PART 4

Administration, avoidance and enforcement

Reporting and record-keeping

Digital reporting and record-keeping for VAT
62
1
Schedule 11 to VATA 1994 (administration, collection and enforcement) is amended as set out in subsections (2) to (4).
2
In paragraph 2 (accounting and payment)—
a
in sub-paragraph (1) for “and the making of returns” substitute “ , the making of returns and the submission of information ”;
b
after sub-paragraph (11) insert—
11A
Regulations under this paragraph may include incidental, supplemental, consequential, saving, transitional or transitory provision.
3
In paragraph 6 (duty of taxable person to keep records)—
a
omit sub-paragraph (4);
b
at the end insert—
5
The Commissioners may by regulations make provision about the form in which, and means by which, records are to be kept and preserved.
6
Regulations under sub-paragraph (5) may—
a
make different provision for different cases;
b
provide for any provision of the regulations to be subject to conditions or exceptions specified in writing by the Commissioners;
c
include incidental, supplemental, consequential, saving, transitional or transitory provision.
7
If regulations under sub-paragraph (5) make provision requiring records to be kept or preserved in electronic form they must make provision for a taxable person to be exempt from those requirements for any month (“the current month”) if—
a
the value of the person's taxable supplies, in the period of one year ending with the month before the current month, was less than the VAT threshold, and
b
the person was not subject to those requirements in the month before the current month.
8
The regulations may modify the exemption for cases where a business or part of a business carried on by a taxable person is transferred to another person as a going concern.
9
The “VAT threshold” means the amount specified in paragraph 1(1)(a) of Schedule 1 on the first day of the current month.
10
Regulations under sub-paragraph (5) requiring records to be kept or preserved in electronic form may (among other things) make provision—
a
as to the electronic form in which records are to be kept or preserved,
b
for the production of the contents of records kept or preserved in accordance with the regulations,
c
as to conditions that must be complied with in connection with the keeping or preservation of electronic records,
d
for treating records as not having been kept or preserved unless conditions are complied with,
e
for authenticating records,
f
about the manner of proving for any purpose the contents of any records (including provision for the application of conclusive or other presumptions).
11
Regulations under sub-paragraph (5) requiring records to be kept or preserved in electronic form may—
a
allow any authorisation or requirement for which the regulations may provide to be given by means of a specific or general direction given by the Commissioners,
b
provide that the conditions of an authorisation or requirement are to be taken to be satisfied only where the Commissioners are satisfied as to specified matters.
4
In paragraph 6A (power to direct keeping of records), for sub-paragraph (7) substitute—
7
Regulations under paragraph 6(5) apply for the purposes of this paragraph as they apply for the purposes of paragraph 6.
5
In section 83(1) of VATA 1994 (appealable decisions), for paragraph (zc) substitute—
zc
a decision of the Commissioners about the application of any provision of regulations under paragraph 2 or 6 of Schedule 11, or of regulations under section 135 or 136 of the Finance Act 2002 relating to VAT, which—
i
requires returns to be made or information to be submitted by electronic communications, or
ii
requires records to be kept or preserved in electronic form,
(including in particular a decision as to whether such a requirement applies and a decision to impose a penalty).
6
Subsections (3)(a) and (4) of this section come into force when the first regulations under paragraph 6(5) of Schedule 11 to VATA 1994 come into force.
7
Regulations under paragraph 6(5) of Schedule 11 to VATA 1994 may not make provision requiring records to be kept or preserved in electronic form which has effect before 1 April 2019.
S. 62(1)(2)(3)(b)(5)-(7) in force at Royal Assent, see s. 62(6)