The Value Added Tax (Treatment of Transactions) Order 1995

Made: 30th March 1995

Laid before the House of Commons: 31st March 1995

Coming into force in accordance with article 1

The Treasury, in exercise of the powers conferred on them by section 5(3) of the Value Added Tax Act 1994[^f00001] and of all other powers enabling them in that behalf, hereby make the following Order:

1

This Order may be cited as the Value Added Tax (Treatment of Transactions) Order 1995 and shall come into force on the day that the Finance Bill 1995 is passed.

2

In this Order—

• “temporary admission with full customs duty relief” means—in Great Britain, the temporary admission procedure under Part 1 of the Taxation (Cross-border Trade) Act 2018, where full relief from a liability to import duty is to be given under regulation 40 of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018;in Northern Ireland, the customs procedure for temporary importation with total relief from import duties provided for in Articles 250, 251 and 253 of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code as it has effect in Northern Ireland as a result of section 7A of the European Union (Withdrawal) Act 2018;

• “work of art” has the same meaning as in section 21 of the Value Added Tax Act 1994.

3

• (1) Subject to paragraph (3) below, the transfer of ownership in—

• (a) second-hand goods imported into the United Kingdom with a view to their sale by auction;

• (b) works of art imported into the United Kingdom for the purposes of exhibition, with a view to possible sale,

at a time when the second-hand goods or works of art, as the case may be, are still subject to arrangements for temporary admission with full customs duty relief ..., shall be treated as neither a supply of goods nor a supply of services.

• (2) Subject to paragraph (3) and article 4 below, the provision of any services relating to a transfer of ownership falling within paragraph (1)(a) or (b) above shall be treated as neither a supply of goods nor a supply of services.

• (3) Paragraphs (1) and (2) above shall not apply in relation to any transfer of ownership in second-hand goods which is effected otherwise than by sale by auction.

Signed

Tim Wood — Timothy Kirkhope — Two of the Lords Commissioners of Her Majesty’s Treasury — 1995-03-30

Explanatory note

(This note is not part of the Order)

Under Article 16.1E of Council Directive No. 77/388/EEC (OJ No. L 145, 13.6.1977, p.1) as amended by Article 1.20 of Council Directive No. 91/680/EEC (OJ No. L 376, 31.12.1991, p.1) member States may relieve from VAT certain supplies of goods and supplies of services relating to such supplies of goods, made whilst the goods are subject to certain customs arrangements.

This Order relieves from VAT certain transactions relating to second-hand goods and works of art whilst they are subject to temporary importation arrangements by treating those transactions as neither a supply of goods nor a supply of services.

Footnotes

[^f00001]: 1994 c. 23.

Editorial notes

[^key-ebcb2287dc7e947ef7d00f60009059ed]: Art. 1 in force at 1.5.1995, see art. 1

[^key-b324d5765f7a6c2fe0c16b6456c8a96c]: Art. 3 in force at 1.5.1995, see art. 1

[^key-5bacdf061202dadfb854ae2200049cb0]: Art. 4 inserted (1.9.2006) by The Value Added Tax (Treatment of Transactions and Special Provisions) (Amendment) Order 2006 (S.I. 2006/2187), arts. 1, 2(3)

[^key-37d51d5c2e87fc47ceb65a5fecee8d26]: Words in art. 3(1) omitted (1.9.2006) by virtue of The Value Added Tax (Treatment of Transactions and Special Provisions) (Amendment) Order 2006 (S.I. 2006/2187), arts. 1, 2(1)

[^key-4a188630f8d9737693e62f095b7529df]: Words in art. 3(2) inserted (1.9.2006) by The Value Added Tax (Treatment of Transactions and Special Provisions) (Amendment) Order 2006 (S.I. 2006/2187), arts. 1, 2(2)

[^key-baa37f945895b735dd8a6d66ed5b11fc]: Art. 2 substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments, Northern Ireland Protocol and Savings and Transitional Provisions) (EU Exit) Regulations 2020 (S.I. 2020/1545), regs. 1, 27 (with regs. 109-131); S.I. 2020/1641, reg. 2, Sch.

[^key-339547560b04addbcca38ffceb6b324f]: Words in art. 3(1) substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments, Northern Ireland Protocol and Savings and Transitional Provisions) (EU Exit) Regulations 2020 (S.I. 2020/1545), regs. 1, 28 (with regs. 109-131); S.I. 2020/1641, reg. 2, Sch.

[^key-ff6c01ad80f989722c77de217ca72a3e]: Words in art. 3(1)(a) substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments and Revocations) (EU Exit) Regulations 2019 (S.I. 2019/59), regs. 1, 10(2)(a); S.I. 2020/1641, reg. 2, Sch.

[^key-d8071e588d6d59ca7ac7fb43036e9ef4]: Words in art. 3(1)(b) substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments and Revocations) (EU Exit) Regulations 2019 (S.I. 2019/59), regs. 1, 10(2)(a); S.I. 2020/1641, reg. 2, Sch.

[^key-db715f2896a8504b35701cedfdb4303e]: Words in art. 4(1)(b) substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments and Revocations) (EU Exit) Regulations 2019 (S.I. 2019/59), regs. 1, 10(3)(a); S.I. 2020/1641, reg. 2, Sch.

[^key-48c8b959a6b745799d6187821144ae8a]: Art. 4(3) substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments, Northern Ireland Protocol and Savings and Transitional Provisions) (EU Exit) Regulations 2020 (S.I. 2020/1545), regs. 1, 29 (with regs. 109-131); S.I. 2020/1641, reg. 2, Sch.

[^key-fcbd4c718b10144c7dbfcc3373b9c232]: Words in art. 2(b) substituted (1.12.2021) by The Value Added Tax (Distance Selling and Miscellaneous Amendments) Regulations 2021 (S.I. 2021/1164), regs. 1, 33

4

• (1) Article 3(1) does not apply where—

• (a) any goods falling within paragraph (2) are sold by auction at a time when they are subject to the procedure specified in paragraph (3), and

• (b) arrangements made by or on behalf of the purchaser of the goods following the sale by auction result in the importation of the goods into the United Kingdom.

(See section 21(2A) of the Value Added Tax Act 1994.)

• (2) The goods that fall within this paragraph are—

• (a) any work of art;

• (b) any antique, not falling within sub-paragraph (a) or (c), that is more than one hundred years old;

• (c) any collection or collector’s piece that is of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic, numismatic or philatelic interest.

(See sections 21(5) to 21(6C) of the Value Added Tax Act 1994.)

• (3) That procedure is the temporary admission with full customs duty relief procedure.