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The Value Added Tax (Section 55A) (Specified Services) Order 2019

S.I. 2019/1015 · Made 12 June 2019 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 31 December 2020.

Value Added Tax

Made 12th June 2019

Laid before the House of Commons 13th June 2019

Coming into force 14th June 2019

The Treasury make the following Order in exercise of the powers conferred by section 55A(9) and (14) of the Value Added Tax Act 1994 M1.

Annotations to the whole text

Marginal citations

M1

1994 c. 23; section 55A was inserted by section 19(1) of the Finance Act 2006 (c. 25) and was amended by section 50(1) of the Finance Act 2010 (c. 13), section 203 of, and paragraphs 2 and 6 of Schedule 28 to, the Finance Act 2012 (c. 14) and section 51 of the Finance Act 2019 (c. 1).

Contents

  1. 1Citation, commencement and effect
  2. 2Interpretation
  3. 3Application of section 55A of the Act
  4. 4Specified services
  5. Signature
  6. Explanatory note

1Citation, commencement and effectI1

(1)

This Order may be cited as the Value Added Tax (Section 55A) (Specified Services) Order 2019.

(2)

This Order comes into force on 14th June 2019 and has effect in relation to supplies of specified services made on or after that date.

2InterpretationI1

In this Order—

  • “gas” means gas supplied through the natural gas distribution system;

  • “a gas or an electricity certificate” is an electronic document which contains information on the source of the energy and its method of production;

  • “specified services” means the services specified in article 4.

3Application of section 55A of the ActI1

Section 55A of the Value Added Tax Act 1994 (customers to account for tax on supplies of goods or services of a kind used in missing trader F1... fraud) applies to services of a description specified in article 4.

4Specified servicesI1

The services referred to in article 3 are gas and electricity certificates.

Signature

David Rutley

Jeremy Quin

Two of the Lords Commissioners of Her Majesty's Treasury

Explanatory note

(This note is not part of the Order)

This Order, which has effect in relation to supplies made on or after 14th June 2019, applies a reverse charge to specified supplies of a kind used in missing trader intra-community fraud.

As a general rule, the supplier of goods or services is required to account for value added tax on that supply. Section 55A of the Value Added Tax Act 1994 (c. 23) (‘section 55A’) requires the recipient of the supply rather than the supplier to account for and pay any value added tax due on supplies of goods or services which are of a description specified in an order made by the Treasury under that section for that purpose. This accounting requirement is commonly referred to as a ‘reverse charge’. Section 55A also permits such an order to except certain supplies from the supplies that are so specified but this Order does not except any supplies.

Article 2 defines certain terms that appear in this Order.

Article 3 provides that the reverse charge will apply to services of a description specified in article 4.

Article 4 describes the services which are specified services for the purposes of section 55A.

A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.