The Value Added Tax (Amendment) (No. 4) Regulations 2004

• Citation: S.I. 2004/3140
• Sections: 15

Section 1

These Regulations may be cited as the Value Added Tax (Amendment) (No. 4) Regulations 2004 and come into force in accordance with regulation 2.

Section 2

(1) Regulations 4, 5 and 6 shall come into force on 1st January 2005 in relation to supplies made on or after that date.

(2) Regulation 8 shall come into force on 3rd December 2004 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods and services supplied to, him on or after that date.

(3) Regulations 7, 9, 10, 11, 12, 13 and 14 shall come into force on 3rd December 2004.

(4) Regulation 15 shall come into force on 3rd December 2004 in relation to VAT charged on or after that date.

Section 3

The Value Added Tax Regulations 1995 are amended in accordance with the following Parts.

Section 4

After regulation 82 insert—

Goods supplied by persons outside the United Kingdom

(82A) Goods which are treated as supplied by a person under section 9A of the Act shall be treated as being supplied when the goods are paid for or, if the consideration is not in money, on the last day of the prescribed accounting period in which the goods are removed or made available.

Section 5

In regulation 95 after “82,” insert “82A,”.

Section 6

In regulation 175(b)(iii) after “section” insert “9A or”.

Section 7

In regulation 103, delete “(1)” and paragraphs (2) and (3).

Section 8

After regulation 103A insert—

Attribution of input tax incurred on services and related goods used to make financial supplies

(103B)

(1) This regulation applies to a taxable person who incurs input tax in the circumstances specified in paragraph (2) below.

(2) Where—

(a) input tax has been incurred by a taxable person in any prescribed accounting period on supplies to him of any of the services specified in paragraph (4) below and of any related goods, and

(b) those services and related goods are used or to be used by the taxable person in making both a relevant supply and any other supply, and

(c) the relevant supply is incidental to one or more of the taxable person’s business activities,

that input tax shall be attributed to taxable supplies to the extent that the services or related goods are so used or to be used expressed as a proportion of the whole use or intended use, notwithstanding any provision of any input tax attribution method that the taxable person is required or allowed to use which purports to have the contrary effect.

(3) In this regulation—

(a) “relevant supply” means a supply of a description falling within item 1 or 6 of Group 5 of Schedule 9 to the Act and any supply of the same description which is made in another member State; and

(b) “taxable supplies” includes supplies of a description falling within regulation 103.

(4) The services referred to in paragraph (2)(a) above are services supplied by—

(a) accountants;

(b) advertising agencies;

(c) bodies which provide listing and registration services;

(d) financial advisers;

(e) lawyers;

(f) marketing consultants;

(g) persons who prepare and design documentation; and

(h) any person or body which provides similar services to those specified in sub-paragraphs (a) to (g) above.

Section 9

In regulation 99(1)(a), for “103 or 103A” substitute “103, 103A or 103B”.

Section 10

In regulation 101(1), after “102” insert “and 103B”.

Section 11

In regulation 102(1), for “regulation 103” substitute “regulations 103, 103A and 103B”.

Section 12

In regulation 106(3), after “103A” insert “, 103B”.

Section 13

In regulation 106A(2) and (3), for “and 103A” substitute “, 103A and 103B”.

Section 14

(1) In regulation 110(1), before “108” insert “103B,”.

(2) In regulation 110(1)(b), for “103(1)” substitute “103”.

(3) In regulation 110(4), for “regulation 103” substitute “regulations 103 and 103B”.

Section 15

After regulation 190(1)(b) add —

(c) VAT charged on a supply used or to be used in making supplies of a description falling within article 3 of the Value Added Tax (Input Tax) (Specified Supplies) Order 1999.