VALUE ADDED TAX 1 These Regulations may be cited as the Value Added Tax (General) (Amendment) Regulations 1989 and shall come into force on 1st August 1989. 2 In these Regulations— “the principal Regulations ” means the Value Added Tax (General) Regulations 1985 . 3 For regulation 19 of the principal Regulations there shall be substituted the following— 19 1 Subject to paragraph (2) below, where the grant of a tenancy or lease is a supply of goods by virtue of paragraph 4 of Schedule 2 to the Act, and the whole or part of the consideration for that grant is payable periodically or from time to time, goods shall be treated as separately and successively supplied at the earlier of the following times— a whenever a part of the consideration is received; or b whenever the supplier issues a tax invoice relating to the grant. 2 Where in respect of the grant of a tenancy or lease such as is mentioned in paragraph (1) above the supplier, at or about the beginning of any period not exceeding one year, issues a tax invoice containing, in addition to the particulars specified in regulation 13, the following particulars— a the dates on which any parts of the consideration are to become due for payment in the period; b the amount payable (excluding tax) on each such date; and c the rate of tax in force at the time of the issue of the tax invoice and the amount of tax chargeable in accordance with that rate on each of such payments, goods shall be treated as separately and successively supplied whenever a payment in respect of the tenancy or lease becomes due or is received, whichever is the earlier. 3 Where, on or before any of the dates that a payment is due as stated on an invoice issued as described in paragraph (2) above, there is a change in the tax chargeable on supplies of the description to which the invoice relates, that invoice shall cease to be treated as a tax invoice in respect of any such supplies for which payments are due after the change. . 4 For regulation 20 of the principal Regulations there shall be substituted the following— Supplies of water, gas or any form of power, heat, refrigeration or ventilation 20 1 Subject to paragraphs (2) and (3) below a supply of— a water other than— i distilled water, deionised water and water of similar purity, and ii water comprised in any of the excepted items set out in Group 1 of Schedule 5 to the Act; or b coal gas, water gas, producer gases or similar gases; or c any form of power, heat, refrigeration or ventilation, shall be treated as taking place whenever a payment in respect of the supply is received, or a tax invoice relating to the supply is issued by the supplier, whichever is the earlier. 2 Subject to paragraph (3) below, where the whole or part of the consideration for a supply such as is described in paragraph (1)(a) or (b) above or of power in the form of electricity is determined or payable periodically or from time to time, goods shall be treated as separately and successively supplied at the earlier of the following times— a whenever a part of the consideration is received; or b whenever the supplier issues a tax invoice relating to the supply. 3 Where such separate and successive supplies as are described in paragraph (2) above are made under an agreement which provides for successive payments, and the supplier at or about the beginning of any period not exceeding one year, issues a tax invoice containing, in addition to the particulars specified in regulation 13, the following particulars— a the dates on which payments under the agreement are to become due in the period b the amount payable (excluding tax) on each such date; and c the rate of tax in force at the time of issue of the tax invoice and the amount of tax chargeable in accordance with that rate on each of such payments, goods shall be treated as separately and successively supplied whenever payment in respect of the supply becomes due or is received, whichever is the earlier. 4 Where, on or before any of the dates that a payment is due as stated on an invoice issued as described in paragraph (3) above, there is a change in the tax chargeable on supplies of the description to which the invoice relates, that invoice shall cease to be treated as a tax invoice in respect of any such supplies for which payments are due after the change. . 5 For regulation 23 of the principal Regulations there shall be substituted the following— 23 1 Subject to paragraph (2) below, where services are supplied for a period for a consideration the whole or part of which is determined or payable periodically or from time to time, they shall be treated as separately and successively supplied at the earlier of the following times— a whenever a payment in respect of the supplies is received; or b whenever the supplier issues a tax invoice relating to the supplies. 2 Where such separate and successive supplies of services as are described in paragraph (1) above are made under an agreement which provides for successive payments, and the supplier at or about the beginning of any period not exceeding one year, issues a tax invoice containing, in addition to the particulars specified in regulation 13, the following particulars— a the dates on which payments under the agreement are to become due in the period b the amount payable (excluding tax) on each such date; and c the rate of tax in force at the time of issue of the tax invoice and the amount of tax chargeable in accordance with that rate on each of such payments, services shall be treated as separately and successively supplied whenever a payment in respect of them becomes due or is received, whichever is the earlier. 3 Where, on or before any of the dates that a payment is due as stated on an invoice issued as described in paragraph (2) above, there is a change in the tax chargeable on supplies of the description to which the invoice relates, that invoice shall cease to be treated as a tax invoice in respect of any such supplies for which payments are due after the change. . 6 Regulation 31(2)(a) of the principal Regulations shall be amended by deleting the words “or licensed deposit taker”. New King’s Beam House22 Upper GroundLondon SE1 9PJ Peter Jefferson Smith Commissioner of Customs and Excise 6th July 1989