# The Value Added Tax (Amendment) Regulations 2006, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations, which come into force on 1st April 2006 for the purposes of the VAT annual accounting scheme and on 6th April 2006 for the purposes of VAT returned goods relief, further amend the Value Added Tax Regulations 1995 (S.I. 1995/2518).
Annual accounting scheme
Regulation 2 increases the maximum turnover limit for entrants to the VAT annual accounting scheme from £660,000 to £1,350,000. It also removes the requirement that a taxable person with a turnover above £150,000 must have been registered for VAT for 12 months before he is eligible to apply to use annual accounting.
Regulation 3 increases the maximum turnover limit for those already operating the scheme from £825,000 to £1,600,000.
A full regulatory impact assessment of the effect that this part of the instrument will have on the costs of business, charities or voluntary bodies is available from www.hmrc.gov.uk.
Returned goods relief
Returned goods relief renders the payment of VAT unnecessary on the importation of goods to the United Kingdom that are in the same state compared to when they were previously exported from the European Community by the importer.
Regulations 4 and 5 align the rules for such import VAT relief with those for the returned goods relief from import duty. They do this by enabling adapted import duty provisions to apply, including rules for adjusting the amount of VAT relief to take account of the existing VAT status of transactions involving the goods in the European Community VAT territory. Any VAT deductible or refundable through the VAT system, such as input tax, is disregarded.
The VAT relief continues not to apply in the case of goods zero-rated for VAT under the United Kingdom’s personal export schemes.
Regulation 5 also revokes the existing VAT provisions for returned goods relief.
A full regulatory impact assessment has not been produced for this part of the instrument as it has no impact on the costs of business, charities or voluntary bodies.

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Source: https://www.legislation.gov.uk/uksi/2006/587/note (the official version)
Page: https://openlegislation.uk/value-added-tax-amendment-regulations-2006/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.