Sections 8 and 31.
Part I Index to exempt supplies of goods and services
Betting, gaming, dutiable machine games and lotteries | Group 4
Burial and cremation | Group 8
Cultural services etc | Group 13
Education | Group 6
Finance | Group 5
Fund raising events by charities and other qualifying bodies | Group 12
Health and welfare | Group 7
Insurance | Group 2
Investment gold | Group 15
Land | Group 1
Postal services | Group 3
Sport, sports competitions and physical education | Group 10
Supplies of goods where input tax cannot be recovered | Group 14
Supplies of services by groups involving cost sharing | Group 16
Subscriptions to trade unions, professional and other public interest bodies | Group 9
Works of art etc | Group 11
Part II The Groups
Group 1— Land
Item No.
1 The grant of any interest in or right over land or of any licence to occupy land, or, in relation to land in Scotland, any personal right to call for or be granted any such interest or right, other than—
(a) the grant of the fee simple in—
(i) a building which has not been completed and which is neither designed as a dwelling or number of dwellings nor intended for use solely for a relevant residential purpose or a relevant charitable purpose;
(ii) a new building which is neither designed as a dwelling or number of dwellings nor intended for use solely for a relevant residential purpose or a relevant charitable purpose after the grant;
(iii) a civil engineering work which has not been completed;
(iv) a new civil engineering work;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) the grant of any interest, right or licence consisting of a right to take game or fish unless at the time of the grant the grantor grants to the grantee the fee simple of the land over which the right to take game or fish is exercisable;
(d) the provision in an hotel, inn, boarding house or similar establishment of sleeping accommodation or of accommodation in rooms which are provided in conjunction with sleeping accommodation or for the purpose of a supply of catering;
(e) the grant of any interest in, right over or licence to occupy holiday accommodation;
(f) the provision of seasonal pitches for caravans, and the grant of facilities at caravan parks to persons for whom such pitches are provided;
(g) the provision of pitches for tents or of camping facilities;
(h) the grant of facilities for parking a vehicle;
(j) the grant of any right to fell and remove standing timber;
(k) the grant of facilities for housing, or storage of, an aircraft or for mooring, or storage of, a ship, boat or other vessel;
(ka) the grant of facilities for the self storage of goods;
(l) the grant of any right to occupy a box, seat or other accommodation at a sports ground, theatre, concert hall or other place of entertainment;
(m) the grant of facilities for playing any sport or participating in any physical recreation; ...
(ma) the grant of facilities to a person who uses the facilities wholly or mainly to supply hairdressing services; and
(n) the grant of any right, including—
(i) an equitable right,
(ii) a right under an option or right of pre-emption, or
(iii) in relation to land in Scotland, a personal right,
to call for or be granted an interest or right which would fall within any of paragraphs (a) or (c) to (ma) above.
Notes:
(1) “Grant” includes an assignment or surrender and the supply made by the person to whom an interest is surrendered when there is a reverse surrender.
(1A) A “reverse surrender” is one in which the person to whom the interest is surrendered is paid by the person by whom the interest is being surrendered to accept the surrender.
(2) A building shall be taken to be completed when an architect issues a certificate of practical completion in relation to it or it is first fully occupied, whichever happens first; and a civil engineering work shall be taken to be completed when an engineer issues a certificate of completion in relation to it or it is first fully used, whichever happens first.
(3) Notes (2) to (10) and (12) to Group 5 of Schedule 8 apply in relation to this Group as they apply in relation to that Group.
(4) A building or civil engineering work is new if it was completed less than three years before the grant.
(5) Subject to Note (6), the grant of the fee simple in a building or work completed before 1st April 1989 is not excluded from this Group by paragraph (a)(ii) or (iv).
(6) Note (5) does not apply where the grant is the first grant of the fee simple made on or after 1st April 1989 and the building was not fully occupied, or the work not fully used, before that date.
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) Where a grant of an interest in, right over or licence to occupy land includes a valuable right to take game or fish, an apportionment shall be made to determine the supply falling outside this Group by virtue of paragraph (c).
(9) “Similar establishment” includes premises in which there is provided furnished sleeping accommodation, whether with or without the provision of board or facilities for the preparation of food, which are used by or held out as being suitable for use by visitors or travellers.
(10) “Houseboat” includes a houseboat within the meaning of Group 9 of Schedule 8.
(11) Paragraph (e) includes—
(a) any grant excluded from item 1 of Group 5 of Schedule 8 by Note (13) in that Group;
(b) any supply made pursuant to a tenancy, lease or licence under which the grantee is or has been permitted to erect and occupy holiday accommodation.
(12) Paragraph (e) does not include a grant in respect of a building or part which is not a new building of—
(a) the fee simple, or
(b) a tenancy, lease or licence to the extent that the grant is made for a consideration in the form of a premium.
(13) “Holiday accommodation” includes any accommodation in a building, hut (including a beach hut or chalet), caravan, houseboat or tent which is advertised or held out as holiday accommodation or as suitable for holiday or leisure use, but excludes any accommodation within paragraph (d).
(14) A seasonal pitch for a caravan is—
(a) a pitch on a holiday site other than an employee pitch, or
(b) a non-residential pitch on any other site.
(14A) In this Note and in Note (14)—
“employee pitch” means a pitch occupied by an employee of the site operator as that person’s principal place of residence during the period of occupancy;
“holiday site” means a site or part of a site which is operated as a holiday or leisure site;
“non-residential pitch” means a pitch which—
is provided for less than a year, or
is provided for a year or more and is subject to an occupation restriction,
and which is not intended to be used as the occupant’s principal place of residence during the period of occupancy;
“occupation restriction” means any covenant, statutory planning consent or similar permission, the terms of which prevent the person to whom the pitch is provided from occupying it by living in a caravan at all times throughout the period for which the pitch is provided.
(15) “Mooring” includes anchoring or berthing.
(15A) In paragraph (ka)—
“facilities for the self storage of goods” means the use of a relevant structure for the storage of goods by the person (or persons) to whom the grant of facilities is made, and
“goods” does not include live animals.
(15B) For the purposes of Note (15A), use by a person with the permission of the person (or any of the persons) to whom the grant of facilities is made counts as use by the person (or persons) to whom that grant is made.
(15C) A grant of facilities for the self storage of goods does not fall within paragraph (ka) if—
(a) the person making the grant (“P”)—
(i) is doing so in circumstances where the relevant structure used is, or forms part of, a relevant capital item, and
(ii) is connected with any person who uses that relevant structure for the self storage of goods,
(b) the grant is made to a charity which uses the relevant structure solely otherwise than in the course of a business, or
(c) in a case where the relevant structure is part of a building, its use for the storage of goods by the person (or persons) to whom the grant is made is ancillary to other use of the building by that person (or those persons).
(15D) In Notes (15A) and (15C) “relevant structure” means the whole or part of—
(a) a container or other structure that is fully enclosed, or
(b) a unit or building.
(15E) In Note (15C)(a)(i) “relevant capital item” means a capital item which—
(a) is subject to adjustments of input tax deduction by P under regulations made under section 26(3), and
(b) has not yet reached the end of its prescribed period of adjustment.
(16) Paragraph (m) shall not apply where the grant of the facilities is for—
(a) a continuous period of use exceeding 24 hours; or
(b) a series of 10 or more periods, whether or not exceeding 24 hours in total, where the following conditions are satisfied—
(i) each period is in respect of the same activity carried on at the same place;
(ii) the interval between each period is not less than one day and not more than 14 days;
(iii) consideration is payable by reference to the whole series and is evidenced by written agreement;
(iv) the grantee has exclusive use of the facilities; and
(v) the grantee is a school, a club, an association or an organisation representing affiliated clubs or constituent associations.
(17) Paragraph (ma) does not apply to a grant of facilities which provides for the exclusive use, by the person to whom the grant is made, of a whole building, a whole floor, a separate room or a clearly defined area, unless the person making the grant or a person connected with that person provides or makes available (directly or indirectly) services related to hairdressing for use by the person to whom the grant is made.
(18) For the purposes of Note (17)—
(a) “services related to hairdressing” means the services of a hairdresser's assistant or cashier, the booking of appointments, the laundering of towels, the cleaning of the facilities subject to the grant, the making of refreshments and other similar services typically used in connection with hairdressing, but does not include the provision of utilities or the cleaning of shared areas in a building, and
(b) it does not matter if the services related to hairdressing are shared with other persons.
(19) For the purposes of Notes (15C) and (17) any question whether a person is connected with any other person is to be determined in accordance with section 1122 of the Corporation Tax Act 2010 (connected person).
Group 2 — Insurance
1 Insurance transactions and reinsurance transactions.
4 The provision by an insurance broker or insurance agent of any of the services of an insurance intermediary in a case in which those services—
(a) are related (whether or not a contract of insurance or reinsurance is finally concluded) to an insurance transaction or a reinsurance transaction; and
(b) are provided by that broker or agent in the course of his acting in an intermediary capacity.
Notes:
(A1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(B1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(C1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) For the purposes of item 4 services are services of an insurance intermediary if they fall within any of the following paragraphs—
(a) the bringing together, with a view to the insurance or reinsurance of risks, of—
(i) persons who are or may be seeking insurance or reinsurance, and
(ii) persons who provide insurance or reinsurance;
(b) the carrying out of work preparatory to the conclusion of contracts of insurance or reinsurance;
(c) the provision of assistance in the administration and performance of such contracts, including the handling of claims;
(d) the collection of premiums.
(2) For the purposes of item 4 an insurance broker or insurance agent is acting “in an intermediary capacity” wherever he is acting as an intermediary, or one of the intermediaries, between—
(a) a person who provides insurance or reinsurance, and
(b) a person who is or may be seeking insurance or reinsurance or is an insured person.
(3) Where—
(a) a person (“the supplier”) makes a supply of goods or services to another (“the customer”),
(b) the supply of the goods or services is a taxable supply and is not a zero-rated supply,
(c) a transaction under which insurance is to be or may be arranged for the customer is entered into in connection with the supply of the goods or services,
(d) a supply of services which are related (whether or not a contract of insurance is finally concluded) to the provision of insurance in pursuance of that transaction is made by—
(i) the person by whom the supply of the goods or services is made, or
(ii) a person who is connected with that person and, in connection with the provision of that insurance, deals directly with the customer,
and
(e) the related services do not consist in the handling of claims under the contract for that insurance,
those related services do not fall within item 4 unless the relevant requirements are fulfilled.
(4) For the purposes of Note (3) the relevant requirements are—
(a) that a document containing the statements specified in Note (5) is prepared;
(b) that the matters that must be stated in the document have been disclosed to the customer at or before the time when the transaction mentioned in Note (3)(c) is entered into; and
(c) that there is compliance with all such requirements (if any) as to—
(i) the preparation and form of the document,
(ii) the manner of disclosing to the customer the matters that must be stated in the document, and
(iii) the delivery of a copy of the document to the customer,
as may be set out in a notice that has been published by the Commissioners and has not been withdrawn.
(5) The statements referred to in Note (4) are—
(a) a statement setting out the amount of the premium under any contract of insurance that is to be or may be entered into in pursuance of the transaction in question; and
(b) a statement setting out every amount that the customer is, is to be or has been required to pay, otherwise than by way of such a premium, in connection with that transaction or anything that is to be, may be or has been done in pursuance of that transaction.
(6) For the purposes of Note (3) any question whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010.
(7) Item 4 does not include—
(a) the supply of any market research, product design, advertising, promotional or similar services; or
(b) the collection, collation and provision of information for use in connection with market research, product design, advertising, promotional or similar activities.
(8) Item 4 does not include the supply of any valuation or inspection services.
