Value Added Tax

HC Deb 25 July 1972 vol 841 cc245-7W

18. Mr. David Mitchell

asked the Chancellor of the Exchequer whether he will define more precisely the acceptable form of invoice for value added tax purposes for goods below the value of £10.

Mr. Patrick Jenkin

My hon. Friend the Financial Secretary gave some information about our proposals in regard to these invoices both in Standing Committee E on 12th June and at Report Stage of the Finance Bill in the House on 12th July. Full details will be in the VAT Regulations which will be made and laid before the House shortly.

27. Sir D. Walker-Smith

asked the Chancellor of the Exchequer if he will list those countries which have already introduced or have announced their intention to introduce a value added tax.

Mr. Patrick Jenkin

Following is the information: My understanding is that the following countries currently impose a value added tax: Belgium, France—including French overseas territories—Luxembourg, Netherlands, Western Germany, Denmark, Norway, Sweden, Brazil, Uruguay, Ivory Coast and Mali. The following intend to introduce a value added tax on the dates shown: Irish Republic (1st November, 1972), Austria (1st January, 1973), Italy (1st January, 1973) and United Kingdom (1st April. 1973).

40. Mr. Evelyn King

asked the Chancellor of the Exchequer by what percentage taxation on such foods as are taxable will be reduced consequent upon the substitution of value added tax for purchase tax.

Mr. Patrick Jenkin

The yield from value added tax at 10 per cent. on foodstuffs at present liable to purchase tax is estimated to be only four-fifths of the corresponding yield from purchase tax on these items.

51. Mr. Sydney Chapman

asked the Chancellor of the Exchequer what is his latest estimate of the yield of the value added tax in the financial year 1973–74; and how this compares with the revenue from purchase tax and the selective employment tax in the financial year 1970–71.

Mr. Patrick Jenkin

The net revenue from purchase tax and SET in 1970–71 was £1,781 million. No estimate can yet be given of the actual yield from value-added tax for the financial year 1973–74. However, if purchase tax and SET had continued at the 1970–71 rates, VAT would have had to be imposed at a rate, not of 10 per cent., but of 15 per cent. to yield an equivalent revenue.