VGOLD1700 - UK and EC Law

Investment gold including coins

Legislation	Effect
EC legislation (Dir 2006/112)	-
VAT Directive - Articles 344 to 356	Provides EC vires for the exemption of investment gold
UK legislation	-
VAT Act 1994 Schedule 9, Group 15	Exempts investment gold
VAT Act 1994 Section 69A	Provides penalties for breach of VAT Regulations 1995
VAT Regulations 1995 (SI1995/2518) Regulation 31A	Lists the invoicing, record keeping and notification requirements
VAT Regulations 1995 (SI1995/2518) Regulations 103 and 103A	Give a limited right to deduct input tax
VAT (Investment Gold) Order 1999 (SI 1999/3116)	Gives the right to opt to tax investment gold

Special accounting scheme

Legislation	Effect
EC legislation (Dir 2006/112)	-
VAT Directive Article 198 (2) and (3) and Articles 208 and 255	Allows Member States to introduce measures to combat fraud on gold supplies between taxable persons
UK legislation	-
VAT Act 1994 Section 55	Covers the scheme and also applies to supplies subject to an option to tax under the VAT (Investment Gold) Order 1999, Article 4 (SI 1999/3116)

Zero-rates

Legislation	Effect
EC legislation (Dir 2006/112)	-
VAT Directive Article 198 (1) and (3); and Articles 352 to 353	Provides the vires for the UK to zero rate investment gold in the VAT (Terminal Markets) Order 1973. Note: The vires for the Terminal Markets zero rate was a transitional derogation as part of the UK’s entry into the Common Market
VAT Directive Article 152	Exempts supplies by/to Central Banks
VAT Directive Articles 169 to 170	Gives a right of deduction for Article 152 supplies
UK legislation	-
VAT Act 1994 Section 50	Introduces the Terminal Markets Order
VAT Act 1994 Schedule 8 Group 10	Zero rates supplies by/to Central Banks
VAT (Terminal Markets) Order 1973 (SI 1973/173) Articles 4 to 7	Concerns transactions in investment gold on the London Bullion Market