	12
Lawyer or legal services	14.5
Library, archive, museum or other cultural activity	9.5
Management consultancy	14
Manufacturing fabricated metal products	10.5
Manufacturing food	9
Manufacturing that is not listed elsewhere	9.5
Manufacturing yarn, textiles or clothing	9
Membership organisation	8
Mining or quarrying	10
Packaging	9
Photography	11
Post offices	5
Printing	8.5
Publishing	11
Pubs	1
Real estate activity not listed elsewhere	14
Repairing personal or household goods	10
Repairing vehicles	8.5
Retailing food, confectionary, tobacco, newspapers or children’s clothing	4
Retailing pharmaceuticals, medical goods, cosmetics or toiletries	8
Retailing that is not listed elsewhere	7.5
Retailing vehicles or fuel	6.5
Secretarial services	13
Social work	11
Sport or recreation	8.5
Transport or storage, including couriers, freight, removals and taxis	10
Travel agency	10.5
Veterinary medicine	11
Wholesaling agricultural products	8
Wholesaling food	7.5
Wholesaling that is not listed elsewhere	8.5

Admission to scheme

55L

(1) A taxable person shall be eligible to be authorised to account for VAT in accordance with the scheme at any time if—

(a) there are reasonable grounds for believing that—

(i) the value of taxable supplies to be made by him in the period of one year then beginning will not exceed £150,000, and

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) he—

(i) is not a tour operator,

(ii) is not required to carry out adjustments in relation to a capital item under Part XV, or

(iii) does not intend to opt to account for the VAT chargeable on a supply made by him by reference to the profit margin on the supply, in accordance with the provisions of any Order made under section 50A of the Act,

(i) been convicted of any offence in connection with VAT,

(ii) made any payment to compound proceedings in respect of VAT under section 152 of the Customs and Excise Management Act 1979[^f00005],

(iii) been assessed to a penalty under section 60 of the Act, or

(iv) ceased to operate the scheme, and

(d) 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.

(2) In determining the value of a person’s taxable supplies ... for the purposes of paragraph (1)(a)—

(a) any supply of goods or services that are capital assets of the business in the course or furtherance of which they are supplied, and

(b) any supply of services treated as made by the recipient by virtue of section 8 of the Act (reverse charge on supplies from abroad),

shall be disregarded.

(3) Notwithstanding the above, where a person has been—

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

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

in the period of 24 months before the date of his application, he shall not be eligible to be authorised, unless the Commissioners are satisfied that such authorisation poses no risk to the revenue.

Withdrawal from the scheme

55M

(1) Subject to paragraph (2) below, a flat-rate trader ceases to be eligible to be authorised to account for VAT in accordance with the scheme where—

(a) at any anniversary of his start date, the total value of his income in the period of one year then ending is more than £230,000,

(b) there are reasonable grounds to believe that the total value of his income in the period of 30 days then beginning will exceed £230,000,

(d) he intends to acquire, construct or otherwise obtain a capital item within the meaning of regulation 112(2),

(e) he opts to account for the VAT chargeable on a supply made by him by reference to the profit margin on the supply, in accordance with the provisions of any Order made under section 50A of the Act,

(f) 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,

(g) he opts to withdraw from the scheme, or

(h) his authorisation is terminated in accordance with regulation 55P below.

(2) A flat-rate trader does not cease to be eligible to be authorised by virtue of paragraph (1)(a) above if the Commissioners are satisfied that the total value of his income in the period of one year then beginning will not exceed £191,500.

(3) In determining the value of a flat-rate trader’s income for the purposes of paragraphs (1)(a) and (b) and (2) above, any supply of goods or services that are capital assets of the business in the course or furtherance of which they are supplied, shall be disregarded.

(4) For the purposes of this regulation, “income” shall be calculated in accordance with the method specified in regulation 55G(1) (determining relevant turnover) used by the business to determine the value of its turnover whilst accounting for VAT under the scheme.

(5) Where a business has used more than one method to determine the value of its turnover whilst accounting for VAT under the scheme, the method referred to in paragraph (4) above shall be the most recent method used.

Notification

55N

(1) Subject to paragraph (1A), where—

(a) at the first day of the prescribed accounting period current at any anniversary of his start date,

(b) the appropriate percentage to be applied by a flat-rate trader in accordance with regulation 55H(2)(a) for the prescribed accounting period just beginning differs from that applicable to his relevant turnover at the end of the previous prescribed accounting period,

he must notify the Commissioners of that fact within 30 days of the first day of the prescribed accounting period current at the anniversary of his start date.

(1A) Paragraph (1) shall not apply where a difference in the appropriate percentage arises only because of the application of regulation 55KA.

(2) Where a flat-rate trader begins to carry on a new business activity or ceases to carry on an existing business activity, he must notify the Commissioners of—

(a) that fact,

(b) the date that is the relevant date described by regulation 55A(3)(c) or (d) (as the case may be), and

(c) the appropriate percentage to be applied to the period immediately before that relevant date and immediately after it,

within 30 days of that relevant date.

(3) Where any of sub-paragraphs (a) to (g) of regulation 55M(1) apply, the flat-rate trader shall notify the Commissioners of that fact within 30 days.

(4) Any notification required by this regulation shall be given in writing.

Termination by the Commissioners

55P

The Commissioners may terminate the authorisation of a flat-rate trader at any time if—

(a) they consider it necessary to do so for the protection of the revenue, or

(b) a false statement was made by, or on behalf of, him in relation to his application for authorisation.

Date of withdrawal from the scheme

55Q

(1) The date on which a flat-rate trader ceases to be authorised to account for VAT in accordance with the scheme shall be—

(a) where regulation 55M(1)(a) applies—

(i) in the case of a person who is authorised in accordance with regulation 50(1) (annual accounting scheme), the end of the prescribed accounting period in which the relevant anniversary occurred, or the end of the month next following, whichever is the earlier, or

(ii) in all other cases, the end of the prescribed accounting period in which the relevant anniversary occurred,

(b) where regulation 55M(1)(b) applies, the beginning of the period of 30 days in question,

(d) where regulation 55M(1)(e) applies, the beginning of the prescribed accounting period for which he makes the election described by that provision,

(e) where regulation 55M(1)(g) applies, the date on which the Commissioners are notified in writing of his decision to cease using the scheme, or such earlier or later date as may be agreed between them and him, and

(f) where regulation 55M(1)(h) applies, the date of issue of a notice of termination by the Commissioners or such earlier or later date as may be directed in the notification.

