§ Mr. LlwydTo ask the Chancellor of the Exchequer (1) if he will list the privatised utilities which charge VAT on advance charge bills; and what estimate he has made of the revenue raised for public funds from this procedure; [2856]
(2) if he will estimate the revenue raised by the Exchequer from the imposition, by British Telecom, of VAT on advance charge telephone bills. [2857]
§ Mr. Heathcoat-AmoryBasic VAT law provides that tax is due when a VAT invoice is issued or a payment is received in respect of any taxable supply made by a VAT registered trader, if this happens in advance of delivery of the goods or services concerned. The rule applies to privatised utilities in the same way as to other businesses, and to telephone standing charges in the same way as to any other advance charges. No central records are kept of the numbers of trades or the amounts of revenue involved. The amount of VAT paid by an individual trader is a matter of commercial confidence.