§ Mr. Wainwrightasked the Chancellor of the Exchequer what guidance he gives to retailers about including in value added tax returns the proceeds of sales of gas board and electricity board stamps; and whether he intends any change in this respect.
§ Mr. BrookeCustoms and Excise notice 727 (VAT: Retail Schemes), which is published pursuant to the Value Added Tax (Supplies by Retailers) Regulations 1972 (as amended), explains the conditions of the schemes which may be used by retailers as simplified methods of working out their VAT.
Customs and Excise issued amendment No. 1 to the notice in February 1986, which requires any retailers who sell gas, electricity, television licence or similar savings stamps to deal with the stamps outside their retail scheme calculations. It follows the decision of the Manchester VAT tribunal in the case of T.G., M. & I.J. Parr (MAN/ 85/241) which held that retailers could include gas and electricity savings stamps in their scheme calculations since notice No. 727 did not specifically require them not to do so.
I am placing a copy of notice No. 727 and of amendment No. 1 in the Library.