—(1) Where any person makes any prescribed supply of goods or services to another person and that supply is a taxable supply but not a zero-rated supply, the prescribed supply shall be treated for the purposes of the First Schedule —
as a taxable supply of that other person (as well as a taxable supply of the person who makes it); and
in so far as that other person is supplied in connection with the carrying on by him of any business, as a supply made by him in the course or furtherance of that business.
(1A) Nothing in subsection (1)(b) shall require any supply to be disregarded for the purposes of the First Schedule on the grounds that it is a supply of capital assets of that other person’s business.
(2) Where a taxable person makes any prescribed supply of goods or services to a person who —
is himself a taxable person at the time when the prescribed supply is made; and
is supplied in connection with the carrying on by him of any business,
it shall be for the person supplied, on the supplier’s behalf, to account for and pay tax on the prescribed supply, and not for the supplier.
(3) So much of this Act and of any written law as has effect for the purposes of, or in connection with, the enforcement of any obligation to account for and pay goods and services tax shall apply for the purposes of this section in relation to any person who is required under subsection (2) to account for and pay any tax as if that tax were tax on a supply made by him.
(4) Notwithstanding sections 11, 11A, 11B and 12, for the purposes of this section, a prescribed supply of goods or services shall be treated as taking place —
in the case of a prescribed supply that is a supply of goods —
if the goods are to be removed, at the time of the removal; or
if the goods are not to be removed, at the time when they are made available to the person to whom they are supplied; or
in the case of a prescribed supply that is a supply of services, at the time when the services are performed.
(4A) Section 12(1) shall not apply for determining the time when any prescribed supply of goods or services is to be treated as taking place.
(5) In this section, “prescribed supply”, in relation to goods or services, means such supply of —
goods consisting in or containing any precious or semi-precious metal or stones;
services relating to, or to anything containing, any precious or semi-precious metal or stones;
goods or services comprising in or relating to land or any interest in or right over land,
as may be specified or described in regulations made by the Minister.
[UK VAT Act 1983, s. 37C]