Taxation (Cross-border Trade) Bill (HC Bill 128)

(3) In subsection (2), omit the words from “or on the acquisition” to the end.

(4) In subsection (5)—

(a) in the opening words—

(i) omit “, goods acquired by a taxable person from another
5member State”, and

(ii) omit “from a place outside the member States”, and

(b) in paragraph (a), omit “, acquisitions”.

(5) In subsection (6)—

(a) in paragraph (a)—

(i) 10omit “, VAT on the acquisition of goods by a taxable person
from other member States”, and

(ii) omit “from places outside the member States”,

(b) in paragraph (b)—

(i) omit “or on the acquisition of goods by him from another
15member State”,

(ii) omit “from places outside the member States”, and

(iii) omit “, acquisition”, and

(c) in paragraph (c), omit “, acquisition”.

26 (1) Section 25 (payment by reference to accounting periods and credit for input
20tax against output tax) is amended as follows.

(2) In subsection (1), omit paragraph (b) (together with the “and” before that
paragraph).

(3) In subsection (7)—

(a) in the opening words, omit “, acquisitions”, and

(b) 25in paragraph (a), omit “acquired or” and, in both places, omit “,
acquired”.

27 In section 26 (input tax allowable under section 25), in subsection (1), omit “,
acquisitions”.

28 In section 27 (goods imported for private purposes), in subsection (1), omit
30“from a place outside the member States”.

29 (1) Section 29A (reduced rate) is amended as follows.

(2) In subsection (1)(b), omit “acquisition or”.

(3) For subsection (2) substitute—

“(2) The reference in subsection (1) to an equivalent importation, in
35relation 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.”

30 (1) Section 30 (zero-rating) is amended as follows.

(2) In subsection (3), for the words from “acquired in the United Kingdom” to
40“importation,” substitute “imported, no VAT shall be chargeable on their
importation”.

(3) In subsection (5), omit “to a place outside the member States”.

(4) In subsection (6)(a), omit “to a place outside the member States”.

(5) In subsection (8), for paragraph (a) substitute—

“(a) the Commissioners are satisfied that the goods have been or
are to be exported to such places as may be specified in the
regulations, and”.

(6) 5Omit subsection (8A).

(7) In subsection (9), for “removed from the United Kingdom” substitute
“exported”.

(8) In subsection (10)—

(a) in the opening words, for “subsection (8), (8A) or (9)” substitute
10“subsection (8) or (9)”,

(b) in paragraph (a), omit “or otherwise removed from the United
Kingdom”, and

(c) in paragraph (b), for “subsection (6), (8), (8A) or (9)” substitute
“subsection (6), (8) or (9)”.

31 (1) 15Section 31 (exempt supplies and acquisitions) is amended as follows.

(2) In subsection (1), omit the words from “and an acquisition” to the end.

(3) In the heading, omit “and acquisitions”.

32 (1) Section 33 (refunds of VAT in certain cases) is amended as follows.

(2) In subsection (1)—

(a) 20for paragraph (a) (together with the “and” at the end of the
paragraph) substitute—

“(a) VAT is chargeable on the supply of goods or services
to, or on the importation of goods by, a body to which
this section applies, and”, and”

(b) 25in paragraph (b), omit “, acquisition”.

(3) In subsection (2)—

(a) omit “or acquired” in both places, and

(b) omit “or acquisition”.

33 (1) Section 33A (refunds of VAT to museums and galleries) is amended as
30follows.

(2) In subsection (1)—

(a) for paragraph (a) substitute—

“(a) VAT is chargeable on the supply of goods or services
to, or on the importation of goods by, a body to which
35this section applies,”,”

(b) in paragraph (b), omit “, acquisition”, and

(c) in paragraph (c), omit “acquisition or”.

(3) In subsection (4), omit “acquisition or”.

(4) In subsection (6), omit “or acquired” in both places.

(5) 40In subsection (8)(b)(ii), omit “acquisitions and”.

34 (1) Section 33B (refunds of VAT to Academies) is amended as follows.

