Glossary
P170 – Amendments to the Balancing and Settlement Code (Code), and to the systems and processes that support it, to allow compliance with the changed application of VAT to Trading Charges
Formal title: Amendments to the Balancing and Settlement Code (Code), and to the systems and processes that support it, to allow compliance with the changed application of VAT to Trading Charges
Current Status
Submission
Initial Written Assessment
Assessment Procedure
Report Phase
With Authority
Awaiting Implementation
Implemented
Summary
The Council of the European Union has directed an amendment to the rules on the place of supply of gas and electricity, for the purposes of turnover taxes. This amendment takes effect from 1 January 2005 and directly affects the manner in which VAT is applied to Trading Charges. In order to comply with this taxation legislation BSCCo have obtained agreement from Customs and Exercise for the proposed way forward. This involves BSSCo’s VAT return being used for settling VAT relating to Trading Charges and there may be a requirement to carry out daily VAT balancing via Elexon Ltd accounts.
Progression
The Authority approved the Proposed Modification on 29 November 2004