Value Added Tax Act 1994 (c. 23)

(The document as of February, 2008)

-- Back --

Page 10

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15

and the reference in item 1 to a person constructing a building shall be construed accordingly.

(10) A caravan is not a residential caravan if residence in it throughout the year is prevented by the terms of a covenant, statutory planning consent or similar permission.

(11) Item 2 does not include the supply of services described in paragraph 1(1) or 5(3) of Schedule 4.

(12) The goods referred to in item 3 do not include--

(a) finished or prefabricated furniture, other than furniture designed to be fitted in kitchens;

(b) materials for the construction of fitted furniture, other than kitchen furniture;

(c) domestic electrical or gas appliances, other than those designed to provide space heating or water heating or both; or

(d) carpets or carpeting material.

(13) Section 30(3) does not apply to goods forming part of a description of supply in this Group.

Group 6 -- Protected buildings

Item No

1 The grant, by a person substantially reconstructing a protected building, of a major interest in, or in any part of, the building or its site.

2 The supply, in the course of an approved alteration of a protected building, of any services other than the services of an architect, surveyor or any person acting as consultant or in a supervisory capacity.

Notes:

(1) "Protected building" means a building which is designed to remain as or become a dwelling or number of dwellings or is intended for use solely for a relevant residential purpose or a relevant charitable purpose after the reconstruction or alteration and which, in either case, is--

(a) a listed building, within the meaning of--

(i) the [1990 c. 9.] Planning (Listed Buildings and Conservation Areas) Act 1990; or

(ii) the [1972 c. 52.] Town and Country Planning (Scotland) Act 1972; or

(iii) the [S.I.1991/1220 (N.I. 11).] Planning (Northern Ireland) Order 1991; or

(b) a scheduled monument, within the meaning of--

(i) the [1979 c. 46.] Ancient Monuments and Archaeological Areas Act 1979, or

(ii) the [1971 c. 17. (N.I.)] Historic Monuments Act (Northern Ireland) 1971.

(2) Notes (1) to (8) to Group 5 above apply in relation to this Group as they apply in relation to that Group.

(3) For the purposes of item 1, a protected building shall not be regarded as substantially reconstructed unless the reconstruction is such that at least one of the following conditions is fulfilled when the reconstruction is completed--

(a) that, of the works carried out to effect the reconstruction, at least three-fifths, measured by reference to cost, are of such a nature that the supply of services (other than excluded services), materials and other items to carry out the works, would, if supplied by a taxable person, be within either item 2 of this Group or item 3 of Group 5, as it applies to a supply by a person supplying services within item 2 of this Group; and

(b) that the reconstructed building incorporates no more of the original building (that is to say, the building as it was before the reconstruction began) than the external walls, together with other external features of architectural or historic interest;

and in paragraph (a) above "excluded services" means the services of an architect, surveyor or other person acting as consultant or in a supervisory capacity.

(4) "Approved alteration" means--

(a) in the case of a protected building which is an ecclesiastical building which is for the time being used for ecclesiastical purposes or would be so used but for the works in question, any works of alteration; and

(b) in the case of a protected building which is a scheduled monument within the meaning of the Historic Monuments Act (Northern Ireland) 1971 and in respect of which a protection order, within the meaning of that Act, is in force, works of alteration for which consent has been given under section 10 of that Act; and

(c) in any other case, works of alteration which may not, or but for the existence of a Crown interest or Duchy interest could not, be carried out unless authorised under, or under any provision of--

(i) Part I of the Planning (Listed Buildings and Conservation Areas) Act 1990,

(ii) Part IV of the Town and Country Planning (Scotland) Act 1972,

(iii) Part V of the Planning (Northern Ireland) Order 1991, or

(iv) Part I of the Ancient Monuments and Archaeological Areas Act 1979,

and for which, except in the case of a Crown interest or Duchy interest, consent has been obtained under any provision of that Part;

and in paragraph (c) above "Crown interest" and "Duchy interest" have the same meaning as in section 50 of the said Act of 1979.