(9) Item 4 does not include the supply of any services by loss adjusters, average adjusters, motor assessors, surveyors or other experts except where—
(a) the services consist in the handling of a claim under a contract of insurance or reinsurance;
(b) the person handling the claim is authorised when doing so to act on behalf of the insurer or reinsurer; and
(c) that person’s authority so to act includes written authority to determine whether to accept or reject the claim and, where accepting it in whole or in part, to settle the amount to be paid on the claim.
(10) Item 4 does not include the supply of any services which—
(a) are supplied in pursuance of a contract of insurance or reinsurance or of any arrangements made in connection with such a contract; and
(b) are so supplied either—
(i) instead of the payment of the whole or any part of any indemnity for which the contract provides, or
(ii) for the purpose, in any other manner, of satisfying any claim under that contract, whether in whole or in part.
Group 3— Postal services
Item No
1 The supply of public postal services by a universal service provider.
2 The supply of goods by a universal service provider which is incidental to the supply of public postal services by that provider.
Notes:
(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) Subject to the following Notes, “public postal services”, in relation to a universal service provider, means any postal services which the provider is required to provide in the discharge of a specified condition.
(3) Public postal services include postal services which a universal service provider provides to allow a person access to the provider's postal network (within the meaning of section 38 of the Postal Services Act 2011) and which are required to be provided by a specified condition.
(4) Services are not “public postal services” if—
(a) the price is not controlled by or under a specified condition, or
(b) any of the other terms on which the services are provided are freely negotiated.
(5) But Note (4) does not apply if a specified condition requires the universal service provider to make the services available to persons generally—
(a) where the price is not controlled by or under the condition, at the same price, or
(b) where terms are freely negotiated as mentioned in Note (4)(b), on those terms.
(6) In this Group “specified condition” means a designated USP condition, a USP access condition or a transitory condition under paragraph 5 of Schedule 9 to the Postal Services Act 2011 which is imposed only on a universal service provider.
(7) Any expression which is used in this Group and in Part 3 of the Postal Services Act 2011 has the same meaning in this Group as in that Part.
Group 4— Betting, gaming , dutiable machine games and lotteries
Item No.
1 The provision of any facilities for the placing of bets or for the playing of any games of chance for a prize.
1A The provision of any facilities for the playing of dutiable machine games (as defined in Part 1 of Schedule 24 to the Finance Act 2012) but only to the extent that—
(a) the facilities are used to play such games, and
(b) the takings and payouts in respect of those games are taken into account in determining the charge to machine games duty.
2 The granting of a right to take part in a lottery.
Notes:
(1) Items 1 and 1A do not include—
(a) admission to any premises; or
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) the provision by a club of such facilities to its members as are available to them on payment of their subscription but without further charge; ...
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1A) Item 1 does not apply to the provision of facilities to the extent that the facilities are used to play a relevant machine game (as defined in section 23A).
(2) ”Game of chance”—
(a) includes—
(i) a game that involves both an element of chance and an element of skill,
(ii) a game that involves an element of chance that can be eliminated by superlative skill, and
(iii) a game that is presented as involving an element of chance, but
(b) does not include a sport.
(3) A person plays a game of chance if he participates in a game of chance—
(a) whether or not there are other participants in the game, and
(b) whether or not a computer generates images or data taken to represent the actions of other participants in the game.
(4) ”Prize” does not include the opportunity to play the game again.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Group 5— Finance
Item No.
1 The issue, transfer or receipt of, or any dealing with, money, any security for money or any note or order for the payment of money.
2 The making of any advance or the granting of any credit.
2A The management of credit by the person granting it.
3 The provision of the facility of instalment credit finance in a hire-purchase, conditional sale or credit sale agreement for which facility a separate charge is made and disclosed to the recipient of the supply of goods.
4 The provision of administrative arrangements and documentation and the transfer of title to the goods in connection with the supply described in item 3 if the total consideration therefor is specified in the agreement and does not exceed £10.
5 The provision of intermediary services in relation to any transaction comprised in item 1, 2, 3, 4 or 6 (whether or not any such transaction is finally concluded) by a person acting in an intermediary capacity.
5A The underwriting of an issue within item 1 or any transaction within item 6.
6 The issue, transfer or receipt of, or any dealing with, any security or secondary security being—
(a) shares, stocks, bonds, notes (other than promissory notes), debentures, debenture stock or shares in an oil royalty; or
(b) any document relating to money, in any currency, which has been deposited with the issuer or some other person, being a document which recognises an obligation to pay a stated amount to bearer or to order, with or without interest, and being a document by the delivery of which, with or without endorsement, the right to receive that stated amount, with or without interest, is transferable; or
(c) any bill, note or other obligation of the Treasury or of a Government in any part of the world, being a document by the delivery of which, with or without endorsement, title is transferable, and not being an obligation which is or has been legal tender in any part of the world; or
(d) any letter of allotment or rights, any warrant conferring an option to acquire a security included in this item, any renounceable or scrip certificates, rights coupons, coupons representing dividends or interest on such a security, bond mandates or other documents conferring or containing evidence of title to or rights in respect of such a security; or
(e) units or other documents conferring rights under any trust established for the purpose, or having the effect of providing, for persons having funds available for investment, facilities for the participation by them as beneficiaries under the trust, in any profits or income arising from the acquisition, holding, management or disposal of any property whatsoever.
7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 The operation of any current, deposit or savings account.
9 The management of—
(a) an authorised open-ended investment company; or
(aa) an authorised contractual scheme; or
(b) an authorised unit trust scheme; or
(c) a Gibraltar collective investment scheme that is not an umbrella scheme; or
(d) a sub-fund of any other Gibraltar collective investment scheme; or
(e) an individually recognised overseas scheme that is not an umbrella scheme; or
(f) a sub-fund of any other individually recognised overseas scheme; or
(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(k) a qualifying pension fund.
10 The management of a closed-ended collective investment undertaking.
Notes:
(1) Item 1 does not include anything included in item 6.
(1A) Item 1 does not include a supply of services which is preparatory to the carrying out of a transaction falling within that item.
(2) This Group does not include the supply of a coin or a banknote as a collectors’ piece or as an investment article.
(2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Item 2 includes the supply of credit by a person, in connection with a supply of goods or services by him, for which a separate charge is made and disclosed to the recipient of the supply of goods or services.
(4) This Group includes any supply by a person carrying on a credit card, charge card or similar payment card operation made in connection with that operation to a person who accepts the card used in the operation when presented to him in payment for goods or services.
(5) For the purposes of item 5 “intermediary services” consist of bringing together, with a view to the provision of financial services—
(a) persons who are or may be seeking to receive financial services, and
(b) persons who provide financial services,
together with (in the case of financial services falling within item 1, 2, 3 or 4) the performance of work preparatory to the conclusion of contracts for the provision of those financial services, but do not include the supply of any market research, product design, advertising, promotional or similar services or the collection, collation and provision of information in connection with such activities.
(5A) For the purposes of item 5 a person is “acting in an intermediary capacity” wherever he is acting as an intermediary, or one of the intermediaries, between—
(a) a person who provides financial services, and
(b) a person who is or may be seeking to receive financial services
...
(5B) For the purposes of notes 5 and 5A “financial services” means the carrying out of any transaction falling within item 1, 2, 3, 4 or 6.
(6) For the purposes of this Group—
“authorised open-ended investment company”, “authorised contractual scheme” and “authorised unit trust scheme” have the meaning given in section 237(3) of the Financial Services and Markets Act 2000;
“closed-ended collective investment undertaking” means an undertaking in relation to which the following conditions are satisfied—
its sole object is the investment of capital, raised from the public ...; and
it manages its assets on the principle of spreading investment risk; and
all of its ordinary shares (of each class if there is more than one) or equivalent units are included in the official list maintained by the Financial Conduct Authority pursuant to section 74(1) of the Financial Services and Markets Act 2000; and
all of its ordinary shares (of each class if there is more than one) or equivalent units are admitted to trading on a regulated market situated or operating in the United Kingdom;
“collective investment scheme” has the meaning given in section 235 of the Financial Services and Markets Act 2000;
“Gibraltar collective investment scheme” means—
a collective investment scheme to which section 264 of the Financial Services and Markets Act 2000 applies pursuant to an order made under section 409(1)(d) of that Act; ...
...
“individually recognised overseas scheme” means a collective investment scheme declared by the Financial Conduct Authority to be a recognised scheme pursuant to section 272 of the Financial Services and Markets Act 2000;
“pension member” means, in relation to a qualifying pension fund, a person to or in respect of whom retirement benefits are to be paid from the fund;
“qualifying pension fund” means a pension fund in relation to which all of the following conditions are satisfied—
it is solely funded, whether directly or indirectly, by pension members;
the pension members bear the investment risk;
the fund contains the pooled contributions of more than one pension member;
the risk borne by the pension members is spread over a range of investments; and
the fund is established in the United Kingdom ...;
...
...
“regulated market” has the meaning given in section 103(1) of the Financial Services and Markets Act 2000;
“sub-fund” means a separate part of the property of an umbrella scheme that is pooled separately;
“umbrella scheme” means a collective investment scheme under which the contributions of the participants in the scheme and the profits or income out of which payments are to be made to them are pooled separately in relation to separate parts of the scheme property.
(6A) A collective investment scheme, or sub-fund, that is not for the time being marketed in the United Kingdom is to be treated as not falling within item 9(c) to (f) if—
(a) it has never been marketed in the United Kingdom, or
(b) less than 5% of its shares or units are held by, or on behalf of, investors who are in the United Kingdom.
(6B) For the purposes of Note (6), a pension fund is funded indirectly where contributions are made by a third party on behalf of a pension member.
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Group 6— Education
Item No.
1 The provision by an eligible body of—
(a) education;
(b) ... or
(c) vocational training.
2 The supply of private tuition, in a subject ordinarily taught in a school or university, by an individual teacher acting independently of an employer.
3 The provision of examination services—
(a) by or to an eligible body; or
(b) to a person receiving education or vocational training which is—
(i) exempt by virtue of items 1, 2 , 5 or 5A (or would be so exempt but for item 1 or 2 of Part 3); or
(ii) provided otherwise than in the course or furtherance of a business.
4 The supply of any goods or services (other than examination services) which are closely related to a supply of a description falling within item 1 (or would be so exempt but for item 1 or 2 of Part 3) (the principal supply) by or to the eligible body making the principal supply provided—
(a) the goods or services are for the direct use of the pupil, student or trainee (as the case may be) receiving the principal supply; and
(b) where the supply is to the eligible body making the principal supply, it is made by another eligible body.
5 The provision of vocational training, and the supply of any goods or services essential thereto by the person providing the vocational training, to the extent that the consideration payable is ultimately a charge to funds provided pursuant to arrangements made under section 2 of the Employment and Training Act 1973, section 1A of the Employment and Training Act (Northern Ireland) 1950 or section 2 of the Enterprise and New Towns (Scotland) Act 1990.
5A The provision of education or vocational training and the supply, by the person providing that education or training, of any goods or services essential to that provision, to the extent that the consideration payable is ultimately a charge to funds provided by
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) the Welsh Ministers under section 92, 97, or 103(1) of the Tertiary Education and Research (Wales) Act 2022, or
(d) the Commission for Tertiary Education and Research under section 97, 101, 103(1) or (2), or 104(1)(a) of that Act.
5B The provision of education or vocational training and the supply, by the person providing that education or training, of any goods or services essential to that provision, to persons who are—
(a) aged under 19,
(b) aged 19 or over, in respect of education or training begun by them when they were aged under 19,
(ba) aged 19 or over and for whom an EHC plan is maintained,
(c) aged 19 or over but under 25 and subject to learning difficulty assessment, or
(d) aged 25 or over, in respect of education or training begun by them when they were within paragraph (ba) or (c),
to the extent that the consideration payable is ultimately a charge to funds provided by the Secretary of State.
5C The provision of education or vocational training and the supply, by the person providing that education or training, of any goods or services essential to that provision, to persons who are aged 19 or over, to the extent that the consideration payable is ultimately a charge to funds provided by the Secretary of State in exercise of functions under Part 4 of the Apprenticeships, Skills, Children and Learning Act 2009.