(2) The date with effect from which a person ceases to be so authorised shall be known as his end date.

Self-supply on withdrawal from scheme

55R

(1) This regulation applies where—

(a) a person continues to be a taxable person after his end date,

(b) for any prescribed accounting period for which he was a flat-rate trader, he was entitled to, and claimed, credit for input tax in respect of any capital expenditure goods, and

(2) Where this regulation applies, those goods shall be treated for the purposes of the Act as being, on the day after his end date, both supplied to him for the purpose of his business and supplied by him in the course or furtherance of his business.

(3) The value of a supply of goods treated under paragraph (2) above as made to or by a person shall be determined as though it were a supply falling within paragraph 6(1) of Schedule 6 to the Act.

Adjustments in respect of stock on hand at withdrawal from scheme

55S

(1) This regulation applies where—

(a) a person continues to be a taxable person after his end date,

(b) at his end date, he has stock on hand in respect of which he is not entitled to credit for input tax, and

(c) the value of the stock on hand referred to in sub-paragraph (b) above exceeds the value of his stock on hand in respect of which he was entitled to credit for input tax, at his start date.

(2) Where this regulation applies, the taxable person, for the prescribed accounting period following that in which his end date falls, is entitled to credit for input tax in respect of his stock on hand in such amount as may be determined in accordance with a notice published by the Commissioners.

Amendment by notice

55T

The Commissioners may vary the terms of any method prescribed by them for the purposes of regulations 55G or 55S by publishing a fresh notice or publishing a notice that amends an existing notice.

Reverse charges

55U

Section 8 of the Act (reverse charge on supplies from abroad) shall not apply to any relevant supply or relevant purchase of a flat-rate trader.

Bad debt relief

55V

(1) This regulation applies where—

(a) a person has made a relevant supply,

(b) he has used the cash turnover method to determine the value of his relevant turnover for the prescribed accounting period in which the relevant supply was made,

(d) the whole or any part of the consideration for the supply has been written off in his accounts as a bad debt, and

(e) a period of 6 months (beginning with the date of the supply) has elapsed.

(2) Where this regulation applies—

(a) section 36 of the Act[^f00006] (bad debts) and any regulations made thereunder shall apply as if the conditions set out in subsection (1) of that section are satisfied, and

(b) the amount of refund of VAT to which the person is entitled under that section shall be the VAT chargeable on the relevant supply described in paragraph (1) above less the flat-rate amount.

(3) In paragraph (2)(b) above, the flat-rate amount is—

$$A×B$where—A is the appropriate percentage applicable for the prescribed accounting period, or part thereof, in which the relevant supply was made, andB is the value of the relevant supply together with the VAT chargeable thereon.$

57A

(1) A person shall not account for VAT in accordance with the scheme in respect of any relevant supplies or relevant purchases of his.

(2) In this regulation, “relevant supplies” and “relevant purchases” have the same meanings as in Part VIIA (flat-rate scheme for small businesses).

69A

No retailer may use a scheme at any time for which he is a flat-rate trader.

Attribution of payments received under certain credit agreements

170A

(1) This regulation applies where—

(a) the claimant made a supply of goods and, in connection with that supply, a supply of credit;

(b) those supplies were made under a hire purchase, conditional sale or credit sale agreement; and

(c) a payment is received in relation to those supplies (other than a payment of an amount upon which interest is not charged).

(2) Where the supply of goods was made before 1st September 2006 the payment shall be attributed in accordance with the rule set out in paragraph (5).

(3) Where the supply of goods was made on or after 1st September 2006 and before 1st September 2007 the payment may be attributed in accordance with the rule set out in paragraph (5) or (6).

(4) Where the supply of goods was made on or after 1st September 2007 the payment shall be attributed in accordance with the rule set out in paragraph (6).

(5) Where this paragraph applies, the payment shall be attributed —

(a) as to the amount obtained by multiplying it by the fraction$AB$ , to the supply of credit; and

(b) as to the balance, to the supply of goods,

where—

A is the total of the interest on the credit provided under the agreement under which the supplies are made (determined as at the date of the making of the agreement); and

Bis the total amount payable under the agreement, less any amount upon which interest is not charged.

(6) Where this paragraph applies, the payment shall be attributed —

(a) in respect of payments made on or before termination of the agreement,

(i) as to the amount obtained by multiplying it by the fraction $AB$, to the supply of credit; and

(ii) as to the balance, to the supply of goods,

where—

A is the total of the interest on the credit provided under the agreement, less any rebate of interest granted, less any interest attributable to any unpaid instalments prior to the termination; and

B is the total amount payable under the agreement being the total of A plus the total for the goods.

“Total for the goods” means the amount due for the goods under the agreement, less any reduction as a consequence of termination, less any amount upon which interest is not charged, less any part of the total due for the goods which is unpaid at the time of termination.

(b) in respect of payments made after termination of the agreement, between the supply of goods and the supply of credit according to the proportion of the balances due at the time the payment is made.

(7) Where an agreement provides for a variation of the rate of interest after the date of the making of the agreement then, for the purposes of the calculation in paragraph (5), it shall be assumed that the rate is not varied.

Repayment of a refund

Writing off debts

Writing off debts—margin schemes

Writing off debts—tour operators margin scheme

Application

172ZC

This Part applies where the relevant supply was made before 1st January 2003.

Interpretation of Part XIXA

Repayment of input tax

Restoration of an entitlement to credit for input tax

PART XIXB — REPAYMENT OF INPUT TAX WHERE CONSIDERATION NOT PAID

Application

172F

This Part applies where the supply in relation to which a person has claimed credit for input tax was made on or after 1st January 2003.

Interpretation

172G

In this Part—

“relevant period” means 6 months following—the date of the supply, orif later, the date on which the consideration for the supply, or (as the case may be) the unpaid part of it, became payable.

Repayment of input tax

172H

(1) Subject to paragraphs (5) and (6) below, where a person—

(a) has not paid the whole or any part of the consideration for a supply by the end of the relevant period; and

(b) has claimed deduction of the whole or part of the VAT on the supply as input tax (“the deduction”),

he shall make an entry in his VAT account in accordance with paragraphs (2) and (3) below.

