Registration in respect of relevant supplies: introduction
This section is about registration under the VAT Act 1994, Schedule 3A. This legislation was enacted primarily for anti-avoidance purposes and, since its introduction in the Finance Act 2000, the activities which created a need for it have largely ceased.
The purpose of Schedule 3A is to prevent a person avoiding accounting for VAT by reclaiming VAT through the Eighth or Thirteenth Directive and then transferring the goods to a different person to dispose of them free of VAT. You can find more information about Eighth and Thirteenth directive refunds in VROBP. (External readers can access this guidance at http://www.hmrc.gov.uk/manuals/vrobpmanual/index.htm).
Schedule 3A is fairly self-contained legislation in which certain provisions are subject to definitions exclusive to the schedule.