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

Taxation (Cross-border Trade) BillPage 150

(3) In subsection (2), omit “or (3A)”.

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

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

(6) In subsection (4C)—

(a) 5in paragraph (aa), after “Schedule 1A,” insert “or”, and

(b) omit paragraphs (b), (c) and (e) (together with the “or” before
paragraph (e)).

(7) In subsection (6), omit “or 75(2)(b)”.

71 In section 78A (assessment for interest overpayments), in subsection (7)(a),
10for “(6)” substitute “(5)”.

72 (1) Section 80 (credit for, or repayment of, overstated or overpaid VAT) is
amended as follows.

(2) In subsection (3C), in the definition of “VAT provisions”, in paragraph (a),
for “, subordinate legislation or EU legislation” substitute “or subordinate
15legislation”.

(3) In subsection (7), omit “(and paragraph 16I of Schedule 3B and paragraph 29
of Schedule 3BA)”.

73 In section 83 (appeals), in subsection (1)—

(a) in paragraph (b)—

(i) 20omit “, on the acquisition of goods from another member
State”, and

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

(b) omit paragraph (d),

(c) omit paragraph (j),

(d) 25in paragraph (p), omit sub-paragraph (iii) (together with the “or”
before that sub-paragraph), and

(e) omit paragraph (w).

74 In section 84 (further provisions relating to appeals)—

(a) in subsection (4)(c), omit “, acquisition”, and

(b) 30in subsection (6), omit “or (as the case requires) paragraph 26 of
Schedule 3BA or paragraph 16F of Schedule 3B”.

75 (1) Section 88 (supplies spanning change of rate etc) is amended as follows.

(2) In subsection (1), omit “or exempt, zero-rated or reduced-rate acquisitions”.

(3) Omit subsections (4) and (7).

(4) 35For subsection (8) substitute—

(8) References in this section to a supply being a reduced-rate supply are
references to a supply being one on which VAT is charged at the rate
in force under section 29A.”

76 (1) Section 90 (failure of resolution under Provisional Collection of Taxes Act
401968) is amended as follows.

(2) In subsection (1)—

Taxation (Cross-border Trade) BillPage 151

(a) in paragraph (a), omit the words from “or on the acquisition” to
“20(3)”, and

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

(3) In subsection (2)—

(a) 5in paragraph (a), omit the words from “or on the acquisition” to
“20(3)”, and

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

(4) In subsection (3), for “, 35 or 40” substitute “or 35”.

77 Omit section 92 (taxation under the laws of other member States etc).

78 10Omit section 93 (territories included in references to other member States
etc).

79 Omit section 95 (meaning of “new means of transport”).

80 (1) Section 96 (other interpretative provisions) is amended as follows.

(2) In subsection (1)—

(a) 15omit the definition of “another member State”,

(b) at the appropriate place insert—

  • ““TCTA 2018” means the Taxation (Cross-border Trade)
    Act 2018;”, and

  • ““import duty” means import duty charged in
    20accordance with Part 1 of TCTA 2018;”,

(c) omit the definition of “taxable acquisition”, and

(d) for the definition of “VAT” substitute—

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

(3) 25Omit subsection (3).

81 In section 99 (refund of VAT to Government of Northern Ireland)—

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

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

(c) 30omit “, acquisitions”.

82 (1) Schedule 1 (registration in respect of taxable supplies: UK establishment) is
amended as follows.

(2) In paragraph 1—

(a) in sub-paragraph (4)(a), omit “, paragraph 6(2) of Schedule 2,
35paragraph 6(3) of Schedule 3”,

(b) in sub-paragraph (5), omit “, paragraph 6(2) of Schedule 2, paragraph
6(3) of Schedule 3”,

(c) in sub-paragraph (7), omit “and any taxable supplies which would
not be taxable supplies apart from section 7(4)”, and

(d) 40in sub-paragraph (9), omit “acquisition or”.

(3) In paragraph 2(7), omit paragraph (c).

(4) In paragraph 4(3), omit “and any taxable supplies which would not be
taxable supplies apart from section 7(4)”.

Taxation (Cross-border Trade) BillPage 152

(5) In paragraph 13, omit sub-paragraph (8).

83 (1) Schedule 1A (registration in respect of taxable supplies: non-UK
establishment) is amended as follows.

