Regulation 4

For regulation 20 of the principal Regulations there shall be substituted the following—

“Supplies of water, gas or any form of power, heat, refrigeration or ventilation

20

(1)

Subject to paragraphs (2) and (3) below a supply of—

(a)

water other than—

(i)

distilled water, deionised water and water of similar purity, and

(ii)

water comprised in any of the excepted items set out in Group 1 of Schedule 5 to the Act; or

(b)

coal gas, water gas, producer gases or similar gases; or

(c)

any form of power, heat, refrigeration or ventilation,

shall be treated as taking place whenever a payment in respect of the supply is received, or a tax invoice relating to the supply is issued by the supplier, whichever is the earlier.

(2)

Subject to paragraph (3) below, where the whole or part of the consideration for a supply such as is described in paragraph (1)(a) or (b) above or of power in the form of electricity is determined or payable periodically or from time to time, goods shall be treated as separately and successively supplied at the earlier of the following times—

(a)

whenever a part of the consideration is received; or

(b)

whenever the supplier issues a tax invoice relating to the supply.

(3)

Where such separate and successive supplies as are described in paragraph (2) above are made under an agreement which provides for successive payments, and the supplier at or about the beginning of any period not exceeding one year, issues a tax invoice containing, in addition to the particulars specified in regulation 13, the following particulars—

(a)

the dates on which payments under the agreement are to become due in the period

(b)

the amount payable (excluding tax) on each such date; and

(c)

the rate of tax in force at the time of issue of the tax invoice and the amount of tax chargeable in accordance with that rate on each of such payments,

goods shall be treated as separately and successively supplied whenever payment in respect of the supply becomes due or is received, whichever is the earlier.

(4)

Where, on or before any of the dates that a payment is due as stated on an invoice issued as described in paragraph (3) above, there is a change in the tax chargeable on supplies of the description to which the invoice relates, that invoice shall cease to be treated as a tax invoice in respect of any such supplies for which payments are due after the change.”.