OpenLegislation

The Value Added Tax (Supplementary Charge) Order 2009

S.I. 2009/3127 · Made 30 November 2009

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

This Statutory Instrument has been printed in substitution of the SI of the same number and is being issued free of charge to all known recipients of that Statutory Instrument.

Value Added Tax

Made 30th November 2009

Laid before the House of Commons 1st December 2009

Coming into force 31st December 2009

The Treasury, in exercise of the powers conferred by paragraph 15 of Schedule 3 (VAT: supplementary charge and orders changing rate) to the Finance Act 2009f1, make the following Order:

Annotations to the whole text

Footnotes

f1

2009 c. 10; section 9(2) makes provision for Schedule 3.

Contents

  1. 1Article 1
  2. 2Article 2
  3. 3Article 3
  4. Signature
  5. Explanatory note

1

This Order may be cited as the Value Added Tax (Supplementary Charge) Order 2009 and comes into force on 31st December 2009.

2

There is no supplementary charge on a supply of goods within paragraph 2 of Schedule 3 to the Finance Act 2009 if—

(a)

the only relevant condition met is condition Df1,

(b)

the VAT invoice—

(i)

relates to a supply of goods made under a hire-purchase, conditional sale or credit sale agreement,

(ii)

forms part of that agreement, and

(iii)

is issued in accordance with normal commercial practice in relation to a supply made under such an agreement, and

(c)

the basic time of supply of the goods is intended and expected to be within six months of the date of the VAT invoice which relates to the supply.

3

In this Order—

(a)

“normal commercial practice” means the normal commercial practice of the supplier at a time when an increase in the rate of VAT in force under section 2 of the Value Added Tax Act 1994f1 is not expected, and

(b)

“basic time of supply” has the meaning given in paragraph 4(1) of Schedule 3 to the Finance Act 2009.

Signature

Tony Cunningham

Dave Watts

Two of the Lords Commissioners of Her Majesty’s Treasury

30th November 2009

Explanatory note

(This note is not part of the Order)

This Order which comes into force on 31st December 2009 provides for an exception to the categories of supply in relation to which a supplementary charge is due under Schedule 3 to the Finance Act 2009.

Article 2 of the Order sets out circumstances in which a supplementary charge which would otherwise be due under paragraph 2 of Schedule 3 to the Finance Act 2009 shall not be due. These are that the only relevant condition met is condition D, that the VAT invoice relates to a specified supply, forms part of the relevant agreement and is issued in accordance with the supplier’s normal commercial practice and that the basic time of supply of the goods is intended and expected to be within six months of the date of that invoice.

Article 3 of the Order defines “normal commercial practice” and “basic time of supply”.

A full impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.