EXPLANATORY NOTE
(This note is not part of the Order)
This Order, which comes into force on 31st July 2009, amends Schedule 8 to the Value Added Tax Act 1994 (“Schedule 8”). Part 2 of that Schedule contains the Groups of supplies of goods and services that are subject to the zero rate of VAT and Part 1 contains the Index to those Groups.
Article 4 of the Order adds a new Group 17 “Emissions allowances” to Schedule 8. There is one Item, namely: “the supply of an emissions allowance”. This is defined in Notes 1 to 4 to the Group. The effect is that the supply of an emissions allowance is zero rated.
A full and final impact assessment has not been produced for this instrument as a negligible impact on the private or voluntary sectors is foreseen.