(5) For the purposes of paragraph (a) of Note (4), a building used or available for use by a minister of religion wholly or mainly as a residence from which to perform the duties of his office shall be treated as not being an ecclesiastical building.

(6) In item 2 "alteration" does not include repair or maintenance; and where any work consists partly of an approved alteration and partly of other work, an apportionment shall be made to determine the supply which falls within item 2.

(7) For the purposes of item 2 the construction of a building separate from, but in the curtilage of, a protected building does not constitute an alteration of the protected building.

(8) Item 2 does not include the supply of services described in paragraph 1(1) or 5(3) of Schedule 4.

Group 7 -- International services

Item No

1 The supply of services of work carried out on goods which, for that purpose, have been obtained or acquired in, or imported into, any of the member States and which are intended to be, and in fact are, subsequently exported to a place outside the member States--

(a) by or on behalf of the supplier; or

(b) where the recipient of the services belongs in a place outside the member States, by or on behalf of the recipient.

2 The supply of services consisting of the making of arrangements for--

(a) the export of any goods to a place outside the member States;

(b) a supply of services of the description specified in item 1 of this Group; or

Note: This Group does not include any services of a description specified in Group 2 or Group 5 of Schedule 9.

Group 8 -- Transport

Item No

1 The supply, repair or maintenance of any ship which is neither--

(a) a ship of a gross tonnage of less than 15 tons; nor

(b) a ship designed or adapted for use for recreation or pleasure.

2 The supply, repair or maintenance of any aircraft which is neither--

(a) an aircraft of a weight of less than 8,000 kilogrammes; nor

(b) an aircraft designed or adapted for use for recreation or pleasure.

3 (a) The supply to and repair or maintenance for a charity providing rescue or assistance at sea of--

(i) any lifeboat;

(ii) carriage equipment designed solely for the launching and recovery of lifeboats;

(iii) tractors for the sole use of the launching and recovery of lifeboats;

(iv) winches and hauling equipment for the sole use of the recovery of lifeboats.

(b) The construction, modification, repair or maintenance for a charity providing rescue or assistance at sea of slipways used solely for the launching and recovery of lifeboats.

(c) The supply of spare parts or accessories to a charity providing rescue or assistance at sea for use in or with goods comprised in paragraph (a) above or slipways comprised in paragraph (b) above.

4 Transport of passengers--

(a) in any vehicle, ship or aircraft designed or adapted to carry not less than 12 passengers;

(b) by the Post Office;

(d) from a place within to a place outside the United Kingdom or vice versa, to the extent that those services are supplied in the United Kingdom.

5 The transport of goods from a place within to a place outside the member States or vice versa, to the extent that those services are supplied within the United Kingdom.

6 Any services provided for--

(a) the handling of ships or aircraft in a port, customs and excise airport or outside the United Kingdom; or

(b) the handling or storage, in a port or customs and excise airport or on land adjacent to a port, of goods carried in a ship or aircraft.

7 Pilotage services.

8 Salvage or towage services.

9 Any services supplied for or in connection with the surveying of any ship or aircraft or the classification of any ship or aircraft for the purposes of any register.

10 The making of arrangements for--

(a) the supply of, or of space in, any ship or aircraft; or

(b) the supply of any service included in items 1 to 9 and 11.

11 The supply--

(a) of services consisting of

(i) the handling or storage of goods at, or their transport to or from, a place at which they are to be exported to or have been imported from a place outside the member States; or

(ii) the handling or storage of such goods in connection with such transport; or

(b) to a person who receives the supply for the purpose of a business carried on by him and who belongs outside the United Kingdom, of services of a description specified in paragraph (a) of item 6, item 9 or paragraph (a) of item 10 of this Group.

12 The supply of a designated travel service to be enjoyed outside the European Community, to the extent to which the supply is so enjoyed.

13 Intra-Community transport services supplied in connection with the transport of goods to or from the Azores or Madeira or between those places, to the extent that the services are treated as supplied in the United Kingdom.

