PART 7

Value added tax

Group supplies using an overseas member
200
1
VATA 1994 is amended as follows.
2
In section 43 (groups of companies), in subsection (2C)(c), after “above” insert “and paragraph 8A of Schedule 6”.
3
In section 83 (appeals), in subsection (1)(v) for “or 2” substitute “, 2 or 8A”.
4
In section 97(4) (orders requiring Parliamentary approval within 28 days of being made), in paragraph (f), after “1A(7)” insert “or 8A(7)”.
5
Schedule 6 (valuation: special cases) is amended as follows.
6
In paragraph 1 (cases where Commissioners may direct value is open market value), in sub-paragraph (5), after “paragraph”, in the second place it occurs, insert “8A or”.
7
After paragraph 8 insert—
8A
1
This paragraph applies where—
a
a supply (“the intra-group supply”) made by a member of a group (“the supplier”) to another member of the group is, by virtue of section 43(2A), excluded from the supplies disregarded under section 43(1)(a), and
b
the representative member of the group satisfies the Commissioners as to the value of each bought-in supply.
2
“Bought-in supply”, in relation to the intra-group supply, means a supply of services to the supplier to which section 43(2A)(c) to (e) refers, so far as that supply is used by the supplier for making the intra-group supply.
3
The value of the intra-group supply shall be taken to be the total of the relevant amounts in relation to the bought-in supplies.
4
The relevant amount in relation to a bought-in supply is the value of the bought-in supply, unless a direction is made under sub-paragraph (5).
5
If the value of a bought-in supply is less than its open market value, the Commissioners may direct that the relevant amount in relation to that supply is its open market value.
6
A direction under this paragraph must be given by notice in writing to the representative member, but no direction may be given more than 3 years after the time of the intra-group supply.
7
The Treasury may by order vary the provision made by this Schedule about the value of supplies of the kind mentioned in sub-paragraph (1)(a).
8
An order under sub-paragraph (7) may include incidental, supplemental, consequential or transitional provision (including provision amending section 43 or 83).
8
The amendments made by this section have effect in relation to supplies made on or after the day on which this Act is passed.