6 The provision of facilities by—
(a) a youth club or an association of youth clubs to its members; or
(b) an association of youth clubs to members of a youth club which is a member of that association.
Notes:
(1) For the purposes of this Group an “eligible body” is—
(a) a school within the meaning of the Education Act 1996, the Education (Scotland) Act 1980, the Education and Libraries (Northern Ireland) Order 1986 or the Education Reform (Northern Ireland) Order 1989, which is—
(i) provisionally or finally registered or deemed to be registered as a school within the meaning of the aforesaid legislation in a register of independent schools; or
(ii) a school in respect of which of which grants are made by the Secretary of State to the proprietor or managers; or
(iii) a community, foundation or voluntary school within the meaning of the school Standards and Framework Act 1998, a special school within the meaning of section 337 of the Education Act 1996or a maintained school within the meaning of the Education and Libraries (Northern Ireland) Order 1986; or
(iv) a public school within the meaning of section 135(1) of the Education (Scotland) Act 1980; or
(v) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(vi) a self-governing school within the meaning of section 1(3) of the Self-Governing Schools (Scotland) Act 1989; or
(vii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(viii) a grant-maintained integrated school within the meaning of Article 65 of the Education Reform (Northern Ireland) Order 1989;
(b) a United Kingdom university, and any college, institution, school or hall of such a university;
(c) an institution—
(i) falling within section 91(3)(a) , (b) or (c) or section 91(5)(za), (b) or (c) of the Further and Higher Education Act 1992; or
(ii) which is a designated institution as defined in section 44(2) of the Further and Higher Education (Scotland) Act 1992; or
(iii) managed by a board of management as defined in section 36(1) of the Further and Higher Education (Scotland) Act 1992; or
(iv) to which grants are paid by the Department of Education for Northern Ireland under Article 66(2) of the Education and Libraries (Northern Ireland) Order 1986; or
(v) managed by a governing body established under the Further Education (Northern Ireland) Order 1997;
(d) a public body of a description in Note (5) to Group 7 below;
(e) a body which—
(i) is precluded from distributing and does not distribute any profit it makes; and
(ii) applies any profits made from supplies of a description within this Group to the continuance or improvement of such supplies;
(f) a body not falling within paragraphs (a) to (e) above which provides the teaching of English as a foreign language.
(2) A supply by a body, which is an eligible body only by virtue of falling within Note 1(f), shall not fall within this Group insofar as it consists of the provision of anything other than the teaching of English as a foreign language.
(3) “Vocational training” means—
training, re-training or the provision of work experience for—
(a) any trade, profession or employment; or
(b) any voluntary work connected with—
(i) education, health, safety, or welfare; or
(ii) the carrying out of activities of a charitable nature.
(4) “Examination services” include the setting and marking of examinations, the setting of educational or training standards, the making of assessments and other services provided with a view to ensuring educational and training standards are maintained.
(5) For the purposes of item 5 a supply of any goods or services shall not be taken to be essential to the provision of vocational training unless the goods or services in question are provided directly to the trainee.
(5A) For the purposes of items 5A to 5Ca supply of any goods or services shall not be taken to be essential to the provision of education or vocational training unless—
(a) in the case of the provision of education, the goods or services are provided directly to the person receiving the education;
(b) in the case of the provision of vocational training, the goods or services are provided directly to the person receiving the training.
(5B) In item 5B, “EHC plan” and “subject to learning difficulty assessment” have the same meanings as in the Education Act 1996.
(6) For the purposes of item 6 a club is a “youth club” if—
(a) it is established to promote the social, physical, educational or spiritual development of its members;
(b) its members are mainly under 21 years of age; and
(c) it satisfies the requirements of Note (l)(f)(i) and (ii).
Group 7— Health and welfare
Item No.
1 The supply of services consisting in the provision of medical care by a person registered or enrolled in any of the following—
(a) the register of medical practitioners ...;
(b) either of the registers of ophthalmic opticians or the register of dispensing opticians kept under the Opticians Act 1989 or either of the lists kept under section 9 of that Act of bodies corporate carrying on business as ophthalmic opticians or as dispensing opticians;
(c) the register kept under the Health Professions Order 2001 ;
(ca) the register of osteopaths maintained in accordance with the provisions of the Osteopaths Act 1993 ;
(cb) the register of chiropractors maintained in accordance with the provisions of the Chiropractors Act 1994 ;
(d) the register of qualified nurses, midwives and nursing associates maintained under article 5 of the Nursing and Midwifery Order 2001;
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 The supply of any services consisting in the provision of medical care, or the supply of dental prostheses, by—
(a) a person registered in the dentists’ register;
(b) a person registered in the dental care professionals register established under section 36B of the Dentists Act 1984; ...
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2A The supply of any services or dental prostheses by a dental technician.
3 The supply of any services consisting in the provision of medical care by a person registered in the register maintained under article 19 of the Pharmacy Order 2010 or in the register of pharmaceutical chemists kept under the Pharmacy (Northern Ireland) Order 1976.
4 The provision of care or medical or surgical treatment and, in connection with it, the supply of any goods, in any hospital or state-regulated institution.
5 The provision of a deputy for a person registered in the register of medical practitioners ....
6 Human blood.
7 Products for therapeutic purposes, derived from human blood.
8 Human (including foetal) organs or tissue for diagnostic or therapeutic purposes or medical research.
9 The supply by—
(a) a charity,
(b) a state-regulated private welfare institution or agency, or
(c) a public body,
of welfare services and of goods supplied in connection with those welfare services.
10 The supply, otherwise than for profit, of goods and services incidental to the provision of spiritual welfare by a religious community to a resident member of that community in return for a subscription or other consideration paid as a condition of membership.
11 The supply of transport services for sick or injured persons in vehicles specially designed for that purpose.
Notes:
(1) Item 1 does not include the letting on hire of goods except where the letting is in connection with a supply of other services comprised in the item.
(2) Paragraphs (a) to (d) of item 1 and paragraphs (a) and (b) of item 2 include supplies of services made by a person who is not registered or enrolled in any of the registers or rolls specified in those paragraphs where the services are wholly performed or directly supervised by a person who is so registered or enrolled.
(2ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2A) Item 3 includes supplies of services made by a person who is not registered in either of the registers specified in that item where the services are wholly performed or directly supervised by a person who is so registered.
(3) Item 3 does not include the letting on hire of goods.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) In item 9 “public body” means—
(a) a Government department within the meaning of section 41(6);
(b) a local authority;
(c) a body which acts under any enactment or instrument for public purposes and not for its own profit and which performs functions similar to those of a Government department or local authority.
(6) In item 9 “welfare services” means services which are directly connected with—
(a) the provision of care, treatment or instruction designed to promote the physical or mental welfare of elderly, sick, distressed or disabled persons,
(b) the care or protection of children and young persons, or
(c) the provision of spiritual welfare by a religious institution as part of a course of instruction or a retreat, not being a course or a retreat designed primarily to provide recreation or a holiday,
and, in the case of services supplied by a state-regulated private welfare institution, includes only those services in respect of which the institution is so regulated.
(7) Item 9 does not include the supply of accommodation or catering except where it is ancillary to the provision of care, treatment or instruction.
(8) In this Group “state-regulated” means approved, licensed, registered or exempted from registration by any Minister or other authority pursuant to a provision of a public general Act, other than a provision that is capable of being brought into effect at different times in relation to different local authority areas.
Here “Act” means—
an Act of Parliament;
an Act of the Scottish Parliament;
an Act of the Northern Ireland Assembly;
an Order in Council under Schedule 1 to the Northern Ireland Act 1974 ;
a Measure of the Northern Ireland Assembly established under section 1 of the Northern Ireland Assembly Act 1973 ;
an Order in Council under section 1(3) of the Northern Ireland (Temporary Provisions) Act 1972 ;
an Act of the Parliament of Northern Ireland.
Group 8— Burial and cremation
Item No.
1 The disposal of the remains of the dead.
2 The making of arrangements for or in connection with the disposal of the remains of the dead.
Group 9— SUBSCRIPTIONS TO TRADE UNIONS, PROFESSIONAL AND OTHER PUBLIC INTEREST BODIES
Item No.
1 The supply to its members of such services and, in connection with those services, of such goods as are both referable only to its aims and available without payment other than a membership subscription by any of the following non-profit-making organisations—
(a) a trade union or other organisation of persons having as its main object the negotiation on behalf of its members of the terms and conditions of their employment;
(b) a professional association, membership of which is wholly or mainly restricted to individuals who have or are seeking a qualification appropriate to the practice of the profession concerned;
(c) an association, the primary purpose of which is the advancement of a particular branch of knowledge, or the fostering of professional expertise, connected with the past or present professions or employments of its members;
(d) an association, the primary purpose of which is to make representations to the Government on legislation and other public matters which affect the business or professional interests of its members.
(e) a body which has objects which are in the public domain and are of a political, religious, patriotic, philosophical, philanthropic or civic nature.
Note:
(1) Item 1 does not include any right of admission to any premises, event or performance, to which non-members are admitted for a consideration.
(2) “Trade union” has the meaning assigned to it by section 1 of the Trade Union and Labour Relations (Consolidation) Act 1992.
(3) Item 1 shall include organisations and associations the membership of which consists wholly or mainly of constituent or affiliated associations which as individual associations would be comprised in the item; and “member” shall be construed as including such an association and “membership subscription” shall include an affiliation fee or similar levy.
(4) Paragraph (c) does not apply unless the association restricts its membership wholly or mainly to individuals whose present or previous professions or employments are directly connected with the purposes of the association.
(5) Paragraph (d) does not apply unless the association restricts its membership wholly or mainly to individuals or corporate bodies whose business or professional interests are directly connected with the purposes of the association.
Group 10— Sport, sports competitions and physical education
Item No.
1 The grant of a right to enter a competition in sport or physical recreation where the consideration for the grant consists in money which is to be allocated wholly towards the provision of a prize or prizes awarded in that competition.
2 The grant, by an eligible body established for the purposes of sport or physical recreation, of a right to enter a competition in such an activity.
3 The supply by an eligible body to an individual ... of services closely linked with and essential to sport or physical education in which the individual is taking part.
Notes:
(1) Item 3 does not include the supply of any services by an eligible body of residential accommodation, catering or transport.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2A) Subject to Notes (2C) and (3), in this Group “eligible body” means an eligible body which–
(a) is precluded from distributing any profit it makes, or is allowed to distribute any such profit by means only of distributions to a non-profit making body;
(b) applies in accordance with Note (2B) any profits it makes from supplies of a description within Item 2 or 3; and
(c) is not subject to commercial influence.
(2B) For the purposes of Note (2A)(b) the application of profits made by any body from supplies of a description within Item 2 or 3 is in accordance with this Note only if those profits are applied for one or more of the following purposes, namely–
(a) the continuance or improvement of any facilities made available in or in connection with the making of the supplies of those descriptions made by that body;
(b) the purposes of a non-profit making body.
(2C) In determining whether the requirements of Note (2A) for being an eligible body are satisfied in the case of any body, there shall be disregarded any distribution of amounts representing unapplied or undistributed profits that falls to be made to the body’s members on its winding-up or dissolution.
(3) In Item 3 a “non-profit making body” does not include—
(a) a local authority;
(b) a Government department within the meaning of section 41(6); or
(c) a non-departmental public body which is listed in the 1993 edition of the publication prepared by the Office of Public Service and Science and known as Public Bodies.
(4) For the purposes of this Group a body shall be taken, in relation to a sports supply, to be subject to commercial influence if, and only if, there is a time in the relevant period when–
(a) a relevant supply was made to that body by a person associated with it at that time;
(b) an emolument was paid by that body to such a person;
(c) an agreement existed for either or both of the following to take place after the end of that period, namely–
(i) the making of a relevant supply to that body by such a person; or
(ii) the payment by that body to such a person of any emoluments.
