Explanatory note

These Regulations amend the Value Added Tax Regulations S.I. 1995 No. 2518 (“the principal Regulations”).

Regulation 3 amends regulation 25 of the principal Regulations as from 1 March 2000. Provision is accordingly made for persons who apply to and are authorised by the Commissioners of Customs and Excise to make their VAT returns using approved forms of electronic communications (which could include the Internet). Certain formalities are provided for to take account of the special characteristics of electronic communications.

Regulation 4 amends regulation 40 of the principal Regulations as from 1 March 2000 so that a person making a VAT return using electronic communications must also make the corresponding payment electronically.

Regulation 5 amends regulation 115(3) of the principal Regulations as from 1 March 2000 to provide for any variation of the sum specified in sub-paragraph (1)(c) of paragraph 8 of Schedule 4 to the Value Added Tax Act 1994.

Regulation 6 amends regulations 132 and 133 of the principal Regulations as from 1 April 2000. In each case the word “new” is omitted. Provision is accordingly made for the supply of used motor vehicles to be zero-rated for VAT under the existing scheme which has, until now, applied only to new motor vehicles. These amendments implement Article 15(2) of Council Directive 77/388/EEC (O.J. L. 145, 13.6.1977, p.1) (as amended by Council Directive 95/7/EC (O.J. L. 102, 5.5.1995, p.18)).