Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Bill

  • enacted
319 New section 25AB inserted (Consequences of change in contract for secondhand goods)

After section 25AA, insert:

25AB Consequences of change in contract for secondhand goods

(1)

This section applies to a supply of secondhand goods to a registered person if—

(a)

the supply is affected by an event referred to in section 25(1)(a) to (c); and

(b)

the registered person returns input tax on the supply as a deduction from the amount of output tax for a taxable period in the calculation of tax payable by the registered person for the taxable period; and

(c)

as a result of the event referred to in paragraph (a), the amount of input tax on the supply returned by the registered person exceeds the correct amount of input tax for the supply; and

(d)

the supplier does not provide a tax invoice or debit note in relation to the supply.

(2)

An amount equal to the amount of the excess referred to in subsection (1)(c) is treated as being tax charged in relation to a taxable supply made by the registered person for the taxable period in which the event referred to in subsection (1)(a) occurs.