(5) In this Group “the relevant period”, in relation to a sports supply, means–
(a) where that supply is one made before 1st January 2003, the period beginning with 14th January 1999 and ending with the making of that sports supply; and
(b) where that supply is one made on or after 1st January 2003, the period of three years ending with the making of that sports supply.
(6) Subject to Note (7), in this Group “relevant supply”, in relation to any body, means a supply falling within any of the following paragraphs–
(a) the grant of any interest in or right over land which at any time in the relevant period was or was expected to become sports land;
(b) the grant of any licence to occupy any land which at any such time was or was expected to become sports land;
(c) the grant, in the case of land in Scotland, of any personal right to call for or be granted any such interest or right as is mentioned in paragraph (a) above;
(d) a supply arising from a grant falling within paragraph (a), (b) or (c) above, other than a grant made before 1st April 1996;
(e) the supply of any services consisting in the management or administration of any facilities provided by that body;
(f) the supply of any goods or services for a consideration in excess of what would have been agreed between parties entering into a commercial transaction at arm’s length.
(7) A supply which has been, or is to be or may be, made by any person shall not be taken, in relation to a sports supply made by any body, to be a relevant supply for the purposes of this Group if–
(a) the principal purpose of that body is confined, at the time when the sports supply is made, to the provision for employees of that person of facilities for use for or in connection with sport or physical recreation, or both;
(b) the supply in question is one made by a charity or local authority or one which (if it is made) will be made by a person who is a charity or local authority at the time when the sports supply is made;
(c) the supply in question is a grant falling within Note (6)(a) to (c) which has been made, or (if it is made) will be made, for a nominal consideration;
(d) the supply in question is one arising from such a grant as is mentioned in paragraph (c) above and is not itself a supply the consideration for which was, or will or may be, more than a nominal consideration; or
(e) the supply in question–
(i) is a grant falling within Note (6)(a) to (c) which is made for no consideration; but
(ii) falls to be treated as a supply of goods or services, or (if it is made) will fall to be so treated, by reason only of the application, in accordance with paragraph 9 of Schedule 4, of paragraph 5 of that Schedule.
(8) Subject to Note (10), a person shall be taken, for the purposes of this Group, to have been associated with a body at any of the following times, that is to say–
(a) the time when a supply was made to that body by that person;
(b) the time when an emolument was paid by that body to that person; or
(c) the time when an agreement was in existence for the making of a relevant supply or the payment of emoluments,
if, at that time, or at another time (whether before or after that time) in the relevant period, that person was an officer or shadow officer of that body or an intermediary for supplies to that body.
(9) Subject to Note (10), a person shall also be taken, for the purposes of this Group, to have been associated with a body at a time mentioned in paragraph (a), (b) or (c) of Note (8) if, at that time, he was connected with another person who in accordance with that Note–
(a) is to be taken to have been so associated at that time; or
(b) would be taken to have been so associated were that time the time of a supply by the other person to that body.
(10) Subject to Note (11), a person shall not be taken for the purposes of this Group to have been associated with a body at a time mentioned in paragraph (a), (b) or (c) of Note (8) if the only times in the relevant period when that person or the person connected with him was an officer or shadow officer of the body are times before 1st January 2000.
(11) Note (10) does not apply where (but for that Note) the body would be treated as subject to commercial influence at any time in the relevant period by virtue of–
(a) the existence of any agreement entered into on or after 14th January 1999 and before 1st January 2000; or
(b) anything done in pursuance of any such agreement.
(12) For the purposes of this Group a person shall be taken, in relation to a sports supply, to have been at all times in the relevant period an intermediary for supplies to the body making that supply if–
(a) at any time in that period either a supply was made to him by another person or an agreement for the making of a supply to him by another was in existence; and
(b) the circumstances were such that, if–
(i) that body had been the person to whom the supply was made or (in the case of an agreement) the person to whom it was to be or might be made; and
(ii) Note (7) above were to be disregarded to the extent (if at all) that it would prevent the supply from being a relevant supply, the body would have fallen to be regarded in relation to the sports supply as subject to commercial influence.
(13) In determining for the purposes of Note (12) or this Note whether there are such circumstances as are mentioned in paragraph (b) of that Note in the case of any supply, that Note and this Note shall be applied first for determining whether the person by whom the supply was made, or was to be or might be made, was himself an intermediary for supplies to the body in question, and so on through any number of other supplies or agreements.
(14) In determining for the purposes of this Group whether a supply made by any person was made by an intermediary for supplies to a body, it shall be immaterial that the supply by that person was made before the making of the supply or agreement by reference to which that person falls to be regarded as such an intermediary.
(15) Without prejudice to the generality of subsection (1AA) of section 43, for the purpose of determining–
(a) whether a relevant supply has at any time been made to any person;
(b) whether there has at any time been an agreement for the making of a relevant supply to any person; and
(c) whether a person falls to be treated as an intermediary for the supplies to any body by reference to supplies that have been, were to be or might have been made to him,
references in the preceding Notes to a supply shall be deemed to include references to a supply falling for other purposes to be disregarded in accordance with section 43(1)(a).
(16) In this Group–
“agreement” includes any arrangement or understanding (whether or not legally enforceable);
“emolument” means any emolument (within the meaning of the Income Tax Acts) the amount of which falls or may fall, in accordance with the agreement under which it is payable, to be determined or varied wholly or partly by reference–
to the profits from some or all of the activities of the body paying the emolument; or
to the level of that body’s gross income from some or all of its activities;
“employees”, in relation to a person, includes retired employees of that person;
“grant” includes an assignment or surrender;
“officer”, in relation to a body, includes–
a director of a body corporate; and
any committee member or trustee concerned in the general control and management of the administration of the body;
“shadow officer”, in relation to a body, means a person in accordance with whose directions or instructions the members or officers of the body are accustomed to act;
“sports land”, in relation to any body, means any land used or held for use for or in connection with the provision by that body of facilities for use for or in connection with sport or physical recreation, or both;
“sports supply” means a supply which, if made by an eligible body, would fall within Item 2 or 3.
(17) For the purposes of this Group any question whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010 (connected persons).
Group 11— Works of art etc
Item No.
1 The disposal of an object with respect to which estate duty is not chargeable by virtue of section 30(3) of the Finance Act 1953, section 34(1) of the Finance Act 1956 or the proviso to section 40(2) of the Finance Act 1930.
2 The disposal of an object with respect to which inheritance tax is not chargeable by virtue of paragraph 1(3)(a) or (4), paragraph 3(4)(a), or the words following paragraph 3(4), of Schedule 5 to the Inheritance Tax Act 1984.
3 The disposal of property with respect to which inheritance tax is not chargeable by virtue of section 32(4) or 32A(5) or (7) of the Inheritance Tax Act 1984.
4 The disposal of an asset in a case in which any gain accruing on that disposal is not a chargeable gain by virtue of section 258(2) of the Taxation of Chargeable Gains Act 1992.
GROUP 12—FUND-RAISING EVENTS BY CHARITIES AND OTHER QUALIFYING BODIES
Item No.
1 The supply of goods and services by a charity in connection with an event—
(a) that is organised for charitable purposes by a charity or jointly by more than one charity,
(b) whose primary purpose is the raising of money, and
(c) that is promoted as being primarily for the raising of money.
2 The supply of goods and services by a qualifying body in connection with an event—
(a) that is organised exclusively for the body’s own benefit,
(b) whose primary purpose is the raising of money, and
(c) that is promoted as being primarily for the raising of money.
3 The supply of goods and services by a charity or a qualifying body in connection with an event—
(a) that is organised jointly by a charity, or two or more charities, and the qualifying body,
(b) that is so organised exclusively for charitable purposes or exclusively for the body’s own benefit or exclusively for a combination of those purposes and that benefit,
(c) whose primary purpose is the raising of money, and
(d) that is promoted as being primarily for the raising of money.
Notes:
(1) For the purposes of this Group “event” includes an event accessed (wholly or partly) by means of electronic communications.
For this purpose “electronic communications” includes any communications by means of an electronic communications network.
(2) For the purposes of this Group “charity” includes a body corporate that is wholly owned by a charity if—
(a) the body has agreed in writing (whether or not contained in a deed) to transfer its profits (from whatever source) to a charity, or
(b) the body’s profits (from whatever source) are otherwise payable to a charity.
(3) For the purposes of this Group “qualifying body” means—
(a) any non-profit making organisation mentioned in item 1 of Group 9;
(b) any body that is an eligible body for the purposes of Group 10 and whose principal purpose is the provision of facilities for persons to take part in sport or physical education; or
(c) any body that is an eligible body for the purposes of item 2 of Group 13.
(4) Where in a financial year of a charity or qualifying body there are held at the same location more than 15 events involving the charity or body that are of the same kind, items 1 to 3 do not apply (or shall be treated as having not applied) to a supply in connection with any event involving the charity or body that is of that kind and is held in that financial year at that location.
(5) In determining whether the limit of 15 events mentioned in Note (4) has been exceeded in the case of events of any one kind held at the same location, disregard any event of that kind held at that location in a week during which the aggregate gross takings from events involving the charity or body that are of that kind and are held in that location do not exceed £1,000.
(6) In the case of a financial year that is longer or shorter than a year, Notes (4) and (5) have effect as if for “15” there were substituted the whole number nearest to the number obtained by—
(a) first multiplying the number of days in the financial year by 15, and
(b) then dividing the result by 365.
(7) For the purposes of Notes (4) and (5)—
(a) an event involves a charity if the event is organised by the charity or a connected charity;
(b) an event involves a qualifying body if the event is organised by the body.
Notes:
(1) For the purposes of items 1 and 2 “fund-raising event” means a fête, ball, bazaar, gala show, performance or similar event, which is separate from and not forming any part of a series or regular run of like or similar events.
(2) For the purposes of item 1 “charity” includes a body corporate which is wholly owned by a charity and whose profits (from whatever source) are payable to a charity by virtue of a deed of covenant or trust or otherwise.
(3) For the purposes of item 2 “qualifying body” means—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) any non-profit making organisation mentioned in item 1 of Group 9;
(c) any non-profit making body whose principal purpose is the provision of facilities for persons to take part in sport or physical education; or
(d) any body which is an eligible body for the purposes of item 2 of Group 13.
GROUP 13— CULTURAL SERVICES ETC
Item No.
1 The supply by a public body of a right of admission to—
(a) a museum, gallery, art exhibition or zoo; or
(b) a theatrical, musical or choreographic performance of a cultural nature.
2 The supply by an eligible body of a right of admission to—
(a) a museum, gallery, art exhibition or zoo; or
(b) a theatrical, musical or choreographic performance of a cultural nature.
Notes:
(1) For the purposes of this Group “public body” means—
(a) a local authority;
(b) a government department within the meaning of section 41(6); or
(c) a non-departmental public body which is listed in the 1995 edition of the publication prepared by the Office of Public Service and known as “Public Bodies”.
(2) For the purposes of item 2 “eligible body” means any body (other than a public body) which—
(a) is precluded from distributing, and does not distribute, any profit it makes;
(b) applies any profits made from supplies of a description falling within item 2 to the continuance or improvement of the facilities made available by means of the supplies; and
(c) is managed and administered on a voluntary basis by persons who have no direct or indirect financial interest in its activities.
(3) Item 1 does not include any supply the exemption of which would be likely to create distortions of competition such as to place a commercial enterprise carried on by a taxable person at a disadvantage.
(4) Item 1(b) includes the supply of a right of admission to a performance only if the performance is provided exclusively by one or more public bodies, one or more eligible bodies or any combination of public bodies and eligible bodies.
GROUP 14—SUPPLIES OF GOODS WHERE INPUT TAX CANNOT BE RECOVERED
Item No.