(2) In paragraph 3, omit paragraphs (c) and (d) (but not the “or” at the end of
5paragraph (d)).

(3) Omit paragraph 12.

84 Omit Schedule 2 (registration in respect of supplies from other member
States).

85 Omit Schedule 3 (registration in respect of acquisitions from other member
10States).

86 In Schedule 3A (registration in respect of disposals of assets for which a VAT
repayment is claimed), in paragraph 1—

(a) in sub-paragraph (1), for “Schedule 1, 1A, 2 or 3” substitute
“Schedule 1 or 1A”, and

(b) 15in sub-paragraph (2), for the words from “, paragraph 11 of Schedule
1A” to the end substitute “or paragraph 11 of Schedule 1A”.

87 Omit Schedule 3B (electronic, telecommunication and broadcasting services:
non-Union scheme).

88 Omit Schedule 3BA (electronic, telecommunication and broadcasting
20services: Union scheme).

89 (1) Schedule 4 (matters to be treated as supply of goods or services) is amended
as follows.

(2) In paragraph 5(5)(a), omit “, acquisition”.

(3) Omit paragraph 6.

(4) 25In paragraph 8(2)(a), for the words from “, their acquisition” to the end
substitute “or their importation into the United Kingdom”.

90 (1) Schedule 4A (place of supply of services: special rules) is amended as
follows.

(2) In paragraph 3—

(a) 30in sub-paragraph (3)—

(i) in paragraph (b), for “in a country which is not a member
State” substitute “outside the United Kingdom”, and

(ii) in the words after that paragraph, for “in that country”
substitute “outside the United Kingdom”, and

(b) 35in sub-paragraph (4)(a), for “in a country which is not a member
State” substitute “outside the United Kingdom”.

(3) In the italic heading before paragraph 5, omit “: general”.

(4) For paragraph 5 substitute—

5 A supply of restaurant or catering services is to be treated as made
40in the country in which the services are physically carried out.”

(5) Omit paragraph 6 and the italic heading before it.

Taxation (Cross-border Trade) BillPage 153

(6) In paragraph 7—

(a) in sub-paragraph (1)—

(i) in paragraph (b), for “in a country which is not a member
State” substitute “outside the United Kingdom”, and

(ii) 5in the words after that paragraph, for “in that country”
substitute “outside the United Kingdom”, and

(b) in sub-paragraph (2)(a), for “in a country which is not a member
State” substitute “outside the United Kingdom”.

(7) In paragraph 8—

(a) 10in sub-paragraph (3)—

(i) in paragraph (b), for “in a country which is not a member
State” substitute “outside the United Kingdom”, and

(ii) in the words after that paragraph, for “in that country”
substitute “outside the United Kingdom”, and

(b) 15in sub-paragraph (4)(a), for “in a country which is not a member
State” substitute “outside the United Kingdom”.

(8) In paragraph 9—

(a) in sub-paragraph (1)—

(i) in paragraph (b), for “in a country which is not a member
20State” substitute “outside the United Kingdom”, and

(ii) in the words after that paragraph, for “in that country”
substitute “outside the United Kingdom”, and

(b) in sub-paragraph (2)(a), for “in a country which is not a member
State” substitute “outside the United Kingdom”.

(9) 25In paragraph 9B—

(a) in paragraph (b), for “outside the member States” substitute “outside
the United Kingdom”, and

(b) in the words after that paragraph, for “wholly outside the member
States” substitute “outside the United Kingdom”.

(10) 30In paragraph 9C, in sub-paragraph (1)—

(a) in paragraph (b), for “outside the member States” substitute “outside
the United Kingdom”, and

(b) in the words after that paragraph, for “wholly outside the member
States” substitute “outside the United Kingdom”.

(11) 35In paragraph 9D—

(a) in sub-paragraph (2)—

(i) in paragraph (b), for “outside the territories of the member
States” substitute “outside the United Kingdom”, and

(ii) in the words after that paragraph, for “where it is used and
40enjoyed” substitute “outside the United Kingdom”, and

(b) in sub-paragraph (3)(a), for “outside the territories of the member
States” substitute “outside the United Kingdom”.

