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Value Added Tax

Volume 80: debated on Thursday 13 June 1985

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asked the Chancellor of the Exchequer what penalties are imposed by Her Majesty's Customs and Excise upon a trader whose taxable turnover for value added tax purposes is in excess of the prevailing exemption limit for small businesses and who breaks the law by failing to notify Her Majesty's Customs and Excise.

The maximum penalty, on summary conviction, for failing to notify a liability for VAT registration is £1,000 or, if greater, three times the amount of the tax evaded by the failure.

asked the Chancellor of the Exchequer if he has any plans to reintroduce the scheme for deferred value added tax and duty for goods imported by registered traders; and if he will make a statement.

Arrangements are available under which importers, once approved, may defer payment of duty and value added tax chargeable at importation until the 15th of the following month. However, the hon. Member may have in mind the former postponed accounting system for VAT alone. As indicated in my answer to my hon. Friend the Member for Basingstoke (Mr. Hunter) on 14 February, at column 290, we would revert to this system if other member states agreed to the Commission's proposals, in the draft 14th directive on VAT, to adopt it throughout the Community.

asked the Chancellor of the Exchequer if any discussions are taking place within the European Economic Community as to the introduction of a standard system for the removal of value added tax on goods coming into a European Economic Community country on a sale-or-return basis; and if he will make a statement.

Yes. Discussions are taking place on a draft 17th VAT directive, which proposes that temporary imports on approval of certain categories of goods, including made-up articles of fur, precious stones, carpets and articles of jewellery, should be relieved of VAT.

asked the Chancellor of the Exchequer what information he has as to the types and volume of goods coming into the United Kingdom on a sale-or-return basis, on which value added tax has to be paid.

Importers are not required to identify sale-or-return goods separately, and I regret therefore that no information of the kind requested is collected.