Value Added Tax Act 1994 Schedule 13 para 8

Zero-rated supplies of goods and services

Section 8 of Schedule 13 preserves zero-rating for certain supplies of services where a legally binding obligation was entered into before 21st June 1988, provided the supply qualified for zero-rating under the previous VAT legislation.

• Supplies of services made under legally binding obligations entered into before 21st June 1988 can retain their zero-rated status under this Act, provided they met specified conditions under the earlier VAT legislation.
• The supply must have fallen within item 2 of Group 8A of Schedule 5 to the 1983 Act immediately before 1st April 1989.
• The supply must have been zero-rated by virtue of paragraph 13(1) of Schedule 3 to the Finance Act 1989.
• Where a grant, assignment or other supply is zero-rated under this transitional provision, it does not count as a relevant zero-rated supply for the purposes of the change-of-use rules in Part 2 of Schedule 10.