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Finance Bill


Finance Bill
Part 9 — Miscellaneous and supplementary provisions

    144

 

 216   Repeals

     (1)    The enactments mentioned in Schedule 43 to this Act (which include

provisions that are spent or of no practical utility) are repealed to the extent

specified.

     (2)    The repeals specified in that Schedule have effect subject to the commencement

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provisions and savings contained or referred to in the notes set out in that

Schedule.

 217   Short title

This Act may be cited as the Finance Act 2003.

 

 

Finance Bill
Schedule 1 — VAT: face-value vouchers

 145

 

Schedules

Schedule 1

Section 19

 

VAT: face-value vouchers

  1        In Part 3 of the Value Added Tax Act 1994 (c. 23) (application of Act in

particular cases) insert after section 51A—

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       “51B            Face-value vouchers

Schedule 10A shall have effect with respect to face-value vouchers.”.

  2        After Schedule 10 to that Act insert—

“Schedule 10A

Face-value vouchers

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Meaning of “face-value voucher” etc

          1                (1)               In this Schedule “face-value voucher” means a token, stamp or

voucher (whether in physical or electronic form) that represents a

right to receive goods or services to the value of an amount stated

on it or recorded in it.

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                           (2)               References in this Schedule to the “face value” of a voucher are to

the amount referred to in sub-paragraph (1) above.

Nature of supply

          2                 The issue of a face-value voucher, or any subsequent supply of it,

is a supply of services for the purposes of this Act.

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Treatment of credit vouchers

          3                (1)               This paragraph applies to a face-value voucher issued by a person

who—

                      (a)                     is not a person from whom goods or services may be

obtained by the use of the voucher, and

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                      (b)                     undertakes to give complete or partial reimbursement to

any such person from whom goods or services are so

obtained.

                                             Such a voucher is referred to in this Schedule as a “credit voucher”.

                           (2)               The consideration for any supply of a credit voucher shall be

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disregarded for the purposes of this Act except to the extent (if

any) that it exceeds the face value of the voucher.

 

 

Finance Bill
Schedule 1 — VAT: face-value vouchers

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                           (3)               Sub-paragraph (2) above does not apply if any of the persons from

whom goods or services are obtained by the use of the voucher

fails to account for any of the VAT due on the supply of those

goods or services to the person using the voucher to obtain them.

Treatment of retailer vouchers

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          4                (1)               This paragraph applies to a face-value voucher issued by a person

who—

                      (a)                     is a person from whom goods or services may be obtained

by the use of the voucher, and

                      (b)                     if there are other such persons, undertakes to give

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complete or partial reimbursement to those from whom

goods or services are so obtained.

                                             Such a voucher is referred to in this Schedule as a “retailer

voucher”.

                           (2)               The consideration for the issue of a retailer voucher shall be

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disregarded for the purposes of this Act except to the extent (if

any) that it exceeds the face value of the voucher.

                           (3)               Sub-paragraph (2) above does not apply if—

                      (a)                     the voucher is used to obtain goods or services from a

person other than the issuer, and

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                      (b)                     that person fails to account for any of the VAT due on the

supply of those goods or services to the person using the

voucher to obtain them.

                           (4)               Any supply of a retailer voucher subsequent to the issue of it shall

be treated in the same way as the supply of a voucher to which

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paragraph 6 below applies.

Treatment of postage stamps

          5                 The consideration for the supply of a face-value voucher that is a

postage stamp shall be disregarded for the purposes of this Act

except to the extent (if any) that it exceeds the face value of the

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stamp.

Treatment of other kinds of face-value voucher

          6                (1)               This paragraph applies to a face-value voucher that is not a credit

voucher, a retailer voucher or a postage stamp.

                           (2)               A supply of such a voucher is chargeable at the rate in force under

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section 2(1) (standard rate) except where sub-paragraph (3), (4) or

(5) below applies.

                           (3)               Where the voucher is one that can only be used to obtain goods or

services in one particular non-standard rate category, the supply

of the voucher falls in that category.

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                           (4)               Where the voucher is used to obtain goods or services all of which

fall in one particular non-standard rate category, the supply of the

voucher falls in that category.

 

 

Finance Bill
Schedule 1 — VAT: face-value vouchers

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                           (5)               Where the voucher is used to obtain goods or services in a number

of different rate categories—

                      (a)                     the supply of the voucher shall be treated as that many

different supplies, each falling in the category in question,

and

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                      (b)                     the value of each of those supplies shall be determined on

a just and reasonable basis.

Vouchers supplied free with other goods or services

          7                 Where—

                      (a)                     a face-value voucher (other than a postage stamp) and

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other goods or services are supplied to the same person in

a composite transaction, and

                      (b)                     the total consideration for the supplies is no different, or

not significantly different, from what it would be if the

voucher were not supplied,

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                            the supply of the voucher shall be treated as being made for no

consideration.

Interpretation

          8                (1)               In this Schedule—

                       “credit voucher” has the meaning given by paragraph 3(1)

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above;

                       “face value” has the meaning given by paragraph 1(2)

above;

                       “face value voucher” has the meaning given by paragraph

1(1) above;

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                       “retailer voucher” has the meaning given by paragraph 4(1)

above.

                           (2)               For the purposes of this Schedule—

                      (a)                     the “rate categories” of supplies are—

                             (i)                            supplies chargeable at the rate in force under

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section 2(1) (standard rate),

                             (ii)                           supplies chargeable at the rate in force under

section 29A (reduced rate),

                             (iii)                          zero-rated supplies, and

                             (iv)                           exempt supplies and other supplies that are not

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taxable supplies;

                      (b)                     the “non-standard rate categories” of supplies are those in

sub-paragraphs (ii), (iii) and (iv) of paragraph (a) above;

                      (c)                     goods or services are in a particular rate category if a

supply of those goods or services falls in that category.