(2) In subsection (1)—

(a) for paragraph (a) (together with the “and” at the end of the
paragraph) substitute—

“(a) VAT is chargeable on the supply of goods or services
to, or on the importation of goods by, the proprietor
5of an Academy, and”, and”

(b) in paragraph (b), omit “, acquisition”.

(3) In subsection (3), omit “acquisition or”.

(4) In subsection (5), omit “or acquired” in both places.

(5) In subsection (6), omit “or acquisition”.

35 (1) 10Section 33C (refunds of VAT to charities within section 33D) is amended as
follows.

(2) In subsection (2)—

(a) for paragraph (a) (together with the “and” at the end of the
paragraph) substitute—

“(a) 15VAT is chargeable on the supply of goods or services
to, or on the importation of goods by, a qualifying
charity, and”, and”

(b) in paragraph (b), omit “, acquisition”.

(3) In subsection (4)—

(a) 20for “supply, acquisition or” substitute “supply or”, and

(b) for “the acquisition or importation” substitute “the importation”.

(4) In subsection (5), omit “or acquired” in both places.

(5) In subsection (6), omit “or acquisition”.

36 (1) Section 33E (power to extend refunds of VAT to other persons) is amended
25as follows.

(2) In subsection (1)—

(a) for paragraph (a) (together with the “and” at the end of the
paragraph) substitute—

“(a) VAT is chargeable on the supply of goods or services
30to, or on the importation of goods by, a specified
person, and”, and”

(b) in paragraph (b), omit “, acquisition”.

(3) In subsection (4), omit “, acquisition”.

(4) In subsection (5)—

(a) 35in paragraph (a), omit “acquisition or”, and

(b) in paragraph (b), omit “acquisition or”.

(5) In subsection (6), omit “or acquired” in both places.

(6) In subsection (7), omit “or acquisition”.

37 (1) Section 34 (capital goods) is amended as follows.

(2) 40In subsection (1), omit “, acquisition”.

(3) In subsection (2), omit “, acquired”.

38 (1) Section 35 (refund of VAT to persons constructing certain buildings) is
amended as follows.

(2) In subsection (1)(c), omit “, acquisition”.

(3) Omit subsection (3).

39 5Omit section 36A (relief from VAT on acquisition if importation would
attract relief) and the italic heading before that section.

40 (1) Section 37 (relief from VAT on importation of goods) is amended as follows.

(2) In subsection (1)—

(a) omit “from places outside the member States”, and

(b) 10omit the words from “, if and so” to the end.

(3) In subsection (2)(a), omit “from a place outside the member States”.

(4) In subsection (3)—

(a) omit “from places outside the member States”, and

(b) omit “from the United Kingdom or removed from any member
15State”.

(5) In subsection (4)—

(a) in the opening words—

(i) omit “from places outside the member States”, and

(ii) omit “or otherwise removed from the United Kingdom”, and

(b) 20omit paragraph (b).

41 In section 38 (importation of goods by taxable persons)—

(a) omit “from a place outside the member States”, and

(b) omit “or on the acquisition of goods by him from other member
States”.

42 25In section 39 (repayment of VAT to those in business overseas), for
subsections (1) and (2) substitute—

“(1) The Commissioners may, by means of a scheme embodied in
regulations, provide for the repayment, to persons carrying on
business wholly outside the United Kingdom, of VAT which would
30be input tax of theirs if they were taxable persons in the United
Kingdom.

(2) The scheme may make different provision in relation to persons
carrying on business in different places.”

43 Omit section 39A (applications for forwarding of VAT repayment claims to
35other member States).

44 Omit section 40 (refunds in relation to new means of transport supplied to
other member States).

45 (1) Section 41 (application to the Crown) is amended as follows.

(2) In subsection (3)—

(a) 40omit “, on the acquisition of any goods by a Government department
from another member State”,

(b) omit “from a place outside the member States”, and

(c) omit “, acquisition”.

(3) In subsection (4), omit “, acquisition”.

46 (1) Section 41A (supply of goods or services by public bodies) is amended as
follows.

