§ Mr. MaudeTo ask the Chancellor of the Exchequer if he will state the reasons for not applying the VAT (Sport, Sports Competitions and Physical Education) Order 1999 from 1 April; and when he expects to bring it into force. [85110]
§ Dawn PrimaroloFollowing discussion of the proposed legislation with sports representative bodies, HM Customs and Excise are making changes to the draft Order. A further announcement will be made as soon as possible.
§ Mr. MaudeTo ask the Chancellor of the Exchequer how many representations he has received regarding the Online VAT Return. [85099]
§ Dawn PrimaroloThis year's Finance Bill allows Customs and Excise to provide new electronic services including VAT returns on the internet.
In response to an announcement in the VAT Notes, issued to all VAT registered businesses, over 300 representations have been received, 99 per cent. of which not only welcomed this initiative but also stated a preference for an internet-based service.
No formal consultation exercise is planned. Some businesses and individual taxpayers will wish to send tax information on paper and we will continue to offer this option.
§ Mr. MaudeTo ask the Chancellor of the Exchequer what assessment he has made of the implications for the VAT (Input Tax) Order 1992 of the judgment of the European Court against the Republic of Italy (Case C-45/95). [85098]
§ Dawn PrimaroloThis European Court judgment does not directly affect the VAT (Input Tax) Order 1992, as the effect of the judgment is to introduce new exemptions from VAT. However, implementing these exemptions will involve some consequential changes to the Order. Details of these, and of other proposed related changes, are set out in a Technical Note issued by HM Customs and Excise on 21 April 1999, a copy of which has been placed in the House of Commons Library.
§ Mr. MaudeTo ask the Chancellor of the Exchequer what external legal advice he has received regarding the VAT treatment of the supply of an interest in land and buildings following the judgment of the European Court against the Republic of Italy (Case C-45/95); and if he will make a statement. [85097]
§ Dawn PrimaroloCustoms have met with Treasury Counsel over this issue and they are awaiting his written opinion. Most property transactions are, however, already exempt from VAT.
§ Mr. MaudeTo ask the Chancellor of the Exchequer if he will make a statement on the VAT liability in respect of(a) room hire, (b) crèche facilities and (c) catering franchises contracted out by local authorities. [85109]
§ Dawn PrimaroloThe VAT liability of supplies made by local authorities is no different from that applying to other suppliers. VAT charged on supplies made to local authorities can normally be reclaimed from Customs and Excise.
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§ Mr. MaudeTo ask the Chancellor of the Exchequer what plans he has to continue reviewing the VAT registration threshold; and if he will make a statement. [85108]
§ Dawn PrimaroloFollowing the recent Budget, I asked Customs to work further with business to explore whether it is possible to cushion the impact of VAT registration on growing businesses. This further work, together with representations received during the 1998 consultation exercise on the VAT registration threshold, will inform future Budget decisions on this issue.
§ Mr. MaudeTo ask the Chancellor of the Exchequer what his policy is on VAT exemptions for trade unions following the European Court ruling in the Institute of the Motor Industry case (No C-149/97). [85111]
§ Dawn PrimaroloSubscriptions to trade unions remain exempt from VAT.
§ Mr. MaudeTo ask the Chancellor of the Exchequer from what dates he expects the VAT (Goods Used for Exempt Supplies) Order 1999 to apply; and if he will make a statement. [85117]
§ Dawn PrimaroloIn their technical note which asked businesses for comments on the changes covered by this Order, Customs expected that the Order would take effect from 1 September 1999, but this will depend on the comments received from businesses and on the process of parliamentary drafting.
§ Mr. MaudeTo ask the Chancellor of the Exchequer if he will estimate the revenue implications for the Exchequer following the judgment of the European Court against the Republic of Italy (Case C-45/95). [85113]
§ Dawn PrimaroloCustoms and Excise expect there to be a revenue gain of around £15 million per year, because some businesses will be unable to recover input VAT on expenses associated with the newly exempt sales of business cars. They expect this to be offset in the first year by a revenue loss of £10 million, arising from repayments made to certain non-profit making bodies, under a related change that will permit them to recover VAT on publications supplied to members.
§ Mr. MaudeTo ask the Chancellor of the Exchequer if he will make a statement on the definition of a car for VAT purposes following the judgment of the European Court against the Republic of Italy (Case C-45/95). [85112]
§ Dawn PrimaroloThis European Court judgment does not directly affect the definition of a car for VAT purposes, though the proposed legislation to implement the new exemption will make certain minor—and unrelated—technical changes to the definition. Details of these, and of other proposed related changes, are set out in a Technical Note issued by HM Customs and Excise on 21 April 1999, a copy of which has been placed in the House of Commons Library.
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