1 A supply of goods in relation to which each of the following conditions is satisfied, that is to say—
(a) there is input tax of the person making the supply (“the relevant supplier”), or of any predecessor of his, that has arisen or will arise on the supply to, ... or importation by, the relevant supplier or any such predecessor of goods used for the supply made by the relevant supplier;
(b) the only such input tax is non-deductible input tax; and
(c) the supply made by the relevant supplier is not a supply which would be exempt under Item 1 of Group 1 of Schedule 9 but for an option to tax any land under Part 1 of Schedule 10.
Notes:
(1) Subject to Note (2) below, in relation to any supply of goods by the relevant supplier, the goods used for that supply are—
(a) the goods supplied; and
(b) any goods used in the process of producing the supplied goods so as to be comprised in them.
(2) In relation to a supply by any person consisting in or arising from the grant of a major interest in land (“the relevant supply”)—
(a) any supply consisting in or arising from a previous grant of a major interest in the land is a supply of goods used for the relevant supply; and
(b) subject to paragraph (a) above, the goods used for the relevant supply are any goods used in the construction of a building or civil engineering work so as to become part of the land.
(3) Subject to Notes (7) to (10) below, non-deductible input tax is input tax to which Note (4) or (5) below applies.
(4) This Note applies to input tax which (disregarding this Group and regulation 106 of the Value Added Tax Regulations 1995 (de minimis rule)) is not, and will not become, attributable to supplies to which section 26(2) applies.
(5) This Note applies to input tax if—
(a) disregarding this Group and the provisions mentioned in Note (6) below, the relevant supplier or a predecessor of his has or will become entitled to credit for the whole or a part of the amount of that input tax; and
(b) the effect (disregarding this Group) of one or more of those provisions is that neither the relevant supplier nor any predecessor of his has or will become entitled to credit for any part of that amount.
(6) The provisions mentioned in Note (5) above are—
(a) Article 5 of the Value Added Tax (Input Tax) Order 1992 (no credit for input tax on goods or services used for business entertainment);
(b) Article 6 of that Order (no credit for input tax on non-building materials incorporated in a building or site);
(c) Article 7 of that Order (no credit for input tax on motor cars);
(d) any provision directly or indirectly re-enacted (with or without modification) in a provision mentioned in paragraphs (a) to (c) above.
(7) For the purposes of this Group the input tax of a person shall be deemed to include any VAT which—
(a) has arisen or will arise on a supply to, ... or importation by, that person; and
(b) would fall to be treated as input tax of that person but for its arising when that person is not a taxable person.
(8) Subject to Note (9) below, the input tax that is taken to be non-deductible input tax shall include any VAT which—
(a) is deemed to be input tax of any person by virtue of Note (7) above; and
(b) would be input tax to which Note (4) or (5) above would apply if it were input tax of that person and, in the case of a person to whom section 39 applies, if his business were carried on in the United Kingdom.
(9) Non-deductible input tax does not include any VAT that has arisen or will arise on a supply to, ... or importation by, any person of any goods used for a supply of goods (“the relevant supply”) if—
(a) that VAT ; or
(b) any other VAT arising on the supply to, ... or importation by, that person or any predecessor of his of any goods used for the relevant supply,
has been or will be refunded under section 33, 33A, 33B, 33C, 39 or 41.
(10) Input tax arising on a supply... or importation of goods shall be disregarded for the purposes of determining whether the conditions in Item No. 1(a) and (b) are satisfied if, at a time after that supply... or importation but before the supply by the relevant supplier, a supply of the goods or of anything in which they are comprised is treated under or by virtue of any provision of this Act as having been made by the relevant supplier or any predecessor of his to himself.
(11) In relation to any goods or anything comprised in any goods, a person is a predecessor of another (“the putative successor”) only if Note (12) or (13) below applies to him in relation to those goods or that thing; and references in this Group to a person’s predecessors include references to the predecessors of his predecessors through any number of transfers and events such as are mentioned in Notes (12) and (13).
(12) This Note applies to a person in relation to any goods or thing if—
(a) the putative successor is a person to whom he has transferred assets of his business by a transfer of that business, or a part of it, as a going concern;
(b) those assets consisted of or included those goods or that thing; and
(c) the transfer of the assets is one falling by virtue of an Order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services.
(13) This Note applies to a person in relation to any goods or thing if—
(a) those goods or that thing formed part of the assets of the business of that person at a time when it became a member of a group of which the putative successor was at that time the representative member;
(b) those goods or that thing formed part of the assets of the business of that person, or of any other person who was a member of the same group as that person, at a time when that person was succeeded as the representative member of the group by the putative successor; or
(c) those goods or that thing formed part of the assets of the putative successor at a time when it ceased to be a member of a group of which the person in question was at the time the representative member.
(14) References in Note (13) above to a person's being or becoming or ceasing to be a member of a group or the representative member of a group are references to its falling to be so treated for the purposes of section 43.
(15) In Notes (11) to (13) above the references to anything comprised in other goods shall be taken, in relation to any supply consisting in or arising from the grant of a major interest in land, to include anything the supply... or importation of which is, by virtue of Note (2) above, taken to be a supply... or importation of goods used for making the supply so consisting or arising.
(16) Notes (1) and (1A) to Group 1 shall apply for the purposes of this Group as they apply for the purposes of that Group.
GROUP 15—INVESTMENT GOLD
Item No.
1 The supply of investment gold.
2 The grant, assignment or surrender of any right, interest, or claim in, over or to investment gold if the right, interest or claim is or confers a right to the transfer of the possession of investment gold.
3 The supply, by a person acting as agent for a disclosed principal, of services consisting of—
(a) the effecting of a supply falling within item 1 or 2 that is made by or to his principal, or
(b) attempting to effect a supply falling within item 1 or 2 that is intended to be made by or to his principal but is not in fact made.
Notes:
(1) For the purposes of this Group “investment gold” means—
(a) gold of a purity not less than 995 thousandths that is in the form of a bar, or a wafer, of a weight accepted by the bullion markets;
(b) a gold coin minted after 1800 that—
(i) is of a purity of not less than 900 thousandths,
(ii) is, or has been, legal tender in its country of origin, and
(iii) is of a description of coin that is normally sold at a price that does not exceed 180% of the open market value of the gold contained in the coin; or
(c) a gold coin of a description specified in a notice that has been published by the Commissioners for the purposes of this Group and has not been withdrawn.
(2) A notice under Note (1)(c) may provide that a description specified in the notice has effect only for the purposes of supplies made at times falling within a period specified in the notice.
(3) Item 2 does not include—
(a) the grant of an option, or
(b) the assignment or surrender of a right under an option at a time before the option is exercised.
(4) This Group does not include a supply—
(a) between members of the London Bullion Market Association, or
(b) by a member of that Association to a taxable person who is not a member or by such a person to a member.
GROUP 16 — SUPPLIES OF SERVICES BY GROUPS INVOLVING COST SHARING
Item No
1 The supply of services by an independent group of persons where each of the following conditions is satisfied—
(a) each of those persons is a person who is carrying on an activity (“the relevant activity”) which is exempt from VAT or is not carried on in the course or furtherance of carrying on a business,
(b) the supply of services is made for the purpose of rendering the members of the group the services directly necessary for the exercise of the relevant activity,
(c) the group merely claims from its members exact reimbursement of their share of the joint expenses, and
(d) the exemption of the supply is not likely to cause distortion of competition.
Part 3 Exceptions
Item No.
Notes: A “private school” means an institution which is either— a school— at which full-time education is provided for pupils of compulsory school age or, in Scotland, school age (whether or not such education is also provided for pupils under or over that age), where fees or other consideration are payable for that provision of full-time education, and which is not a nursery school, or an institution— which is wholly or mainly concerned with providing education suitable to the requirements of persons over compulsory school age (or, in Scotland, school age) but under 19, at which full-time education is provided for such persons, where the provision of full-time education falling within sub-paragraph (ii) is wholly or mainly provision in respect of which fees or other consideration are payable, and which is not an independent training or learning provider. In Note (1)(b) an “independent training or learning provider” means an institution— at which education or training is provided for persons over compulsory school age (or, in Scotland, school age) but under 19 under a contract with a relevant contracting authority, and where the consideration for the provision falling within paragraph (a) is payable by the relevant contracting authority under that contract. For the purposes of Note (2), a “relevant contracting authority” means the Secretary of State, Medr (Commission for Tertiary Education and Research), the Department for the Economy in Northern Ireland or Skills Development Scotland. For the purposes of items 1 and 2, the provision of education or vocational training at a private school by any eligible body other than a private school is to be treated as provision by a private school if— the eligible body and that private school are connected within the meaning of section 1122 of the Corporation Tax Act 2010 (connected persons), or the provision by the eligible body is a result of arrangements the main purpose, or one of the main purposes, of which is to secure that the provision is an exempt supply. For the purposes of Note (4)— “arrangements” include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and an “eligible body” has the meaning given by Note (1) to Group 6. For the purposes of item 1— a “nursery class” means a class that is composed wholly (or almost wholly) of children who— are under compulsory school age or, in Scotland, school age, and would not be expected to attain that age while in that class, and a “higher education course”— in relation to England and Wales, has the meaning given by section 83(1) of the Higher Education and Research Act 2017; in relation to Scotland, means a course of any description mentioned in section 5(3) of the Further and Higher Education (Scotland) Act 2005; in relation to Northern Ireland, means a course of any description mentioned in paragraph 1 of Schedule 1 to the Further Education (Northern Ireland) Order 1997 (S.I. 1997/1772 (N.I. 15)). For the purposes of item 2 “vocational training” has the meaning given by Note (3) to Group 6. In these Notes, “compulsory school age”, “pupil”, “school” and “school age” have the meanings given by the Education Act 1996, the Education (Scotland) Act 1980 and the Education and Libraries (Northern Ireland) Order 1986 (S.I. 1986/594 (N.I. 3)) in relation to England and Wales, Scotland and Northern Ireland respectively.
1 | The provision of education by a private school, other than— the provision of the teaching of English as a foreign language, the provision of education in a nursery class, or the provision of a higher education course.
2 | The provision of vocational training by a private school.
3 | The provision of board and lodging which is closely related to a supply of a description falling within item 1 or 2.
SCHEDULE 9ZA VAT on acquisitions in Northern Ireland from member States
Section 40A(1)
PART 1 Charge to VAT for acquisitions in Northern Ireland from member States
Charge to VAT
1 (1) VAT is charged, in accordance with this Schedule, on the acquisition in Northern Ireland of goods from a member State—
(a) by reference to the value of the acquisition as determined under Part 2 of this Schedule, and
(b) subject to paragraph 16, at the rate of VAT for the time being in force under section 2.
(2) VAT charged on the acquisition of goods in Northern Ireland from a member State is a liability of the person who acquires the goods and (subject to provisions about accounting and payment) becomes due at the time of acquisition.
(3) VAT charged on the acquisition of goods in Northern Ireland from a member State in accordance with this Schedule is referred to in this Schedule as “NI acquisition VAT”.
(4) References to VAT (without more) in this Act include NI acquisition VAT.
(5) The Commissioners may by regulations make provision about (including provision modifying) the application of provision that applies to value added tax made by or under any enactment (including provision made by or under this Act) to NI acquisition VAT or to goods acquired in Northern Ireland from a member State.
Scope of NI acquisition VAT
2 (1) NI acquisition VAT is charged on any acquisition from a member State of any goods where—
(a) the acquisition is a taxable acquisition,
(b) it takes place in Northern Ireland,
(c) it is not in pursuance of a taxable supply (see section 4(2)), and
(d) the person who makes it is a taxable person or the goods acquired are subject to a duty of excise or consist in a new means of transport.
(2) In this Act, a “taxable acquisition” means an acquisition of goods from a member State that—
(a) is not an exempt acquisition (see paragraph 17(5)), and
(b) falls within sub-paragraph (3) or is an acquisition of goods consisting in a new means of transport.