(2) 5In subsection (1), for the words from “body” to “taxable persons)” substitute
“public authority”.

(3) For subsection (2) substitute—

“(2) Unless the supply is on such a small scale as to be negligible, it is to
be treated for the purposes of this Act as a supply in the course or
10furtherance of a business if it is in respect of any of the following
activities—

(a) telecommunications services,

(b) supply of water, gas, electricity or thermal energy,

(c) transport of goods,

(d) 15port or airport services,

(e) passenger transport,

(f) supply of new goods manufactured for sale,

(g) engaging in transactions in respect of agricultural products in
the exercise of regulatory functions,

(h) 20organisation of trade fairs or exhibitions,

(i) warehousing,

(j) activities of commercial publicity bodies,

(k) activities of travel agents,

(l) running of staff shops, cooperatives, industrial canteens, or
25similar institutions, or

(m) activities carried out by radio and television bodies which are
of a commercial nature.”

(4) Omit subsection (4).

47 (1) Section 43 (groups of companies) is amended as follows.

(2) 30In subsection (1), for paragraph (c) substitute—

“(c) any VAT paid or payable by a member of the group on the
importation of goods shall be treated as paid or payable by
the representative member and the goods shall be treated, for
the purposes of sections 38 and 73(7), as imported by the
35representative member;”.

(3) In subsection (1AA)—

(a) in paragraph (a), omit “acquired or”,

(b) in paragraph (b), omit “, acquisition”,

(c) in paragraph (c)(ii), omit “, acquisition”, and

(d) 40in the words after paragraph (c), omit “, acquisition”.

48 (1) Section 44 (supplies to groups) is amended as follows.

(2) In subsection (2), in the opening words, omit “acquisitions and”.

(3) In subsection (9), omit “acquisition or”.

49 (1) Section 45 (partnerships) is amended as follows.

(2) In subsection (1)—

(a) omit paragraph (b) (together with the “or” before it), and

(b) in the words after that paragraph, omit “or are acquired by such
5persons from another member State”.

(3) In subsection (2), omit “or on the acquisition of goods by the partnership
from another member State”.

(4) In subsection (5), omit “or on the acquisition during that period by the firm
of any goods from another member State”.

50 (1) 10Section 46 (business carried on in divisions or by unincorporated bodies,
personal representatives etc) is amended as follows.

(2) In subsection (3), omit “or whether goods are acquired by such a club,
association or organisation from another member State”.

(3) Omit subsection (6).

51 (1) 15Section 47 (agents etc) is amended as follows.

(2) For subsection (1) substitute—

“(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
20for the purposes of this Act as imported and supplied by T as
principal.”

(3) In subsection (4), after “through an agent,” insert “acting in the agent’s own
name,”.

(4) Omit subsection (5).

52 (1) 25Section 48 (VAT representatives and security) is amended as follows.

(2) In subsection (1)(a), omit “or who acquires goods in the United Kingdom
from one or more other member States”.

(3) For subsections (1A) and (1B) substitute—

“(1A) The condition mentioned in subsection (1)(ba) is that there are no
30arrangements in relation to the country or territory relating to VAT
which—

(a) have effect by virtue of an Order in Council under section 173
of the Finance Act 2006, and

(b) contain provision of a kind mentioned in subsection (2)(a)
35and (b) of that section.”

(4) Omit subsection (9).

53 In section 50A (margin schemes), in subsection (5), omit “, acquisition”.

54 In section 52 (trading stamp schemes)—

(a) in the opening words—

(i) 40for “sections 19 and 20 and Schedules 6 and 7” substitute
“section 19 and Schedule 6”, and

(ii) for “in those sections and Schedules)” substitute “in that
section and Schedule)”,

(b) omit paragraph (b) (together with the “or” before it), and

(c) in the words after that paragraph—

(i) 5omit “or acquired”, and

(ii) omit “or under any scheme of an equivalent description
which is in operation in another member State”.

