Clause 4

by deleting subsection (2) and substituting the following subsection:“(2) Subject to subsections (2A), (3), (3A), (4), (6) and (7), the reverse charge supply takes place when —

the person or branch that in fact supplies the distantly taxable goods or services to the recipient issues an invoice, or the recipient pays any consideration for those distantly taxable goods or services; or

where both events occur, the first of the 2 events occurs,to the extent that the supply of distantly taxable goods or services is covered by the invoice or consideration.”;

by inserting, immediately after subsection (2), the following subsection:“(2A) Subject to subsection (3A), where the recipient is registered under this Act and —

the recipient receives a supply of distantly taxable goods or services that gives rise to a reverse charge supply;

the recipient pays an amount to the supplier (whether directly or indirectly) as tax chargeable on the supply of the distantly taxable goods or services in fact made to the recipient, even though the supply is not chargeable to tax under section 8(1A); and

the supplier reimburses the recipient (whether directly or indirectly) for that amount,then the recipient may treat the reverse charge supply arising from that supply as taking place at the earlier of —

the date on which a revised invoice in respect of the supply in fact made is issued by the supplier; and

the date on which the recipient has received the reimbursement of that amount,to the extent that the supply is covered by the revised invoice, or consideration paid for that supply, as reduced by the reimbursement.”;

by deleting the word “services” wherever it appears in subsections (3) and (5) and substituting in each case the words “distantly taxable goods or services”;

by deleting the word “Where” in subsection (3) and substituting the words “Subject to subsection (3A), where”;

by inserting, immediately after subsection (3), the following subsection:“(3A) If the recipient applies subsection (3) to its reverse charge supplies, the recipient may, for a reverse charge supply in the circumstances described in subsection (2A)(a), (b) and (c), treat the reverse charge supply instead as taking place at the earlier of —

the date on which the supply for which reimbursement of the amount was received is entered into the books of account or other records of the recipient; and

the date on which the recipient received reimbursement of the amount,to the extent that the supply is covered by the entry or consideration paid for that supply as reduced by the reimbursement.”;

by deleting subsection (4) and substituting the following subsection:“(4) Where the reverse charge supply arises from —

a supply of distantly taxable goods mentioned in section 14(1)(a)(i), or a supply of services mentioned in section 14(1)(b)(i), that is between connected persons within the meaning of paragraph 3 of the Third Schedule;

a supply of distantly taxable goods mentioned in section 14(1)(a)(ii) or a supply of services mentioned in section 14(1)(b)(ii); or

a supply of distantly taxable goods or a supply of services mentioned in section 30(1A),then the reverse charge supply takes place at the end of 12 months after the distantly taxable goods are delivered to a place in the customs territory or the services are performed (as the case may be), to the extent that it is not covered by any invoice already issued or consideration already paid.”;

by deleting subsection (6) and substituting the following subsection:“(6) Where —

the recipient is a taxable person receiving distantly taxable goods or services mentioned in section 14(1);

but for this subsection, the reverse charge supply would be treated under this section as taking place after the date on which the recipient becomes a taxable person; and

the Comptroller is satisfied that the distantly taxable goods have been delivered to a place in the customs territory or that the services have been performed (as the case may be), prior to that date,then the recipient may treat the reverse charge supply as taking place when the distantly taxable goods were so delivered (to the extent of the delivery) or the services were performed (to the extent of the performance).”;

by deleting paragraph (a) of subsection (7) and substituting the following paragraph:“(a)distantly taxable goods are delivered to a place in the customs territory to the person or branch mentioned in section 14(1)(a) or services are in fact performed by the person or branch mentioned in section 14(1)(b), whether on a single occasion or on different occasions;”;

by deleting the words “subsections (2), (3)” in subsection (8) and substituting the words “subsections (2), (2A), (3), (3A)”; and

by inserting, immediately after subsection (9), the following subsection:“(10) Where an employee pays the consideration for a reverse charge supply at an earlier date and is reimbursed by the employer as the recipient at a later date, the date on which the recipient is regarded as having paid the consideration for the purposes of this section is the later date.”.