Value added tax Citation and commencement 1 1 These Regulations may be cited as the Value Added Tax (Amendment) (No. 5) Regulations 2007. 2 These Regulations come into force as follows— a regulations 1 and 2 come into force on 1st September 2007; b regulations 3, 4 and 5 come into force on 1st September 2007, and have effect in relation to transfers of going concerns pursuant to contracts entered into on or after that date; and c the remaining regulations come into force on 1st October 2007. Amendment of the Value Added Tax Regulations 1995 2 The Value Added Tax Regulations 1995 are amended as follows. Transfer of a going concern 3 In regulation 6(1)— a in sub-paragraph (a) after “business” insert “or part of a business”. b in sub-paragraph (c) after “business” insert “or part of it”. c in sub-paragraph (d) after “business” insert “or the part transferred”. 4 In regulation 6(3)— a after “transferee of a business” insert “or part of a business”; b for “transferor of that business” substitute “transferor of it”; c after paragraph (3)(d) omit “and”; and d after paragraph (3)(e) insert— , and f any records relating to the business which, by virtue of these Regulations or a direction made by the Commissioners, are required to be preserved for any period after the transfer shall be preserved by the transferee unless the Commissioners, at the request of the transferor, otherwise direct. 5 In regulation 6(4)— a after “transferee of a business” insert “or part of a business”; b for “subsequent to that in which the transfer of the business took place” substitute “subsequent to that in which the transfer took place”; and c for “the date of the transfer of the business” substitute “the date of the transfer”. VAT invoices 6 In regulation 13 (obligation to provide a VAT invoice)— a in paragraph (1)(b)— i omit “other than an exempt supply”; and ii after “member State” insert “for the purpose of any business activity carried out by that person”; b after paragraph (1) insert— 1A Paragraph (1)(b) above shall not apply where the supply is an exempt supply which is made to a person in a member State which does not require an invoice to be issued for the supply. . 7 In regulation 14 (contents of VAT invoice)— a in paragraph (1)(a) for “an identifying number” substitute “a sequential number based on one or more series which uniquely identifies the document”; b after paragraph (1)(m) insert— n where a margin scheme is applied under section 50A or section 53 of the Act, a relevant reference or any indication that a margin scheme has been applied, o where a VAT invoice relates in whole or part to a supply where the person supplied is liable to pay the tax, a relevant reference or any indication that the supply is one where the customer is liable to pay the tax. ; c in paragraph (2)(a) for “(j) and (m)” substitute “(j), (m), (n) and (o)”; d after paragraph (2)(f) omit “and”; e after paragraph (2)(g) insert— , and h where the supply is an exempt or zero-rated supply, a relevant reference or any indication that the supply is exempt or zero-rated as appropriate. ; f omit paragraph (5); and g after paragraph (7) insert— 8 In this regulation, a “relevant reference” is— a a reference to the appropriate provision of Council Directive 2006/112/ EC , or b a reference to the corresponding provision of the Act. . 8 For paragraph (2) of regulation 17 (section 14(6) supplies to persons belonging in other member States) substitute— 2 An invoice provided under this regulation shall comply with the requirements of regulations 13 and 14. . 9 In regulation 18 (section 14(1) supplies by intermediate suppliers) delete sub-paragraph (2)(d) (together with the “and” before it). 10 In regulation 19 (section 14(2) supplies by persons belonging in other member States) delete sub-paragraph (2)(d) (together with the “and” before it). Mike Eland Dave Hartnett Two of the Commissioners for Her Majesty’s Revenue and Customs 20th July 2007