55 In section 54 (farmers etc), for subsection (8) substitute—

“(8) In this section “designated activities” means activities relating to
10farming, fisheries or forestry which are designated in an order made
by the Treasury.”

56 In section 55A (customers to account for tax on supplies of goods or services
of a kind used in missing trader intra-community fraud), in the heading,
omit “intra-community”.

57 15In section 58 (general provisions relating to the administration and
collection of VAT), for “92(6)” substitute “58ZA(5)(a)”.

58 After section 58 insert—

“58ZA International VAT arrangements

(1) The Commissioners may make regulations imposing obligations on
20taxable persons for the purpose of giving effect to international VAT
arrangements.

(2) The regulations may require the submission to the Commissioners
by taxable persons of statements containing such particulars of—

(a) relevant transactions in which the taxable persons are
25concerned, and

(b) the persons concerned in those transactions,

as may be specified in the regulations.

(3) The regulations may provide for statements about relevant
transactions to be submitted at such times and intervals, in such
30cases and in such form and manner as may be specified—

(a) in the regulations, or

(b) by the Commissioners in accordance with the regulations.

(4) A transaction is a “relevant transaction” for the purposes of this
section if information about it could be relevant to any international
35VAT arrangements.

(5) If any international VAT arrangements have effect—

(a) any Schedule 11 information power is exercisable with
respect to matters that are relevant to those arrangements as
it is exercisable with respect to matters that are relevant for
40any of the purposes of this Act, and

(b) any power of an officer of Revenue and Customs to obtain
information or documents under any enactment or
subordinate legislation relating to VAT is exercisable in
relation to matters which are relevant to those arrangements.

(6) The Commissioners may disclose information which is obtained as a
result of subsection (5) (and no obligation of secrecy, whether
imposed by statute or otherwise, prevents such disclosure) if—

(a) the disclosure is required in accordance with the
5international VAT arrangements, and

(b) the Commissioners are satisfied that the recipient is bound,
or has undertaken, both to observe rules of confidentiality
which are no less strict than those applying to the
information in the United Kingdom and to use the
10information only for the purposes contemplated by the
arrangements.

(7) Powers are exercisable as a result of subsection (5) only if the
Commissioners have given (and not withdrawn) a direction in
writing authorising their use (either generally or in relation to
15specified cases).

(8) The Commissioners may not make regulations under this section, or
give a direction under subsection (7), unless they consider that
making the regulations or giving the direction would facilitate the
administration, collection or enforcement of VAT.

(9) 20In this section—

• “international VAT arrangements” means arrangements
  which—

  (a)

  have effect by virtue of an Order in Council under
  section 173 of the Finance Act 2006, and

  (b)

  25relate to VAT or any tax corresponding to VAT
  imposed under the law of the territory, or any of the
  territories, in relation to which the arrangements have
  been made, and

• “Schedule 11 information power” means any power of the
  30Commissioners under Schedule 11 relating to—

  (a)

  the keeping of accounts,

  (b)

  the making of returns and the submission of other
  documents to the Commissioners,

  (c)

  the production, use and contents of invoices,

  (d)

  35the keeping and preservation of records, and

  (e)

  the furnishing of information and the production of
  documents.”

59 (1) Section 62 (incorrect certificates as to zero-rating etc) is amended as follows.

(2) Omit subsection (1A).

(3) 40In subsection (2), omit paragraph (b).

60 (1) Section 65 (inaccuracies in EC sales statements or in statements relating to
section 55A) is amended as follows.

(2) In subsection (1)—

(a) in paragraph (a), for “an EC sales statement” substitute “a section
4555A statement”,

(b) in paragraph (c), for “another EC sales statement” substitute
“another section 55A statement”, and

(c) in paragraph (f), for “another EC sales statement” substitute “another
section 55A statement”.

(3) In subsection (2), for “an EC sales statement” substitute “a section 55A
statement”.

(4) 5In subsection (3), for “an EC sales statement” substitute “a section 55A
statement”.

