Value Added Tax (Amendment) Regulations 1997
Jurisdiction | UK Non-devolved |
Citation | SI 1997/1086 |
Year | 1997 |
1997 No. 1086
VALUE ADDED TAX
The Value Added Tax (Amendment) Regulations 1997
Made 25th March 1997
Laid before the House of Commons 26th March 1997
Coming into force 1st May 1997
The Commissioners of Customs and Excise, in exercise of the powers conferred on them by sections 24(6), 25(1) and (6), 26(1), (3) and (4), 36(5) and (6) and 49(2) and (3) of, and paragraph 2(1), (10) and (11) of Schedule 11 to, the Value Added Tax Act 19941and of all other powers enabling them in that behalf, hereby make the following Regulations:
1. These Regulations may be cited as the Value Added Tax (Amendment) Regulations 1997 and shall come into force on 1st May 1997.
2. The Value Added Tax Regulations 19952shall be amended in accordance with these Regulations.
3. Regulation 6(3) shall be amended as follows—
(a) the word “and” at the end of sub-paragraph (b) shall be omitted; and
(b) after sub-paragraph (c) there shall be added—
“,
(d)
(d) any right of the transferor, whether or not existing at the date of the transfer, to claim a refund under section 36 of the Act shall become the right of the transferee, and
(e)
(e) any liability of the transferor, whether or not existing at the date of the transfer, to account for an amount under Part XIXA of these Regulations, shall become that of the transferee”.
4. In regulation 29—
(a) in paragraph (1) for the words “Subject to paragraph (2) below” there shall be substituted the words “Subject to paragraphs (1A) and (2) below”; and
(b) after paragraph (1) there shall be inserted the following—
“1A The Commissioners shall not allow or direct a person to make any claim for deduction of input tax in terms such that the deduction would fall to be claimed more than 3 years after the date by which the return for the prescribed accounting period in which the VAT became chargeable is required to be made.”.
5. In regulation 34—
(a) at the beginning of paragraph (1) there shall be inserted the words “Subject to paragraph (1A) below,”; and
(b) after paragraph (1) there shall be inserted the following—
“1A Subject to paragraph (1B) below, any overstatement or understatement in a return where—
(a) a period of 3 years has elapsed since the end of the prescribed accounting period for which the return was made; and
(b) the taxable person has not (in relation to that overstatement or understatement) corrected his VAT account in accordance with this regulation before the end of the prescribed accounting period during which that period of 3 years has elapsed,
shall be disregarded for the purposes of this regulation; and in paragraphs (2) to (6) of this regulation “overstatement”, “understatement” and related expressions shall be construed accordingly.
1B Paragraph (1A) above does not apply where—
(a) the overstatement or understatement is discovered in a prescribed accounting period which begins before 1st May 1997; and
(b) the return for that prescribed accounting period has not been made, and was not required to have been made, before that date.”.
6. In regulation 38—
(a) at the beginning of paragraph (1) there shall be inserted the words “Subject to paragraph (1A) below,”; and
(b) after paragraph (1) there shall be inserted the following—
“1A Subject to paragraph (1B) below, this regulation does not apply to any increase or decrease in consideration which occurs more than 3 years after the end of the prescribed accounting period in which the original supply took place.
1B Paragraph (1A) above does not apply where—
(a) the increase or decrease takes place during a prescribed accounting period beginning before 1st May 1997; and
(b) the return for the prescribed accounting period in which effect is given to the increase or decrease in the business records of the taxable person has not been made, and was not required to have been made, before that date.”.
7. In regulation 111—
(a) for paragraph (2) there shall be substituted the following—
“2 No VAT may be treated as if it were input tax under paragraph (1) above—
(a) in respect of—
(i) goods or services which had been supplied, or
(ii) save as the Commissioners may otherwise allow, goods which had been consumed,
by the relevant person before the date with effect from which the taxable person was, or was required to be, registered;
(b) subject to paragraph (2A) below, in respect of goods which had been supplied to, or imported or acquired by, the relevant person more than 3 years before the date with effect from which the taxable person was, or was required to be, registered;
(c) in respect of services performed upon goods to which sub-paragraph (a) or (b) above applies; or
(d) in respect of services which had been supplied to the relevant person more than 6 months before the date with effect from which the taxable person was, or was required to be, registered.”;
(b) after paragraph (2) there shall be inserted the following—
“2A Paragraph (2)(b) above does not apply where—
(a) the taxable person was registered before 1st May 1997; and
(b) he did not make any returns before that date.
2B In paragraph (2) above references to the relevant person are references to—
(a) the taxable person; or
(b) in the case of paragraph (1)(b) above, the person to whom the supply had been made, or who had imported or acquired the goods, as the case may be.”;
(c) at the beginning of paragraph (3) there shall be inserted the words “Subject to paragraphs (3A) and (3B) below,”;
(d) in paragraph (3) for the words “the first return the taxable person makes” there shall be substituted “the first return the taxable person is required to make”;
(e) after paragraph (3) there shall be inserted the following—
“3A Where the taxable person was registered before 1st May 1997 and has not made any returns before that date paragraph (3) above shall have effect as if for the words “the first return the taxable person is required to make” there were substituted the words “the first return the taxable person makes”.
3B The Commissioners shall not allow a person to make any claim under paragraph (3) above in terms such that the VAT concerned would fall to be claimed as if it were input tax more than 3 years after the date by which the first return he is required to make is required to be made.”;
(f) at the beginning of paragraph (5) there shall be inserted the words “Subject to paragraph (6) below,”; and
(g) after paragraph (5) there shall be inserted the following—
“6 Subject to paragraph (7) below, no claim under paragraph (5) above may be made more than 3 years after the date on which the supply of services was made.
7 Paragraph (6) above does not apply where—
(a) the person ceased to be, or ceased to be required to be, registered before 1st May 1997; and
(b) the supply was made before that date.”.
8. In regulation 115—
(a) at the beginning of each of paragraphs (6) and (7) there shall be inserted the words “Subject to paragraph (8) below”; and
(b) after paragraph (7) there shall be added the following—
“8 The Commissioners shall not allow the taxable person to use a return other than that specified in paragraph (6) above, paragraph (a) or (b) of that paragraph or paragraph (7) above (in each case, “the specified return”), as the case may be, unless it is the return for a prescribed accounting period commencing within 3 years of the end of the prescribed accounting period to which the specified return relates.”.
Part XVIII (Regulations 156 to 164) shall be omitted.
9. Part XVIII (Regulations 156 to 164) shall be omitted.
10. After regulation 165 there shall be inserted the following regulation—
“Time within which a claim must be made
165A.—(1) Subject to paragraph (3) below, a claim shall be made within the period of 3 years and 6 months following the later of—
(a)
(a) the date on which the consideration (or part) which has been written off as a bad debt becomes due and payable to or to the order of the person who made the relevant supply; and
(b)
(b) the date of the supply.
(2) A person who is entitled to a refund by virtue of section...
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