The Value Added Tax (Place of Supply of Goods) Order 2004

• Citation: S.I. 2004/3148
• Sections: 23

Section 1 Citation and commencement

(1) This Order may be cited as the Value Added Tax (Place of Supply of Goods) Order 2004 and shall come into force on 1st January 2005.

(2) Part 3 (supplies of gas and electricity) has effect in relation to supplies made on or after 1st January 2005.

Section 2 Rules for determining place of supply

The rules for determining where a supply of goods is made shall be varied in accordance with the following provisions of this Order.

Section 3 Revocation

The Value Added Tax (Place of Supply of Goods) Order 1992 is hereby revoked.

Section 4 Interpretation of Part 2

In this Part—

...

“ homeward stage ” means that part of the return trip which ends at the first stop in the country in which the return trip commenced and which involves only such other stops, if any, as are in relevant countries where there have previously been stops (in the course of that return trip);

“ pleasure cruise ” includes a cruise wholly or partly for the purposes of education or training;

“ point of arrival ” means the last place in a relevant country where it is expected that passengers who have commenced their journey at a place in a relevant country will terminate their journey or, where there is to follow a leg which will involve a stop in a place other than in a relevant country , the last such place before such leg is undertaken;

“ point of departure ” means the first place in a relevant country where it is expected that passengers will commence their journey or, where there has been a leg which involved a stop in a place other than in a relevant country , the first such place after such leg has been completed;

“ relevant country ” means Northern Ireland or a member State;

“ relevant NI transport ” means the transportation of passengers between the point of departure and the point of arrival in the course of which—

there is a stop in a relevant country other than that in which lies the point of departure; and

there is no stop in a country which is not a relevant country;

“ return trip ” means any journey involving two or more countries where it is expected that the means of transport will stop in the country from which it originally departed.

Section 5

Subject to articles 6 to 8, where goods are supplied on board a ship, aircraft or train in the course of a relevant NI transport , those goods shall be treated as supplied at the point of departure.

Section 6

Subject to articles 7 and 8, any goods supplied on board a ship, aircraft or train in the course of a relevant NI transport for consumption on board shall be treated as supplied outside the United Kingdom .

Section 7

For the purposes of this Part—

(a) part of transportation where it is expected that a different means of transport will be used shall be treated as separate transportation; and

(b) the homeward stage of a return trip shall be treated as separate transportation.

Section 8

This Part shall not apply to any goods supplied as part of a pleasure cruise.

Section 9 Interpretation of Part 3

In this Part—

(a) “ the Act ” means the Value Added Tax Act 1994;

(b) “ dealer ” means a person whose principal activity in respect of receiving supplies of relevant goods is the re-selling of those goods and whose own consumption of those goods is negligible;

(c) “relevant goods” means—

(i) gas supplied through a natural gas system situated within Northern Ireland or the territory of a member State or any network connected to such a system,

(ia) gas supplied through a natural gas system situated within Great Britain or any network connected to such a system,

(ii) electricity, and

(iii) heat or cooling supplied through a network;

(d) “ re-selling ” for the purposes of article 9(b) does not include—

(i) re-sale as part of a single composite supply of other goods or services, or

(ii) re-sale as a supply that falls to be disregarded under section 43(1)(a) of the Act where relevant goods are to be effectively used and consumed by a member of a VAT group;

(e) “ VAT group ” means any bodies corporate treated under sections 43A to 43C of the Act as members of a group.

Section 10

Relevant goods supplied to a dealer shall be treated as supplied at the place where that dealer has established his business or has a fixed establishment to which the relevant goods are supplied or, in the absence of such a place of business or fixed establishment, the place where he has his permanent address or usually resides.

Section 11

Subject to articles 12 and 13, supplies of relevant goods not falling within article 10 above shall be treated as supplied at—

(a) the place where the recipient of the supply has effective use and consumption of the goods, or

(b) in relation to any part of the goods not consumed, the place where the recipient of the supply has established his business or has a fixed establishment to which the goods are supplied, or in the absence of such place of business or fixed establishment, the place where he has his permanent address or usually resides.

Section 12

Where the recipient of supplies of relevant goods supplies those goods as part of a single composite supply of other goods or services, that constitutes effective use and consumption by him of the goods for the purposes of article 11(a).

Section 13

The supply of relevant goods to a member of a VAT group, where the goods are effectively used and consumed by a member of that group, shall constitute effective use and consumption of the goods for the purposes of article 11(a).

Section 14

(1) For the purposes of section 9A of the Act (reverse charge on certain goods supplied by persons outside the United Kingdom) a person is outside the United Kingdom if he has established his business or has a fixed establishment outside the United Kingdom or, in the absence of such a place of business or fixed establishment, the place where he has his permanent address or usually resides is outside the United Kingdom.

(2) For the purposes of that section a person is in Great Britain if—

(a) the person has established their business or has a fixed establishment in Great Britain, or

(b) in the absence of such a place of business or fixed establishment, the place where the person has their permanent address, or the place where they usually reside, is in Great Britain.

(3) For the purposes of that section a person is in Northern Ireland if—

(a) the person has established their business or has a fixed establishment in Northern Ireland, or

(b) in the absence of such a place of business or fixed establishment, the place where the person has their permanent address, or the place where they usually reside, is in Northern Ireland.

Section 15

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Section 16

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Section 17

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Section 18

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Section 19

Article 20 applies where the same goods—

(a) are supplied successively through a chain, and

(b) are dispatched or transported either—

(i) from a member State to Northern Ireland directly from the first supplier in the chain to the last customer in the chain, or

(ii) from Northern Ireland to a member State directly from the first supplier in the chain to the last customer in the chain.

Section 20

Where this article applies—

(a) the NI-EU supply is to be treated as the supply that involves the removal of the goods from or to Northern Ireland; and

(b) all supplies made after the NI-EU supply are to be treated as supplied—

(i) outside the United Kingdom in the case of goods removed or to be removed from Northern Ireland to a customer in a member State;

(ii) within the United Kingdom in the case of goods removed or to be removed from a member State to a customer in Northern Ireland.

Section 21

The “NI-EU supply” is—

(a) the supply in the chain that is made to the intermediary operator (“I”), or

(b) where I has provided its supplier with the relevant VAT identification number issued to I, the supply in the chain that is made by I.

Section 22

The “ relevant VAT identification number ” means—

(a) where the goods are dispatched or transported from a member State, the VAT identification number issued to I by that member State;

(b) where the goods are dispatched or transported from Northern Ireland, the VAT identification number issued to I by the United Kingdom along with an NI VAT identifier.

Section 23

“ Intermediary operator ” means a supplier within the chain other than the first supplier in the chain who dispatches or transports the goods either itself or through a third party acting on its behalf.