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| Penalties for incorrect certificates. |
17. - (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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| EC sales statements: time limits for assessments to penalties. |
18. - (1) For section 77(2) of the Value Added Tax Act 1994 (time limits for assessments under section 76) there shall be substituted the following subsections-
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"(2) Subject to subsection (5) below, an assessment under section 76 of an amount due by way of any penalty, interest or surcharge referred to in subsection (3) of that section may be made at any time before the expiry of the period of 2 years beginning with the time when the amount of VAT due for the prescribed accounting period concerned has been finally determined.
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(2A) Subject to subsection (5) below, an assessment under section 76 of a penalty under section 65 or 66 may be made at any time before the expiry of the period of 2 years beginning with the time when facts sufficient in the opinion of the Commissioners to indicate, as the case may be-
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(a) that the statement in question contained a material inaccuracy, or |
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(b) that there had been a default within the meaning of section 66(1), |
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came to the Commissioners' knowledge."
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(2) Subsection (1) above has effect in relation to any amount by way of penalty, interest or surcharge which becomes due on or after the day on which this Act is passed.
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| Period before repayment supplement payable. |
19. - (1) Section 79 of the Value Added Tax Act 1994 (repayment supplement) shall be amended as follows.
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(2) In subsection (2)(b), for "the period of 30 days beginning on the date of the receipt by the Commissioners of that return or claim" there shall be substituted "the relevant period".
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(3) After subsection (2) there shall be inserted-
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"(2A) The relevant period in relation to a return or claim is the period of 30 days beginning with the later of-
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(a) the day after the last day of the prescribed accounting period to which the return or claim relates, and |
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(b) the date of the receipt by the Commissioners of the return or claim." |
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(4) In subsections (3) and (7), for "subsection (2)(b)" there shall be substituted "subsection (2A)"; and regulations under subsection (3) shall be construed accordingly.
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(5) This section has effect in relation to returns and claims received by the Commissioners on or after 9th March 1999.
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| Meaning of "business". |
20. - (1) Section 94(3) of the Value Added Tax Act 1994 (meaning of "business": public organisations) shall cease to have effect.
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(2) This section shall come into force in accordance with such provision as the Commissioners of Customs and Excise may make by order made by statutory instrument.
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| Accounting for VAT by Government departments. |
21. - (1) Where-
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(a) a Government department makes supplies of goods or services that are taxable supplies for the purposes of the Value Added Tax Act 1994, and |
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(b) its receipts include amounts paid to it in respect of the making of those supplies, |
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the receipts of the department to be paid into the Consolidated Fund shall be confined to the amounts remaining after deducting, from the amounts otherwise falling to be paid into that Fund, all such amounts in respect of the department's liabilities to pay value added tax to the Commissioners of Customs and Excise as the department may be authorised to deduct in accordance with arrangements made by the Treasury.
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(2) Arrangements made by the Treasury for the purposes of this section shall apply only to such Government departments and in such cases, and shall have effect subject to such conditions and to the compliance by the department with such accounting and other requirements, as may be provided for in the arrangements.
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(3) In this section "Government department" includes any person or body of persons carrying out functions on behalf of the Crown or of any Minister of the Crown and any part of a Government department (as so defined) which is designated for the purposes of section 41 of the Value Added Tax Act 1994.
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(4) This section has effect in relation to the financial year beginning with 1st April 1999 and subsequent financial years and shall be deemed to have had effect in relation to earlier financial years.
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(5) For the purposes of applying this section in relation to the financial year beginning with 1st April 1999 or in relation to any earlier financial year, any arrangements applying to a Government department which-
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(a) were made or approved before the passing of this Act, and |
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(b) allowed that department to deduct amounts in respect of value added tax liabilities before making payments into the Consolidated Fund, |
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shall be deemed to have been made by the Treasury for the purposes of this section.
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