Article 10

After article 12, there shall be inserted the following:

“12A

(1)

Subject to paragraph (5) below a taxable person who is under a duty to make payments on account may instead of paying the amount calculated in accordance with paragraphs 11 or 12 above elect to pay an amount equal to his liability to VAT (excluding the tax on goods imported from countries other than member States) for the preceding month.

(2)

A person making an election under paragraph (1) above shall notify the Commissioners in writing of—

(a)

the election, and

(b)

the date (being a date not less than 30 days after the date of the notification) on which it is to take effect.

(3)

Subject to paragraph (4) below, an election under paragraph (1) above shall continue to have effect until a date notified by the taxable person in writing to the Commissioners, which date shall not be earlier than the first anniversary of the date on which the election took effect.

(4)

Where the Commissioners are satisfied that an amount paid by a person who has elected in accordance with paragraph (1) above is less than the amount required to be paid by virtue of that paragraph the Commissioners may notify the taxable person in writing that his election shall cease to have effect from a date specified in the notification.

(5)

A person may not make an election under paragraph (1) above within 12 months of the date on which any previous election made by him ceased to have effect by virtue of paragraph (4) above.”