Finance Act 2001

Value Added Tax Act 1994 (c. 23)

4 (1) Section 88 of the Value Added Tax Act 1994 (supplies spanning change of rate etc.) is amended as follows.

(2) In subsection (1) (section applies where there is a change in the rate of VAT in force under section 2 or the descriptions of exempt or zero-rated supplies or acquisitions)—

(a) after “section 2” insert “or 29A”, and

(b) for “or zero-rated” (in both places) substitute “, zero-rated or reduced-rate”.

(3) In subsection (2) (election to disregard time of supply rules), after “any question whether it is zero-rated or exempt” insert “or a reduced-rate supply”.

(4) In subsection (4) (election to disregard time of acquisition rules), after “any question whether it is zero-rated or exempt” insert “or a reduced-rate acquisition”.

(5) After subsection (7) insert—

“(8) References in this section—

(a) to a supply being a reduced-rate supply, or

(b) to an acquisition being a reduced-rate acquisition,

are references to a supply, or (as the case may be) an acquisition, being one on which VAT is charged at the rate in force under section 29A.”.