Section 2 | Rate of VAT.

(1)Subject to the following provisions and to the provisions of section 29A of this section ..., VAT shall be charged at the rate of 20 per cent and shall be charged—^F1F2F3

(a)on the supply of goods or services, by reference to the value of the supply as determined under this Act; and

(b)Repealed^F4

(c)on the importation of goods ..., by reference to the value of the goods as determined under this Act.^F5

(1A)Repealed^F6

(1B)Repealed^F6

(1C)Repealed^F7

(2)The Treasury may by order increase or decrease the rate of VAT for the time being in force under this section by such percentage thereof not exceeding 25 per cent. as may be specified in the order, but any such order that has not previously expired or been revoked shall cease to be in force at the expiration of a period of one year from the date on which it takes effect, unless continued in force by a further order under this subsection.^F8F9

(3)In relation to an order made under subsection (2) above to continue, vary or replace a previous order, the reference in that subsection to the rate for the time being in force under this section is a reference to the rate which would be in force if no order under that subsection had been made.^F8