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14 Apr 2003 : Column 734—continued
(a) a vehicle licence has been taken out for a tractive unit, and
(b) the licence was taken out at a rate of vehicle excise duty applicable to a tractive unit which is to be used with semi-trailers with a minimum number of axles,
duty at a higher rate does not become chargeable under section 15 by reason only that while the licence is in force the tractive unit is used with a semi-trailer with fewer axles than that minimum number, if the condition in subsection (2) is satisfied.
(2) The condition is that the rate of duty at which the licence was taken out is equal to or exceeds the rate which would have been applicable if the revenue weight of the tractive unit had been a weight equal to the actual laden weight, at the time of the use, of the articulated vehicle consisting of the tractive unit and the semi-trailer.".
(2) Section 16 of that Act shall cease to have effect.
(3) This Resolution has effect in relation to the use of a tractive unit on or after 9th April 2003.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
13. Value added tax (requirement of evidence or security)
- That—
(1) The Value Added Tax Act 1994 shall be amended in accordance with paragraphs (2) to (7) below.
(2) In section 24(6)(a), after "documents" there shall be inserted "or other information".
(3) In paragraph 4 of Schedule 11, for sub-paragraph (1) there shall be substituted—
"(1) The Commissioners may, as a condition of allowing or repaying input tax to any person, require the production of such evidence relating to VAT as they may specify.
(1A) If they think it necessary for the protection of the revenue, the Commissioners may require, as a condition of making any VAT credit, the giving of such security for the amount of the payment as appears to them appropriate.".
(4) For sub-paragraph (2) of that paragraph there shall be substituted—
"(2) If they think it necessary for the protection of the revenue, the Commissioners may require a taxable person, as a condition of his supplying or being supplied with goods or services under a taxable supply, to give security, or further security, for the payment of any VAT that is or may become due from—
(a) the taxable person, or
(b) any person by or to whom relevant goods or services are supplied.
(3) In sub-paragraph (2) above "relevant goods or services" means goods or services supplied by or to the taxable person.
(4) Security under sub-paragraph (2) above shall be of such amount, and shall be given in such manner, as the Commissioners may determine.
(5) The powers conferred on the Commissioners by sub-paragraph (2) above are without prejudice to their powers under section 48(7).".
(5) In section 72(11) after "supplies" there shall be inserted "or is supplied with".
(6) In section 83(l) for "paragraph 4(2)" there shall be substituted "paragraph 4(1A), (2) or (3)".
(7) In section 84, after subsection (4D) there shall be inserted—
"(4E) Where an appeal is brought against a requirement imposed under paragraph 4(2)(b) of Schedule 11 that a person give security, the tribunal shall allow the appeal unless the Commissioners satisfy the tribunal that—
(a) there has been an evasion of, or an attempt to evade, VAT in relation to goods or services supplied to or by that person, or
(b) it is likely, or without the requirement for security it is likely, that VAT in relation to such goods or services will be evaded.
(4F) A reference in subsection (4E) above to evading VAT includes a reference to obtaining a VAT credit that is not due or a VAT credit in excess of what is due.".
(8) This Resolution shall come into force on 10th April 2003.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
- That—
(1) After section 77 of the Value Added Tax Act 1994 there shall be inserted—
"Liability for unpaid VAT of another
77A Joint and several liability of traders in supply chain where tax unpaid
(1) This section applies to goods of any of the following descriptions—
(a) telephones and any other equipment, including parts and accessories, made or adapted for use in connection with telephones or telecommunication;
(b) computers and any other equipment, including parts, accessories and software, made or adapted for use in connection with computers or computer systems.
(2) Where—
(a) a taxable supply of goods to which this section applies has been made to a taxable person, and
(b) at the time of the supply the person knew or had reasonable grounds to suspect that some or all of the VAT payable in respect of that supply, or on any previous or subsequent supply of those goods, would go unpaid,
the Commissioners may serve on him a notice specifying the amount of the VAT so payable that is unpaid, and stating the effect of the notice.
(3) The effect of a notice under this section is that—
(a) the person served with the notice, and
(b) the person liable, apart from this section, for the amount specified in the notice,
are jointly and severally liable to the Commissioners for that amount.
(4) For the purposes of subsection (2) above the amount of VAT that is payable in respect of a supply is the lesser of—
(a) the amount chargeable on the supply, and
(b) the amount shown as due on the supplier's return for the prescribed accounting period in question (if he has made one) together with any amount assessed as due from him for that period (subject to any appeal by him).
(5) The reference in subsection (4)(b) above to assessing an amount as due from a person includes a reference to the case where, because it is impracticable to do so, the amount is not notified to him.
(6) For the purposes of subsection (2) above, a person shall be presumed to have reasonable grounds for suspecting matters to be as mentioned in paragraph (b) of that subsection if the price payable by him for the goods in question—
(a) was less than the lowest price that might reasonably be expected to be payable for them on the open market, or
(b) was less than the price payable on any previous supply of those goods.
(7) The presumption provided for by subsection (6) above is rebuttable on proof that the low price payable for the goods was due to circumstances unconnected with failure to pay VAT.
(8) Subsection (6) above is without prejudice to any other way of establishing reasonable grounds for suspicion.
