§ Mr. SpellarTo ask the Chancellor of the Exchequer, if he will make a statement regarding the continuation of the exemption of the United Kingdom from the European Union's sixth VAT directive (77/3881 EEC) after 31 December 1996.
§ Mr. Heathcoat-AmoryThe sixth VAT directive lays down the common system for VAT throughout the European Union and has been adopted by all member states, including the United Kingdom. With effect from 1 January 1993, the directive was amended to allow a transitional system for VAT to be introduced for the single market. That system will continue until the end of 1996, when it is planned to introduce a definitive VAT regime. Failing unanimous agreement among member states on what this regime should be, the present arrangements will continue.
§ Mr. Andrew SmithTo ask the Chancellor of the Exchequer if he will continue to make it his policy that a trader should receive a visit from Customs and Excise within the first three years of registering for VAT.
§ Mr. Heathcoat-AmoryCustoms and Excise is committed to ensuring that businesses new to VAT are given an opportunity to learn about the tax and their responsibilities in the three years following VAT442W registration. They will continue to keep the best means cif ensuring this under review.