(2) The person shall make a negative entry in the VAT allowable portion of that part of his VAT account which relates to the prescribed accounting period of his in which the end of the relevant period falls.

(3) The amount of the negative entry referred to in paragraph (2) above shall be such amount as is found by multiplying the amount of the deduction by a fraction of which the numerator is the amount of the consideration for the supply which has not been paid before the end of the relevant period and the denominator is the total consideration for the supply.

(4) None of the circumstances to which this regulation applies is to be regarded as giving rise to any application of regulations 34 and 35.

(5) This regulation does not apply where, for input tax, the operative date for VAT accounting purposes is the date mentioned in regulation 57(b) above.

(6) This regulation does not apply in so far as a person is entitled under section 26AA of the Act to credit for input tax in relation to the supply.

Restoration of an entitlement to credit for input tax

172I

(1) Where a person—

(a) has made an entry in his VAT account in accordance with regulation 172H (“the input tax repayment”);

(b) has made the return for the prescribed accounting period concerned, and has paid any VAT payable by him in respect of that period; and

(c) after the end of the relevant period, has paid the whole or part of the consideration for the supply in relation to which the input tax repayment was made,

he shall make an entry in his VAT account in accordance with paragraphs (2) and (3) below in respect of each such payment made.

(2) The person shall make a positive entry in the VAT allowable portion of that part of his VAT account which relates to the prescribed accounting period of his in which payment of the whole or part of the consideration was made.

(3) The amount of the positive entry referred to in paragraph (2) above shall be such amount as is found by multiplying the amount of the input tax repayment by a fraction of which the numerator is the amount of the payment referred to in paragraph (1) (c) above and the denominator is that consideration for the supply which was not paid before the end of the relevant period.

(4) None of the circumstances to which this regulation applies is to be regarded as giving rise to any application of regulations 34 and 35.

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

Attribution of payments

172J

The rules on the attribution of payments in regulation 170 and, as the case may be, 170A(5) above shall apply for determining whether anything paid is to be taken as paid by way of consideration for a particular supply.

55JA

(1) This regulation applies where—

(a) the Table is amended, and

(b) the amendment date is not, in relation to a flat-rate trader—

(i) the first day of a prescribed accounting period current at an anniversary of his start date; or

(ii) a change date.

(2) The date with effect from which the Table is amended shall be known as “the amendment date”.

(3) For the remaining portion, the appropriate percentage shall be that specified in the Table for the category of business that he is expected, at the amendment date, on reasonable grounds, to carry on in that period.

(4) “Remaining portion” means that part of the prescribed accounting period in which the amendment date occurs starting with the amendment date and ending on the last day of that prescribed accounting period.

(5) For any prescribed accounting period that falls between the prescribed accounting period current at the amendment date and the prescribed accounting period current at the next anniversary of his start date, the appropriate percentage shall be that applicable for the remaining portion.

(6) The appropriate percentages specified in paragraphs (3) and (5) above shall be applied to the relevant turnover in the periods described.

94B

(1) This regulation applies in relation to the following supplies where they are provided in the circumstances referred to in paragraph (2) below—

(a) supplies falling within regulation 85 above (leases treated as supplies of goods) other than any supply which is exempt by virtue of Group 1 of Schedule 9 to the Act or would be exempt but for the operation of Part 1 of Schedule 10 to the Act;

(b) supplies falling within regulation 86(1) to (4) above (supplies of water, gas or any form of power, heat, refrigeration or ventilation);

(c) supplies falling within regulation 90 above (continuous supplies of services) other than any supply which is exempt by virtue of Group 1 of Schedule 9 to the Act or would be exempt but for the operation of Part 1 of Schedule 10 to the Act.

(2) The circumstances referred to in paragraph (1) above are—

(a) that the person making the supply and the person to whom it is made are connected with each other, or

(b) one of those persons is an undertaking in relation to which the other is a group undertaking (except where both undertakings are treated under sections 43A to 43C of the Act as members of the same group), and

(3) But this regulation does not apply where a person can show that a person to whom he has made a supply of a description falling within paragraph (1) above is entitled under sections 25 and 26 of the Act to credit for all of the VAT on that supply.

(4) For the purposes of paragraph (2)—

(a) any question whether one person is connected with another shall be determined in accordance with section 839 of the Taxes Act;

(b) a company is not connected with another company only because both are under the control of—

(i) the Crown,

(ii) a Minister of the Crown,

(iii) a government department, or

(iv) a Northern Ireland department;

(d) “undertaking” and “group undertaking” have the same meaning as in section 1161 of the Companies Act 2006.

(5) Where this regulation applies, goods or services shall, to the extent that they have not already been treated as supplied by virtue of the regulations specified in paragraph (1) above (or any provision of the Act or other regulations made under the Act), and to the extent that they have been provided, be treated as separately and successively supplied—

(a) in the case of supplies the provision of which commenced on or before 1st October 2003, at the end of the period of twelve months after that date;

(b) in the case of supplies the provision of which commenced after 1st October 2003, at the end of the period of twelve months after the supplies commenced; or

(c) where the Commissioners are satisfied that each category of supply has been adequately identified, on such other period end date nominated for each category and falling within the period specified in sub-paragraph (5)(a) or (b) above as may be notified by the taxable person to the Commissioners in writing,

and thereafter at the end of each subsequent period of twelve months.

(6) But where the person making the supply, within the period of six months after the time applicable under paragraph (5) above either—

(a) issues a VAT invoice in respect of it, or

(b) receives a payment in respect of it,

the supply shall, to the extent that it has not been treated as taking place at some other time by virtue of the regulations specified in paragraph (1) above (or any provision of the Act or other regulations made under the Act), be treated as taking place at the time the invoice is issued or the payment is received, unless the person making the supply has notified the Commissioners in writing that he elects not to avail himself of this paragraph.

(7) The Commissioners may, at the request of a taxable person, allow paragraph (6) above to apply in relation to supplies made by him (or such supplies as may be specified) as if for the period of six months there were substituted such other period as may be prescribed by them.