(12) In paragraph 9E—

(a) in sub-paragraph (3)—

(i) 45in paragraph (b), for “in a country which is not a member
State” substitute “outside the United Kingdom”, and

Taxation (Cross-border Trade) BillPage 154

(ii) in the words after that paragraph, for “in that country”
substitute “outside the United Kingdom”, and

(b) in sub-paragraph (4)(a), for “in a country which is not a member
State” substitute “outside the United Kingdom”.

(13) 5In the italic heading before paragraph 11, omit “: general”.

(14) In paragraph 11, omit sub-paragraph (3).

(15) Omit paragraph 12 and the italic heading before it.

(16) In the italic heading before paragraph 16, for “EC” substitute “United
Kingdom and the Isle of Man”.

(17) 10In paragraph 16—

(a) in sub-paragraph (1)(b), for “which is not a member State (other than
the Isle of Man)” substitute “other than the United Kingdom or the
Isle of Man”, and

(b) in sub-paragraph (2)(f)(i)—

(i) 15for “situated within the territory of a member State”
substitute “in the United Kingdom”, and

(ii) for “such a system” substitute “a natural gas system in the
United Kingdom”.

91 In Schedule 5A (goods eligible to be fiscally warehoused), for the heading of
20the second column substitute “customs tariff (within the meaning of TCTA
2018) code”.

92 (1) Schedule 6 (valuation: special cases) is amended as follows.

(2) In paragraph 1A—

(a) in sub-paragraph (4)—

(i) 25in the definition of “motor dealer”, omit “or acquiring from
another member State”, and

(ii) in the definition of “stock in trade”, for paragraphs (a) and (b)
substitute—

  • “(“a)

    produced by a motor manufacturer, or supplied to or
    30imported by a motor dealer, for the purpose of resale,
    and

    (ii)

    intended to be sold within 12 months of their
    production, supply or importation (as the case may
    require),”, and

(b) 35in sub-paragraph (6)(a)—

(i) omit “, acquired from another member State,”, and

(ii) omit “, acquisition”.

(3) In paragraph 3, in sub-paragraph (1)(a), in sub-paragraph (ii), omit “EU
customs duty or”.

93 40Omit Schedule 7 (valuation of acquisitions from other member States:
special cases).

94 In Schedule 7A (charge at reduced rate), in Group 3 (grant-funded
installation of heating equipment or security goods or connection of gas
supply), in paragraph 2(3) of the Notes to that Group, omit sub-paragraph
45(e).

Taxation (Cross-border Trade) BillPage 155

95 (1) Schedule 8 (zero-rating) is amended as follows.

(2) In Part 1, in the index, omit the entry relating to European Research
Infrastructure Consortia.

(3) In Group 7 (international services)—

(a) 5in the opening words of item 1—

(i) omit “or acquired”,

(ii) for “any of the member States” substitute “the United
Kingdom”, and

(iii) omit “to a place outside the member States”,

(b) 10in paragraph (b) of item 1, for “member States” substitute “United
Kingdom”, and

(c) in item 2—

(i) in paragraph (a), omit “to a place outside the member States”,
and

(ii) 15in paragraph (c), for “member States” substitute “United
Kingdom”.

(4) In Group 8 (transport)—

(a) in item 5, for “member States” substitute “United Kingdom”,

(b) in paragraph (a) of item 11, for sub-paragraphs (i) and (ii)
20substitute—

(i) the transport of goods to or from a place—

(a) from which they are to be exported,
or

(b) to which they have been imported,

(ii) 25the handling or storage of those goods at
that place, or

(iii) the handling or storage of those goods in
connection with their transport to or from
that place, or”,

(c) 30in item 12, after “enjoyed outside” insert “the United Kingdom or”,

(d) omit item 13,

(e) in Note (C1), omit the definition of “State institution”, and

(f) omit Note (9).

(5) In Group 12 (drugs, medicines, aids for the disabled)—

(a) 35in Note (1)—

(i) omit “acquired from another member State or”, and

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

(b) in Note (5N), in paragraph (b), omit “reckonable zero-rated
acquisition, or”,

(c) 40in Note (5O)—

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

(ii) in the words after paragraph (b), omit “or acquisition”, and

(d) in Note (5T)—

(i) omit the definition of “reckonable zero-rated acquisition”,
45and

(ii) in the definition of “reckonable zero-rated importation”, omit
“from a place outside the member States”.

