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70. Value added tax (prompt payment discounts: relevant supplies)

Volume 578: debated on Tuesday 25 March 2014



(1) In Part 2 of Schedule 6 to the Value Added Tax Act 1994 (valuation: special cases), for paragraph 4 (prompt payment discounts) there is substituted—

“4 (1) Sub-paragraph (2) applies where—

(a) goods or services are supplied for a consideration which is a price in money,

(b) the terms on which those goods or services are so supplied allow a discount for prompt payment of that price,

(c) payment of that price is not made by instalments, and

(d) payment of that price is made in accordance with those terms so that the discount is realised in relation to that payment.

(2) For the purposes of section 19 (value of supply of goods or services) the consideration is the discounted price paid.”

(2) The amendment made by this Resolution has effect in relation to relevant supplies made on or after 1 May 2014.

(3) In this Resolution—

“relevant supply” means a supply of radio or television broadcasting services or telecommunication services made by a taxable person who is not required by or under any enactment to provide a VAT invoice to the person supplied;

“telecommunication services” has the same meaning as in paragraph 8(2) of Schedule 4A to the Value Added Tax Act 1994.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.