(8) A taxable person may after the start of any period to be established under paragraph (5) above—

(a) in relation to some or all of his supplies, and

(b) where the Commissioners give their approval,

select an alternative period end date falling before the end of that period (which end date but for this paragraph would be established under paragraph (5) above), from which date subsequent periods of twelve months will end.

(9) A date selected and approved under paragraph (8) above shall be the date which establishes the end of the taxable person’s current period.

(10) For the purposes of paragraph (8) above, a reference to a period end established under paragraph (5) above includes a reference to a period end established by an earlier application of paragraph (8) above.

(11) Where the supply is one of the leasing of assets, and that leasing depends on one or more other leases of those assets (the superior lease or leases), then the reference in paragraph (2) above to the person making the supply includes a reference to any lessor of a superior lease.

(12) For the purposes of paragraph (11) above, a reference to the leasing of assets includes a reference to any letting, hiring or rental of assets however described, and “lessor” shall be construed accordingly.

(13) For the purposes of this regulation, goods or services are provided at the time when and to the extent that, the recipient receives the benefit of them.

(14) Where this regulation applies, the regulations specified in paragraph (1) above shall not apply to the extent that supplies have been treated as having taken place under this regulation.

121A

In the Customs (Import Duty) (EU Exit) Regulations 2018, Part 10 (guarantees), in regulation 98(1), regard there being a third sub-paragraph as follows—

(c) in relation to the VAT chargeable on the importation of goods into Great Britain, from any territory not including Northern Ireland, the specified amount may be nil where in the opinion of an HMRC officer there is no risk to the payment.

121B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

121C

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation of Part 3

A13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Obligation to provide a VAT invoice

Electronic invoicing

13A

(1) This regulation applies where a document is provided by a registered person in any electronic format that purports to be a VAT invoice in respect of a supply of services or relevant goods.

(2) The document is not to be treated as the VAT invoice required to be provided by the supplier under regulation 13(1) unless the use of the electronic invoice is accepted by the customer.

(3) When the document is a self-billed invoice that purports to be a VAT invoice, paragraph (2) applies as if the reference to the supplier is to the customer and the reference to the customer is to the supplier.

(4) In this regulation “electronic invoice” means an invoice that contains the particulars required by regulation 14 and which has been issued and received in any electronic format.

(5) In this regulation, “relevant goods” means all goods other than goods—

(a) the supply of which is deemed to be a supply by an operator of an online marketplace by virtue of section 5A of the Act, or

(b) the place of supply of which is determined by section 7(5B) of the Act.

13B

Where a VAT invoice or part of a VAT invoice is in a language other than English the Commissioners may, by notice in writing, require that an English translation of the invoice is provided to them by a person who has received such an invoice in the United Kingdom within 30 days of the date of the notice.

Contents of VAT invoice

Change of rate, credit notes

Retailers' invoices

Section 14(6) supplies to persons belonging in other member States

Section 14(1) supplies by intermediate suppliers

Section 14(2) supplies by persons belonging in other member States

General

Reduced appropriate percentage for newly registered period

55JB

(1) This regulation applies where a flat-rate trader’s start date falls within one year of his EDR.

(2) Except that this regulation does not apply where—

(a) the Commissioners received notification of, or otherwise became fully aware of, his liability to be registered more than one year after his EDR, or

(b) his end date or the first anniversary of his EDR falls before 1st January 2004.

(3) Subject to regulation 55KA, at any relevant date on or after 1st January 2004 falling within his newly registered period, the Table shall be read as if each percentage specified in the right-hand column were reduced by one.

(4) A flat-rate trader’s “newly registered period” is the period—

(a) beginning with the later of—

(i) his start date; and

(ii) the day the Commissioners received notification of, or otherwise became fully aware of, his liability to be registered under the Act, and

(b) ending on the day before the first anniversary of his EDR.

Category of business

Admission to scheme

Withdrawal from the scheme

Notification

Termination by the Commissioners

Date of withdrawal from the scheme

Self-supply on withdrawal from scheme

Adjustments in respect of stock on hand at withdrawal from scheme

Amendment by notice

Reverse charges

Bad debt relief

102A

(1) Notwithstanding the Commissioners’ powers to serve a notice under regulation 102, where a taxable person—

(a) is for the time being using a method approved or directed under regulation 102, and

(b) that method does not fairly and reasonably represent the extent to which goods or services are used by him or are to be used by him in making taxable supplies,

the Commissioners may serve on him a notice to that effect, setting out their reasons in support of that notification and stating the effect of the notice.

(2) The effect of a notice served under this regulation is that regulation 102B shall apply to the person served with the notice in relation to—

(a) prescribed accounting periods commencing on or after the date of the notice or such later date as may be specified in the notice, and

(b) longer periods to the extent of that part of the longer period falling on or after the date of the notice or such later date as may be specified in the notice.

102B

(1) Where this regulation applies, a taxable person shall calculate the difference between—

(a) the attribution made by him in any prescribed accounting period or longer period, and

(b) an attribution which represents the extent to which the goods or services are used by him or are to be used by him in making taxable supplies,

and account for the difference on the return for that prescribed accounting period or on the return on which that longer period adjustment is required to be made, except where the Commissioners allow another return to be used for this purpose.

(2) This regulation shall apply from the date prescribed under regulation 102A(2) or 102C(2), unless or until the method referred to in regulation 102A(1)(a) or 102C(1)(a) is terminated under regulation 102(3).

102C

(1) Subject to regulation 102A, where a taxable person—

(a) is for the time being using a method approved or directed under regulation 102, and

(b) that method does not fairly and reasonably represent the extent to which goods or services are used by him or are to be used by him in making taxable supplies,

the taxable person may serve on the Commissioners a notice to that effect, setting out his reasons in support of that notification.

(2) Where the Commissioners approve a notice served under this regulation, the effect is that regulation 102B shall apply to the person serving the notice in relation to—

(a) prescribed accounting periods commencing on or after the date of the notice or such later date as may be specified in the notice, and

(b) longer periods to the extent of that part of the longer period falling on or after the date of the notice or such later date as may be specified in the notice.

Bad debt relief

64A

Where a person accounts for and pays VAT in relation to a supply in accordance with regulation 61(3) or (6) or 64(2), he shall be treated for the purposes of section 36(1)(a) of the Act as having accounted for and paid VAT on the supply in the prescribed accounting period in which he ceased to operate the scheme.