(3) An acquisition of goods from a member State falls within this sub-paragraph if—
(a) the goods are acquired in the course or furtherance of—
(i) any business carried on by any person, or
(ii) any activities carried on otherwise than by way of business by any body corporate or by any club, association, organisation or other unincorporated body,
(b) it is the person who carries on that business or those activities who acquires the goods, and
(c) the supplier—
(i) is taxable in a member State at the time of the transaction in pursuance of which the goods are acquired, and
(ii) in participating in that transaction, acts in the course or furtherance of a business carried on by the supplier.
Meaning of acquisition of goods from a member State
3 (1) References in this Act to the acquisition of goods from a member State are to an acquisition of goods in pursuance of a transaction that—
(a) is a supply of goods (including anything treated for the purposes of this Act as a supply of goods), and
(b) involves the removal of the goods from a member State (whether by or under the direction of the supplier, the person who acquires the goods or any other person),
and references in this Act, in relation to such an acquisition, to the supplier are to be construed accordingly.
(2) Where the person with the property in any goods does not change in consequence of anything which is treated for the purposes of this Act as a supply of goods, that supply is to be treated for the purposes of this Act as a transaction in pursuance of which there is an acquisition by the person making the supply.
(3) The Treasury may by regulations make provision about the circumstances in which an acquisition of goods is not to be treated as an acquisition of goods from a member State.
Time of acquisition
4 (1) For the purposes of this Act, the normal rule for determining the time that goods were acquired from a member State is that they are treated as being acquired on the earlier of—
(a) the 15th day of the month after the month in which the first removal of the goods occurs, and
(b) the day a relevant invoice is issued in respect of the transaction in pursuance of which the goods were acquired.
(2) But—
(a) different rules apply to acquisitions to which Part 4 of Schedule 9ZB applies (warehouses), and
(b) the Commissioners may by regulations provide for different rules to apply in any case described in those regulations.
(3) Regulations under sub-paragraph (2)(b) may include provision treating an acquisition as a series of acquisitions taking place at different times.
(4) In sub-paragraph (1) “relevant invoice” means an invoice of a description prescribed by regulations made by the Commissioners.
(5) For the purposes of this Act “first removal”, in relation to goods acquired, means the first removal of the goods in the course of the transaction in pursuance of which they are acquired.
Place of acquisition
5 (1) For the purposes of this Act, the normal rule for determining whether goods are acquired in Northern Ireland is that they are treated as being acquired in Northern Ireland if—
(a) they are acquired in pursuance of a transaction which involves their removal from a member State to Northern Ireland and which does not involve their removal from Northern Ireland, or
(b) they are acquired by a person who, for the purposes of their acquisition, makes use of a number assigned to the person for the purposes of VAT in the United Kingdom along with an NI VAT identifier (see paragraph 7).
(2) But—
(a) goods are not treated as being acquired in Northern Ireland by virtue of sub-paragraph (1)(b) where it is established in accordance with regulations made by the Commissioners that VAT—
(i) has been paid in a member State on the acquisition of those goods, and
(ii) fell to be paid by virtue of provisions of the law of that member State corresponding, in relation to that member State, to the provision made by sub-paragraph (1)(a), and
(b) different rules apply to acquisitions to which paragraph 16 or 17 of Schedule 9ZB applies.
(3) If an acquisition of goods is not treated, for the purposes of this Act, as taking place in Northern Ireland it is treated for those purposes as an acquisition taking place outside Northern Ireland.
(4) The Commissioners may by regulations make provision—
(a) about the circumstances in which a person is to be treated as having made use of a number assigned to the person for the purposes of VAT in the United Kingdom along with an NI VAT identifier for the purposes of the acquisition of any goods, and
(b) for the refund, in prescribed circumstances, of NI acquisition VAT paid on acquisitions of goods in relation to which the conditions in sub-paragraph (2)(a)(i) and (ii) are met.
Acquisitions from persons belonging in member States
6 (1) Sub-paragraph (2) applies where—
(a) a person (“the original supplier”) makes a supply of goods to a person who belongs in a member State (“the intermediate supplier”),
(b) that supply involves the removal of the goods from a member State and their removal to Northern Ireland but does not involve the removal of the goods from Northern Ireland,
(c) both that supply and the removal of the goods to Northern Ireland are for the purposes of the making of a supply by the intermediate supplier to another person (“the customer”) who is registered under this Act,
(d) neither of those supplies involves the removal of the goods from a member State in which the intermediate supplier is taxable at the time of the removal without also involving the previous removal of the goods to that member State, and
(e) there would be a taxable acquisition by the customer if the supply to the customer involved the removal of goods from a member State to Northern Ireland.
(2) Where this sub-paragraph applies—
(a) the supply by the original supplier to the intermediate supplier is ignored for the purposes of this Act, and
(b) the supply by the intermediate supplier to the customer is treated for the purposes of this Act, other than for the purposes of Part 8 of this Schedule, as if it did involve the removal of the goods from a member State to Northern Ireland.
(3) For the purposes of this Act, other than for the purposes of Part 8 of this Schedule, a supply of goods is treated as involving their removal from a member State to Northern Ireland, and is treated as not being a taxable supply if—
(a) the supply is made by a person belonging in a member State to a person who is registered under this Act,
(b) the supply involves the installation or assembly of the goods at a place in Northern Ireland to which they are removed, and
(c) were the supply to be treated as described in the words before paragraph (a), there would be a taxable acquisition by the registered person.
(4) But neither sub-paragraph (2) nor sub-paragraph (3) applies in relation to a supply unless—
(a) in the case of sub-paragraph (2), the intermediate supplier, or
(b) in the case of sub-paragraph (3), the person making the supply,
complies with such requirements to provide information to the Commissioners or to the person supplied as may be specified in regulations made by the Commissioners.
(5) The requirements to provide information that may be specified in regulations include—
(a) requirements to provide documents (for example, invoices);
(b) requirements to provide information or documents before a supply is made (as well as after);
(c) requirements as to the content and form of information or documents to be provided;
(d) requirements as to the manner in which information or documents are to be provided.
(6) Where a taxable acquisition is treated as having been made by virtue of this paragraph, that acquisition is treated as taking place at the time referred to in paragraph 4(1)(b) (day on which invoice issued).
(7) For the purposes of this paragraph a person belongs in a member State if—
(a) the person is taxable in a member State,
(b) the person does not have any business establishment or other fixed establishment in Northern Ireland,
(c) the person's usual place of residence is not in Northern Ireland,
(d) the person is not identified for the purposes of VAT in Northern Ireland and is not required, as a result of regulations under paragraph 7, to make a request to be so identified, and
(e) the person does not have a VAT representative who is identified for the purposes of VAT in Northern Ireland in connection with acting on the person's behalf, and is not for the time being required to appoint one who would be identified for those purposes.
(8) In determining, for the purposes of sub-paragraph (7)(d), whether a person is required to be registered under this Act, ignore any supplies made by the person that would be ignored for the purposes of this Act if the person belonged in a member State and complied with the information requirements that would apply by virtue of sub-paragraph (4).
(9) Where—
(a) any goods are acquired from a member State in a case which corresponds, in relation to another member State, to the case described in sub-paragraph (1) in relation to Northern Ireland, and
(b) the person who acquires the goods is registered under this Act, is identified for the purposes of VAT in Northern Ireland and would be the intermediate supplier in relation to that corresponding case,
the supply to that person of those goods and the supply by that person of those goods to the person who would be the customer in that corresponding case are to be ignored for the purposes of this Act.
(10) References in this paragraph to a person being taxable in a member State do not include references to a person who is so taxable by virtue only of provisions of the law of that member State corresponding to the provisions of this Act by virtue of which a person who is not registered under this Act is a taxable person if the person is required to be so registered.
Identification of persons for the purposes of VAT in Northern Ireland
7 (1) The Commissioners may by regulations make provision for the identification of persons for the purposes of VAT in Northern Ireland.
(2) In this Act “identified for the purposes of VAT in Northern Ireland” means identified in accordance with regulations under this paragraph.
(3) A person may only be identified for the purposes of VAT in Northern Ireland if—
(a) the person is registered under this Act,
(aa) the person is registered under the OSS scheme or a participant in a non-UK scheme within the meaning of Schedule 9ZD, or
(b) the person acts on behalf of a person in relation to VAT in Northern Ireland as a VAT representative.
(4) Regulations may make provision—
(a) about the circumstances in which a person may request to be identified for the purposes of VAT in Northern Ireland;
(b) for a person to be required to request to be identified for the purposes of Northern Ireland VAT;
(c) about the circumstances in which the Commissioners may determine that a person is identified for the purposes of VAT in Northern Ireland otherwise than at the person's request;
(d) requiring a person to notify the Commissioners of such matters as may be specified for the purpose of allowing the Commissioners to ascertain whether a person should be identified for the purposes VAT in Northern Ireland;
(e) about the circumstances in which a person is to be treated, for such purposes as may be specified, as if they were identified for the purposes of VAT in Northern Ireland (and which may include circumstances where the person is neither registered under this Act nor acting as a VAT representative);
(f) about the circumstances in which a person ceases to be identified for the purposes of VAT in Northern Ireland.
(5) Regulations may also make provision—
(a) about a specified means of communicating the fact of a person's identification for the purposes of VAT in Northern Ireland (and that means is referred to in this Act as an “NI VAT identifier”);
(b) about the circumstances in which a person may use, or is required to use, an NI VAT identifier (for example, in connection with the making of a transaction or return).
(6) In this paragraph “specified” means specified in regulations.
PART 2 Valuation of acquisitions
Valuation of acquisitions from member States
8 (1) For the purposes of this Act the value of any acquisition of goods from a member State is taken to be the value of the transaction in pursuance of which they are acquired.
(2) Where goods are acquired from a member State otherwise than in pursuance of a taxable supply, the value of the transaction in pursuance of which they are acquired is to be determined for the purposes of sub-paragraph (1) in accordance with this Part, and for those purposes—
(a) sub-paragraphs (3) to (5) have effect subject to paragraphs 9 to 13, and
(b) section 19 and Schedule 6 do not apply in relation to the transaction.
(3) If the transaction is for a consideration in money, its value is taken to be such amount as is equal to the consideration.
(4) If the transaction is for a consideration not consisting or not wholly consisting of money, its value is taken to be such amount in money as is equivalent to the consideration.
(5) Where a transaction in pursuance of which goods are acquired from a member State is not the only matter to which a consideration in money relates, the transaction is deemed to be for such part of the consideration as is properly attributable to it.
Transactions below market value
9 (1) Where, in the case of the acquisition of any goods from a member State—
(a) the relevant transaction (see paragraph 13) is for a consideration in money,
(b) the value of the relevant transaction is (apart from this paragraph) less than the transaction⿿s open market value,
(c) the supplier and the person who acquires the goods are connected, and
(d) that person is not entitled under sections 25 and 26 to credit for all the VAT on the acquisition,
the Commissioners may direct that the value of the relevant transaction is taken to be its open market value.
(2) A direction under this paragraph must be given—
(a) by notice in writing to the person by whom the acquisition in question is made, and
(b) within the period of 3 years commencing with the relevant time (see paragraph 13).
(3) A direction given to a person under this paragraph in respect of a transaction may include a direction that the value of any transaction—
(a) in pursuance of which goods are acquired by the person from a member State after the giving of the notice, or after such later date as may be specified in the notice, and
(b) as to which the conditions in paragraphs (a) to (d) of sub-paragraph (1) are satisfied,
is be taken to be its open market value.
(4) For the purposes of this paragraph, the open market value of a transaction in pursuance of which goods are acquired from a member State is to be taken to be the amount which would fall to be taken as its value under paragraph 8(3) if it were for such consideration in money as would be payable by a person standing in no such relationship with any person as would affect that consideration.
