The Value Added Tax (Amendment) Regulations 2018
| Jurisdiction | UK Non-devolved |
| Citation | SI 2018/261 |
| Year | 2018 |
2018 No. 261
Value Added Tax
The Value Added Tax (Amendment) Regulations 2018
Made 27th February 2018
Laid before the House of Commons 28th February 2018
Coming into force 1st April 2019
The Commissioners for Her Majesty’s Revenue and Customs, in exercise of the powers conferred by section 25(1) of, and paragraphs 2(1), (10)(b), (11), (11A) and 6(1), (5), (6), (7), (8), (10)(a) and (b) and (11)(a) and (b) of Schedule 11 to, the Value Added Tax Act 19941, section 132(1)(b), (3)(b) and (g) of the Finance Act 19992, section 135(1), (2)(a), (d), (e), (f), and (g), (3)(a), (b) and (c), (4)(a) and (7)(a) and (b) of the Finance Act 20023and section 62(7) of the Finance (No. 2) Act 20174make the following Regulations:
Citation, commencement and effect
1.—(1) These Regulations may be cited as the Value Added Tax (Amendment) Regulations 2018 and come into force on 1st April 2019.
(2) The amendments made by these regulations have effect from 1st April 2019 where a taxpayer has a prescribed accounting period which begins on that date and otherwise from the first day of a taxpayer’s first prescribed accounting period beginning after the 1st April 2019.
Amendment of the Value Added Tax Regulations 1995
2. Part 5 of the Value Added Tax Regulations 1995 (accounting payment and records)5is amended as follows.
3. In regulation 24 before “increase in consideration” insert—
“ “API platform” means the application programming interface that enables electronic communication with HMRC, as specified by the Commissioners in a specific or general direction;
“functional compatible software” means a software program or set of compatible software programs the functions of which include—
(a) recording and preserving electronic records in an electronic form;
(b) providing information to HMRC from the electronic records and returns in an electronic form and by using the API platform; and
(c) receiving information from HMRC using the API platform in relation to a person’s compliance with obligations under these Regulations which are required to be met by use of the software;”.
4. In regulation 25A—
(a) before paragraph (1) insert—
“A1 Where a person makes a return required by regulation 25 by means of electronic communications using functional compatible software, such a method of making a return shall be referred to in this Part as a “compatible software return system”.”;
(b) in paragraph (1) after “electronic communications” insert “other than functional compatible software”;
(c) after paragraph (2) insert—
“2A A person who is subject to the requirements of regulation 32A, including by virtue of an election in accordance with regulation 32C, must make a return required by regulation 25 using a compatible software return system.”;
(d) in paragraph (3) for “paragraph (6) below” substitute “paragraphs (2A) above and (6) below”;
(e) in paragraphs (4), (8), (10)(b), (11), (12)(a) to (c), (13), (14), (18)(a), and (20)(b) after “electronic return system” insert in each case “or a compatible software return system”;
(f) in paragraph (15) before “(3)” insert “(2A) or”;
(g) in paragraph 20(a) after “electronic return system,” insert “, a compatible software return system”.
5. After regulation 31(1)(k) insert—
“(l)
“(l) where the taxable person is subject to the requirements of regulation 32A, the electronic account required by that regulation.”.
6. After regulation 31 insert—
“Preservation of records
31AA.—(1) Subject to paragraph (2) the electronic account required to be kept pursuant to regulation 31(1)(l) must be preserved using functional compatible software.
(2) The obligation under paragraph (1) does not apply to a person to whom the requirements of regulation 32A have ceased to apply.
(3) Subject to paragraph (1) the duty to preserve records required to be kept pursuant to regulations 31 and 31A may be discharged by—
(a)
(a) preserving them in any form or by any means; or
(b)
(b) preserving the information in them by any means,
subject to any conditions or exceptions specified in writing by the Commissioners.
(4) The functional compatible software must take a form approved by the Commissioners in a specific or general direction.
(5) A direction under paragraph (4) may also specify the circumstances in which functional compatible software may be used or not used.”.
7. After regulation 32 insert—
“Recording and keeping of information in electronic form
32A.—(1) Subject to regulation 32B a taxable person shall keep and maintain the information specified in paragraphs (2) and (3) in an electronic form (“the electronic account”).
(2) The information specified for the purposes of paragraph (1) is—
(a)
(a) the name of the taxable person;
(b)
(b) the address of the taxable person’s principal place of business;
(c)
(c) the taxable person’s VAT registration number; and
(d)
(d) any VAT accounting schemes used by the taxable person.
(3) Subject to paragraph (4) the information specified for the purposes of paragraph (1) for each accounting period is—
(a)
(a) subject to sub-paragraph (c), for each supply made within the period—
(i) the time of supply,
(ii) the value of the supply, and
(iii) the rate of VAT charged;
(b)
(b) subject to sub-paragraph (c), for each supply received within the period—
(i) the time of supply,
(ii) the value of the supply, and
(iii) the total amount of input tax for which credit is allowable under section 26 of the Act6;
(c)
(c) where more than one supply is recorded on a tax invoice and those supplies are either—
(i) supplies made which are required to be accounted for in respect of the same prescribed accounting period and are subject to the same rate of VAT, or
(ii) supplies received for which credit is allowable in the same prescribed accounting period,
they may be treated as a single supply for the purposes of either sub-paragraph (a) or (b), whichever is relevant;
(d)
(d) the information specified in each sub-paragraph of paragraphs (3) and (4) of regulation 32;
(e)
(e) where adjustment or correction is made to the VAT account which is required or allowed by any provision of the Act, or any regulations made under the Act, the total amount adjusted or corrected for the period pursuant to that provision or those regulations;
(f)
(f) the proportions of the total of the VAT exclusive value of all outputs for the period which are attributable in each case to standard rated, reduced rated, zero-rated, exempt or outside the scope outputs.
(4) The information specified in paragraph (3) may be varied by direction of the Commissioners to make provision about—
(a)
(a) supplies of investment gold which are subject to the provisions of regulation 31A;
(b)
(b) the operation of the flat-rate scheme under Part 7A of these Regulations (flat-rate scheme for small businesses);
(c)
(c) the operation of retail schemes under Part 9 of these Regulations (supplies by retailers);
(d)
(d) cases where the Commissioners are satisfied that keeping and maintaining information as specified...
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