Value Added Tax Act 1994 Schedule 3B

Part 4 — Other provisions about special schemes

Schedule 3B Part 4 sets out a range of supplementary rules that apply to participants in the special scheme for electronically supplied services, covering registration, de-registration, valuation, VAT representatives, appeals and VAT refunds.

• Making qualifying supplies under the special scheme alone does not trigger a liability to register for VAT, and traders already registered under the normal rules may request cancellation of that registration if they intend to join the special scheme instead.
• Supplies of scheme services to connected persons must be valued at market value under the normal connected-party valuation rules, and HMRC may not direct a special scheme participant to appoint a VAT representative.
• Participants have the right to appeal to a tribunal on matters including registration or cancellation decisions, refusals or amounts of overpayment repayments, refusals of repayments arising from decreases in consideration, and default surcharge liabilities.
• The UK rules implementing the 1986 VAT Refund Directive apply to special scheme participants, with certain modifications to reflect their particular circumstances.