Accounting

103B

(1) This regulation applies to a taxable person who incurs input tax in the circumstances specified in paragraph (2) below.

(2) Other than where it falls to be attributed under regulation 101, where—

(a) input tax has been incurred by a taxable person in any prescribed accounting period on supplies to him of any of the services specified in paragraph (4) below and of any related goods, and

(b) those services and related goods are used or to be used by the taxable person in making both a relevant supply and any other supply, and

that input tax shall be attributed to taxable supplies to the extent that the services or related goods are so used or to be used expressed as a proportion of the whole use or intended use, notwithstanding any provision of any input tax attribution method that the taxable person is required or allowed to use which purports to have the contrary effect.

(3) In this regulation—

(a) “relevant supply” means a supply of a description falling within item 1 or 6 of Group 5 of Schedule 9 to the Act ...; and

(b) “taxable supplies” includes supplies of a description falling within regulation 103.

(4) The services referred to in paragraph (2)(a) above are services supplied by—

(a) accountants;

(b) advertising agencies;

(d) financial advisers;

(e) lawyers;

(f) marketing consultants;

(g) persons who prepare and design documentation; and

(h) any person or body which provides similar services to those specified in sub-paragraphs (a) to (g) above.

Attribution of input tax on self-supplies

Treatment of input tax attributable to exempt supplies as being attributable to taxable supplies

Adjustment of attribution

Exceptional claims for VAT relief

Goods supplied by persons outside the United Kingdom

82A

Goods which are treated as supplied by a person under section 9A of the Act shall be treated as being supplied when the goods are paid for or, if the consideration is not in money, on the last day of the prescribed accounting period in which the goods are removed or made available.

Time of acquisition

Supplies of land—special cases

Leases treated as supplies of goods

Supplies of water, gas or any form of power, heat, refrigeration or other cooling, or ventilation

Acquisitions of water, gas or any form of power, heat, refrigeration or other cooling, or ventilation

Supplier’s goods in possession of buyer

Retention payments

Continuous supplies of services

Royalties and similar payments

Supplies of services by barristers and advocates

Supplies in the construction industry

General

Supplies spanning change of rate etc.

Claims for credit for, or repayment of, overstated or overpaid VAT

Repayments to the CommissionersNotifications and repayments to the Commissioners

Place of supply of goods subject to warehousing regime

145K

(1) Section 18(1) (supply of goods subject to warehousing regime and before duty point treated as taking place outside the United Kingdom) shall not apply in the following prescribed circumstances.

(2) The circumstances are—

(a) that there is a supply of goods that would but for this regulation be treated for the purposes of the Act as taking place outside the United Kingdom by virtue of section 18(1);

(b) the whole or part of the business carried on by the supplier of those goods consists in supplying to a number of persons goods to be sold, by them or others, by retail;

(d) that supply is to a person who is not a taxable person, and

(i) consists in a supply of goods to that person to be sold, by that person, by retail, or

(ii) consists in a supply of goods to that person by retail.

Adaptations and exceptions for the application of returned goods relief

121D

(1) For the purposes of relief from import VAT incurred on the importation of goods into Great Britain from outside the United Kingdom, the provisions of the Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020 are to be read as if the UK Reliefs document referred to in those Regulations was modified as follows.

(2) Regard sections 37 to 39 (returned goods relief) of the UK Reliefs document as requiring that the goods are re-imported into Great Britain by the same person who originally exported or re-exported the goods.

(3) Regard the amount of relief mentioned in sections 37 to 39 of the UK Reliefs document as reduced by the amount of any unpaid VAT.

(4) Regard the amount of import VAT in regulation 23 of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 as reduced by the amount of any paid VAT.

(5) For the purposes of paragraphs (3) and (4)—

(a) “unpaid” refers to any part of the VAT charged and due on—

(i) a supply of the goods in the United Kingdom before the re-importation, or

(ii) an importation of the goods from outside the United Kingdom before the re-importation,

which has been repaid, remitted or otherwise not paid;

(b) “paid” refers to any part of the VAT charged, due and paid on—

(i) a supply of the goods in the United Kingdom before the re-importation, or

(ii) an importation of the goods from outside the United Kingdom before the re-importation,

in circumstances where there is no actual, or no prospect of, repayment or remission;

(c) a sum for which there is or was an entitlement or right to a deduction or refund within section 24 of the Act (input tax and output tax) is neither “unpaid” nor “paid”.

(6) In the circumstances described in paragraph (7) or (8), the provisions of the Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020 are excepted from the legislation which is to apply as mentioned in section 16(1) of the Act (application of customs enactments).

(7) The circumstances are that—

(a) the re-importer contemplated by sections 37 to 39 of the UK Reliefs document makes a supply of, or concerning, the goods whilst those goods are under the inward processing procedure or in the course of, or after, the relevant exportation, re-exportation or re-importation of the goods,

(b) the place of supply for the purposes of VAT is determined by or under section 7 of the Act (place of supply of goods) as being outside the United Kingdom, and

(c) the goods nevertheless are, or may be, stored or physically used in the United Kingdom by or under the direction of that re-importer or the person to whom that supply is made (“recipient”);

and for these purposes “re-importer” and “recipient” include someone connected with either person or both persons as determined in accordance with sections 1122 and 1123 of the Corporation Tax Act 2010.

(8) The circumstances are that the goods in question were supplied at any time to any person pursuant to regulations 132 to 133 or pursuant to any corresponding provisions of the Isle of Man.