Notes:

(1) In items 1 and 2 the supply of a ship or, as the case may be, aircraft includes the supply of services under a charter of that ship or aircraft except where the services supplied under such a charter consist wholly of any one or more of the following--

(a) transport of passengers;

(b) accommodation;

(d) education;

being services wholly performed in the United Kingdom.

(2) Items 1, 2 and 3 include the letting on hire of the goods specified in the items.

(3) Item 3 shall not apply unless, before the supply is made, the recipient of the supply gives to the person making the supply a certificate stating--

(a) the name and address of the recipient;

(b) that the supply is of a description specified in item 3 of this Group.

(4) "Lifeboat" means any vessel used or to be used solely for rescue or assistance at sea.

(5) Item 6 does not include the letting on hire of goods.

(6) "Port" and "customs and excise airport" have the same meanings as in the Management Act.

(7) Except for the purposes of item 11, paragraph (a) of item 6, item 9 and paragraph (a) of item 10 do not include the supply of any services where the ships or aircraft referred to in those paragraphs are of the descriptions specified in paragraphs (a) and (b) of item 1 or in paragraphs (a) and (b) of item 2.

(8) "Designated travel service" has the same meaning as in the [S.I.1987/1086] Value Added Tax (Tour Operators) Order 1987.

(9) "Intra-Community transport services" means--

(a) the intra-Community transport of goods within the meaning of the [S.I.1992/3121] Value Added Tax (Place of Supply of Services) Order 1992;

(b) ancillary transport services within the meaning of the [S.I.1992/3121] Value Added Tax (Place of Supply of Services) Order 1992 which are provided in connection with the intra-Community transport of goods; or

(c) the making of arrangements for the supply by or to another person of a supply within (a) or (b) above or any other activity which is intended to facilitate the making of such a supply,

and, for the purpose of this Note only, the Azores and Madeira shall each be treated as a separate member State.

Group 9 -- Caravans and houseboats

Item No

1 Caravans exceeding the limits of size for the time being permitted for the use on roads of a trailer drawn by a motor vehicle having an unladen weight of less than 2,030 kilogrammes.

2 Houseboats being boats or other floating decked structures designed or adapted for use solely as places of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion.

3 The supply of such services as are described in paragraph 1(1) or 5(3) of Schedule 4 in respect of a caravan comprised in item 1 or a houseboat comprised in item 2.

Note:

This Group does not include--

(a) removable contents other than goods of a kind mentioned in item 3 of Group 5; or

(b) the supply of accommodation in a caravan or houseboat.

Group 10 -- Gold

Item No

1 The supply, by a Central Bank to another Central Bank or a member of the London Gold Market, of gold held in the United Kingdom.

2 The supply, by a member of the London Gold Market to a Central Bank, of gold held in the United Kingdom.

Notes:

(1) "Gold" includes gold coins.

(2) Section 30(3) does not apply to goods forming part of a description of supply in this Group.

(3) Items 1 and 2 include--

(a) the granting of a right to acquire a quantity of gold; and

(b) any supply described in those items which by virtue of paragraph 1 of Schedule 4 is a supply of services.

Group 11 -- Bank notes

Item No

1 The issue by a bank of a note payable to bearer on demand.

Group 12 -- Drugs, medicines, aids for the handicapped, etc.

Item No

1 The supply of any goods dispensed, by a person registered in the register of pharmaceutical chemists kept under the [1954 c. 61.] Pharmacy Act 1954 or the [S.I.1976/1213] Pharmacy (Northern Ireland) Order 1976, on the prescription of a person registered in the register of medical practitioners, the register of medical practitioners with limited registration or the dentists' register.

2 The supply to a handicapped person for domestic or his personal use, or to a charity for making available to handicapped persons by sale or otherwise, for domestic or their personal use, of--

(a) medical or surgical appliances designed solely for the relief of a severe abnormality or severe injury;

(b) electrically or mechanically adjustable beds designed for invalids;

(c) commode chairs, commode stools, devices incorporating a bidet jet and warm air drier and frames or other devices for sitting over or rising from a sanitary appliance;

(d) chair lifts or stair lifts designed for use in connection with invalid wheelchairs;

(e) hoists and lifters designed for use by invalids;

(f) motor vehicles designed or substantially and permanently adapted for the carriage of a person in a wheelchair or on a stretcher and of no more than 5 other persons;

(g) equipment and appliances not included in paragraphs (a) to (f) above designed solely for use by a handicapped person;

(h) parts and accessories designed solely for use in or with goods described in paragraphs (a) to (g) above;

(i) boats designed or substantially and permanently adapted for use by handicapped persons.

