There is an amendment.
SECTION 156.
Chairman
I move amendment No. 125:
In page 170, lines 32 to 34, to delete "tax borne or paid by him on the purchase, intra-Community acquisition or importation" and substitute "residual tax included in the consideration for supply".
The amendment is necessary because the section as drafted would allow a larger repayment of VAT in respect of new means of transport despatched to another member state than should properly be allowed. The amounts to be repaid in such circumstances should only be the residual VAT contained in the price paid for the new means of transport at the time of despatch. This is in accordance with the new EC VAT rules. Calculation of the payment in this way would take account of any reduction in the value of the means of transport from the time it was first purchased to the time when it was despatched to another member state. It is important both for consistency and to prevent avoidance that repayment be linked to the value of the goods at the time of despatch rather than the original purchase value. This is especially so in the case of motor vehicles which depreciate rapidly in value after purchase. The need for this amendment is even more apparent in the case of a new vehicle which has been crashed and is being sold to another member state. Without the proposed amendment the VAT would amount to more than the sale value of the vehicle.
Amendment agreed to.
Section 156, as amended, agreed to.