Statutory Instrument 1987 No. 2015

The Value Added Tax (Repayments to Third Country Traders) Regulations 1987

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© Crown Copyright 1987

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1987 No. 2015

VALUE ADDED TAX

The Value Added Tax (Repayments to Third Country Traders) Regulations 1987

The Commissioners of Customs and Excise, in exercise of the powers conferred on them by section 23 of the Value Added Tax Act 1983^[1] and of all other powers enabling them in that behalf, hereby make the following Regulations:

Citation and commencement
    1.    These Regulations may be cited as the Value Added Tax (Repayments to Third Country Traders) Regulations 1987 and shall come into force on 31st December 1987.

Interpretation
    2.—(1)  In these Regulations —
"the Act" means the Value Added Tax Act 1983;
"prescribed year" means the period of twelve months beginning on the first day of July in any year;
"claimant" means a person making a claim under these Regulations or a person on whose behalf a claim is made and any agent acting on his behalf as his tax representative;
"official authority" means any government body or agency in any country which is recognised by the Commissioners as having authority to act for the purposes of these Regulations;
"third country" means a country other than those comprising the Member States of the European Community;
"tax representative" means any person established in the United Kingdom and registered for the purposes of the tax in accordance with the provisions of Schedule 1 to the Act who acts as agent on behalf of a claimant;
"trader" means a person carrying on a business who is established in a third country.


    (2)  For the purposes of these Regulations a person is treated as being established in any country if —
 (a) he has there a business establishment; or
 (b) he has no such establishment (there or elsewhere) but his permanent address or usual place of residence is there.

    (3)  For the purposes of these Regulations —
 (a) a person carrying on business through a branch or agency in any country is treated as being established there; and
 (b) where the person is a body corporate its usual place of residence shall be the place where it is legally constituted.

Repayments of tax
    3.    Subject to the provisions of these Regulations a trader shall be entitled to be repaid tax charged on supplies made to him in the United Kingdom or on goods imported by him into the United Kingdom as if he were a taxable person in the United Kingdom claiming credit for input tax in accordance with section 14 of the Act.

Tax representatives
    4.    The Commissioners may, as a condition of allowing a repayment under these Regulations, require a trader to appoint a tax representative to act on his behalf.

Persons to whom these Regulations apply
    5.—(1)  Save as the Commissioners may otherwise allow a trader to whom these Regulations apply who is established in a third country having a comparable system of turnover taxes will not be entitled to any refunds under these Regulations unless that country provides reciprocal arrangements for refunds to be made to taxable persons who are established in the United Kingdom.

    (2)  These Regulations shall apply to any trader but not if during any period determined under regulation 9 —
 (a) he was established in any of the Member States of the European Community; or
 (b) he made supplies of goods or services in the United Kingdom other than —
 (i) transport of freight outside the United Kingdom or to or from a place outside the United Kingdom or any services ancillary thereto; or
 (ii) services where the tax on the supply is payable solely by the person to whom they are supplied in accordance with the provisions of section 7 of the Act.

Supplies and importations to which these Regulations apply
    6.    These Regulations apply to any supply of goods or services made in the United Kingdom or to any importation of goods into the United Kingdom which is made on or after 1st January 1988 but they do not apply to any supply of goods or services or importation of goods which —
 (a) the trader has used or intends to use for the purpose of any supply by him in the United Kingdom; or
 (b) have been exported or are intended for exportation from the United Kingdom by or on behalf of the trader.

Tax which will not be repaid
    7.—(1)  The following tax shall not be repaid —
 (a) tax charged on a supply which if made to a taxable person would be excluded from any credit under section 14 of the Act;
 (b) tax charged on a supply to a travel agent which is for the direct benefit of a traveller other than the travel agent or his employee.

    (2)  In this regulation a travel agent includes a tour operator or any person who purchases and resupplies services of a kind enjoyed by travellers.

Method of claiming
    8.—(1)  A person claiming a repayment of tax under these Regulations shall —
 (a) complete in English and send to the Commissioners either the form numbered 1 in the Schedule hereto, or a like form produced by any official authority, containing full information in respect of all the matters specified in the said form and a declaration as therein set out; and
 (b) at the same time furnish —
 (i) a certificate of status issued by the official authority of the third country in which the trader is established either on the form numbered 2 in the Schedule hereto or on a like form produced by the official authority; and
 (ii) such documentary evidence of an entitlement to deduct input tax as may be required of a taxable person claiming a deduction of input tax in accordance with the provisions of regulation 62 of the Value Added Tax (General) Regulations 1985^[2].

    (2)  Where the Commissioners are in possession of a certificate of status issued not more than twelve months before the date of the claim, the claimant shall not be required to furnish a further such certificate.

    (3)  The Commissioners may refuse to accept any document referred to in paragraph (1)(b)(ii) of this regulation if it had been furnished in support of an earlier claim.

Time within which a claim must be made
    9.—(1)  A claim shall be made no later than six months after the end of the prescribed year in which the tax claimed was charged and shall be in respect of tax charged on supplies or on importations made during a period of not less than three months and not more than twelve months;
provided that a claim may be made in respect of tax charged on supplies or on importations made during a period of less than three months where that period represents the final part of the prescribed year.


    (2)  No claim shall be made for less than £16.

    (3)  No claim shall be made for less than £130 in respect of tax charged on supplies or on importations made during a period of less than the prescribed year except where that period represents the final part of the prescribed year.

Treatment of claim and repayment claimed
    10.    For the purposes of paragraph 4 of Schedule 7 to the Act (provisions as to tax assessments) any claim made under these Regulations shall be treated as a return required under paragraph 2 of Schedule 7 to the Act.

    11.    For the purposes of section 40(1)(c) of the Act (provisions as to appeals) repayments claimed under these Regulations shall be treated as the amount of any input tax which may be credited to a person.

Colin C. Finlinson

Commissioner of Customs and Excise
King's Beam House Mark Lane LONDON EC3R 7HE

25th November 1987

[1] 1983 c. 55; section 23 was amended by paragraph 2 of Schedule 2 to the Finance Act 1987 (c. 16). back

[2] S.I. 1985/886; the relevant amending instrument is S.I. 1987/1916. back

Explanatory Note