
1 
These Regulations may be cited as the Value Added Tax (Amendment) (No. 2) Regulations 1997 and shall come into force on 1st July 1997.
2 
The Value Added Tax Regulations 1995 shall be amended in accordance with the following regulations.
3 
In regulation 90 after paragraph (3) there shall be added the following paragraphs—“
(4) This regulation shall not apply to any relevant services—
(a) where the period to which a payment falling within paragraph (1), (2) or (3) above relates, ends before 1st July 1997; or
(b) which are treated as supplied on 1st July 1997 by virtue of regulation 90A below.
(5) In this regulation and in regulations 90A and 90B below, “relevant services” means services within the description contained in paragraph 7A of Schedule 5 to the Act which are treated as supplied in the United Kingdom by virtue of article 20 of the Value Added Tax (Place of Supply of Services) Order 1992.”.
4 
After regulation 90 there shall be inserted the following regulations—“
90A 
Where—
(a) relevant services are supplied for a period for a consideration the whole or part of which is determined or payable periodically or from time to time;
(b) the period covered by the payment referred to in sub-paragraph (c) below ends on or after 1st July 1997; and
(c) a payment in respect of the services was made before 1st July 1997,the services shall be treated as supplied on 1st July 1997.
90B 
Where relevant services are treated as supplied on or after 1st July 1997 by virtue of regulation 90 or 90A above, the supply shall be treated as taking place only to the extent covered by the lower of—
(a) the payment; and
(b) so much of the payment as is properly attributable to such part of the period covered by the payment as falls after 30th June 1997.”.
5 
In regulation 94 for the words “Where under this Part” there shall be substituted the words “Subject to regulation 90B above, where under this Part”.
Martin Brown
Commissioner of Customs and Excise
New King’s Beam House 22 Upper Ground London
30th June 1997