The Value Added Tax (Amendment) (No. 2) Regulations 2005

• Citation: S.I. 2005/2231
• Sections: 10

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the Value Added Tax (Amendment) (No. 2) Regulations 2005.

(2) Regulations 2 to 9 shall come into force on 1st September 2005 in relation to claims made under section 80 of the Value Added Tax Act 1994 on or after that date.

(3) Regulation 10 shall come into force on 1st September 2005.

(4) They amend the Value Added Tax Regulations 1995 as follows.

Section 2 Credit for, or repayment of, overstated or overpaid VAT

For the heading to regulation 37 substitute “Claims for credit for, or repayment of, overstated or overpaid VAT”.

Section 3 Credit for, or repayment of, overstated or overpaid VAT

In regulation 43A—

(a) in the definition of “claim”—

(i) omit “(irrespective of when it was made)”;

(ii) for “repayment of an amount paid to the Commissioners by way of VAT which was not VAT due to them” substitute “credit of an amount accounted for to the Commissioners or assessed by them as output tax which was not output tax due to them”;

(b) in the definition of “reimbursement arrangements”—

(i) in paragraph (a), for “repayment” substitute “crediting”;

(ii) in paragraph (b), for “cost of the original payment of that amount to the Commissioners” substitute “original amount brought into account as output tax that was not output tax due”.

Section 4 Credit for, or repayment of, overstated or overpaid VAT

In regulation 43B, for “repayment” substitute “crediting”.

Section 5 Credit for, or repayment of, overstated or overpaid VAT

In regulation 43C—

(a) in paragraph (a), for “repayment” substitute “crediting of the amount”;

(b) for paragraph (d) substitute—

(d) any part of the relevant amount credited to the claimant that is not reimbursed by the time mentioned in paragraph (a) above will be notified by the claimant to the Commissioners;

(da) any part of the relevant amount paid (or repaid) to the claimant that is not reimbursed by the time mentioned in paragraph (a) above will be repaid by the claimant to the Commissioners;

(c) in paragraph (e), for “repaid” substitute “paid (or repaid)”.

Section 6 Credit for, or repayment of, overstated or overpaid VAT

For regulation 43D substitute—

Notifications and repayments to the Commissioners

(43D) The claimant shall give any notification to the Commissioners that he is required to give by virtue of regulation 43C(d) above and, without any prior demand, make any repayment to the Commissioners that he is required to make by virtue of regulation 43C(da) and (e) above within 14 days of the expiration of the 90 days referred to in regulation 43C(a) above.

Section 7 Credit for, or repayment of, overstated or overpaid VAT

In paragraph (2) of regulation 43F, for “paid” substitute “credited”.

Section 8 Credit for, or repayment of, overstated or overpaid VAT

In paragraph (2) of regulation 43G—

(a) in sub-paragraph (b), for “repaid” substitute “credited”;

(b) in sub-paragraph (c), for “repaid” substitute “paid (or repaid)”;

(c) for sub-paragraph (d) substitute—

(d) he will notify the Commissioners of the whole or such part of the relevant amount credited to him as he fails to apply in accordance with the undertakings mentioned in sub-paragraphs (b) and (c) above;

(da) he will repay to the Commissioners without demand the whole or such part of the relevant amount paid (or repaid) to him or of any interest paid to him as he fails to apply in accordance with the undertakings mentioned in sub-paragraphs (b) and (c) above;

Section 9 Credit for, or repayment of, overstated or overpaid VAT

Omit regulation 43H.

Section 10 Goods subject to warehousing regime: place of supply

After regulation 145J , insert—

Place of supply of goods subject to warehousing regime

(145K)

(1) Section 18(1) (supply of goods subject to warehousing regime and before duty point treated as taking place outside the United Kingdom) shall not apply in the following prescribed circumstances.

(2) The circumstances are—

(a) that there is a supply of goods that would but for this regulation be treated for the purposes of the Act as taking place outside the United Kingdom by virtue of section 18(1);

(b) the whole or part of the business carried on by the supplier of those goods consists in supplying to a number of persons goods to be sold, by them or others, by retail;

(c) that supplier is a taxable person (or would be a taxable person but for section 18(1)); and

(d) that supply is to a person who is not a taxable person, and

(i) consists in a supply of goods to that person to be sold, by that person, by retail, or

(ii) consists in a supply of goods to that person by retail.