Section 108 — Finance Act 2014: VAT: prompt payment discounts

VAT: prompt payment discounts 108 1 In Part 2 of Schedule 6 to VATA 1994 (valuation: special cases), for paragraph 4 (prompt payment discounts), substitute— 4 1 Sub-paragraph (2) applies where—

a goods or services are supplied for a consideration which is a price in money, b the terms on which those goods or services are so supplied allow a discount for prompt payment of that price, c payment of that price is not made by instalments, and d payment of that price is made in accordance with those terms so that the discount is realised in relation to that payment.

2 For the purposes of section 19 (value of supply of goods or services) the consideration is the discounted price paid.

2 The amendment made by this section has effect in relation to relevant supplies made on or after 1 May 2014.

3 The Treasury may by order made by statutory instrument provide that the amendment has effect in relation to supplies of a description specified in the order made on or after a date so specified (being a date before 1 April 2015).

4 Subject to that, the amendment has effect in relation to supplies made on or after 1 April 2015.

5 In this section— “ relevant supply ” means a supply of radio or television broadcasting services or telecommunication services made by a taxable person who is not required by or under any enactment to provide a VAT invoice to the person supplied; “ telecommunication services ” has the same meaning as in paragraph 8(2) of Schedule 4A to VATA 1994.