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EXPLANATORY NOTE

(This note is not part of the Order)

This Order which comes into force on 1st July 2009, amends Group 5 of Part 2 of Schedule 7A to the Value Added Tax Act 1994 (“Group 5”). Part 2 of that Schedule contains the Groups of supplies of goods and services that are subject to the reduced rate of VAT of 5%.

Article 3 of the Order amends Note 1 to Group 5 (meaning of “children’s car seats”) by adding a new sub-paragraph (aa) to include related base units. This reflects recent advances in technology that have resulted in new types of child restraint being introduced, with fixed children’s car seat bases becoming the norm for safety seats.

Article 4 of the Order amends Note 2 to Group 5 (meaning of “safety seat”) by substituting a new paragraph (b) to specify that a safety seat can also be restrained by means of a related base unit.

Article 5 of the Order adds a new Note 2A to Group 5 (meaning of “related base unit”) to define this term. The base unit must be designed solely for use in combination with a safety seat and attached or restrained in one of the ways specified.

A full impact assessment has not been produced for this instrument as a negligible impact on the private or voluntary sectors is foreseen.