Postal importations by registered persons in the course of business

Temporary importations

Reimportation of certain goods by non-taxable persons

Reimportation of certain goods by taxable persons

Reimportation of goods exported for treatment or process

Supplies to export houses

Export of freight containers

Supplies to overseas persons

Supplies to persons departing from the member States

Supplies to persons taxable in another member State

Supplies of goods subject to excise duty to persons who are not taxable in another member State

Territories to be treated as excluded from or included in the territory of the European Union and of the member States

Entry and exit formalities

Use of the internal Community transit procedure

Customs and excise legislation to be applied

Attribution of input tax to investment gold

Attribution of input tax on self-supplies

Treatment of input tax attributable to exempt supplies as being attributable to taxable supplies

Adjustment of attribution

Exceptional claims for VAT relief

PART 4A — REVERSE CHARGE SALES STATEMENTS

Interpretation of Part 4A

23A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notification of first relevant supply

23B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Submission of Statements

23C

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adjustments where a supply becomes, or ceases to be, a supply to which section 55A(6) of the Act applies (customers to account for tax on supplies of goods or services of a kind used in missing trader intra-community fraud)

38A

(1) Where regulation 38 applies and—

(a) as a result of an increase in consideration for a supply it becomes one to which section 55A(6) of the Act applies; or

(b) as a result of a decrease in consideration for a supply it ceases to be one to which that section applies,

both the maker, and the recipient, of the supply shall make such entries in the VAT payable portion of their VAT accounts as are necessary to account for that fact.

(2) Paragraph (5) of regulation 38 applies to any entry required by this regulation as it applies to any entry required by that regulation.

(3) None of the circumstances to which this regulation applies is to be regarded as giving rise to any application of regulations 34 and 35 except insofar as there is an error arising from a failure to make any entry required by this regulation.

Calculation of returns

VAT to be accounted for on returns and payment of VAT

Accounting etc. by reference to the duty point, and prescribed accounting period in which VAT on certain supplies is to be treated as being chargeable

Accounting for VAT on the removal of goods

Goods removed from warehousing regime

PART 19C — ADJUSTMENT OF OUTPUT TAX IN RESPECT OF SUPPLIES TO WHICH SECTION 55A (6) OF THE ACT APPLIES

172K

This Part applies where a person is entitled, by virtue of section 26AB(2) of the Act, to make an adjustment to the amount of VAT which he is required to account for and pay under section 55A(6) of the Act (“the adjustment”).

Adjustment of output tax

172L

(1) The person must make the adjustment by making a negative entry in the VAT payable portion of that part of his VAT account which relates to the same prescribed accounting period of his as that in which he is required to make an entry in accordance with regulation 172H(2).

(2) The amount of the negative entry referred to in paragraph (1) above must be equal to the amount of the entry that is required to be made in accordance with regulation 172H(2).

Readjustment of output tax

172M

(1) Where a person—

(a) has made an entry in his VAT account in accordance with regulation 172L; and

(b) in relation to the same supply, he subsequently makes an entry in his VAT account in accordance with regulation 172I,

he must make an entry in his VAT account in accordance with paragraphs (2) and (3) below.

(2) The person must make a positive entry in the VAT payable portion of that part of his VAT account which relates to the same prescribed accounting period of his as that in which he makes an entry in accordance with regulation 172I.

(3) The amount of the positive entry referred to in paragraph (2) above must be equal to the amount of the entry he makes in accordance with regulation 172I.

172N

None of the circumstances to which this Part applies is to be regarded as giving rise to any application of regulations 34 and 35.

Notification of cessation and recommencement of relevant supplies

23D

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 15A — GOODS USED FOR NON-BUSINESS PURPOSES DURING THEIR ECONOMIC LIFE

Application

116A

This Part makes provision for calculating the full cost to a person of providing the supply of services (“relevant supply”) that is treated as made pursuant to paragraph 5(4) of Schedule 4 to the Act where goods that are held or used for the purposes of a business are used for private or non-business purposes. Where goods that are held or used for the purposes of a business have an economic life (see regulations 116C, 116D, 116G and 116L) at the time when they are used for private or non-business purposes, the value or part of the value of the relevant supply which is referable to that use on or after 1st November 2007 shall be calculated in accordance with the regulations in this Part.

Interpretation of this Part

116B

(1) In this Part—

“full cost of the goods” means the full cost of the goods to the person (being the person making the relevant supply or any of his predecessors) who, in relation to the VAT on the goods mentioned in paragraph 5(5) of Schedule 4 to the Act, is described in that paragraph as being entitled to-credit under sections 25 and 26 of the Act; ora repayment under the scheme made under section 39 of the Act;but, in relation to any goods which are relevant assets, the full cost shall exclude any costs on which VAT was incurred on or after 1 January 2011;

“goods” includes land forming part of the assets of, or held or used for the purposes of, a business which is treated as goods for the purposes of paragraph 5 of Schedule 4 to the Act by virtue of paragraph 9 of that Schedule and references to goods being held or used for the purposes of a business shall be construed accordingly;

“predecessor” has the same meaning as it does in paragraph 5 of Schedule 4 to the Act.

“relevant asset” has the same meaning as it has in section 24(5B) of the Act.

(2) In this Part, references to a period of time comprising a number of months shall be computed to two decimal places where that period does not comprise a whole number of months.

Economic life of goods

116C

Goods held or used for the purposes of a business have an economic life being (subject to regulations 116G and 116L) the period of time commencing on the day when they are first used for any purpose after they have been supplied to, or acquired or imported by, a person or any of his predecessors and lasting for a period of

(a) 120 months in the case of land, a building or part of a building (but this is subject to regulation 116D);

(b) 60 months for all other goods.

116D

Where the economic life of the interest of a person, or any of his predecessors, in land, a building or part of a building commences at a time when that interest has less than 120 months to run at that time, it shall be limited to the number of months remaining before expiry of that interest and element B of the formula in regulation 116E and element D of the formula in regulation 116L shall be construed accordingly.

Value of a relevant supply

116E

Subject to regulations 116F, 116H and 116I, the value of a relevant supply is the amount determined using the formula

$AB×(C×U%)$

116F

Where a prescribed accounting period in which a relevant supply occurs immediately follows a prescribed accounting period during which the goods whose use gives rise to that supply were not used or made available for use for any purpose, element “A” of the formula in regulation 116E shall (without prejudice to any other element of the formula) comprise the total number of months falling within the economic life concerned covered by

(a) the prescribed accounting period in which the relevant supply occurs; and

(b) all preceding prescribed accounting periods which commence after the end of the prescribed accounting period during which the goods were last used or made available for use for any purpose before the prescribed accounting period in which the relevant supply occurs.

