§ Lord Spensasked Her Majesty's Government:
Whether all UK VAT offices are interpreting the Seventh Directive on VAT and the Information Sheet of 1st January 1995 in a consistent manner with particular regard to the definitions of "eligible stock" and "opening stock" in respect of both the "Global Accounting Scheme" and the "Second-hand Margin Scheme" in relation to works of art, antiques, collectors' items and second hand goods; and
What is the accepted method of calculation of valuation of "opening stock" to be used by traders in joining the Global Accounting Scheme and/or the Second-hand Margin Scheme and whether they will confirm that all VAT offices are required to adhere to this method; and
What remedies are available to dealers and traders if individual VAT offices are making differing interpretations of the Seventh Directive on VAT and the Information Sheet of 1st January 1995; and
What is the specific department in HM Customs and Excise where problems in dealing with anomalies in the Seventh Directive and the Information Sheet of 1st January 1995 are to be resolved.
§ The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Henley)In general, businesses requiring advice or rulings on the details contained in Information Sheet 1/95 or other matters concerning the implementation of the Seventh VAT Directive should refer to their local VAT office. However, should businesses have concerns about, or disagree with, any decision or advice received, it is open to them to ask their local VAT office for clarification or a reconsideration. There are laid down procedures for dealing with disagreements between businesses and Customs over VAT issues and these are set out in the VAT Guide, which is available from local VAT offices. The Information Sheet is to be superseded from 1 June 1995 by a new VAT Notice covering changes resulting from implementation of the Seventh Directive. This is being co-ordinated by the VAT Collection Division, Queens Dock, Liverpool L74 4AA. (The contact official is Mrs Heather Elliott).
More specifically, there is no prescribed method of calculating opening stock for Global Accounting. In order not to place an undue accounting burden on businesses, Customs are prepared to accept any reasonable and fair method of identifying and valuing stock on hand when starting to use this system.
Eligible Margin Scheme goods on hand can be included in the Margin Scheme stock records subject to certain conditions. The principle requirement is that evidence is held of the purchase price of the goods in question.
§ Lord Spensasked Her Majesty's Government:
Whether any consultative document dealing with the Seventh Directive on VAT has been issued to auction houses with philatelic departments and 24WA whether a copy of this document can be made available in the Library.
§ Lord HenleyCustoms and Excise have consulted widely on the Seventh Directive. Consultative meetings were held last year to which auctioneer trade bodies, auction houses with philatelic departments and the Philatelic Traders' Society were invited. Since then, there has been regular contact with a number of auctioneers on a range of pre- and post-implementation issues associated with the Seventh Directive.