Value Added Tax Act 1994 section 29A

Reduced rate

Section 29A establishes the reduced rate of VAT at 5 per cent for certain supplies and importations listed in Schedule 7A, and gives the Treasury the power to amend that schedule.

• Supplies of goods or services listed in Schedule 7A are charged to VAT at the reduced rate of 5 per cent instead of the standard rate.
• The reduced rate also applies to importations of goods that, if supplied in the UK, would fall within a description listed in Schedule 7A.
• The Treasury may amend Schedule 7A by order, adding, removing or varying the descriptions of supply that qualify for the reduced rate.
• When varying Schedule 7A, the Treasury may define qualifying supplies by reference to factors beyond the characteristics of the goods or services themselves, such as the prior use that has been made of the goods.