The Value Added Tax (Amendment) (No. 2) Regulations 2002

PART IANNUAL ACCOUNTING

2.  Amend Part VII of the Value Added Tax Regulations 1995 (annual accounting) in accordance with this Part.

3.  In regulation 49—

(a)for the definition of “the quarterly sum” substitute—

• ““the quarterly sum” means—

  (a)

  in the case of a taxable person who has been registered for at least 12 months—

  (i)

  immediately preceding the first day of his current accounting year, or

  (ii)

  for the purposes of regulation 51, immediately preceding the first day of his transitional accounting period,

  a sum equal to 25 per cent. of the total amount of VAT that he was liable to pay to the Commissioners in respect of those 12 months; or

  (b)

  in any other case, a sum equal to 25 per cent. of the total amount of VAT that the Commissioners are satisfied he will be liable to pay to the Commissioners in respect of the next 12 months;”;

(b)in the definition of “the agreed quarterly sum”, for “20 per cent” substitute “25 per cent.”; and

(c)for the definition of “the monthly sum” substitute—

• ““the monthly sum” means—

  (a)

  in the case of a taxable person who has been registered for at least 12 months—

  (i)

  immediately preceding the first day of his current accounting year, or

  (ii)

  for the purposes of regulation 51, immediately preceding the first day of his transitional accounting period,

  a sum equal to 10 per cent. of the total amount of VAT that he was liable to pay to the Commissioners in respect of those 12 months; or

  (b)

  in any other case, a sum equal to 10 per cent. of the total amount of VAT that the Commissioners are satisfied he will be liable to pay to the Commissioners in respect of the next 12 months;”.

4.  In regulation 50—

(a)for paragraph (2)(a)(i) substitute—

“(i)where the taxable person and Commissioners agree to such payment pattern, the quarterly sum, or as the case may be the agreed quarterly sum, no later than the last working day of each of the fourth, seventh and tenth months of his current accounting year;”; and

(b)omit paragraph (3).

5.  In regulation 51, for paragraph (a)(i) substitute—

“(i)where the taxable person and Commissioners agree to such payment pattern, pay to the Commissioners by credit transfer on each relevant quarterly date the quarterly sum;”.

6.  Immediately after paragraph (1) of regulation 52 insert—

“(1A) Paragraph (1)(a) above shall not apply where the taxable person has reasonable grounds for believing that the value of taxable supplies made or to be made by him in the period of 12 months beginning on the date of his application for authorisation will not exceed £100,000.”.