HC Deb 05 December 1995 vol 268 c255



(1) The Value Added Tax Act 1994 shall be amended as follows.

(2) Section 22 shall be omitted.

(3) After subsection (2) of section 30 there shall be inserted the following subsection—

"(2A) A supply by a person of services which consist of applying a treatment or process to another person's goods is zero-rated by virtue of this subsection if by doing so he produces goods, and either—

(a) those goods are of a description for the time being specified in Schedule 8; or

(b) a supply by him of those goods to the person to whom he supplies the services would be of a description so specified.".

(4) In subsection (5) of section 55, after paragraph (b) there shall be inserted the following—

"; or

(c) any supply of services consisting in the application to another person's goods of a treatment or process which produces goods a supply of which would fall within paragraph (a) above.";

and the word "or" at the end of paragraph (a) shall be omitted.

(5) Paragraph 2 of Schedule 4 shall be omitted.

(6) This Resolution shall apply to supplies made on or after 1st January 1996.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.