3 The supply to a handicapped person of services of adapting goods to suit his condition.

4 The supply to a charity of services of adapting goods to suit the condition of a handicapped person to whom the goods are to be made available, by sale or otherwise, by the charity.

5 The supply to a handicapped person or to a charity of a service of repair or maintenance of any goods specified in item 2, 6, 18 or 19 and supplied as described in that item.

6 The supply of goods in connection with a supply described in item 3, 4 or 5.

7 The supply to a handicapped person or to a charity of services necessarily performed in the installation of equipment or appliances (including parts and accessories therefor) specified in item 2 and supplied as described in that item.

8 The supply to a handicapped person of a service of constructing ramps or widening doorways or passages for the purpose of facilitating his entry to or movement within his private residence.

9 The supply to a charity of a service described in item 8 for the purpose of facilitating a handicapped person's entry to or movement within any building.

10 The supply to a handicapped person of a service of providing, extending or adapting a bathroom, washroom or lavatory in his private residence where such provision, extension or adaptation is necessary by reason of his condition.

11 The supply to a charity of a service of providing, extending or adapting a bathroom, washroom or lavatory for use by handicapped persons in a residential home where such provision, extension or adaptation is necessary by reason of the condition of the handicapped persons.

12 The supply to a charity of a service of providing, extending or adapting a washroom or lavatory for use by handicapped persons in a building, or any part of a building, used principally by a charity for charitable purposes where such provision, extension or adaptation is necessary to facilitate the use of the washroom or lavatory by handicapped persons.

13 The supply of goods in connection with a supply described in items 8, 9, 10 or 11.

14 The letting on hire of a motor vehicle for a period of not less than 3 years to a handicapped person in receipt of a disability living allowance by virtue of entitlement to the mobility component or of mobility supplement where the lessor's business consists predominantly of the provision of motor vehicles to such persons.

15 The sale of a motor vehicle which had been let on hire in the circumstances described in item 14, where such sale constitutes the first supply of the vehicle after the end of the period of such letting.

16 The supply to a handicapped person of services necessarily performed in the installation of a lift for the purpose of facilitating his movement between floors within his private residence.

17 The supply to a charity providing a permanent or temporary residence or day-centre for handicapped persons of services necessarily performed in the installation of a lift for the purpose of facilitating the movement of handicapped persons between floors within that building.

18 The supply of goods in connection with a supply described in item 16 or 17.

19 The supply to a handicapped person for domestic or his personal use, or to a charity for making available to handicapped persons by sale or otherwise for domestic or their personal use, of an alarm system designed to be capable of operation by a handicapped person, and to enable him to alert directly a specified person or a control centre.

20 The supply of services necessarily performed by a control centre in receiving and responding to calls from an alarm system specified in item 19.

Notes:

(1) Section 30(3) does not apply to goods forming part of a description of supply in item 1, nor to other goods forming part of a description of supply in this Group, except where those other goods are acquired from another member State or imported from a place outside the member States by a handicapped person for domestic or his personal use, or by a charity for making available to handicapped persons, by sale or otherwise, for domestic or their personal use.

(2) For the purposes of item 1 a person who is not registered in the visiting EEC practitioners list in the register of medical practitioners at the time he performs services in an urgent case as mentioned in subsection (3) of section 18 of the [1983 c. 54.] Medical Act 1983 is to be treated as being registered in that list where he is entitled to be registered in accordance with that section.

(3) "Handicapped" means chronically sick or disabled.

