SolvedVGOLD1700 | UK and EC Law
From HM Revenue & Customs · VAT Gold
Investment gold including coins
| Legislation | Effect |
|---|---|
| EC legislation (Dir 2006/112) | - |
| VAT Directive - Articles 344 to 356 | Provides EC vires for the exemption of investment gold |
| UK legislation | - |
| VAT Act 1994 Schedule 9, Group 15 | Exempts investment gold |
| VAT Act 1994 Section 69A | Provides penalties for breach of VAT Regulations 1995 |
| VAT Regulations 1995 (SI1995/2518) Regulation 31A | Lists the invoicing, record keeping and notification requirements |
| VAT Regulations 1995 (SI1995/2518) Regulations 103 and 103A | Give a limited right to deduct input tax |
| VAT (Investment Gold) Order 1999 (SI 1999/3116) | Gives the right to opt to tax investment gold |
Special accounting scheme
| Legislation | Effect |
|---|---|
| EC legislation (Dir 2006/112) | - |
| VAT Directive Article 198 (2) and (3) and Articles 208 and 255 | Allows Member States to introduce measures to combat fraud on gold supplies between taxable persons |
| UK legislation | - |
| VAT Act 1994 Section 55 | Covers the scheme and also applies to supplies subject to an option to tax under the VAT (Investment Gold) Order 1999, Article 4 (SI 1999/3116) |
Zero-rates
| Legislation | Effect |
|---|---|
| EC legislation (Dir 2006/112) | - |
| VAT Directive Article 198 (1) and (3); and Articles 352 to 353 | Provides the vires for the UK to zero rate investment gold in the VAT (Terminal Markets) Order 1973. Note: The vires for the Terminal Markets zero rate was a transitional derogation as part of the UK’s entry into the Common Market |
| VAT Directive Article 152 | Exempts supplies by/to Central Banks |
| VAT Directive Articles 169 to 170 | Gives a right of deduction for Article 152 supplies |
| UK legislation | - |
| VAT Act 1994 Section 50 | Introduces the Terminal Markets Order |
| VAT Act 1994 Schedule 8 Group 10 | Zero rates supplies by/to Central Banks |
| VAT (Terminal Markets) Order 1973 (SI 1973/173) Articles 4 to 7 | Concerns transactions in investment gold on the London Bullion Market |