Vatfin3112 - credit, debts and related services: credit and related services: legal provisions - hmrc internal manual

VATFIN3112 - CREDIT, DEBTS AND RELATED SERVICES: CREDIT AND RELATED SERVICES: LEGAL PROVISIONS Article 135.1 (b) of the VAT directive exempts: > The granting and the negotiation of credit

 and the management of > credit by the person granting it. The above has been enacted into UK law as the VAT Act 1994, Schedule 9, Group 5, items 2, 2A, 3 and 4, which exempt: > 2. The

 making of any advance or the granting of any credit. >  > 2A. The management of credit by the person granting it. >  > 3. The provision of the facility of instalment credit 

finance in a > hire-purchase, conditional sale or credit sale agreement for which > facility a separate charge is made and disclosed to the recipient of > the supply if goods. >

  > 4. The provision of administrative arrangements and documentation > and the transfer of title to the goods in connection with the supply > described in item 3 if the total 

consideration therefore is > specified in the agreement and does not exceed £10. Notes (3) and (4) state: > 3. Item 2 includes the supply of credit by a person, in connection > with

 a supply of goods or services by him, for which a separate > charge is made and disclosed to the recipient of the supply of goods > or services. >  > 4. This Group includes any 

supply by a person carrying on a credit > card, charge card or similar payment card operation made in > conjunction with that operation to a person who accepts the card > used in 

the operation when presented to him in payment for goods or > services. Previous page Next page Print this page