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PART II |
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VALUE ADDED TAX |
| Gold. |
11. - (1) Notwithstanding the words preceding paragraph (a) in section 26(3) of the Value Added Tax Act 1994 (input tax allowable against output tax), regulations which-
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(a) are made under section 26(3), and |
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(b) have effect in respect of exempt supplies which relate to gold, |
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may provide that input tax is allowable, as being attributable to the supplies, only in relation to specified matters.
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(2) An order under section 31(2) of that Act (exempt supplies and acquisitions) which provides for certain supplies which relate to gold to be exempt supplies may-
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(a) provide that a supply which would be an exempt supply by virtue of the order shall, if the supplier so chooses, be a taxable supply; |
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(b) make provision by reference to notices to be published by the Commissioners. |
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(3) An order under section 37(1) of that Act (relief on importation of goods) which gives relief from VAT on certain importations of gold may make provision by reference to notices to be published by the Commissioners.
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(4) Provision made by virtue of subsection (2) or (3) above may be expressed-
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(a) to apply only in specified circumstances; |
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(b) to apply subject to compliance with specified conditions (which may include conditions relating to general or specific approval of the Commissioners). |
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(5) Regulations may-
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(a) require specified persons to keep specified records in relation to specified transactions concerning gold; |
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(b) require specified persons to give specified information to the Commissioners about specified transactions concerning gold; |
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(c) provide for paragraph 10(2) of Schedule 11 to that Act (entry and inspection of premises) to apply in relation to specified transactions concerning gold as it applies in relation to the supply of goods under taxable supplies. |
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(6) The provisions of that Act (including, in particular, section 97 and paragraph 6(2) to (6) of Schedule 11) shall apply in relation to regulations under subsection (5) above as they apply in relation to regulations under paragraph 6(1) of Schedule 11 to that Act.
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(7) In this section "the Commissioners" means the Commissioners of Customs and Excise.
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| Assignment of debts. |
12. - (1) In section 36 of the Value Added Tax Act 1994 (bad debts), for subsection (3) there shall be substituted-
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"(3) In subsection (2) above "the outstanding amount" means-
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(a) if at the time of the claim no part of the consideration written off in the claimant's accounts as a bad debt has been received, an amount equal to the amount of the consideration so written off; |
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(b) if at that time any part of the consideration so written off has been received, an amount by which that part is exceeded by the amount of the consideration written off; |
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and in this subsection "received" means received either by the claimant or, except in such circumstances as may be prescribed, by a person to whom has been assigned a right to receive the whole or any part of the consideration written off."
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(2) In subsection (5)(e) of that section, for the words from "where" to the end of the paragraph there shall be substituted "where any part (or further part) of the consideration written off in the claimant's accounts as a bad debt is subsequently received either by the claimant or, except in such circumstances as may be prescribed, by a person to whom has been assigned a right to receive the whole or any part of that consideration;".
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(3) At the end of paragraph 7 of Schedule 11 to that Act (furnishing of information etc.) there shall be added-
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"(9) For the purposes of this paragraph a person to whom has been assigned a right to receive the whole or any part of the consideration for a supply of goods or services shall be treated as a person concerned in the supply."
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(4) Until such day as the Commissioners may specify in regulations made under section 36 of that Act, Part XIX of the Value Added Tax Regulations 1995 (bad debt relief), except regulation 171, shall be read as if a reference to a payment being received by the claimant were a reference to a payment being received either by the claimant or by a person to whom a right to receive it has been assigned.
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(5) Subsections (1) and (4) above have effect for the purposes of the making of any refund or repayment after 9th March 1999, but do not have effect in relation to anything received on or before that day.
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| Groups of companies. |
13. Schedule 2 to this Act (which makes changes to provisions about the treatment of bodies corporate as members of a group) shall have effect.
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| Penalties for incorrect certificates. |
14. - (1) For subsections (1) and (2) of section 62 of the Value Added Tax Act 1994 (incorrect certificates as to zero-rating etc.) there shall be substituted the following subsections-
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"(1) Subject to subsections (3) and (4) below, where-
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(a) a person to whom one or more supplies are, or are to be, made- |
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(i) gives to the supplier a certificate that the supply or supplies fall, or will fall, wholly or partly within paragraph 1 of Schedule A1, Group 5 or 6 of Schedule 8 or Group 1 of Schedule 9, or
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(ii) gives to the supplier a certificate for the purposes of section 18B(2)(d) or 18C(1)(c),
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(b) the certificate is incorrect, |
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the person giving the certificate shall be liable to a penalty.
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(1A) Subject to subsections (3) and (4) below, where-
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(a) a person who makes, or is to make, an acquisition of goods from another member State prepares a certificate for the purposes of section 18B(1)(d), and |
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(b) the certificate is incorrect, |
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the person preparing the certificate shall be liable to a penalty.
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(2) The amount of the penalty shall be equal to-
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(a) in a case where the penalty is imposed by virtue of subsection (1) above, the difference between- |
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(i) the amount of the VAT which would have been chargeable on the supply or supplies if the certificate had been correct; and
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(ii) the amount of VAT actually chargeable;
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(b) in a case where it is imposed by virtue of subsection (1A) above, the amount of VAT actually chargeable on the acquisition." |
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(2) Subsection (1) above has effect in relation to certificates given or, as the case may be, prepared on or after the day on which this Act is passed.
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