(4) Item 2 shall not include hearing aids (except hearing aids designed for the auditory training of deaf children), dentures, spectacles and contact lenses but shall be deemed to include--

(a) clothing, footwear and wigs;

(b) invalid wheelchairs, and invalid carriages other than mechanically propelled vehicles intended or adapted for use on roads; and

(5) The supplies described in items 1 and 2 include supplies of services of letting on hire of the goods respectively comprised in those items.

(6) Item 14 applies only--

(a) where the vehicle is unused at the commencement of the period of letting; and

(b) where the consideration for the letting consists wholly or partly of sums paid to the lessor by the Department of Social Security or the Ministry of Defence on behalf of the lessee in respect of the mobility component of the disability living allowance or mobility supplement to which he is entitled.

(7) In item 14--

(a) "disability living allowance" is a disability living allowance within the meaning of section 71 of the [1992 c. 4.] Social Security Contributions and Benefits Act 1992, or section 71 of the [1992 c. 7.] Social Security Contributions and Benefits (Northern Ireland) Act 1992; and

(b) "mobility supplement" is a mobility supplement within the meaning of Article 26A of the [S.I.1983/883.] Naval, Military and Air Forces etc. (Disablement and Death Service Pensions Order 1983, Article 25A of the [S.I.1983/686.] Personal Injuries (Civilians) Scheme 1983, Article 3 of the [S.I.1985/722.] Motor Vehicles (Exemption from Vehicles Excise Duty) Order 1985 or Article 3 of the [S.I.1985/723.] Motor Vehicles (Exemption from Vehicles Excise Duty) (Northern Ireland) Order 1985.

(8) Where in item 3 or 4 the goods are adapted in accordance with that item prior to their supply to the handicapped person or the charity, an apportionment shall be made to determine the supply of services which falls within item 3 or 4.

(9) In item 19 or 20, a specified person or control centre is a person or centre who or which--

(a) is appointed to receive directly calls activated by an alarm system described in that item, and

(b) retains information about the handicapped person to assist him in the event of illness, injury or similar emergency.

Group 13 -- Imports, exports etc.

Item No

1 The supply before the delivery of an entry (within the meaning of regulation 5 of the [S.I. 1991/2724.] Customs Controls on Importation of Goods Regulations 1991)) under an agreement requiring the purchaser to make such entry of goods imported from a place outside the member States.

2 The supply to or by an overseas authority, overseas body or overseas trader, charged with the management of any defence project which is the subject of an international collaboration arrangement or under direct contract with any government or government-sponsored international body participating in a defence project under such an arrangement, of goods or services in the course of giving effect to that arrangement.

3 The supply to an overseas authority, overseas body or overseas trader of jigs, patterns, templates, dies, punches and similar machine tools used in the United Kingdom solely for the manufacture of goods for export to places outside the member States.

Notes:

(1) An "international collaboration arrangement" means any arrangement which--

(a) is made between the United Kingdom Government and the government of one or more other countries, or any government-sponsored international body for collaboration in a joint project of research, development or production; and

(b) includes provision for participating governments to relieve the cost of the project from taxation.

(2) "Overseas authority" means any country other than the United Kingdom or any part of or place in such a country or the government of any such country, part or place.

(3) "Overseas body" means a body established outside the United Kingdom.

(4) "Overseas trader" means a person who carries on a business and has his principal place of business outside the United Kingdom.

(5) Item 3 does not apply where the overseas authority, overseas body or overseas trader is a taxable person, another member State, any part of or place in another member State, the government of any such member State, part or place, a body established in another member State or a person who carries on business, or has a place of business, in another member State.

Group 14 -- Tax-free shops

Item No

1 The supply, by a person in the course of carrying on business in a tax-free shop, to a traveller making a relevant journey, of goods which are of either of the following descriptions--

(a) goods not included in the first column of the following Table which do not exceed a value of £71 in aggregate and which are to be carried in the traveller's personal luggage; or

(b) goods included in the first column of the following Table which do not exceed the quantities set out in the second column of that Table and which are to be carried in the traveller's personal luggage.