Later increase in the full cost of goods

116G

Where

(a) a supply of goods or services is made to a person or any of his predecessors in respect of any goods held or used for the purposes of a business (whether or not the goods have an economic life in relation to that person at that time);

(b) VAT is chargeable on that supply which is eligible (in whole or part) for credit under sections 25 and 26 of the Act or repayment under section 39 of the Act; and

a new economic life shall, without prejudice to any other economic life having effect in relation to those goods, be treated as commencing in respect of them in accordance with regulation 116C as if they had been supplied, acquired or imported at the time when the supply of goods or services is made.

Value of relevant supplies made during a new economic life

116H

Subject to regulation 116I, the calculation of the value of a relevant supply made during a new economic life in accordance with the formula in regulation 116E is varied so that

C is the increase in the full cost of the goods resulting from the supply of the goods or services giving rise to the new economic life; and

U% is the extent, expressed as a percentage, to which the goods are put to any private use or used, or made available for use, for non-business purposes as compared with the total use made of the goods during the part of the prescribed accounting period occurring during the new economic life of the goods.

Value of relevant supplies of goods which have two or more economic lives

116I

Where a relevant supply occurs in relation to goods that have two or more economic lives at the time when they are put to private use or used, or made available for use, for non-business purposes, the value of that supply shall be such amount as represents the total of the amounts calculated in accordance with regulation 116E (as varied by regulation 116H as appropriate) in respect of those economic lives.

Transitional provisions

116J

Regulation 116L applies to an economic life that

(a) would be treated as commencing before 1st November 2007 if that regulation did not apply; and

(b) relates to goods that, before that day, have been put to any private use or used, or made available for use, for non-business purposes by the person described in regulation 116K or any of his predecessors (whether or not a relevant supply arising from that use has been treated as made before that day).

116K

The person referred to in regulation 116J(b) is the person who holds or uses the goods concerned for the purposes of his business on 1st November 2007.

116L

An economic life of goods to which this regulation applies shall be treated as commencing on 1st November 2007 and lasting for the period of time determined using the formula

$D×(E−F)E$

where—

D is the number of months which would have been the duration of the economic life concerned if it had commenced in accordance with regulation 116C or had been treated as having commenced in accordance with that regulation by virtue of regulation 116G;

E is the value of element “C” of the formula contained in regulation 116E (as varied where appropriate in relation to that economic life by regulation 116H) for the purpose of determining the whole or, where the use occurs at a time when the goods have two or more economic lives at that time, part of the value of a relevant supply arising from the use of the goods during the economic life concerned;

F is the value determined using the formula—$G×100X%×100$

where—

G is the total value of relevant supplies of the goods on which VAT has been or will be accounted for in respect of such relevant supplies arising from the goods being put to any private use or used, or made available for use, for non-business purposes before 1st November 2007 (whether or not such supplies are treated as made before or after that day) to the extent that the value of the relevant supplies comprised in the total value was determined by reference to the value of element “E” of the formula used in this regulation in respect of the economic life concerned; and

X% is the extent, expressed as a percentage, to which the goods have been put to any private use or used, or made available for use, for non-business purposes during the period described in regulation 116M as compared with the total use made of the goods in that period.

116M

The period referred to in regulation 116L is the period of time commencing at the time when the economic life concerned would have commenced if it had commenced in accordance with regulation 116C or had been treated as having commenced in accordance with that regulation by virtue of regulation 116G and ending immediately before 1st November 2007.

116N

Where a person has claimed deduction of input tax on goods which was incurred within the period of two years ending on 21st March 2007, he may withdraw that claim in whole or part as if it were made in error (but not so as to render him liable to any penalty or payment of interest in respect of that claim) provided that

(a) the goods have not been used for any purpose before the claim is withdrawn;

(b) he intends or expects that the goods will be put to private or non-business purposes during their economic life;

(i) all of the input tax claimed on the goods; or

(ii) the part of the input tax claimed on the goods which is referable to his intended use of those goods for purposes other than those of his business; and

(d) the withdrawal is made in accordance with regulation 35 (whatever the amount of the claim that is withdrawn) before 1st February 2008.

PART4B — PROVISION OF INFORMATION RELATING TO ARRIVALS AND DISPATCHES

Interpretation of Part 4B

23E

(1) In this Part—

“establishing Regulation” means the Council and European Parliament Regulation (EC) No. 638/2004;

“implementing Regulation” means the Commission Regulation (EC) No. 1982/2004[^f00005];

“statistics Regulations” means the Statistics of Trade (Customs and Excise) Regulations 1992[^f00006];

(2) In this Part—

“arrivals and dispatches” means those arrivals and dispatches for which a responsible party is required to provide information under the establishing Regulation, implementing Regulation and the statistics Regulations;

“for Intrastat purposes” means for any purpose under the establishing Regulation, implementing Regulation or the statistics Regulations;

“reference period” means the period applicable under Article 6(1) of the establishing Regulation or such other period directed by the Commissioners pursuant to regulation 4(3) of the statistics Regulations;

“responsible party” means a taxable person who is required by Article 7 of the establishing Regulation and regulation 3 of the statistics Regulations to provide information in relation to arrivals and dispatches;

“supplementary declaration” means the relevant form set out in the Schedule to the statistics Regulations;

“delivery terms”, “nature of the transaction”, “partner Member State”, “quantity of the goods” and “value of the goods” shall have the same meaning as in the establishing Regulation and implementing Regulation.

23F

(1) A responsible party shall provide the information in paragraph (2) relating to arrivals and dispatches to the Commissioners.

(2) The information is—

(a) the registration number of the responsible party,

(b) the reference period,

(d) the commodity, identified by the eight digit code of the Combined Nomenclature as defined in Council Regulation (EEC) No.2658/87 of 23 July 1987[^f00007] as amended on the tariff and statistical nomenclature and the Common Customs Tariff,

(e) the partner Member State,

(f) the value of the goods,

(g) the quantity of the goods,

(h) the nature of the transaction.

(3) A responsible party to whom regulation 4(2) of the statistics Regulations applies shall also provide the delivery terms relating to arrivals and dispatches to the Commissioners.

(4) The information required by paragraphs (2) and (3) shall be provided in the supplementary declaration in which, and for the same reference period as, information is provided relating to those arrivals and dispatches for Intrastat purposes.

107F

The references in regulations 107C and 107E to an apportionment under regulation 101(2)(d) in relation to a longer period include cases where the apportionment is made under regulation 107(1)(a) or (d) using the calculation specified in regulation 101(2)(d).

