CCLG10450 - Time of supply: Deemed supply - Review of supplier certificate by relief recipient
CCL exclusion (community heating schemes) and exemptions, and the half-rate, for supplies of a particular taxable commodity are given provisional effect on the basis of a unified estimate certified by the consumer to the supplier. The consumer must review the estimate at least annually. If the estimate was too high, the consumer had a number of options for correcting the excess relief obtained. If the estimate was too low, the consumer could obtain a tax credit. The legislation is in the Climate Change Levy (General) Regulations 2001 (S.I. 2001/838) Part III and Schedule 1.
The Finance Act 2003 section 190 (which has effect as of 22nd July 2005 under S.I. 2005/1713 (C.72)) and section 192 amended the CCL primary legislation in the Finance Act 2000 Schedule 6 so that where a review identified that there had been an overclaim of relief, the excess is treated as deemed self-supply under the provisions of paragraph 24 of Schedule 6 to the Act and a liability to register will be created, although in certain circumstances exemption from registration may be granted - see registration.
Deemed supply: change of circumstances etc
24(1) This paragraph applies in the following cases
(1A) The first case is where—
(a) a supply of a taxable commodity has been made,
(b) the supply was made on the basis that it was not a taxable supply, and
(c) it is later determined that the supply was (to any extent) a taxable supply.
(1B) The second case is where—
(a) a supply of a taxable commodity has been made,
(b) the supply was made on the basis that it was not a taxable supply, and
(c) it is later determined that the supply was (to any extent) a taxable supply
(2) This paragraph does not apply where the reason that—
(a) the supply was not a taxable supply, or
(b) the supply was made on the basis that it was not a taxable supply, is that it was, or was thought to be, exempt from the levy under paragraph 19 or 20A (exemption for supply of electricity produced from renewable sources or in combined heat and power stations) (but see paragraph 20 or 20B)
(3) Where this paragraph applies the person to whom the supply was made is for the purposes of this Schedule deemed to make a taxable supply of the commodity to himself.
(3A) Where—
(a) had matters been as mentioned in sub-paragraph (1A)(c), only part of the supply would have been a taxable supply, or
(b) the determination referred to in sub-paragraph (1B)(c) is that only part of the supply was a taxable supply,
the reference in sub-paragraph (3) to the commodity shall be read as a reference to a corresponding part of it.
(4) Where—
(a) a supply of a taxable commodity was not a taxable supply by virtue of being supplied for use in premises of a description mentioned in any of paragraphs (a) to (f) of paragraph 9(2), and
(b) those premises cease to be premises of any of those descriptions,
sub-paragraph (3) only applies to so much (if any) of the commodity supplied as was not used in the premises before they ceased to be premises of any of those descriptions.
(5) The Commissioners may by regulations make provision specifying descriptions of occurrences and non-occurrences that are to be taken as being, or as not being, changes of circumstances or intentions for the purposes of sub-paragraph (1A)(c).
Any supplies deemed to be made under paragraph 24(3) of the Act are treated as taking place at the time of the review in question.
