98.This section enables the Treasury to lay down the method of accounting for VAT in departmental accounts and the treatment of the VAT element of receipts.
99.The intention of subsection (2)(a) is to enable departments to account for VAT according to accepted accounting practice (currently set out in Statement of Standard Accounting Practice 5). The accounting policy to be followed will be set out in the Resource Accounting Manual.
100.Subsection (2)(b) will enable the Treasury to exempt the VAT element of receipts from the normal requirement that receipts are paid into the Consolidated Fund.
Commentary on Sections Section 21: Value Added Tax