Value Added Tax Act 1994 section 96

Other interpretative provisions

Section 96 provides a glossary of key terms used throughout the Value Added Tax Act 1994, along with rules on how certain provisions of the Act should be interpreted.

• Defines essential VAT terminology including "taxable person", "taxable supply", "input tax", "output tax", "VAT credit", "VAT invoice", "major interest" in land, and "local authority", among many others.
• Sets out how the VAT rate Schedules (reduced rate, zero rate, and exempt) should be read, noting that Group headings are for convenience only and that the notes within those Schedules form part of their legal interpretation.
• Establishes that where a grant of an interest, right, licence or facilities gives rise to supplies at different times, the VAT liability of each supply is determined by the rules applicable at the time of that supply, not at the time the original grant was made.
• Confirms that references to the United Kingdom in the Act include its territorial sea.