Commentary

V4.210 Overview of zero-rating under VATA 1994, Sch 8

Part V4 Exemption, zero-rating and reduced rates

V4.210 Overview of zero-rating under VATA 1994, Sch 8

Zero-rating—Schedule 8

V4.210 Overview of zero-rating under VATA 1994, Sch 8

This paragraph presents an overview of VATA 1994, Sch 8, including:

  1.  

    •     the application of VATA 1994, Sch 8 to supplies of goods and services

  2.  

    •     the groups of goods and services within VATA 1994, Sch 8

  3.  

    •     the application of VATA 1994, Sch 8 to imports

  4.  

    •     the application of VATA 1994, Sch 8 to acquisitions

Supplies under Schedule 8—overview of zero-rated supplies

A supply of goods or services is zero-rated if1:

  1.  

    •     the goods or services are of a description for the time being specified in VATA 1994, Sch 8

  2.  

    •     the supply is of a description for the time being specified in VATA 1994, Sch 8

  3.  

    •     it is work on another person's goods, which produces goods which would be within one of the two bullets above

Powers of the Treasury to alter Schedule 8—overview of zero-rated supplies

The Treasury may, by order, vary VATA 1994, Sch 8 by:

  1.  

    •     adding to it any description

  2.  

    •     deleting any description from it

  3.  

    •     varying any description in it2. This includes a power to add to, delete or vary the notes contained in VATA 1994, Sch 83

However, this power is not unrestricted. The UK is entitled to retain zero-rating as a transitional measure for supplies zero-rated at 1 January 19914. It may not, however, extend the scope of

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