{
  "url": "https://openlegislation.uk/value-added-tax-cars-amendment-order-1995/note",
  "json_url": "https://openlegislation.uk/value-added-tax-cars-amendment-order-1995/note.json",
  "legislation": "uksi/1995/1269",
  "legislation_title": "The Value Added Tax (Cars) (Amendment) Order 1995",
  "legislation_url": "https://openlegislation.uk/value-added-tax-cars-amendment-order-1995",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Order)\nUnder the directive of the Council of the European Communities dated 17th May 1977, No. 77/388/EEC (OJ No. L145, 13.7.77, p. 1) as amended by the directive of that Council dated 14th February 1994, No. 94/5/EC (OJ No. L60, 3.3.94, p. 16) effective from 1st January 1995, member States are required to provide, for certain goods, a scheme of accounting on which VAT is calculated by reference to the profit margin (the margin scheme). The directives enable the United Kingdom to allow taxable persons to continue to calculate VAT by reference to the profit margin on certain goods and also to extend this facility to other goods, all of which become subject to conditions contained in the directives. One of these conditions is that goods supplied under the margin scheme are always taxable in the member State of origin and thus the normal VAT rules for intra-EC transactions do not apply.\nThis order amends the Value Added Tax (Cars) Order 1992 (No. 1322) (the 1992 Order).\nArticle 3 amends article 2 of the 1992 order by updating certain references to legislation and by inserting a new definition of “auctioneer”.\nArticle 4 amends article 4 of the 1992 order by updating certain references to legislation and inserting a new provision which excludes from the scope of the tax services in connection with a supply of a motor car provided by an agent acting in his own name to the purchaser where the consideration for those services is taken into account in calculating the profit margin on the supply of the motor car. It also inserts a new provision which excludes from the scope of the tax services in connection with a supply of a motor car provided by an auctioneer acting in his own name to the purchaser or the vendor where the consideration for those services is taken into account when calculating the profit margin on the supply of the motor car.\nArticle 5 amends article 5 of the 1992 order by updating certain references to legislation.\nArticle 6 amends article 7 of the 1992 order by updating certain references to legislation.\nArticle 7 re-enacts, with amendments, article 8 of the 1992 order. It allows taxable persons to opt to use the margin scheme in the circumstances provided for in the above directives for supplies of second-hand motor cars. It sets out how the profit margin on supplies of motor cars is to be calculated and provides variations from the normal rules for agents, and auctioneers in particular, who act in their own names.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1995/1269/note",
    "retrieved_at": "2026-10-29T13:09:29.383039+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}