Explanatory note

These Regulations amend the Value Added Tax Regulations 1995 (S.I. 1995/2518).

Regulation 3 inserts a reference to a notification under regulation 148A(3A) and (4) to the list of specified communications in regulation 4B (specified communications are communications that can be made using an electronic communication system as specified in regulation 4A).

Regulation 4 inserts a new regulation 38ZA which extends the references in regulation 38(2) in specified circumstances to require both the first supplier in a chain of taxable supplies in the United Kingdom and a final consumer at the end of that chain who is a taxable person to adjust their VAT accounts where the consideration for the final supply in the chain has decreased as the result of the first supplier having made a relevant payment as defined.

Regulation 5 amends regulation 148A to require certain excepted relevant persons to make a late notification of the arrival in the United Kingdom of a land vehicle where there is a change of intention in relation to that land vehicle after its arrival. The notification is to be made within 14 days of the date of the relevant decision. In addition, it makes provision for the date of the relevant decision to be treated as the date of arrival for notification purposes to comply with the specifications of the online notification system which requires the date of arrival to be entered for the purpose of the record that is kept and the calculation of the 14 day time period.

A Tax Information and Impact Note has not been prepared in relation to the changes made by regulations 3 and 5 as they contain no substantive changes to tax policy.

A Tax Information and Impact Note relating to the changes made by regulation 4 will be published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.