Taxation (Cross-border Trade) BillPage 156

(6) In Group 13 (imports, exports, etc)—

(a) for item 1 substitute—

1 The supply of imported goods before a Customs
declaration has been made under Part 1 of TCTA 2018 in
5respect of those goods where the supplier and the
purchaser of the goods have agreed that the purchaser will
make the Customs declaration.”,

(b) in item 3, omit “to places outside the member States”, and

(c) in Note (5), omit the words from “, another member State, any” to the
10end.

(7) In Group 15 (charities etc), in item 3, omit “to a place outside the member
States”.

(8) In Group 16 (clothing and footwear)—

(a) in Note (4)(b), for sub-paragraphs (i) and (ii) substitute—

(i) 15are manufactured to standards which
satisfy the requirements of regulation 8(2)
of the Personal Protective Equipment
Regulations 2002, and

(ii) bear the mark of conformity required by
20that regulation.”, and

(b) in Note (4A)(b), for sub-paragraphs (i) and (ii) substitute—

(i) is manufactured to standards which satisfy
the requirements of regulation 8(2) of the
Personal Protective Equipment Regulations
252002, and

(ii) bears the mark of conformity required by
that regulation.”

(9) Omit Group 18 (European Research Infrastructure Consortia).

96 (1) Schedule 9 (exemptions) is amended as follows.

(2) 30In Group 5 (finance)—

(a) in item 9—

(i) in paragraph (i), for “another EEA state” substitute “an EEA
state”, and

(ii) in paragraph (j), for “another EEA state” substitute “an EEA
35state”, and

(b) in Note (6), in the definition of “recognised collective investment
scheme constituted in another EEA state”, for “another EEA state”
substitute “an EEA state”.

(3) In Group 14 (supplies of goods where input tax cannot be recovered)—

(a) 40in paragraph (a) of item 1, omit “or acquisition”,

(b) in Note (7)(a), omit “or acquisition”,

(c) in Note (9)—

(i) in the opening words, omit “or acquisition”, and

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

(d) 45in Note (10), omit “, acquisition” in both places, and

(e) in Note (15), omit “, acquisition” in both places.

Taxation (Cross-border Trade) BillPage 157

(4) In Group 16 (supplies of services by groups involving cost sharing), in item
1, in paragraph (a), for the words from “in relation to” to the end substitute
“is not carried on in the course or furtherance of carrying on a business,”.

97 (1) Schedule 9A (anti-avoidance provisions: groups) is amended as follows.

(2) 5In paragraph 1(5)(a), omit “acquisition or”.

(3) In paragraph 6(10)(a), for “(6)” substitute “(5)”.

98 (1) Schedule 11 (administration, collection and enforcement) is amended as
follows.

(2) In paragraph 2—

(a) 10omit sub-paragraphs (3) and (3ZA),

(b) omit sub-paragraphs (4) and (5),

(c) in sub-paragraph (5A), for paragraph (b) substitute—

(b) where notification of the arrival of a means of
transport imported into the United Kingdom is
15required by virtue of paragraph (a), for requiring
any VAT on its importation to be paid at such time
and in such manner as may be specified in the
regulations.”,

(d) in sub-paragraph (5B)(a), omit “acquisition or”,

(e) 20in sub-paragraph (5D)—

(i) omit the definition of “means of transport”, and

(ii) in the definition of “relevant person”—

(a) omit paragraph (a),

(b) in paragraph (b), omit “from a place outside the
25member States”, and

(c) omit paragraph (c),

(f) after sub-paragraph (5D) insert—

(5E) For the purposes of sub-paragraphs (5A) to (5D) “means of
transport” means—

(a) 30any ship which exceeds 7.5 metres in length,

(b) any aircraft the take-off weight of which exceeds
1550 kilograms, or

(c) any motorised land vehicle which—

(i) has an engine with a displacement or
35cylinder capacity exceeding 48 cubic
centimetres, or

(ii) is constructed or adapted to be electrically
propelled using more than 7.2 kilowatts,

but only if the ship, aircraft or vehicle is intended for the
40transport of persons or goods.

(5F) The Treasury may by order vary sub-paragraph (5E) by
adding or deleting any ship, aircraft or vehicle of a
description specified in the order to or from those which
are for the time being specified there.”,

(g) 45in sub-paragraph (8)—

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

(ii) in the words after paragraph (b), omit “or acquisition”, and

Taxation (Cross-border Trade) BillPage 158

(h) omit sub-paragraph (9).

