Clause 5

by deleting the word “Where” in the 1st line of subsection (2) and substituting the words “Subject to subsections (2A) and (2E), where”;

by inserting, immediately after subsection (2), the following subsections:“(2A) Where, in relation to a tax invoice issued before the date an increase in tax rate comes into operation —

no payment or part payment is received before that date; or

no supply or part of the supply of goods or services is treated under section 11(2) or (3) as having been made before that date,the rate at which tax is chargeable on the supply shall be as follows:

tax shall be charged at the old tax rate on the higher of the following amounts:

any part payment received before the date of change; or

the value of any supply of the goods or services treated under section 11(2) or (3) as having been partly made before that date; and

tax shall be charged at the new tax rate on the amount of the tax invoice less the amount on which tax is charged at the old tax rate under paragraph (i).(2B) For the purpose of subsection (2A), a tax invoice referred to in that subsection shall, on the date the increase in tax rate comes into operation, cease to have effect to the extent of the amount on which tax is chargeable at the new tax rate under subsection (2A)(ii).(2C) Where a tax invoice ceases to have effect under subsection (2B), the person making the supply shall issue a new tax invoice specifying —

the new tax rate; and

the amount on which tax is chargeable at the new tax rate under subsection (2A)(ii),and tax shall be chargeable on the supply to which the new tax invoice relates as if it were a separate supply.(2D) Nothing in subsection (2), (2A), (2B) or (2C) shall affect any tax which (apart from those subsections) is chargeable on a supply to which an invoice referred to in subsection (2A) relates, and such tax shall be accounted for and paid to the Comptroller as if those subsections had not been enacted.(2E) Where, in relation to a tax invoice issued before the date a supply ceases to be a zero-rated or an exempt supply —

no payment or part payment is received before that date; or

no supply or part of the supply of goods or services is treated under section 11(2) or (3) as having been made before that date,tax shall be chargeable at the rate applicable on that date on the amount of the tax invoice less the higher of the following amounts:

any part payment received before that date; or

the value of any supply of the goods or services treated under section 11(2) or (3) as having been partly made before that date.(2F) For the purpose of subsection (2E), a tax invoice referred to in that subsection shall, on the date the supply ceases to be a zero-rated or an exempt supply, cease to have effect to the extent of the amount on which tax is chargeable under subsection (2E).(2G) Where a tax invoice ceases to have effect under subsection (2F), the person making the supply shall issue a new tax invoice specifying —

the tax rate applicable on the date the supply ceases to be a zero-rated or an exempt supply; and

the amount on which tax is chargeable at that tax rate under subsection (2E),and tax shall be chargeable on the supply to which the new tax invoice relates as if it were a separate supply.”;

by deleting subsection (4) and substituting the following subsection:“(4) Regulations made under section 41 may, in relation to any tax invoice which —

relates to a supply in respect of which an election is made under this section and which was issued before the election was made; or

ceases to have effect under subsection (2B) or (2F),provide for the replacement or correction of that invoice (including the issue of a credit note).”; and

by inserting, immediately after subsection (5), the following subsections:“(6) For the purposes of this section, the value of any supply of goods or services treated under section 11(2) or (3) as having been partly made shall be such value as is, in the opinion of the Comptroller, reasonably attributable to the supply partly made.(7) In this section —“new tax rate” means the tax rate applicable on the date an increase in tax rate comes into operation;“old tax rate” means the tax rate applicable immediately before the date an increase in tax rate comes into operation.”.