(5) Section 1122 of the Corporation Tax Act 2010 (“connected” persons) applies for the purpose of determining whether a person is connected with another for the purposes of this paragraph.
(6) A direction under this paragraph may be varied or withdrawn by the Commissioners by a further direction given by notice in writing.
Value where goods subject to excise duty etc
10 (1) This paragraph applies, in such cases as the Commissioners may by regulations prescribe, to an acquisition—
(a) of goods acquired in Northern Ireland from a member State,
(b) where those goods are charged with a relevant duty, and
(c) that is not an acquisition that is treated, by virtue of paragraph 16(7) of Schedule 9ZB, as taking place before the time which is the duty point (within the meaning given by paragraph 16(11) of that Schedule).
(2) The value of the relevant transaction in relation to an acquisition to which this paragraph applies is the sum of the value of that transaction (apart from this paragraph) and the total amount of relevant duty charged that is not already reflected in the value of that transaction.
(3) In this paragraph “relevant duty” in relation to an acquisition means—
(a) a duty of excise charged in connection with the removal of goods to Northern Ireland;
(b) any EU customs duty or agricultural levy of the European Union charged on that removal in accordance with any provision for the time being having effect for transitional purposes in connection with the accession of any State to the European Union.
Transfer or disposal for no consideration
11 (1) Where goods are acquired from a member State in pursuance of anything which is treated as a supply for the purposes of this Act as a result of paragraph 5(1) of Schedule 4 or paragraph 30 of Schedule 9ZB and there is no consideration, sub-paragraph (3) applies for determining the value of the relevant transaction.
(2) Sub-paragraph (3) also applies for determining the value of the relevant transaction in the case of an acquisition by a supplier that is deemed to take place as a result of paragraph 60(2)(c) or 61(2)(c).
(3) The value of the relevant transaction is taken to be—
(a) such consideration in money as would be payable by the supplier if the supplier were, at the time of the acquisition, to purchase goods identical in every respect (including age and condition) to the goods concerned,
(b) where the value cannot be ascertained in accordance with paragraph (a), such consideration in money as would be payable by the supplier if the supplier were, at that time, to purchase goods similar to, and of the same age and condition as, the goods concerned, or
(c) where the value cannot be ascertained in accordance with paragraph (a) or (b), the cost of producing the goods concerned if they were produced at that time.
(4) For the purposes of sub-paragraph (3), the amount of consideration in money that would be payable by any person if the person were to purchase any goods is taken to be the amount that would be so payable after the deduction of any amount included in the purchase price in respect of VAT on the supply of the goods to that person.
Foreign currency transactions
12 (1) Subject to the following provisions of this paragraph, where—
(a) goods are acquired from a member State, and
(b) any sum relevant for determining the value of the relevant transaction is expressed in a currency other than sterling,
then, for the purpose of valuing the relevant transaction, that sum is to be converted into sterling at the market rate which, on the relevant day, would apply in the United Kingdom to a purchase with sterling of that sum in the currency in question by the person making the acquisition.
(2) Where the Commissioners have published a notice which, for the purposes of this paragraph, specifies—
(a) rates of exchange, or
(b) methods of determining rates of exchange,
a rate specified in or determined in accordance with the notice, as for the time being in force, applies (instead of the rate for which sub-paragraph (1) provides) in the case of any transaction in pursuance of which goods are acquired by a person who opts, in such manner as may be allowed by the Commissioners, for the use of that rate in relation to that transaction.
(3) An option for the purposes of sub-paragraph (2) for the use of a particular rate or method of determining a rate—
(a) may not be exercised by any person except in relation to all such transactions in pursuance of which goods are acquired by the person from a member State as are of a particular description or after a particular date, and
(b) may not be withdrawn or varied except with the consent of the Commissioners and in such manner as they may require.
(4) In specifying a method of determining a rate of exchange, a notice published by the Commissioners under sub-paragraph (2) may allow a person to apply to the Commissioners for the use, for the purpose of valuing some or all of the transactions in pursuance of which goods are acquired by the person from a member State, of a rate of exchange which is different from any which would otherwise apply.
(5) On an application made in accordance with provision contained in a notice under sub-paragraph (4), the Commissioners may authorise the use with respect to the applicant of such a rate of exchange, in such circumstances, in relation to such transactions and subject to such conditions as they think fit.
(6) A notice published by the Commissioners for the purposes of this paragraph may be withdrawn or varied by a subsequent notice published by the Commissioners.
(7) Where goods are acquired from a member State, the appropriate rate of exchange is to be determined for the purpose of valuing the relevant transaction by reference to the relevant time; and, accordingly, the day on which that time falls is the relevant day for the purposes of sub-paragraph (1).
Meaning of “relevant transaction” and “relevant time”
13 In this Part of this Schedule—
“relevant transaction”, in relation to any acquisition of goods from a member State, means the transaction in pursuance of which the goods are acquired;
“the relevant time”, in relation to any such acquisition, means—
if the person by whom the goods are acquired is not a taxable person and the time of acquisition does not fall to be determined in accordance with regulations made under paragraph 4(2)(b), the time of the first removal of the goods (see paragraph 4(5)), and
in any other case, the time of acquisition.
PART 3 Payment of NI acquisition VAT by taxable persons
Input tax and output tax
14 (1) NI acquisition VAT is input tax in relation to the taxable person acquiring the goods in question if the goods are used or are to be used for the purpose of any business carried on or to be carried on by the person.
(2) NI acquisition VAT is output tax in relation to the taxable person acquiring the goods in question (including VAT which is also to be counted as input tax by virtue of sub-paragraph (1)).
(3) Subsections (5) to (6A) of section 24 (input tax and output tax) apply to NI acquisition VAT as they apply to VAT on the supply or importation of goods.
Payment of NI acquisition VAT
15 (1) A taxable person must account for and pay NI acquisition VAT by reference to prescribed accounting periods (see section 25(1)).
(2) Subsections (2) to (6) of section 25 (payment by reference to accounting period and credit for input tax against output tax) contain provision relevant to the payment of NI acquisition VAT.
(3) Subsection (7) of that section (power to make order excluding credit for VAT paid) applies to acquisitions in Northern Ireland from a member State as it applies to the supply of goods.
(4) Section 26(1) has effect as if the reference to “input tax on supplies and importations” included input tax on acquisitions in Northern Ireland from a member State.
(5) That section and sections 26A to 28 contain further provision relevant to the payment of NI acquisition VAT.
PART 4 Reliefs etc
Reduced rate
16 (1) NI acquisition VAT is charged at the rate of 5% (instead of at the rate provided by section 2) if—
(a) the acquisition in question is of goods the supply of which would be a supply of a description for the time being specified in Schedule 7A (charge at reduced rate), or
(b) the acquisition in question is of a description for the time being specified in regulations made by the Treasury for the purposes of this paragraph.
(2) Regulations under this paragraph may provide that sub-paragraph (1)(a) does not apply to a description of a supply specified in Schedule 7A that is specified in those regulations.
(3) The power to specify a description of an acquisition conferred by sub-paragraph (1)(b) may be exercised so as to describe an acquisition of goods by reference to matters unrelated to the characteristics of the goods.
Zero-rating and exempt acquisitions
17 (1) Section 30(3) (zero-rating) applies to an acquisition of goods in Northern Ireland from a member State as it would apply to an importation of those goods.
(2) The Treasury may by regulations provide—
(a) that sub-paragraph (1) does not apply to an acquisition of goods specified or described in the regulations;
(b) that no NI acquisition VAT is chargeable on an acquisition of goods specified or described in the regulations.
(3) The Commissioners may by regulations provide for the zero-rating of supplies of goods, or of such goods as may be specified in the regulations, in cases where—
(a) the supply in question involves both the removal of the goods from Northern Ireland and their acquisition in a member State by a person who is liable for VAT on the acquisition in accordance with provisions of the law of that member State corresponding, in relation to that member State, to the provisions of paragraph 2, and
(b) such other conditions, if any, as may be specified in the regulations or the Commissioners may impose are fulfilled.
(4) Section 30(10) applies to a supply of goods that has been zero-rated in pursuance of regulations made under sub-paragraph (3) as it applies to a supply of goods that has been zero-rated in pursuance of regulations made under section 30(8) or (9).
(5) An acquisition of goods from a member State is an exempt acquisition if the goods are acquired in pursuance of an exempt supply (see section 31).
Refunds and reliefs
18 (1) Sections 33 to 33C, 33E and 34 apply to an acquisition of goods from a member State as they apply to a supply of those goods.
(2) The Treasury may by order make provision for relieving from NI acquisition VAT if, or to the extent that, relief from VAT would be given by an order under section 37 (relief from VAT on importation) if the acquisition in question were an importation.
(3) An order under sub-paragraph (2) may provide for relief to be subject to such conditions as appear to the Treasury to be necessary or expedient, which may include conditions—
(a) prohibiting or restricting the disposal of or dealing with the goods concerned;
(b) framed by reference to the conditions to which, by virtue of any order under section 37 in force at the time of the acquisition, relief under such an order would be subject in the case of an importation of the goods concerned.
(4) Where relief from NI acquisition VAT given by an order under this paragraph was subject to a condition that has been breached or not complied with, the VAT becomes payable at the time of the breach or, as the case may be, at the latest time allowed for compliance.
(5) Section 38 has effect as if after “by him” there were inserted “ or on the acquisition of goods by that person from member States ”.
Refund of NI acquisition VAT to persons constructing certain buildings
18A (1) Where—
(a) a person carries out works to which this paragraph applies, and
(b) the carrying out of the work by the person is lawful and otherwise than in the course or furtherance of any business, and
(c) NI acquisition VAT is chargeable on the acquisition from a member State of any goods used by the person for the purposes of the works,
the Commissioners must, on a claim made in that behalf, refund to that person the amount of NI acquisition VAT so chargeable.
(2) Where—
(a) a person carries out works to which this paragraph applies,
(b) the carrying out of the work by the person is lawful and otherwise than in the course or furtherance of any business, and
(c) VAT is chargeable in accordance with the law of a member State (see paragraph 81) on the supply of any goods used by the person for the purposes of the works,
the Commissioners must, on a claim made in that behalf, pay to that person an amount equal to that VAT so chargeable.
(3) The works to which this paragraph applies are—
(a) the construction of a building in Northern Ireland designed as a dwelling or a number of dwellings;
(b) the construction of a building in Northern Ireland for use solely for a relevant residential purpose or relevant charitable purpose;
(c) a residential conversion of a building, or a part of a building, in Northern Ireland.
(4) Subsections (1B) and (1D) of section 35 (refund of VAT to persons constructing certain buildings) apply for the purposes of this paragraph as they apply for the purposes of that section.
(5) Subsection (2) of that section applies to a refund under subparagraph (1) or (2) as it applies to a refund of VAT under that section.
(6) Subsections (4) and (4A) of that section apply for the purpose of construing this paragraph.
(7) Subsection (5) of that section has effect as if in paragraphs (a) and (b), after “this section” there were inserted “ or paragraph 18A of Schedule 9ZA ”.
(8) The provisions made by or under this Act or any other enactment (whenever passed or made) that apply to a refund under section 35 apply to a refund under sub-paragraph (2) as if references in those provisions (however framed)—
(a) to VAT chargeable on the supply of goods were to VAT chargeable under the law of a member State;
(b) to refunding VAT to a person were to paying a person in accordance with that sub-paragraph.
Refunds in relation to new means of transport supplied to member States
19 (1) Where a person who is not a taxable person makes such a supply of goods consisting in a new means of transport that involves the removal of the goods to a member State from Northern Ireland, the Commissioners must, on a claim made in that behalf, refund to that person, as the case may be—
(a) the amount of any VAT on the supply of that means of transport to that person, or
(b) the amount of any VAT paid by that person on the acquisition of that means of transport from a member State or on its importation into the United Kingdom as a result of its entry into Northern Ireland.