(3) In paragraph 2A(2), in paragraph (b), omit “or the law of another member
State”.

(4) In paragraph 3(2), omit paragraph (c).

(5) 5In paragraph 6(1), omit the words from “, and every person who” to the end.

(6) For paragraph 8(1) substitute—

(1) An authorised person may take samples from goods that are in the
possession of either a person who supplies goods or a fiscal
warehousekeeper if it appears necessary to do so—

(a) 10to protect the revenue against mistake or fraud, and

(b) to determine how the goods, or the material of which they
are made, ought to be or to have been treated for the
purposes of VAT.”

(7) In paragraph 14(1), in paragraph (c), for “2(3) or (4)” substitute “2(5A)”.

99 15In Schedule 11A (disclosure of avoidance schemes), in paragraph 2A, in sub-
paragraph (2)—

(a) omit paragraph (b) (but not the “and” at the end of the paragraph),
and

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

20Effect of amendments made by this Part of this Schedule

100 (1) If an amendment made by this Part of this Schedule to a provision of the
Value Added Tax Act 1994 has the effect of removing a reference to the
principal VAT directive or the implementing VAT regulation, the removal is
not to be taken as implying that the directive or regulation is no longer
25relevant for determining the meaning and effect of that provision.

(2) In this paragraph “the principal VAT directive” and “the implementing VAT
regulation” have the same meaning as in section 42.

Part 2 Amendments of other enactments

30Diplomatic Privileges Act 1964

101 In section 2 of the Diplomatic Privileges Act 1964 (application of Vienna
Convention), in subsection (5A)—

(a) for “10 or 15” substitute “1(1)(c)”, and

(b) for “(acquisitions from other member States and importations from
35outside the European Union)” substitute “(imposition of charge to
value added tax on imported goods)”.

Commonwealth Secretariat Act 1966

102 In paragraph 10 of the Schedule to the Commonwealth Secretariat Act 1966
(immunities and privileges), in sub-paragraph (1A)—

(a) 40for “10 or 15” substitute “1(1)(c)”, and

Taxation (Cross-border Trade) BillPage 159

(b) for “(acquisitions from other member States and importations from
outside the European Union)” substitute “(imposition of charge to
value added tax on imported goods)”.

Consular Relations Act 1968

103 (1) 5The Consular Relations Act 1968 is amended as follows.

(2) In section 1 (application of Vienna Convention), in subsection (8A)—

(a) for “10 or 15” substitute “1(1)(c)”, and

(b) for “(acquisitions from other member States and importations from
outside the European Union)” substitute “(imposition of charge to
10value added tax on imported goods)”.

(3) In section 8 (refund of customs duty on hydrocarbon oils), in subsection (1),
omit “or acquisition from another member State”.

International Organisations Act 1968

104 In paragraph 19 of Schedule 1 to the International Organisations Act 1968
15(privileges and immunities), in sub-paragraph (c)—

(a) for “10 or 15” substitute “1(1)(c)”, and

(b) for “(acquisitions from other member States and importations from
outside the European Union)” substitute “(imposition of charge to
value added tax on imported goods)”.

20Diplomatic and other Privileges Act 1971

105 In section 1 of the Diplomatic and other Privileges Act 1971 (refund of
customs duties on hydrocarbon oil used for diplomatic or Commonwealth
Secretariat purposes), in subsection (5)—

(a) for “10 or 15” substitute “1(1)(c)”, and

(b) 25for “(acquisitions from other member States and importations from
outside the European Union)” substitute “(imposition of charge to
value added tax on imported goods)”.

Customs and Excise Duties (General Reliefs) Act 1979

106 In section 13 of the Customs and Excise Duties (General Reliefs) Act 1979
30(power to provide, in relation to persons entering the United Kingdom, for
reliefs from duty and value added tax and for simplified computation of
duty and tax), in subsection (4), in the definition of “value added tax”, omit
the words from “from places outside” to the end.

Finance Act 1994

107 35In the Finance Act 1994, in Schedule 5 (decisions subject to review and
appeal), in paragraph 9B, for “third country goods” substitute “imported
goods”.

Vehicle Excise and Registration Act 1994

108 In section 8 of the Vehicle Excise and Registration Act 1994 (vehicles
40removed into UK), in subsection (2)—