Value Added Tax Act 1994 section 16

Assessments: general modifications of section 73

Section 16 of Schedule 9ZE explains how HMRC's existing power to raise assessments when returns are not made or are incorrect (under section 73 of the VAT Act) is adapted to work within the special VAT accounting schemes for distance selling and similar supplies.

• Section 73 assessment powers are extended so that references to VAT returns include special scheme returns required under Schedule 9ZE.
• References to "prescribed accounting periods" in section 73 are read as references to the "tax periods" used under the special schemes.
• The concept of a "VAT credit" in section 73 is widened to cover repayments of VAT to persons who are not VAT-registered but who have paid VAT under the special scheme rules.
• A "relevant special scheme return" is one that must be submitted wholly or partly in respect of qualifying supplies of goods treated as made in the United Kingdom.