Explanatory note

(This note is not part of the Order)

VAT is payable if road fuel of a business is used for private motoring. The VAT due must be calculated using flat-rate values related to engine type and size^f1.

This Order increases those flat-rates by an average of 18.5 per cent for diesel vehicles and 21 per cent for those using other fuels^f2.

The new rates apply to any relevant accounting period starting after 5th April 2000^f3.

Annotations

Footnotes

f1: Sections 56 and 57 of the Value Added Tax Act 1994.
f2: By substituting Table A in section 57 of the Value Added Tax Act 1994.
f3: See articles 1(2) and 2 of the Order.