SCHEDULES
SCHEDULE 2Supplementary charge to VAT
Part 2Exceptions
Letting etc of assets
11
1
This paragraph applies in relation to a supply within paragraph 2 which arises from the letting, hiring or rental of assets.
2
There is no supplementary charge under this Schedule if—
a
the period to which the VAT invoice or payment referred to in paragraph 2(1) relates does not exceed 12 months, and
b
the VAT invoice is issued, or the payment is received, in accordance with normal commercial practice in relation to the letting, hiring or rental of such assets.
Condition B cases involving normal commercial practice
12
There is no supplementary charge under this Schedule on a supply of goods or services within paragraph 2 or a grant of a right to goods or services within paragraph 3 if—
a
the only relevant condition met is condition B, and
b
the supply is made, or the right is granted, in accordance with normal commercial practice in relation to the supply of, or the grant of a right to, such goods or services.
Condition D cases involving hire purchase, conditional sale or credit sale of goods
13
There is no supplementary charge under this Schedule on a supply of goods within paragraph 2 if—
a
the only relevant condition met is condition D,
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 6 months of the date of the VAT invoice which relates to the supply.
Normal commercial practice
14
In this Part of this Schedule, “normal commercial practice”, in relation to a supply or grant of a right, means—
a
normal commercial practice of the supplier or grantor at a time when an increase in the rate of VAT in force under section 2 of VATA 1994 is not expected, or
b
if the supplier or grantor has no such practice, the normal commercial practice of suppliers making similar supplies, or granters granting similar rights, in the United Kingdom at such a time.
Further exceptions
15
1
The Treasury may by order provide that there is no supplementary charge under this Schedule on supplies (including grants of rights to goods or services) of a description specified in the order.
2
An order under this paragraph—
a
may make provision having effect in relation to supplies of goods or services that are treated as taking place on or after 22 June 2010 or a later date, and
b
may have effect in relation to a supplementary charge which has become due before the order is made.