1.—(1) This Order may be cited as the Value Added Tax (Section 55A) (Specified Goods and Services and Excepted Supplies) Order 2010.
(2) This Order shall come into force on 1st November 2010 and has effect in relation to supplies made on or after that date.
2. The Value Added Tax (Section 55A) (Specified Goods and Excepted Supplies) Order 2007(1) is revoked.
3. In this Order—
“the Act” means the Value Added Tax Act 1994;
“allowance” has the meaning given in Article 3 of the Directive;
“certified emission reduction” has the meaning given in Article 3 of the Directive;
“the Directive” means Directive 2003/87/EC(2) of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC(3);
“emission reduction unit” has the meaning given in Article 3 of the Directive;
“operator” has the meaning given in Article 3 of the Directive;
“public electronic communications service” has the meaning given in section 151(4) of the Communications Act 2003.
4. The goods and services specified in articles 5 and 6 are goods and services to which section 55A of the Act (customers to account for tax on supplies of goods or services of a kind used in missing trader intra-community fraud) applies.
5. The goods referred to in article 4 are—
(a)a mobile telephone, whether or not it has any function in addition to the transmitting and receiving of spoken messages;
(b)an integrated circuit device, such as a central processing unit and microprocessor unit, in a state prior to integration into an end user product.
6. The services referred to in article 4 are—
(a)a transfer of an allowance;
(b)a transfer of an emission reduction unit which can be used by an operator for compliance with the scheme established by the Directive;
(c)a transfer of a certified emission reduction which can be used by an operator for compliance with the scheme established by the Directive.
7. For the purposes of section 55A of the Act a supply of a description specified below is an excepted supply—
(a)a supply of specified goods where the value of the supply is less than £5000;
(b)a supply of specified goods where the supply is of a description specified in an order made under section 50A(5) of the Act (margin schemes) and, in accordance with such an order, the supplier opts to account for the VAT chargeable on the supply on the profit margin on the supply instead of by reference to its value;
(c)a supply of a mobile telephone where, at the time a person enters into the agreement to purchase the telephone—
(i)he enters into an agreement (including the renewal or extension of an existing agreement) with a provider of a public electronic communications service for the supply, in relation to that telephone, of such a service, and
(ii)that agreement is not one that requires periodical pre-payments in order to use the service (“Pay as You Go”);
(d)a transfer or disposal of specified goods for no consideration that is treated as a supply of goods by virtue of paragraph 5(1)(6) of Schedule 4 to the Act.
8. Article 7(a) does not apply to a supply of specified goods where—
(a)the supply is particularised on the same VAT invoice(7) as a supply, or supplies, of other specified goods, and
(b)the total value of the supplies equals or exceeds £5000.
Michael Fabricant
Jeremy Wright
Two of the Lords Commissioners of Her Majesty’s Treasury
13th September 2010