Goods	Quantity
Alcoholic beverages:
(a) with an alcoholic strength of more than 22% by volume	1 litre
or
with an alcoholic strength of not more than 22% by volume, fortified wines and sparkling wines (including made-wines)	2 litres
(b) still wines (including made-wines)	2 litres
Perfume and Toilet Water
Perfume	60 ml
Toilet Water	250 ml
Tobacco products:
Cigarettes	200
or
Cigarillos	100
or
Cigars	50
or
Smoking tobacco	250 grammes

2 The supply, of any goods within Item 1(a) or (b) above, to a traveller on board an aircraft or ship making a relevant journey by a person who supplies the traveller's air or sea transport or any other person authorised by that person.

Notes:

(1) For the purpose of determining the aggregate value of any goods referred to in Item 1(a) only the whole of the value of any item, or group of items which are normally sold as a set or collection, may be included in the aggregate value of £71.

(2) "Tax free shop" means any shop which is situated within an airport, port or Channel Tunnel terminal and which is approved by the Commissioners for the supply of goods for the purposes of this Group, and in this note "Channel Tunnel terminal" means the area situated in the vicinity of Cheriton, Folkestone referred to in section 1(7)(b) of the [1987 c. 53.] Channel Tunnel Act 1987.

(3) "Relevant journey" means a journey by air or sea from the United Kingdom to a place in another member State where the traveller is to disembark and includes, for the purposes of Item 1, a journey by a Channel Tunnel shuttle train.

(4) "Traveller" means any passenger travelling under a transport document for air or sea travel stating that the immediate destination is a place in another member State (including such a transport document stating that the final destination is a place outside the member States) or for shuttle train travel.

(5) Items 1 and 2 do not apply where the supply is to a traveller under 17 years of age of goods falling within Item 1(b), other than perfumes and toilet waters.

(6) In these Notes "shuttle train" has the meaning given by section 1(9) of the [1987 c. 53.] Channel Tunnel Act 1987.

Group 15 -- Charities etc.

Item No

1 The supply by a charity of any goods which have been donated for sale or the supply of such goods by a taxable person who has covenanted by deed to give all the profits of that supply to a charity.

2 The donation of any goods for sale or export by a charity described in item 1 or by a taxable person described in that item.

3 The export of any goods by a charity to a place outside the member States.

4 The supply of any relevant goods for donation to a nominated eligible body where the goods are purchased with funds provided by a charity or from voluntary contributions.

5 The supply of any relevant goods to an eligible body which pays for them with funds provided by a charity or from voluntary contributions or to an eligible body which is a charitable institution providing care or medical or surgical treatment for handicapped persons.

6 Repair and maintenance of relevant goods owned by an eligible body.

7 The supply of goods in connection with the supply described in item 6.

8 The supply to a charity, for the purpose of raising money for, or making known the objects or reasons for the objects of, the charity, of--

(a) the broadcast on television or radio or screening in a cinema of an advertisement; or

(b) the publication of an advertisement in any newspaper, journal, poster, programme, annual, leaflet, brochure, pamphlet, periodical or similar publication; or

9 The supply to a charity, providing care or medical or surgical treatment for human beings or animals, or engaging in medical or veterinary research, of a medicinal product where the supply is solely for use by the charity in such care, treatment or research.

10 The supply to a charity of a substance directly used for synthesis or testing in the course of medical or veterinary research.

Notes:

(1) Item 1 shall apply only if the supply is a sale of goods donated to that charity or taxable person.

(2) "Animals" includes any species of the animal kingdom.

(3) "Relevant goods" means--

(a) medical, scientific, computer, video, sterilising, laboratory or refrigeration equipment for use in medical or veterinary research, training, diagnosis or treatment;

(b) ambulances;

(d) goods of a kind described in item 2 of Group 12 of this Schedule;

(e) motor vehicles (other than vehicles with more than 50 seats) designed or substantially and permanently adapted for the safe carriage of a handicapped person in a wheelchair provided that--

(i) in the case of vehicles with more than 16 but fewer than 27 seats, the number of persons for which such provision shall exist shall be at least 2;

(ii) in the case of vehicles with more than 26 but fewer than 37 seats, the number of persons for which such provision shall exist shall be at least 3;

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15

-- Back --

Stat