(5) For subsections (6) and (7) substitute—

“(6) In this section—

• “section 55A statement” means a statement which is required to
  10be submitted to the Commissioners in accordance with
  regulations under paragraph 2(3A) of Schedule 11; and

• “submission date”, in relation to a section 55A statement, means
  whichever is the earlier of the last day for the submission of
  the statement to the Commissioners in accordance with those
  15regulations and the day on which it was in fact submitted to
  them.”

(6) For the heading substitute “Inaccuracies in section 55A statements”.

61 (1) Section 66 (failure to submit EC sales statement or statement relating to
section 55A) is amended as follows.

(2) 20In subsection (1), for “an EC sales statement” substitute “a section 55A
statement”.

(3) In subsection (2), for “any EC sales statement” substitute “any section 55A
statement”.

(4) In subsection (3)(b), for “any EC sales statement” substitute “any section 55A
25statement”.

(5) In subsection (4)(b) for “any EC sales statement”, in both places it occurs,
substitute “any section 55A statement”.

(6) In subsection (7)—

(a) in paragraph (a), for “an EC sales statement” substitute “a section
3055A statement”, and

(b) in the words after paragraph (b), omit “, 75”.

(7) For subsections (9) and (10) substitute—

“(9) In this section, “section 55A statement” means a statement which is
required to be submitted to the Commissioners in accordance with
35regulations under paragraph 2(3A) of Schedule 11.”

(8) For the heading substitute “Failure to submit section 55A statement”.

62 In section 69 (breaches of regulatory provisions), in subsection (1), in
paragraph (a), omit “, paragraph 5 of Schedule 2, paragraph 5 of Schedule 3”.

63 In section 69C (transactions connected with VAT fraud), in subsection (6), in
40the words after paragraph (b)—

(a) for “(whether before or after the coming into force of this section) in
other cases” substitute “in any other cases”, and

(b) after “VAT system” insert “which were decided before the coming
into force of section 42 of TCTA 2018”.

64 (1) Section 72 (offences) is amended as follows.

(2) In subsection (2)—

(a) 5in paragraph (b), for “35, 36 or 40” substitute “35 or 36”,

(b) omit paragraph (c), and

(c) in paragraph (ii), for “(b), (c) or (d)” substitute “(b) or (d)”.

(3) In subsection (5), in paragraph (a)—

(a) for “35, 36 or 40” substitute “35 or 36”, and

(b) 10omit “for a refund under any regulations made by virtue of section
13(5)”.

(4) In subsection (10)—

(a) omit “, on the acquisition of the goods from another member State”,
and

(b) 15omit “from a place outside the member States”.

65 (1) Section 73 (failure to make returns etc) is amended as follows.

(2) In subsection (3)(b), omit “, paragraph 6(2) of Schedule 2, paragraph 6(2) or
(3) of Schedule 3”.

(3) In subsection (7)—

(a) 20in paragraph (a), omit “, acquired any goods from another member
State”,

(b) in paragraph (b), omit “from a place outside the member States”, and

(c) in the words after paragraph (b), omit “or otherwise removed from
the United Kingdom without being exported or so removed by way
25of supply”.

66 In section 74 (interest on VAT recovered or recoverable by assessment), in
subsection (1)(c), omit “, under paragraph 8 of Schedule 3”.

67 Omit section 75 (assessments in cases of acquisitions of certain goods by
non-taxable persons).

68 (1) 30Section 76 (assessment of amounts due by way of penalty, interest or
surcharge) is amended as follows.

(2) In subsection (1), in paragraph (a), for “, section 59A, paragraph 16F of
Schedule 3B or paragraph 26 of Schedule 3BA” substitute “or 59A”.

(3) Omit subsection (3A).

(4) 35In subsection (5), omit “or (3A)” in both places.

(5) Omit subsection (6).

69 Omit section 76A (section 76: cases involving special accounting schemes).

70 (1) Section 77 (assessments: time limits and supplementary assessments) is
amended as follows.

(2) 40In subsection (1)—

(a) in the opening words, omit “, 75”, and

(b) in paragraph (a), omit “or acquisition”.