# The Value Added Tax (Payments on Account) Order 1992, Note: Explanatory note


(This note is not part of the Order)
This Order, which is made under section 38C of the Value Added Tax Act 1983 (c. 55), provides that certain taxable persons shall, in respect of each of their tax periods beginning on or after 2nd September 1992, make payments on account of any tax they may become liable to pay.
Unless the Commissioners of Customs and Excise otherwise allow, the Order applies to a taxable person whose VAT liability in the period of the year specified in article 4 exceeded £2,000,000.
Article 5 provides that the payments are to be made monthly but special provision is made in article 6 for taxable persons who have tax periods which do not start on the first, or end on the last, day of the month.
Calculation of the payments is determined in accordance with articles 7, 8 and 9 and provision for reduction of payments in certain circumstances is made in article 10.
Special provision is made for the application of the Order in relation to a body corporate whose VAT registration is in the names of divisions under section 31 of the Value Added Tax Act 1983 (articles 11 and 12) and bodies corporate which are treated as members of a group under section 29 of that Act (articles 13, 14 and 15).

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Source: https://www.legislation.gov.uk/uksi/1992/1510/note (the official version)
Page: https://openlegislation.uk/value-added-tax-payments-on-account-order-1992/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.