The Value Added Tax (Amendment) (No. 3) Regulations 2010
S.I. 2010/2940 · Made 8 December 2010
Value Added Tax
Made 8th December 2010
Laid before the House of Commons 10th December 2010
Coming into force 4th January 2011
The Commissioners for Her Majesty’s Revenue and Customsf1 make the following Regulations in exercise of the powers conferred by sections 26Bf2, 39(1) and (3)f3 of, and paragraph 2Af4 of Schedule 11 to, the Value Added Tax Act 1994f5.
Annotations to the whole text
Footnotes
- f1
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The functions of the Commissioners of Customs and Excise were transferred to the Commissioners for Her Majesty’s Revenue and Customs by section 5 of the Commissioners for Revenue and Customs Act 2005 (c. 11). Section 50(1) of that Act provides that a reference to the Commissioners of Customs and Excise shall be taken as a reference to the Commissioners for Her Majesty’s Revenue and Customs.
- f2
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Section 26B was inserted by section 23(1) and (4) of the Finance Act 2002 (c. 23).
- f3
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Section 39 was amended by section 77(1) and (2) of the Finance Act 2009 (c. 10).
- f4
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Paragraph 2A of Schedule 11 was inserted by section 24(2) and (5) of the Finance Act 2002 with effect from 1 December 2003 by virtue of S.I. 2003/3043 and its scope was extended by paragraph 22 of Schedule 3 to the Finance Act 2009 and paragraph 22 of Schedule 2 to the Finance (No. 2) Act 2010 (c. 31).
- f5
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1994 c. 23; section 96(1) defines “the Commissioners” as meaning the Commissioners of Customs and Excise and “regulations” as meaning regulations made by the Commissioners under the Act.
Contents
- 1Citation, commencement and effect
- 2Amendment of the Value Added Tax Regulations 1995
- 3Change of rate, supplementary charge invoices
- 4Flat-rate scheme for small businesses
- 5Flat-rate scheme for small businesses
- 6Repayments to Community traders
- Signature
- Explanatory note
1Citation, commencement and effect
These Regulations may be cited as the Value Added Tax (Amendment) (No. 3) Regulations 2010 and come into force on 4th January 2011.
2Amendment of the Value Added Tax Regulations 1995
The Value Added Tax Regulations 1995f1 are amended as follows.
3Change of rate, supplementary charge invoices
In regulation 15A (change of rate, supplementary charge invoices), after “Schedule 3 to the Finance Act 2009” insert “or Schedule 2 to the Finance (No. 2) Act 2010f1”.
4Flat-rate scheme for small businesses
For the Table in regulation 55K (flat rate scheme for small businesses, category of business), substitute—
“
Category of business Appropriate percentage “Labour-only building or construction services” means building or construction services where the value of materials supplied is less than 10 per cent of relevant turnover from such services; any other building or construction services are “general building or construction services”.
Accountancy or book-keeping 14.5 Advertising 11 Agricultural services 11 Any other activity not listed elsewhere 12 Architect, civil and structural engineer or surveyor 14.5 Boarding or care of animals 12 Business services that are not listed elsewhere 12 Catering services including restaurants and takeaways 12.5 Computer and IT consultancy or data processing 14.5 Computer repair services 10.5 Dealing in waste or scrap 10.5 Entertainment or journalism 12.5 Estate agency or property management services 12 Farming or agriculture that is not listed elsewhere 6.5 Film, radio, television or video production 13 Financial services 13.5 Forestry or fishing 10.5 General building or construction servicesf1 9.5 Hairdressing or other beauty treatment services 13 Hiring or renting goods 9.5 Hotel or accommodation 10.5 Investigation or security 12 Labour-only building or construction services 14.5 Laundry or dry-cleaning services 12 Lawyer or legal services 14.5 Library, archive, museum or other cultural activity 9.5 Management consultancy 14 Manufacturing fabricated metal products 10.5 Manufacturing food 9 Manufacturing that is not listed elsewhere 9.5 Manufacturing yarn, textiles or clothing 9 Membership organisation 8 Mining or quarrying 10 Packaging 9 Photography 11 Post offices 5 Printing 8.5 Publishing 11 Pubs 6.5 Real estate activity not listed elsewhere 14 Repairing personal or household goods 10 Repairing vehicles 8.5 Retailing food, confectionary, tobacco, newspapers or children’s clothing 4 Retailing pharmaceuticals, medical goods, cosmetics or toiletries 8 Retailing that is not listed elsewhere 7.5 Retailing vehicles or fuel 6.5 Secretarial services 13 Social work 11 Sport or recreation 8.5 Transport or storage, including couriers, freight, removals and taxis 10 Travel agency 10.5 Veterinary medicine 11 Wholesaling agricultural products 8 Wholesaling food 7.5 Wholesaling that is not listed elsewhere 8.5 ”
5Flat-rate scheme for small businesses
In regulation 55M (withdrawal from the scheme)—
in paragraph (1)(a), for “£225,000” substitute “£230,000”,
in paragraph (1)(b), for “£225,000 substitute “£230,000”, and
in paragraph (2), for “£187,500” substitute “£191,500”.
6Repayments to Community traders
In regulation 173P (the day by which a claim under this Part must be made)—
at the beginning of paragraph (1) insert “Subject to paragraph (1A),”; and
after paragraph (1) insert—
“(1A)A repayment application in respect of a repayment period falling within the repayment year commencing on 1st January 2009 must be submitted in accordance with regulation 173I(c) before 1st April 2011.”.
Signature
Dave Hartnett
Steve Lamey
Two of the Commissioners for Her Majesty’s Revenue and Customs
8th December 2010
Explanatory note
(This note is not part of the Regulations)
These Regulations come into force on 4th January 2011 and amend Parts 3 (VAT invoices and other invoicing requirements), 7A (flat-rate scheme for small businesses) and 20 (repayments to Community traders) of the Value Added Tax Regulations 1995 (S.I. 1995/2518).
Regulation 3 amends regulation 15A (change of rate, supplementary charge invoices) to include a reference to a supplementary charge due under Schedule 2 to the Finance (No. 2) Act 2010 as a consequence of the increase in the standard rate of VAT from 17.5% to 20% on 4th January 2011.
Regulation 4 amends regulation 55K (flat rate scheme for small businesses, category of business) to substitute a new table with revised percentages to reflect the increase in the VAT rate.
Regulation 5 amends regulation 55M (withdrawal from the flat rate scheme) to provide for revised figures relating to exit thresholds to reflect the increase in the VAT rate.
Regulation 6 amends regulation 173P (day by which a claim under this Part must be made) to implement an amendment made by Council Directive 2010/66/EU (OJ No L 275, 20.10.2010, p 1) to Council Directive 2008/9/EC (OJ No L 44, 20.02.2008, p 23) which lays down the rules for the refund of VAT incurred by a taxable person in a Member State other than the Member State in which that person is established. Its effect is that claims for repayment of VAT incurred in the year commencing on 1st January 2009 may be submitted to Her Majesty’s Revenue and Customs until 31st March 2011.
A full Impact Assessment has not been produced in relation to this instrument as it has no impact on business, charities or voluntary bodies.
A full Impact Assessment of the effect that the increase in the VAT rate will have on the costs of business and the voluntary sector is available at http://www.hmrc.gov.uk/better-regulation/ia.htm.