§ Mr. Fauldsasked the Chancellor of the Exchequer what procedure should be followed in the event of a dispute arising as to the value of the individual items in a group purchase for which a total price has been agreed, where the purchaser is operating within the special scheme contained in Her Majesty's Customs and Excise VAT Notice No. 712.
§ Mr. HigginsI would refer the hon. Member to Notice No. 700 (VAT: General Guide) paragraph 78, and the leaflet published by the President of the value added tax tribunals.
§ Mr. Fauldsasked the Chancellor of the Exchequer what liability for VAT arises in the event of a British artist resident in the United Kingdom creating a work of art overseas if he sells the work (a) abroad or (b) within the United Kingdom.
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§ Mr. HigginsA work of art created overseas is liable to VAT if it is imported into the United Kingdom, but not if it is not so imported.
§ Mr. Fauldsasked the Chancellor of the Exchequer whether he will state the procedure for adjusting the sale price of a work of art or antique sold to an overseas buyer for which an export licence is subsequently refused, bearing in mind that no VAT would have been chargeable if the export had been proceeded with.
§ Mr. HigginsAny adjustment of the sale price is a matter of negotiation between the seller and buyer.
§ Mr. Fauldsasked the Chancellor of the Exchequer what liability for VAT arises in the event of a non-taxable person acquiring an antique from a registered dealer which has been sold under the special scheme contained in Her Majesty's Customs and Excise VAT Notice No. 712 which subsequently transpires to be ineligible for the special scheme.
§ Mr. HigginsThe registered dealer will be liable to account for any VAT underpaid.
§ Mr. Fauldsasked the Chancellor of the Exchequer whether a work of art or antique purchased by an overseas resident from a taxable person in the United Kingdom for presentation to a British public gallery or museum will bear VAT, bearing in mind that liability for this tax would not arise if the object were to be exported and reimported.
§ Mr. HigginsA work of art or antique purchased by an overseas resident from a taxable person in the United Kingdom for presentation to a British public gallery or museum will bear VAT on the full value or margin as appropriate.