201A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25A

(A1) Where a person makes a return required by regulation 25 by means of electronic communications using functional compatible software, such a method of making a return shall be referred to in this Part as a “compatible software return system”.

(1) Where a person makes a return required by regulation 25 using electronic communications other than functional compatible software, such a method of making a return shall be referred to in this Part as an “electronic return system”.

(2) Where a person makes a return or a final return on the relevant form specified in a notice published by the Commissioners, such a method of making a return shall be referred to in this Part as a “paper return system”.

(2A) A person who is subject to the requirements of regulation 32A, including by virtue of an election in accordance with regulation 32C, must make a return required by regulation 25 using a compatible software return system.

(3) Subject to paragraphs (2A) above and (6) below, a person who is registered for VAT must make a return required by regulation 25 using an electronic return system that that person is required or authorised to use whether or not such a person is registered in substitution for another person under regulation 6 (transfer of a going concern).

(4) In any case where an electronic return system or a compatible software return system is not used, a return must be made using a paper return system.

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

(6) ... A person—

(a) who the Commissioners are satisfied is a practising member of a religious society or order whose beliefs are incompatible with the use of electronic communications, or

(b) to whom an insolvency procedure as described in any of paragraphs (a) to (f) of section 81(4B) of the Act is applied ... , or

(c) for whom the Commissioners are satisfied that it is not reasonably practicable to make a return using an electronic return system (including any electronic return system that that person is authorised to use) for reasons of disability, age, remoteness of location or any other reason

is not required to make a return required by regulation 25 using an electronic return system.

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

(8) Where an electronic return system or a compatible software return system is used, it must take a form approved by the Commissioners in a specific or general direction.

(9) Where a paper return system is used, a return required by regulation 25(1) or 25(4) must be made on the relevant form specified in a notice published by the Commissioners.

(10) A direction under paragraph (8) above may in particular—

(a) modify or dispense with any requirement of the relevant form specified in a notice published by the Commissioners,

(b) specify circumstances in which the electronic return system or a compatible software return system may be used, or not used, by or on behalf of the person required to make the return,

Change of rate, supplementary charge invoices

15A

Where a supplementary charge is due under Schedule 3 to the Finance Act 2009 or Schedule 2 to the Finance (No. 2) Act 2010 in respect of a supply and a VAT invoice has been issued in relation to that supply which invoice does not include the supplementary charge, the person making the supply shall, within 45 days after the date when the supplementary charge becomes due, provide the person to whom the supply is made with an invoice headed “Supplementary charge invoice” and containing the following particulars—

(a) the identifying number and date of issue of the supplementary charge invoice,

(b) the amount of the supplementary charge to VAT,

(d) the name and address of the person to whom the supply is made, and

(e) the identifying number and date of issue of the VAT invoice.

Retailers' invoices

Section 14(6) supplies to persons belonging in other member States

Section 14(1) supplies by intermediate suppliers

Section 14(2) supplies by persons belonging in other member States

General

22A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22B

(1) Where statements are to be submitted under regulation 22 and 22ZZA in respect of periods ending on the same day, the statements may be submitted on a single form.

(2) A taxable person may submit a statement under regulation 22 or 22ZZA on paper or on-line using an electronic portal provided by the Commissioners for that purpose.

(3) A taxable person who is required to submit a statement under regulation 22 or 22ZZA must do so—

(a) where the statement is submitted on-line, not later than 21 days from the end of the period to which the statement relates,

(b) in every other case, not later than 14 days from the end of the period to which the statement relates.

22C

(1) Every taxable person who in any quarter makes a supply of a new means of transport which involves the removal of those goods from Northern Ireland to a member State to a person (“the acquirer”)—

(a) for the purposes of acquisition by that acquirer in another member State, and

(b) where the acquirer is not, at the time of the acquisition, registered in that member State,

shall submit a statement to the Commissioners.

(a) The statement shall be submitted in respect of the quarter in which the NMT supply of goods is made.

(b) Where during the period mentioned in sub-paragraph (a) above the taxable person (A)—

(i) ceases to be registered under Schedule 1 to the Act, and

(ii) no other person has been registered with the registration number of and in substitution for A,

the last day of that period is to be treated as being the same date as the effective date of A’s deregistration.

(3) The statement shall—

(a) be made in the form specified in a notice published by the Commissioners,

(b) contain, in respect of the NMT supplies of goods which have been made within the period in respect of which the statement is made, such information as the Commissioners shall from time to time prescribe,

(d) be submitted within 42 days of the end of the period to which it relates.

Repayments of VAT

173A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

173B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

173C

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

173D

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

173E

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Time when VAT is incurred

173F

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Repayment period

173G

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Minimum total claim for a repayment period

173H

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Requirements for a claim for repayment of VAT

173I

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

173J

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

173K

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Contents of a repayment application

173L

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

173M

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

173N

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

173O

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Day by which a claim under this Part must be made

173P

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notification of entitlement to repayment

173Q

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Requests for further information or a document

173R

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Relevant period applicable to any VAT for which repayment is claimed

173S

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extension of the relevant period by virtue of the making of a request for information or a document

173T

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extension of the relevant period where more than one request for information or a document is made in relation to the same VAT

173U

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Time when a repayment of VAT must be made

173V

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interest on late payments

173W

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

173X

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

...

Deduction of bank charges

Treatment of claim ...

... Incorrect claims

Treatment of claim ...

105A

(1) Subject to regulation 106ZA(1), where, in relation to a taxable person, total input tax incurred less any input tax incurred on goods or services used or to be used exclusively in making taxable supplies—

(a) in any prescribed accounting period, or

(b) in any applicable longer period,

does not amount to more than £625 per month on average, all input tax incurred in that period shall be treated as attributable to taxable supplies provided that the value of exempt supplies does not exceed one half of the value of all supplies.

(2) In the application of paragraph (1) above to a longer period—

(a) any treatment of input tax as attributable to taxable supplies in any prescribed accounting period shall be disregarded, and

(b) the amount of input tax incurred on goods or services used or to be used exclusively in making taxable supplies must reflect any changes in use or intention during that period.

(3) In this regulation—

(a) “taxable supplies” includes supplies of a description falling within regulation 103, and

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