Value Added Tax Act 1994 section 68

Registration: disposals of assets where repayment is claimed (Schedule 3A)

Section 68 extends the existing rules on compulsory VAT registration when disposing of assets for which a VAT repayment has been claimed, so that these rules also apply to repayments made under the domestic reverse charge provisions.

• Existing Schedule 3A rules require a person to register for VAT if they dispose of assets on which they have previously claimed a VAT repayment.
• Section 68 extends these registration requirements to cover VAT repayments claimed under Part 8 (supplies of goods) and Part 9 (supplies of services) of the reverse charge schedule (Schedule 9ZA).
• The provisions that trigger registration now also include paragraphs 43(5) and 53(5) of Schedule 9ZA, which deal with specific repayment situations under the reverse charge rules.
• The effect is that a person who has received a VAT repayment under the domestic reverse charge and then disposes of the relevant assets may be required to register for VAT, just as they would under the standard repayment rules.

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