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                           (3)               A reference in this Schedule to a voucher being used to obtain

goods or services includes a reference to the case where it is used

as part-payment for those goods or services.”.

  3        In Schedule 6 to the Value Added Tax Act 1994 (c. 23) (valuation: special

cases), omit paragraph 5 (vouchers etc).

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Finance Bill
Schedule 2 — Supply of electronic services in member States: VAT special accounting scheme

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  4        The amendments made by this Schedule apply to supplies of tokens, stamps

or vouchers issued on or after 9th April 2003.

Schedule 2

Section 23

 

Supply of electronic services in member States: VAT special accounting scheme

Introductory

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  1        The Value Added Tax Act 1994 (c. 23) is amended as follows.

Insertion of new section 3A

  2        After section 3 insert—

       “3A            Supply of electronic services in member States: special accounting

scheme

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              (1)             Schedule 3B (scheme enabling persons who supply electronically

supplied services in any member State, but who are not established

in a member State, to account for and pay VAT in the United

Kingdom on those supplies) has effect.

              (2)             The Treasury may by order amend Schedule 3B.

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              (3)             The power of the Treasury by order to amend Schedule 3B includes

power to make such incidental, supplemental, consequential and

transitional provision in connection with any amendment of that

Schedule as they think fit.”.

Persons registered under Schedule 1

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  3        In Schedule 1 (registration in respect of taxable supplies) in paragraph 13

(cancellation of registration) at the end insert—

                           “(8)                  This paragraph is subject to paragraph 18 of Schedule 3B

(cancellation of registration under this Schedule of persons

seeking to be registered under that Schedule, etc).”.

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Finance Bill
Schedule 2 — Supply of electronic services in member States: VAT special accounting scheme

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The special accounting scheme

  4        After Schedule 3A insert—

“schedule 3b

Section 3A

 

Supply of electronic services in member States: special accounting

scheme

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Part 1

Registration

The register

          1                 Persons registered under this Schedule are to be registered in a

single register kept by the Commissioners for the purposes of this

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Schedule.

Persons who may be registered

          2                (1)               A person may be registered under this Schedule if he satisfies the

following conditions.

                           (2)               Condition 1 is that the person makes or intends to make qualifying

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supplies in the course of a business carried on by him.

                           (3)               Condition 2 is that the person has neither his business

establishment nor a fixed establishment in the United Kingdom or

in another member State in relation to any supply of goods or

services.

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                           (4)               Condition 3 is that the person is not—

                      (a)                     registered under this Act,

                      (b)                     identified for the purposes of VAT in accordance with the

law of another member State, or

                      (c)                     registered under an Act of Tynwald for the purposes of

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any tax imposed by or under an Act of Tynwald which

corresponds to VAT.

                           (5)               Condition 4 is that the person—

                      (a)                     is not required to be registered or identified as mentioned

in condition 3, or

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                      (b)                     is required to be so registered or identified, but solely by

virtue of the fact that he makes or intends to make

qualifying supplies.

                           (6)               Condition 5 is that the person is not identified under any provision

of the law of another member State which implements Article 26c.

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                           (7)               In this Schedule, “Article 26c” means Article 26c of the 1977 VAT

Directive (which is inserted by Article 1(3) of the 2002 VAT

Directive).

                           (8)               References in this Schedule to a person’s being registered under

this Act do not include a reference to that person’s being

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registered under this Schedule.

 

 

Finance Bill
Schedule 2 — Supply of electronic services in member States: VAT special accounting scheme

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Qualifying supplies

          3                 In this Schedule, “qualifying supply” means a supply of

electronically supplied services (within the meaning of paragraph

7C of Schedule 5) to a person who—

                      (a)                     belongs in the United Kingdom or another member State,

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and

                      (b)                     receives those services otherwise than for the purposes of

a business carried on by him.

Registration request

          4                (1)               If a person—

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                      (a)                     satisfies the Commissioners that the conditions in

paragraph 2 above are satisfied in his case, and

                      (b)                     makes a request in accordance with this paragraph (a

“registration request”),

                                             the Commissioners must register him under this Schedule.

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                           (2)               Sub-paragraph (1) above is subject to paragraph 9 below.

                           (3)               A registration request must contain the following particulars—

                      (a)                     the name of the person making the request;

                      (b)                     his postal address;

                      (c)                     his electronic addresses (including any websites);

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                      (d)                     where he has been allocated a number by the tax

authorities in the country in which he belongs, that

number;

                      (e)                     the date on which he began, or intends to begin, making

qualifying supplies.

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                           (4)               A registration request must include a statement that the person

making the request is not—

                      (a)                     registered under this Act,

                      (b)                     identified for the purposes of VAT in accordance with the

law of another member State, or

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                      (c)                     registered under an Act of Tynwald for the purposes of

any tax imposed by or under an Act of Tynwald which

corresponds to VAT.

                           (5)               A registration request must be made by such electronic means,

and in such manner, as the Commissioners may direct or may by

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regulations prescribe.

Date on which registration takes effect

          5                (1)               Where a person is registered under this Schedule, his registration

takes effect—

                      (a)                     on the date on which his registration request is made, or

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                      (b)                     on such earlier or later date as may be agreed between him

and the Commissioners.

                           (2)               For the purposes of sub-paragraph (1) above—

                      (a)                     no registration is to take effect before 1st July 2003, and

 

 

 
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