Explanatory note
(This note is not part of the Regulations)
These Regulations amend, with effect from 1st July 1997, the Value Added Tax Regulations 1995 (S.I. 1995/2518) (“the principal Regulations”).
The amendments relate to services (“telecommunications services”) within the description contained in paragraph 7A of Schedule 5 to the Value Added Tax Act 1994 (“the Act”), (which was added to Schedule 5 by the Value Added Tax (Reverse Charge) (Anti-avoidance) Order 1997 (S.I. 1997/1523)).
Regulation 3 adds regulation 90(4) to the principal Regulations. Regulation 90(4) ensures that regulation 90 does not treat relevant telecommunications services as supplied on or after 1st July 1997 where the period to which the payment for those services relates ended before that date.
Regulation 4 inserts regulation 90A and 90B into the principal Regulations. Regulation 90A of the principal Regulations provides that relevant telecommunications services will be treated as supplied on 1st July 1997 where payment was made before that date in respect of a period which ends on or after 1st July 1997.
Regulation 90B determines, in respect of relevant telecommunications services for which payment is made on or after 1st July 1997, the extent to which those services are to be treated as taking place. These services will be treated as taking place only to the extent covered by the payment or, if lower, such part of the payment as is properly attributable to such part of the period covered by the payment as falls after 30th June 1997.
Regulation 5 makes a consequential amendment to regulation 94 of the principal Regulations.