Clause 16

by deleting subsections (1) and (2) and substituting the following subsections:“(1) This section applies where —

there is a change in the tax rate in force under section 16;

there is a change in the description of zero‑rated supplies or exempt supplies, or the types of supplies or circumstances in which supplies are made for the purposes of the Seventh Schedule, that results in a supply becoming a standard‑rated supply; or

there is a change in the description of circumstances in section 14(1), or in the Eighth Schedule, that results in a supply giving rise to a reverse charge supply,and applies despite any different result that may arise by virtue of the application of sections 11, 11A, 11B, 11C and 12.(2) Subject to subsections (3) and (7), a person who makes a supply to which a change in subsection (1) relates or (in the case of a reverse charge supply) the recipient of such supply, may elect for tax to be chargeable on the supply in accordance with subsection (2B) or (2C) (as the case may be), if —

for any supply of goods or services —

the supply is performed in part or in whole before the date of the change; and

the invoice is issued or any consideration is received for the supply on or after the date of the change;

for any supply of goods or services —

the invoice is issued or any consideration is received for the supply before the date of the change; and

the supply is performed in part or in whole on or after the date of the change; or

for a supply of services by virtue only of paragraph 5(3) of the Second Schedule —

some or all of the goods are, without consideration, put to private use or used, or made available to any person for use, for any purpose other than a purpose of the business concerned, before the date of the change; and

the supply of services is treated as taking place under section 11A(5)(a) on or after the date of the change.(2A) For the purpose of subsection (2)(a) and (b), the supply is performed in part or in whole if —

for a supply of goods —

where the goods are to be removed — a part or all (as the case may be) of the goods are removed; or

where the goods are not to be removed — a part or all (as the case may be) of the goods are made available to the person to whom they are supplied; and

for a supply of services — a part or all (as the case may be) of the services are performed.(2B) For the purpose of subsection (2)(a) and (c), the tax that may be elected to be chargeable is as follows:

at the old tax rate on the higher of the following amounts:

the value of the supply for which any part consideration is received before the date of the change;

the value of, as the case may be —

the goods removed or made available before the date of the change;

the services performed before the date of the change; or

the supply by way of putting the goods to private use or using the goods, or making the goods available to any person for use, for any purpose other than a purpose of the business concerned, before the date of the change;

at the new tax rate —

in relation to subsection (2)(a) — on the value of the supply less the amount on which tax is charged at the old tax rate under paragraph (a); and

in relation to subsection (2)(c) — on the value of the supply by way of putting the goods to private use or using the goods, or making the goods available to any person for use, for any purpose other than a purpose of the business concerned, on or after the date of the change.(2C) For the purpose of subsection (2)(b), the tax that may be elected to be chargeable is as follows:

at the old tax rate on the value of the supply less the amount on which tax is charged at the new tax rate under paragraph (b);

at the new tax rate on the higher of the following amounts:

the value of the supply for which any part consideration is received on or after the date of the change;

the value of, as the case may be —

the goods removed or made available on or after the date of the change; or

the services performed on or after the date of the change.”;

by deleting sub‑paragraph (i) of subsection (3)(c) and substituting the following sub‑paragraph:“(i)the value of the supply for which any consideration is received before the date of the change;”;

by deleting the words “amount of the invoice” in subsection (3)(d) and substituting the words “value of the supply”;

by inserting, immediately before the word “issue” in subsection (5), the words “, within 14 days after the date the increase in tax rate comes into operation or within such longer period as the Comptroller may allow,”;

by deleting the words “ceases to be a zero‑rated or an exempt supply” in subsections (7) and (8) and substituting in each case the words “becomes a standard‑rated supply”;

by deleting the words “rate applicable on that date on the amount of the invoice” in subsection (7) and substituting the words “new tax rate on the value of the supply”;

by deleting the words “any part consideration” in subsection (7)(c) and substituting the words “the value of the supply for which any consideration is”;

by inserting, immediately before the word “issue” in subsection (9), the words “, within 14 days after the date of the change or such longer period as the Comptroller may allow,”;

by deleting the words “date the supply ceases to be a zero‑rated or an exempt supply” in subsection (9)(a) and substituting the words “date of the change”;

by inserting, immediately after subsection (9), the following subsections:“(9A) The Comptroller may waive the requirement of a new tax invoice under subsection (5) or (9) (as the case may be), subject to such conditions as the Comptroller thinks fit.(9B) Despite any waiver under subsection (9A), tax remains chargeable at the new tax rate on the part of the supply to which the new tax invoice (if issued) would relate, as if that part of the supply were a separate supply.(9C) Any tax chargeable on a supply under subsection (3)(d) or (7) must be accounted for in the prescribed accounting period in which the earliest of the following falls:

the date of any new invoice for the amount on which the tax is charged;

the date any consideration is received towards the amount on which the tax is charged;

the last day of the period of 14 days or such longer period as the Comptroller may allow, after the date of the change.(9D) Despite subsection (9C), where a recipient applies section 11C(3) to its reverse charge supplies, the recipient must account for any tax chargeable on each supply under subsection (3)(d) or (7) as follows:

if the earlier date in relation to the supply is the date of its entry into the books of account or other records of the recipient —

where the date of entry is on or after the date of the change —

in the prescribed accounting period in which the date of entry falls; and

at the new tax rate (less any tax on the supply already accounted for); and

where the date of entry is before the date of the change —

in the prescribed accounting period in which the earlier of the following falls:

at the new tax rate (less any tax on the supply already accounted for);

if the earlier date in relation to the supply is the date the recipient pays any consideration for the supply in fact made —

in the prescribed accounting period in which the date of payment falls; and

at the rate applicable on that date.(9E) Despite subsection (9C), where a recipient makes an election under section 11C(8) in relation to its reverse charge supplies, then the recipient must account for the tax chargeable on each reverse charge supply under subsection (3)(d) or (7) as follows:

if the day immediately after the end of the longer period is on or after the date of the change —

in the prescribed accounting period in which that day falls; and

at the new tax rate (less any tax on the supply already accounted for);

if the day immediately after the end of the longer period is before the date of the change —

in the prescribed accounting period in which the last day of the period of 14 days or such longer period as the Comptroller may allow, after the date of the change, falls; and

at the new tax rate (less any tax on the supply already accounted for).”; and

by deleting subsection (13) and substituting the following subsections:“(13) In this section —“new tax rate” —

in relation to a change in tax rate or a change that results in the supply becoming a standard‑rated supply — means the tax rate applicable to the supply on the date of the change; and

in relation to a change that results in the supply ceasing to be a standard‑rated supply — is zero;“old tax rate” —

in relation to a change that results in the supply becoming a standard‑rated supply — is zero; and

in relation to a change in tax rate or a change that results in the supply ceasing to be a standard‑rated supply — means the tax rate applicable to the supply immediately before the date of the change.(14) For the purposes of this section, a supply becomes a standard‑rated supply if —

as a result of a change in description of supplies —

the supply ceases to fall within the description of a zero‑rated supply;

the supply ceases to fall within the description of an exempt supply; or

the supply falls within the description of a Seventh Schedule supply,as the case may be; or

as a result of a change in the description of circumstances in section 14(1), or in the Eighth Schedule, the supply falls within the description of a supply that gives rise to a reverse charge supply,and the reference to a supply ceasing to be a standard‑rated supply is to be construed accordingly.(15) In applying this section to a reverse charge supply —

a reference to consideration received is a reference to consideration paid by the recipient of the supply in fact made; and

a reference to an invoice is a reference to an invoice issued by the person or branch that in fact makes the supply to the recipient.”.