Explanatory note

These Regulations amend Parts 3 (VAT invoices and other invoicing requirements) and 11 (time of supply and time of acquisition) of the Value Added Tax Regulations 1995 (S.I. 1995/2518) to implement the changes required by Council Directive 2010/45/EU.

Regulation 2(2) omits regulation A13 (interpretation of Part 3) as the definitions are now redundant.

Regulation 2(3) amends regulation 13 (obligation to provide a VAT invoice) to: (i) limit the obligation to provide an invoice in the case of the specified exempt supplies; (ii) simplify the provisions relating to self-billing; (iii) make specific provision about the time when specified documents need to be provided; (iv) make provision as to the obligations of the supplier and customer; and (v) define the new terms that are used.

Regulation 2(4) amends regulation 13A (electronic invoicing) to simplify the provisions so that the only limitation on the use of an electronic invoice (as defined) is that the invoice must be accepted by the customer (or accepted by the supplier in the case of a self-billed invoice).

Regulation 2(5) amends regulation 14 (contents of VAT invoice) to update the specified particulars that are required in relation to margin scheme and reverse charge invoices.

Regulation 2(6) inserts a new regulation 16A (simplified invoices) to provide for the more general use of simplified invoices.

Regulation 2(7) and (8) omit regulations 86(5) (supplies of water, gas etc) and 87 (acquisitions of water, gas etc) to remove the specific provisions as to when certain supplies and acquisitions are treated as taking place.

A Tax Information and Impact Note covering this instrument will be published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.