New Clause 20 - VAT on supply of imported works of Art etc

Finance Bill – in the House of Commons at 9:45 pm on 24 May 2021.

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‘(1) In Schedule 6 to VATA 1994 (valuation: special cases), after paragraph 11 insert—

“11A(1) Sub-paragraph (2) applies to goods that—

(a) fall within subsection (5) of section 21 (works of art etc), and

(b) are treated as supplied in the United Kingdom as a result of section 7(5B) (importation of consignments with an intrinsic value not exceeding £135).

(2) The value of a supply of goods to which this sub-paragraph applies is to be taken to be an amount equal to 25% of the amount that, apart from this sub-paragraph, would be its value for the purposes of this Act.

(3) An order under section 2(2) may contain provision making such alteration of the percentage for the time being specified in sub-paragraph (2) as the Treasury consider appropriate in consequence of any increase or decrease by that order of the rate of VAT.’

(2) The amendment made by subsection (1) has effect in relation to supplies made on or after IP completion day.’—(Jesse Norman.)

This new clause ensures that the correct amount of VAT is charged on works of art, antiques etc when they are imported in a low value consignment.

Brought up, read the First and Second time, and added to the Bill.