Value Added Tax Act 1994 section 79

Finance Act 2016

Section 79 modifies the serial tax avoidance rules in the Finance Act 2016 to ensure they properly cover VAT charged on goods acquired from EU member states.

• This section amends Schedule 18 to the Finance Act 2016, which deals with serial tax avoidance.
• It expands the definition of relevant VAT to include VAT on goods acquired from other EU member states (acquisition VAT).
• References to VAT "incurred" by a taxable person in the serial tax avoidance provisions are extended to cover acquisition VAT from member states.
• The effect is to ensure the serial tax avoidance regime captures all relevant forms of VAT, not just domestic VAT on supplies within the UK.