Finance Bill - continued        House of Commons
SCHEDULE 6, CLIMATE CHANGE LEVY - continued
PART III, TIME OF SUPPLY - continued

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Other commodities: supply by non-UK residents
     32. - (1) This paragraph applies to supplies that-
 
 
    (a) are not of either of the descriptions mentioned in paragraphs (a) and (b) of paragraph 25(1) (electricity and gas in a gaseous state), and
 
    (b) are made by a person who is not resident in the United Kingdom.
      (2) The supply is treated as taking place-
 
 
    (a) when the commodity is delivered to the person to whom it is supplied, or
 
    (b) if earlier, when it is made available in the United Kingdom to that person.
      (3) Sub-paragraph (2) applies subject to-
 
 
    (a) sub-paragraph (4),
 
    (b) paragraph 33 (deemed supplies), and
 
    (c) any direction under paragraph 34.
      (4) If within 14 days after the time applicable under sub-paragraph (2) the person to whom the supply is made elects in writing for the supply to be treated as taking place at the time the election is made, the supply is treated as taking place at the time the election is made.
 
 
Other commodities: deemed supplies
     33. - (1) This paragraph applies to supplies that-
 
 
    (a) are not of either of the descriptions mentioned in paragraphs (a) and (b) of paragraph 25(1) (electricity and gas in a gaseous state), and
 
    (b) are deemed to be made under paragraph 22 or 23.
      (2) A supply that is deemed to be made under paragraph 22 is treated as taking place when the commodity is burned (or, in the case of electricity, consumed).
 
      (3) A supply that is deemed to be made under paragraph 23 is treated as taking place upon the occurrence of the change in circumstances or intentions.
 
 
Other commodities: directions by Commissioners
     34. - (1) This paragraph applies to supplies that are not of either of the descriptions mentioned in paragraphs (a) and (b) of paragraph 25(1) (electricity and gas in a gaseous state).
 
      (2) The Commissioners may, at the request of the person liable to account for any levy charged on any supplies to which this paragraph applies, make a direction under sub-paragraph (3) or (4) altering the time at which those supplies (or such of those supplies as may be specified in the direction) are to be treated as taking place.
 
      (3) The Commissioners may direct that the supplies shall be treated as taking place-
 
 
    (a) at times or on dates determined by or by reference to the occurrence of some event described in the direction, or
 
    (b) at times or on dates determined by or by reference to the time when some event so described would in the ordinary course of events occur,
       provided the resulting times or dates are in every case earlier than would otherwise apply.
 
      (4) The Commissioners may direct that the supplies shall be treated as taking place-
 
 
    (a) at the beginning of the relevant working period (as defined in the case of the person making the request in and for the purposes of the direction), or
 
    (b) at the end of the relevant working period (as so defined).
      (5) A direction under sub-paragraph (4) shall not apply to the extent that the time when the supplies in question are made is determined by paragraph 30(1).
 
 
Supplies invoiced or paid for before 1st April 2001
     35. - (1) This paragraph applies where-
 
 
    (a) the taxable commodities covered by an invoice issued, or payment received, before 1st April 2001 are to any extent commodities that have not been burned (or, in the case of electricity, consumed) before the invoice is issued or payment is received, and
 
    (b) the advance invoicing or payment is not acceptable normal practice.
  It does not matter whether the invoice mentioned in paragraph (a) is, or is not, a climate change levy accounting document.
 
      (2) A fair apportionment shall be made to determine the quantity of the taxable commodities covered by the invoice or payment that will not be, or was not, burned (or consumed) before 1st April 2001.
 
      (3) Where this paragraph applies, a supply is treated as taking place on 1st April 2001.
 
  That supply is a supply of the quantity of the taxable commodities that is mentioned in, and determined under, sub-paragraph (2).
 
      (4) For the purposes of this paragraph advance invoicing or payment is "acceptable normal practice" if-
 
 
    (a) the supply is of a kind in the case of which it is normal practice for invoices to be issued, or payments made, in respect of taxable commodities not already burned (or consumed),
 
    (b) that practice does not involve issuing invoices, or making payments, more than 15 weeks in advance of the burning (or consumption) of any of the taxable commodities in respect of which the invoice is issued or payment is made, and
 
    (c) the advance invoicing or payment is in accordance with the practice.
      (5) Nothing in paragraph 26 requires a climate change levy accounting document to be issued to cover any commodities that are supplied by a supply that, under sub-paragraph (3), is treated as made on 1st April 2001.
 
      (6) This paragraph applies to invoices issued, and payments received, before the passing of this Act (as well as to those issued or received after its passing).
 
