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Qualifying supplies | |
3 In this Schedule, “qualifying supply” means a supply of | |
electronically supplied services (within the meaning of paragraph | |
7C of Schedule 5) to a person who— | |
(a) belongs in the United Kingdom or another member State, | 5 |
and | |
(b) receives those services otherwise than for the purposes of | |
a business carried on by him. | |
Registration request | |
4 (1) If a person— | 10 |
(a) satisfies the Commissioners that the conditions in | |
paragraph 2 above are satisfied in his case, and | |
(b) makes a request in accordance with this paragraph (a | |
“registration request”), | |
the Commissioners must register him under this Schedule. | 15 |
(2) Sub-paragraph (1) above is subject to paragraph 9 below. | |
(3) A registration request must contain the following particulars— | |
(a) the name of the person making the request; | |
(b) his postal address; | |
(c) his electronic addresses (including any websites); | 20 |
(d) where he has been allocated a number by the tax | |
authorities in the country in which he belongs, that | |
number; | |
(e) the date on which he began, or intends to begin, making | |
qualifying supplies. | 25 |
(4) A registration request must include a statement that the person | |
making the request is not— | |
(a) registered under this Act, | |
(b) identified for the purposes of VAT in accordance with the | |
law of another member State, or | 30 |
(c) registered under an Act of Tynwald for the purposes of | |
any tax imposed by or under an Act of Tynwald which | |
corresponds to VAT. | |
(5) A registration request must be made by such electronic means, | |
and in such manner, as the Commissioners may direct or may by | 35 |
regulations prescribe. | |
Date on which registration takes effect | |
5 (1) Where a person is registered under this Schedule, his registration | |
takes effect— | |
(a) on the date on which his registration request is made, or | 40 |
(b) on such earlier or later date as may be agreed between him | |
and the Commissioners. | |
(2) For the purposes of sub-paragraph (1) above— | |
(a) no registration is to take effect before 1st July 2003, and | |
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(b) registration requests made before that date are to be | |
treated as if they were made on that date. | |
Registration number | |
6 On registering a person under this Schedule, the Commissioners | |
must— | 5 |
(a) allocate a registration number to him, and | |
(b) notify him electronically of the number. | |
Obligation to notify changes | |
7 (1) A person who has made a registration request must notify the | |
Commissioners if subsequently— | 10 |
(a) there is a change in any of the particulars contained in his | |
request in accordance with paragraph 4(3) above, | |
(b) he ceases to make, or to have the intention of making, | |
qualifying supplies, or | |
(c) he ceases to satisfy the conditions in any of sub-paragraphs | 15 |
(3) to (6) of paragraph 2 above. | |
(2) A notification under this paragraph must be given within the | |
period of 30 days beginning with the date of the change of | |
particulars or of the cessation. | |
(3) A notification under this paragraph must be given by such | 20 |
electronic means, and in such manner, as the Commissioners may | |
direct or may by regulations prescribe. | |
Cancellation of registration | |
8 (1) The Commissioners must cancel a person’s registration under this | |
Schedule if— | 25 |
(a) he notifies them that he has ceased to make, or to have the | |
intention of making, qualifying supplies, | |
(b) they otherwise determine that he has ceased to make, or to | |
have the intention of making, qualifying supplies, | |
(c) he notifies them that he has ceased to satisfy the conditions | 30 |
in any of sub-paragraphs (3) to (6) of paragraph 2 above, | |
(d) they otherwise determine that he has ceased to satisfy any | |
of those conditions, or | |
(e) they determine that he has persistently failed to comply | |
with his obligations under this Schedule. | 35 |
(2) In a case falling within sub-paragraph (1)(a) or (c) above, | |
cancellation of a person’s registration under this paragraph takes | |
effect— | |
(a) on the date on which the notification is received, or | |
(b) on such earlier or later date as may be agreed between him | 40 |
and the Commissioners. | |
(3) In a case falling within sub-paragraph (1)(b), (d) or (e) above, | |
cancellation of a person’s registration under this paragraph takes | |
effect— | |
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(a) on the date on which the determination is made, or | |
(b) on such earlier or later date as the Commissioners may in | |
his particular case direct. | |
Registration after cancellation for persistent default | |
9 (1) The Commissioners— | 5 |
(a) are not required by paragraph 4(1) above to register a | |
person under this Schedule if he is a persistent defaulter, | |
but | |
(b) shall have the power to do so. | |
(2) In this paragraph, “persistent defaulter” means a person— | 10 |
(a) whose previous registration under this Schedule has been | |
cancelled under paragraph 8(1)(e) above (persistent failure | |
to comply with obligations under this Schedule), or | |
(b) who has been excluded from the identification register | |
under any provision of the law of another member State | 15 |
which implements Article 26c(B)(4)(d) of the 1977 VAT | |
Directive (persistent failure to comply with rules | |
