{
  "url": "https://openlegislation.uk/value-added-tax-supply-of-services-amendment-order-1998/note",
  "json_url": "https://openlegislation.uk/value-added-tax-supply-of-services-amendment-order-1998/note.json",
  "legislation": "uksi/1998/762",
  "legislation_title": "The Value Added Tax (Supply of Services) (Amendment) Order 1998",
  "legislation_url": "https://openlegislation.uk/value-added-tax-supply-of-services-amendment-order-1998",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Order)\nThis Order, which comes into force on 18th March 1998, amends the Value Added Tax (Supply of Services) Order 1993 (S.I. 1993/1507) (the “principal Order”).\nUnder the principal Order, owners of businesses must account for VAT on services put to private use, if they were entitled to recover VAT when they purchased the services. The effect of the amendments is that a change in the ownership of a business will not prevent this VAT charge from arising.\nArticle 3 amends article 6(b) of the principal Order, which limits the VAT charge to cases where input tax has been recoverable on the purchase of the services which are later put to private use. The effect of the amendment is that there will be a VAT charge, even if the input tax entitlement arises after the services are put to private use.\nArticle 4 amends article 7 of the principal Order, which prevents the VAT charge from exceeding the input tax which has been recoverable on the services put to private use. The effect of the amendment is that input tax which becomes recoverable after the services are put to private use is also taken into account.\nArticle 5 adds a new article 8 to the principal Order, covering the situation where a business is transferred VAT-free as a going concern. In this case the purchaser is treated as the same person as the vendor, when determining the amount of the purchaser’s VAT charge; whether or not input tax was recoverable; and whether or not the VAT charge has exceeded the irrecoverable input tax. The article also adds a new article 9 to the principal Order, applying the rule in article 8 to situations where a business is transferred VAT-free as a going concern more than once. In such a case the purchaser is treated as if he and all previous owners were the same person.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1998/762/note",
    "retrieved_at": "2026-10-29T11:34:17.482247+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}