 
Supplies of electricity or gas spanning change of rate etc.
     36. - (1) This paragraph applies in the case of a supply of electricity, or of gas that is in a gaseous state and is of a kind supplied by a gas utility, affected by-
 
 
    (a) a change in the descriptions of supplies that are taxable supplies,
 
    (b) a change in any rate of levy in force,
 
    (c) a change consisting in the rate of levy applicable to the supply ceasing to be, or becoming, the rate that is applicable to half-rate supplies or reduced-rate supplies, or
 
    (d) the change consisting in the transition from 31st March 2001 to 1st April 2001.
      (2) For the purposes of this paragraph a supply is affected by a change if the electricity or gas of which it is a supply ("the supplied commodity") is actually supplied partly before the change and partly after.
 
  However, this paragraph does not apply in the case of a supply that, under paragraph 35(3), is treated as made on 1st April 2001.
 
      (3) If the person liable to account for any levy on the supply so elects-
 
 
    (a) the rate at which levy is chargeable on any part of the supply, or
 
    (b) any question whether, or to what extent, the supply is a taxable supply,
       shall be determined in accordance with sub-paragraph (5) or (6).
 
      (4) An election for determination in accordance with sub-paragraph (6) may be made only where-
 
 
    (a) there is such a change as is mentioned in sub-paragraph (1)(c), and
 
    (b) all the supplied commodity is actually supplied before the supply is treated as taking place.
      (5) Where the election is for determination in accordance with this sub-paragraph, the rules are-
 
     A. Treat the fraction of the supplied commodity actually supplied before the change ("the pre-change fraction") as supplied by a supply made before the change and treat the fraction of the supplied commodity actually supplied after the change ("the post-change fraction") as supplied by a supply made after the change.
 
     B. Where the pre-change and post-change fractions are not known (because, for example, there are no relevant meter readings available)-
 
 
    "the pre-change fraction" is calculated by dividing-
 
      (a) the number of days in the period over which the supply is actually made that fall before the change, by
 
      (b) the number of days in that period; and
 
    "the post-change fraction" is the difference between 1 and the pre-change fraction.
     C. If use of the fractions given by rule B would produce an inequitable result, the pre-change and post-change fractions may be derived from a reasonable estimate of the fractions of the supplied commodity actually supplied before and after the change.
 
      (6) Where the election is for determination in accordance with this sub-paragraph, treat the change as taking place immediately after the time at which the last of the supplied commodity was actually supplied.
 
 
Other supplies spanning change of rate etc.
     37. - (1) This paragraph applies where there is-
 
 
    (a) a change in the descriptions of supplies that are taxable supplies,
 
    (b) a change in the rate of levy in force,
 
    (c) a change consisting in the rate of levy applicable to any supply ceasing to be, or becoming, the rate that is applicable to half-rate supplies or reduced-rate supplies, or
 
    (d) the change consisting in the transition from 31st March 2001 to 1st April 2001.
      (2) Where-
 
 
    (a) a supply affected by the change would apart from special provisions be treated under paragraph 29(2) or 32(2) as made wholly or partly at a time when it would not have been affected by the change, or
 
    (b) a supply not so affected would apart from special provisions be treated under paragraph 29(2) or 32(2) as made wholly or partly at a time when it would have been so affected,
       the rate at which levy is chargeable on the supply, or any question whether it is a taxable supply, shall, if the person liable to account for any levy on the supply so elects, be determined without regard to the special provisions.
 
      (3) In this paragraph "special provisions" means the provisions of paragraphs 30, 31, 32(4) and 34.
 
 
Regulations as to time of supply
     38. - (1) The Commissioners may make provision by regulations as to the time at which a supply is to be treated as taking place-
 
 
    (a) in cases where the supply is for a consideration and the whole or part of the consideration-
 
      (i) is determined or payable periodically, or from time to time, or at the end of any period, or
 
      (ii) is determined at the time when the commodity is appropriated for any purpose;
 
    (b) in the case of a supply otherwise than for consideration;
 
    (c) in the case of any supply that is deemed to be made under paragraph 22 or 23.
      (2) In any such case as is mentioned in sub-paragraph (1) the regulations may provide that a taxable commodity shall be treated as separately and successively supplied at prescribed times or intervals.
 
      (3) Paragraphs 25 to 35 (main rules as to time of supply) have effect subject to any regulations under this paragraph.
 
      (4) The power to make regulations under this paragraph includes power to provide for specified provisions of the regulations to be treated as special provisions for the purposes of paragraph 37 (supplies spanning change of rate etc.).
 
 
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