(9) The Treasury may by order amend subsection (1) above; and any such order may make such incidental, supplemental, consequential or transitional provision as the Treasury think fit.
(10) For the purposes of this section—
(a) "goods" includes services;
(b) an amount of VAT counts as unpaid only to the extent that it exceeds the amount of any refund due.".
(2) After paragraph (r) of section 83 of that Act there shall be inserted—
"(ra) any liability arising by virtue of section 77A;".
(3) This Resolution shall come into force on 10th April 2003.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
- That—
(1) After section 51A of the Value Added Tax Act 1994 there shall be inserted—
"51B Face-value vouchers
Schedule 10A shall have effect with respect to face-value vouchers.".
(2) After Schedule 10 to that Act there shall be inserted—
"Schedule 10A
Face-value vouchers
Meaning of "face-value voucher" etc
1 (1) In this Schedule "face-value voucher" means a token, stamp or voucher (whether in physical or electronic form) that represents a right to receive goods or services to the value of an amount stated on it or recorded in it.
(2) References in this Schedule to the "face value" of a voucher are to the amount referred to in sub-paragraph (1) above.
Nature of supply
2 The issue of a face-value voucher, or any subsequent supply of it, is a supply of services for the purposes of this Act.
Treatment of credit vouchers
3 (1) This paragraph applies to a face-value voucher issued by a person who—
(a) is not a person from whom goods or services may be obtained by the use of the voucher, and
(b) undertakes to give complete or partial reimbursement to any such person from whom goods or services are so obtained.
Such a voucher is referred to in this Schedule as a "credit voucher".
(2) The consideration for any supply of a credit voucher shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the voucher.
(3) Sub-paragraph (2) above does not apply if any of the persons from whom goods or services are obtained by the use of the voucher fails to account for any of the VAT due on the supply of those goods or services to the person using the voucher to obtain them.
Treatment of retailer vouchers
4 (1) This paragraph applies to a face-value voucher issued by a person who—
(a) is a person from whom goods or services may be obtained by the use of the voucher, and
(b) if there are other such persons, undertakes to give complete or partial reimbursement to those from whom goods or services are so obtained.
Such a voucher is referred to in this Schedule as a "retailer voucher".
(2) The consideration for the issue of a retailer voucher shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the voucher.
(3) Sub-paragraph (2) above does not apply if—
(a) the voucher is used to obtain goods or services from a person other than the issuer, and
(b) that person fails to account for any of the VAT due on the supply of those goods or services to the person using the voucher to obtain them.
(4) Any supply of a retailer voucher subsequent to the issue of it shall be treated in the same way as the supply of a voucher to which paragraph 6 applies.
Treatment of postage stamps
5 The consideration for the supply of a face-value voucher that is a postage stamp shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the stamp.
Treatment of other kinds of face-value voucher
6 (1) This paragraph applies to a face-value voucher that is not a credit voucher, a retailer voucher or a postage stamp.
(2) A supply of such a voucher is chargeable at the rate in force under section 2(1) (standard rate) except where sub-paragraph (3), (4) or (5) below applies.
(3) Where the voucher is one that can only be used to obtain goods or services in one particular non-standard rate category, the supply of the voucher falls in that category.
(4) Where the voucher is used to obtain goods or services all of which fall in one particular non-standard rate category, the supply of the voucher falls in that category.
(5) Where the voucher is used to obtain goods or services in a number of different rate categories—
(a) the supply of the voucher shall be treated as that many different supplies, each falling in the category in question, and
(b) the value of each of those supplies shall be determined on a just and reasonable basis.
Vouchers supplied free with other goods or services
7 Where—
(a) a face-value voucher (other than a postage stamp) and other goods or services are supplied to the same person in a composite transaction, and
(b) the total consideration for the supplies is no different, or not significantly different, from what it would be if the voucher were not supplied,
the supply of the voucher shall be treated as being made for no consideration.
Interpretation
8 (1) In this Schedule—
"credit voucher" has the meaning given by paragraph 3(1) above;
"face value" has the meaning given by paragraph 1(2) above;
"face value voucher" has the meaning given by paragraph 1 (1) above;
"retailer voucher" has the meaning given by paragraph 4(1) above.
(2) For the purposes of this Schedule—
(a) the "rate categories" of supplies are—
(i) supplies chargeable at the rate in force under section 2(1) (standard rate),
(ii) supplies chargeable at the rate in force under section 29A (reduced rate),
(iii) zero-rated supplies, and
(iv) exempt supplies;
(b) the "non-standard rate categories" of supplies are those in sub-paragraphs (ii), (iii) and (iv) of paragraph (a) above;
(c) goods or services are in a particular rate category if a supply of those goods or services falls in that category.
(3) A reference in this Schedule to a voucher being used to obtain goods or services includes a reference to the case where it is used as part-payment for those goods or services.".
(3) Paragraph 5 of Schedule 6 to that Act shall be omitted.
(4) The amendments made by this Resolution shall apply to supplies of tokens, stamps or vouchers issued on or after 9th April 2003.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
- That—
(1) After section 96(10A) of the Value Added Tax Act 1994 there shall be inserted—
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