concerning the special scheme). | |
Part 2 | |
Obligations following registration, etc | 20 |
Liability for VAT | |
10 (1) A person is liable to pay VAT under and in accordance with this | |
Schedule if— | |
(a) he makes a qualifying supply, and | |
(b) he is registered under this Schedule when he makes the | 25 |
supply. | |
(2) The amount of VAT which a person is liable to pay by virtue of this | |
Schedule on any qualifying supply is to be determined in | |
accordance with sub-paragraphs (3) and (4) below. | |
(3) If the qualifying supply is treated as made in the United Kingdom, | 30 |
the amount is the amount of VAT that would have been charged | |
on the supply under this Act if the person had been registered | |
under this Act when he made the supply. | |
(4) If the qualifying supply is treated as made in another member | |
State, the amount is the amount of VAT that would have been | 35 |
charged on the supply in accordance with the law of that member | |
State if the person had been identified for the purposes of VAT in | |
that member State when he made the supply. | |
(5) Where a person is liable to pay VAT by virtue of this Schedule— | |
(a) any amount falling to be determined in accordance with | 40 |
sub-paragraph (3) above is to be regarded for the purposes | |
of this Act as VAT charged in accordance with this Act, | |
and | |
(b) any amount falling to be determined in accordance with | |
sub-paragraph (4) above in relation to another member | 45 |
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State is to be regarded for those purposes as VAT charged | |
in accordance with the law of that member State. | |
Obligation to submit special accounting returns | |
11 (1) A person who is, or has been, registered under this Schedule must | |
submit a return (a “special accounting return”) to the Controller | 5 |
for each reporting period. | |
(2) Each quarter for the whole or any part of which a person is | |
registered under this Schedule is a “reporting period” in the case | |
of that person. | |
(3) The special accounting return must state the person’s registration | 10 |
number. | |
(4) For each member State in which the person is treated as having | |
made qualifying supplies for the reporting period, the special | |
accounting return must specify— | |
(a) the total value of his qualifying supplies treated as made in | 15 |
that member State in that period, apart from the VAT | |
which he is liable to pay by virtue of this Schedule in | |
respect of those supplies, | |
(b) the rate of VAT applicable to those supplies by virtue of | |
sub-paragraph (3) or (4) (as the case may be) of paragraph | 20 |
10 above, and | |
(c) the total amount of VAT payable by him by virtue of this | |
Schedule in respect of those supplies in that period. | |
(5) The special accounting return must state the total amount of VAT | |
which the person is liable to pay by virtue of this Schedule in | 25 |
respect of all qualifying supplies treated as made by him in all | |
member States in the reporting period. | |
(6) If a person is registered under this Schedule for part only of a | |
reporting period, references in this paragraph to his qualifying | |
supplies in that period are references to his qualifying supplies in | 30 |
that part of that period. | |
(7) In this Schedule, “the Controller” means the Controller, Customs | |
and Excise Value Added Tax Central Unit. | |
Further obligations with respect to special accounting returns | |
12 (1) A special accounting return must set out in sterling the amounts | 35 |
referred to in paragraph 11 above. | |
(2) Any conversion from one currency into another for the purposes | |
of sub-paragraph (1) above shall be made by using the exchange | |
rates published by the European Central Bank— | |
(a) for the last day of the reporting period to which the special | 40 |
accounting return relates, or | |
(b) if no such rate is published for that day, for the next day for | |
which such a rate is published. | |
(3) A special accounting return must be submitted to the Controller | |
within the period of 20 days after the last day of the reporting | 45 |
period to which it relates. | |
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(4) A special accounting return must be submitted by such electronic | |
means, and in such manner, as the Commissioners may direct or | |
may by regulations prescribe. | |
Payment of VAT | |
13 (1) A person who is required to submit a special accounting return | 5 |
must, at the same time as he submits the return, pay to the | |
Controller in sterling the amount referred to in paragraph 11(5) | |
above in respect of the reporting period to which the return | |
relates. | |
(2) A payment under this paragraph must be made in such manner as | 10 |
the Commissioners may direct or may by regulations prescribe. | |
Obligations to keep and produce records | |
14 (1) A person must keep records of the transactions which he enters | |
into for the purposes of, or in connection with, qualifying supplies | |
made by him at any time when he is registered under this | 15 |
Schedule. | |
(2) The records to be kept must be such as will enable the tax | |
authorities for the member State in which a qualifying supply is | |
treated as made to determine whether any special accounting | |
return which is submitted in respect of that supply is correct. | 20 |
(3) Any records required to be kept must be made available— | |
(a) to the tax authorities for the member State in which the | |
