VALUE ADDED TAX 1 1 This Order may be cited as the Value Added Tax (Input Tax) (Amendment) Order 1999. 2 This Order, with the exception of articles 4, 5 and 6(c), shall come into force on 1st December 1999. 3 Articles 4, 5 and 6(c) shall come into force on 1st March 2000. 2 The Value Added Tax (Input Tax) Order 1992 shall be amended in accordance with this Order. 3 In article 2— a for the definition of “motor car” there shall be substituted— “Motor car” means any motor vehicle of a kind normally used on public roads which has three or more wheels and either— is constructed or adapted solely or mainly for the carriage of passengers; or has to the rear of the driver’s seat roofed accommodation which is fitted with side windows or which is constructed or adapted for the fitting of side windows; but does not include— vehicles capable of accommodating only one person; vehicles which meet the requirements of Schedule 6 to the Road Vehicles (Construction and Use) Regulations 1986 and are capable of carrying twelve or more seated persons; vehicles of not less than three tonnes unladen weight (as defined in the Table to regulation 3(2) of the Road Vehicles (Construction and Use) Regulations 1986); vehicles constructed to carry a payload (the difference between a vehicle’s kerb weight (as defined in the Table to regulation 3(2) of the Road Vehicles (Construction and Use) Regulations 1986) and its maximum gross weight (as defined in that Table)) of one tonne or more; caravans, ambulances and prison vans; vehicles constructed for a special purpose other than the carriage of persons and having no other accommodation for carrying persons than such as is incidental to that purpose; ; b after the definition of “motor car” there shall be inserted— “motor dealer” means a person whose business consists in whole or in part of obtaining supplies of, or acquiring from another member State or importing, new or second-hand motor cars for resale with a view to making an overall profit on the sale of them (whether or not a profit is made on each sale); “motor manufacturer” means a person whose business consists in whole or part of producing motor cars including producing motors cars by conversion of a vehicle (whether a motor car or not); ; c the definition of “printed matter” shall be omitted; and d after the definition of “second-hand goods” there shall be inserted— “stock in trade” means new or second-hand motor cars (other than second-hand motor cars which are not qualifying motor cars within the meaning of article 7(2A) below) which are— produced by a motor manufacturer or, as the case may require, supplied to or acquired from another member State or imported by a motor dealer, for the purpose of resale, and are intended to be sold by— a motor manufacturer within 12 months of their production, or by a motor dealer within 12 months of their supply, acquisition from another member State or importation, as the case may require, and such motor cars shall not cease to be stock in trade where they are temporarily put to a use in the motor manufacturer’s or, as the case may be, the motor dealer’s business which involves making them available for private use; . 4 In article 4, paragraph (3)(aa) shall be omitted. 5 In article 5— a in paragraph (2)— i “a supply, acquisition or importation of any goods, or on” and “on a supply by him of the goods in question not being a letting on hire or” shall be omitted; and ii for sub-paragraphs (a) and (b) there shall be substituted— a the consideration for which the services are supplied by him, over (b) the consideration for which the services were supplied to him, ; and b paragraph (4) shall be omitted. 6 In article 7— a in paragraph (2) after sub-paragraph (a) there shall be inserted— aa the motor car forms part of the stock in trade of a motor manufacturer or a motor dealer; ; b in paragraph (2A) after “paragraph (2)(a)” there shall be added “and (b)”; and c paragraphs (4) and (5) shall be omitted. Bob Ainsworth Clive Betts Two of the Lords Commissioners of Her Majesty’s Treasury 26th October 1999