# The Value Added Tax (Amendment) (No. 3) Regulations 2010 S.I. 2010/2940 · made 8 December 2010 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). Made under: Value Added Tax Act 1994 (Section 26B, Section 39, Schedule 11 paragraph 2A) PDFs: Printed copy https://openlegislation.uk/value-added-tax-amendment-no-3-regulations-2010/pdf/uksi_20102940_en.pdf; Explanatory Memorandum https://openlegislation.uk/value-added-tax-amendment-no-3-regulations-2010/pdf/uksiem_20102940_en.pdf ## Introductory text 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 Customs make the following Regulations in exercise of the powers conferred by sections 26B, 39(1) and (3) of, and paragraph 2A of Schedule 11 to, the Value Added Tax Act 1994. ## 1 Citation, 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. ## 2 Amendment of the Value Added Tax Regulations 1995 The Value Added Tax Regulations 1995 are amended as follows. ## 3 Change 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 2010”. ## 4 Flat-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 services 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 ” ## 5 Flat-rate scheme for small businesses In regulation 55M (withdrawal from the scheme)— (a) in paragraph (1)(a), for “£225,000” substitute “£230,000”, (b) in paragraph (1)(b), for “£225,000 substitute “£230,000”, and (c) in paragraph (2), for “£187,500” substitute “£191,500”. ## 6 Repayments to Community traders In regulation 173P (the day by which a claim under this Part must be made)— (a) at the beginning of paragraph (1) insert “Subject to paragraph (1A),”; and (b) 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. --- Source: https://www.legislation.gov.uk/uksi/2010/2940 (the official version) Page: https://openlegislation.uk/value-added-tax-amendment-no-3-regulations-2010 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.