qualifying supply to which the records relate was treated | |
as made, if they so request, or | |
(b) to the Commissioners, if they so request. | 25 |
(4) Records must be made available electronically under sub- | |
paragraph (3) above. | |
(5) The records relating to a transaction must be maintained for a | |
period of ten years beginning with the 1st January following the | |
date on which the transaction was entered into. | 30 |
Commissioners’ power to request production of records | |
15 (1) The Commissioners may request a person to make available to | |
them electronically records of the transactions entered into by him | |
for the purposes of, or in connection with, qualifying supplies to | |
which this paragraph applies. | 35 |
(2) This paragraph applies to qualifying supplies which— | |
(a) are treated as made in the United Kingdom, and | |
(b) are made by the person while he is identified under any | |
provision of the law of another member State which | |
implements Article 26c. | 40 |
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Part 3 | |
Understatements and overstatements of UK VAT | |
Understatement or overstatement of UK VAT in special scheme return | |
16 (1) If the Commissioners consider that a person who is or has been a | |
participant in the special scheme has submitted a special scheme | 5 |
return which understates his liability to UK VAT, they may give | |
him a notice— | |
(a) identifying the return in which they consider that the | |
understatement was made, | |
(b) specifying the amount by which they consider that the | 10 |
person’s liability to UK VAT has been understated, and | |
(c) requesting him to pay that amount to the Controller within | |
the period of 30 days beginning with the date on which the | |
notice is given. | |
(2) If the Commissioners consider that a person who is or has been a | 15 |
participant in the special scheme has submitted a special scheme | |
return which overstates his liability to UK VAT, they may give | |
him a notice— | |
(a) identifying the return in which they consider that the | |
overstatement was made, and | 20 |
(b) specifying the amount by which they consider that the | |
person’s liability to UK VAT has been overstated. | |
(3) Where the Commissioners give a person a notice under sub- | |
paragraph (2) above, they are liable to pay him the amount | |
specified in the notice. | 25 |
(4) No notice under this paragraph may be given more than 3 years | |
after the end of the period for which the special scheme return in | |
question was made. | |
(5) In this Schedule, “participant in the special scheme” means a | |
person who— | 30 |
(a) is registered under this Schedule, or | |
(b) is identified under any provision of the law of another | |
member State which implements Article 26c. | |
(6) In this paragraph— | |
“special scheme return” means— | 35 |
(a) a special accounting return; or | |
(b) a value added tax return submitted to the tax | |
authorities of another member State; | |
“UK VAT” means VAT which a person is liable to pay | |
(whether in the United Kingdom or another member | 40 |
State) in respect of qualifying supplies treated as made in | |
the United Kingdom at a time when he is or was a | |
participant in the special scheme; | |
“value added tax return”, in relation to another member | |
State, means any value added tax return required to be | 45 |
submitted under any provision of the law of that member | |
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State which implements Article 26c(B)(5) of the 1977 VAT | |
Directive. | |
Part 4 | |
Application of provisions relating to VAT | |
Registration under this Act | 5 |
17 Notwithstanding any provision in this Act to the contrary, a | |
participant in the special scheme is not required to be registered | |
under this Act by virtue of making qualifying supplies. | |
De-registration | |
18 Where a person who is registered under Schedule 1 satisfies the | 10 |
Commissioners that he intends to apply for— | |
(a) registration under this Schedule, or | |
(b) identification under any provision of the law of another | |
member State which implements Article 26c, | |
they may, if he so requests, cancel his registration under Schedule | 15 |
1 with effect from the day on which the request is made or from | |
such later date as may be agreed between him and the | |
Commissioners. | |
VAT representatives | |
19 Section 48(1) (VAT representatives) does not permit the | 20 |
Commissioners to direct a participant in the special scheme to | |
appoint a VAT representative. | |
Appeals | |
20 (1) An appeal shall lie to a tribunal with respect to any of the | |
following— | 25 |
(a) the registration or cancellation of the registration of any | |
person under this Schedule; | |
(b) a decision of the Commissioners to give a notice under | |
sub-paragraph (1) of paragraph 16 above; | |
(c) the amount specified in any such notice or in a notice | 30 |
under sub-paragraph (2) of that paragraph. | |
(2) Part 5 (appeals), and any orders or regulations under that Part, | |
have effect in relation to an appeal under this paragraph as if it | |
were an appeal under section 83 (but not under any particular | |
paragraph of that section). | 35 |
Payments on account of non-UK VAT to other member States | |
21 (1) Neither— | |
(a) paragraph 1(2) of Schedule 11, nor | |
(b) section 10 of the Exchequer and Audit Departments Act | |
1866, | 40 |
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