HL Deb 05 May 1993 vol 545 c33WA
Lord Tebbit

asked Her Majesty's Government:

Whether they will describe the mechanism by which the Parliament of the United Kingdom may, without reference to other bodies, unilaterally decide the appropriate level of the VAT threshold.

The Earl of Caithness

Changes to the VAT registration threshold are made by Treasury order in pursuance of the powers contained in Schedules 1, lA and 1B to the Value Added Tax Act 1983 (as amended). An order made under any of these provisions is laid before the House of Commons and is subject to the negative procedure. There is no requirement for the Government to consult either the EC Commission or other member states before making such an order. However, the Government act within the provisions of the EC Sixth VAT Directive. This was agreed by unanimity of all member states and could be amended in similar fashion.