(2) But the amount of VAT that is to be refunded under this paragraph is not to exceed the amount that would have been payable on the supply involving the removal if it had been a taxable supply by a taxable person and had not been zero-rated.
(3) A claim for refund of VAT under this paragraph must—
(a) be made within such time and in such form and manner as may be specified in regulations made by the Commissioners,
(b) contain such information as may be specified in those regulations, and
(c) be accompanied by such documents as may be specified in those regulations.
PART 5 Application of Act to acquisitions in particular cases
Crown application
20 Subsections (3) and (4) of section 41 (application to the Crown) apply to NI acquisition VAT as they apply to VAT chargeable on the supply of goods.
Groups of companies
21 (1) Section 43 (groups of companies) applies to an acquisition of goods from a member State as it would apply to an importation of those goods as if the reference in subsection (1)(c) to section 38 were omitted.
(2) Subsections (2) and (9) of section 44 (supplies to groups) apply to input tax on acquisitions as they applies to input tax on supplies.
Partnerships
22 (1) Subsection (1) of section 45 (partnerships) applies to persons carrying on in partnership activities, other than carrying on a business, in the course or furtherance of which they acquire goods from a member State as it apples to persons carrying on a business in partnership.
(2) Subsections (2) and (5) of that section apply to a liability for NI acquisition VAT as they apply to VAT on the supply of goods or services.
Unincorporated bodies, personal representative etc
23 (1) In section 46 (business carried on in divisions or by unincorporated bodies, personal representatives etc) any reference to “a business” includes any activity in the course or furtherance of which any body corporate or any club, association, organisation or other unincorporated body acquires goods from a member State.
(2) Subsection (3) of that section (no account to be taken in change of members of a club, association or organisation) applies in relation to the determination of whether goods are acquired from a member State by a club, association or organization mentioned in that subsection as it applies in relation to the determination of whether goods or services are supplied by such a club, association or organisation.
Agents
24 (1) Where goods are acquired from a member State by a person who is not a taxable person (“N”) and a taxable person (“T”) acts in relation to the acquisition and then supplies the goods in T's own name as agent of N, the goods are to be treated for the purposes of this Act as acquired and supplied by T as principal.
(2) Section 47 (agents) has effect as if—
(a) the reference in subsection (2) to “subsection (1) above” were to “subsection (1) and paragraph 24(1) of Schedule 9ZA”;
(b) the reference in subsection (2A) to “subsection (1) above” were to “subsection (1) or paragraph 24(1) of Schedule 9ZA”.
VAT representatives
25 Subsection (1)(a) of section 48 (VAT representatives and security) applies to a person who, without being a taxable person, acquires goods in Northern Ireland from one or more member States as it applies to a person who, without being a taxable person, makes taxable supplies.
Margin schemes
26 Section 50A(5) (margin schemes) has effect as if after “supply,” there were inserted “ acquisition ”.
PART 6 Administration, collection and enforcement
Breaches of regulatory provisions
27 (1) Section 69(1) (breaches of regulatory provisions) applies to a failure to comply with a requirement imposed under paragraph 42, 52 or 65(1) or (2)(a) of this Schedule as it applies to a requirement imposed under the provisions mentioned in subsection (1)(a) of that section.
(2) Section 69(2) has effect as if after “imposed under” there were inserted “ paragraph 64 or 65(2)(b) of Schedule 9ZA or ”.
Offences
28 (1) Any reference in section 72(1) or (8) (offences)—
(a) to the evasion of VAT includes a reference to the obtaining of a refund under regulations made under paragraph 5(4) or under paragraph 18A or 19, and
(b) to the amount of VAT, in relation to such a refund, is to be construed as a reference to the amount falsely claimed by way of refund.
(2) Subsection (5) of section 72 applies to a claim for a refund under regulations made under paragraph 5(4) or under paragraph 18A or 19 as it applies to a claim for a refund under the provisions mentioned in paragraph (a) of that subsection.
(3) Subsection (10) of that section applies where a person has reason to believe that NI acquisition VAT has been or will be evaded as it applies where a person has reason to believe that VAT on the supply of goods or services has been or will be evaded.
Failure to make returns
29 (1) Subsection (3) of section 73 (failure to make returns etc) applies to an amount which by reason of the cancellation of a person's registration under paragraph 43(2), 43(5) or 53(5) ought not to have been paid as it applies to an amount which ought not to have been paid by reason of the cancellation of a person's registration under any of the provisions mentioned in that subsection.
(2) Subsection (7) of that section applies to the acquisition of goods from a member State by a taxable person as it applies to the supply of goods to a taxable person.
Interest on VAT
30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assessment in cases of acquisitions of certain goods by non-taxable persons
31 (1) Where a person who has, at a time when the person was not a taxable person, acquired in Northern Ireland from a member State any goods subject to a duty of excise or consisting in a new means of transport and—
(a) notification of that acquisition has not been given to the Commissioners by the person who is required to give one by regulations under paragraph 73(4) (whether before or after this paragraph comes into force),
(b) the Commissioners are not satisfied that the particulars relating to the acquisition in any notification given to them are accurate and complete, or
(c) there has been a failure to supply the Commissioners with the information necessary to verify the particulars contained in any such notification,
the Commissioners may assess the amount of VAT due on the acquisition to the best of their judgment and notify their assessment to that person.
(2) An assessment under this paragraph must be made within the time limits provided for in section 77 and may not be made after the later of—
(a) 2 years after the time when a notification of the acquisition of the goods in question is given to the Commissioners by the person who is required to give one by regulations under paragraph 73(4), and
(b) one year after evidence of the facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, comes to their knowledge,
but (subject to section 77) where further such evidence comes to the Commissioners' knowledge after the making of an assessment under this section, another assessment may be made under this paragraph, in addition to any earlier assessment.
(3) Where an amount has been assessed and notified to any person under this paragraph, it is, subject to the provisions of this Act as to appeals, deemed to be an amount of VAT due from the person and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.
(4) For the purposes of this paragraph, notification to a personal representative, trustee in bankruptcy, trustee in sequestration, receiver, liquidator or person otherwise acting in a representative capacity in relation to the person who made the acquisition in question is to be treated as notification to that person.
Assessment of amounts due
32 Section 77 (time limits and supplementary assessments) has effect as if—
(a) in subsection (1), in the words before paragraph (a), after “or 76” there were inserted “ or paragraph 31 of Schedule 9ZA ”;
(b) in paragraph (a) of that subsection, after “importation” there were inserted “ or acquisition ”;
(c) in subsection (4), after “importation” there were inserted “ , acquisition ”;
(d) in subsection (4C) after paragraph (a) there were inserted—
(aza) paragraph 40 or 44(2) of Schedule 9ZA,
(azb) paragraph 50 of that Schedule,
(azc) regulations under paragraph 73(4) of that Schedule,
;
(e) in subsection (6), after “73(6)(b)” there were inserted “ or paragraph 31(2)(b) of Schedule 9ZA ”.
Credit for, or repayment of, overstated or overpaid VAT
33 In section 80 (credit for, or repayment of, overstated or overpaid VAT) has effect as if in subsection (3C) reference to VAT provisions included any provision of any EU instrument relating to VAT, or to any matter connected with VAT, that has effect in Northern Ireland as a result of section 7A of the European Union (Withdrawal) Act 2018 (general implementation of withdrawal agreement).
PART 7 Appeals and supplementary provision
Appeals
34 (1) The following matters are to be treated as if they were included in the list of matters in subsection (1) of section 83 (matters subject to appeal to the tribunal)—
(a) the VAT chargeable on the acquisition of goods from a member State;
(b) any claim for a refund under any regulations made by virtue of paragraph 5(4) of this Schedule;
(c) any direction under paragraph 9 of this Schedule;
(d) the amount of any refunds under paragraph 18A or 19 of this Schedule;
(e) an assessment under paragraph 31 of this Schedule, or the amount of such an assessment;
(f) a decision of the Commissioners under paragraph 17 of Schedule 9ZB—
(i) as to whether or not a person is to be approved as a Northern Ireland fiscal warehousekeeper or the conditions from time to time subject to which the person is so approved,
(ii) for the withdrawal of any such approval, or
(iii) for the withdrawal of Northern Ireland fiscal warehouse status from any premises.
(2) Section 84 (further provisions relating to appeals) has effect as if in subsection (4)(c), after “supply” there were inserted “ , acquisition ”.
Supplies spanning change of rate etc
35 (1) This paragraph applies where there is a change in the rate of VAT in force under section 2 or paragraph 16 of this Schedule or in the descriptions of exempt, zero-rated or reduced-rate acquisitions.
(2) Where—
(a) any acquisition of goods from a member State which is affected by the change would not have been affected (in whole or in part) if it had been treated as taking place at the time of the first removal of the goods (see paragraph 4(5)), or
(b) any acquisition of goods from a member State which is not so affected would have been affected (in whole or in part) if it had been treated as taking place at the time of that removal,
the rate at which VAT is chargeable on the acquisition, or any question of whether it is an exempt, zero-rated or reduced-rate acquisition, is to be determined as at the time of the first removal of the goods, if the person making the acquisition so elects.
(3) References in this paragraph to a zero-rated acquisition is to an acquisition on which no NI acquisition VAT is charged as a result of provision made by or under paragraph 17 (zero-rating).
(4) Reference in this paragraph to a reduced rate acquisition is to an acquisition on which NI acquisition VAT is charged at the rate in force under paragraph 16(1).
Failure of resolution under Provisional Collection of Taxes Act 1968
36 (1) Where—
(a) by virtue of a resolution having effect under the Provisional Collection of Taxes Act 1968 NI acquisition VAT has been paid at a rate specified in the resolution by reference to a value determined under paragraph 8(3) of this Schedule, and
(b) by virtue of section 1(6) or (7) or 5(3) of that Act any of that VAT is repayable in consequence of the restoration of a lower rate,
the amount repayable is to be the difference between the VAT paid by reference to that value at the rate specified in the resolution and the VAT that would have been payable by reference to that value at the lower rate.
(2) Where—
(a) by virtue of such a resolution NI acquisition VAT is chargeable at a rate specified in the resolution by reference to a value determined under paragraph 8(3) of this Schedule, but
(b) before the VAT is paid it ceases to be chargeable at that rate in consequence of the restoration of a lower rate,
the VAT chargeable at the lower rate is to be charged by reference to the same value as that by reference to which NI acquisition VAT would have been chargeable at the rate specified in the resolution.
(3) Section 90(3) (failure of resolution under Provisional Collection of Taxes Act 1968) has effect as if after “or 35” there were inserted “ or paragraph 18A or 19 of Schedule 9ZA ”.
Refund of VAT to Government of Northern Ireland
37 (1) Section 99 (refund of VAT to Government of Northern Ireland) applies to—
(a) VAT charged on the acquisition of goods from a member State by the Government of Northern Ireland as it applies to VAT charged on the supply of goods or services to that Government, and
(b) any amount attributable to acquisitions of goods from a member State for the purpose of a business carried on by the Government of Northern Ireland as it applies to supplies for that purpose.
PART 8 Registration in respect of acquisitions from member States
Liability to be registered
38 (1) A person who—
(a) is not registered under this Act, and
(b) is not liable to be registered under Schedule 1 or 1A or Part 9 of this Schedule,
becomes liable to be registered under this Part of this Schedule at the end of any month if, in the period beginning with 1 January of the year in which that month falls, that person had made relevant acquisitions whose value exceeds £90,000.
(2) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) becomes liable to be registered under this Part of this Schedule at any time if there are reasonable grounds for believing that the value of the person's relevant acquisitions in the following 30 days will exceed £90,000.
(3) A person is treated as having become liable to be registered under this Part of this Schedule at any time when the person would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 43(2) or 53(5) of this Schedule, paragraph 13(3) of Schedule 1, paragraph 11 of Schedule 1A or paragraph 6(2) of Schedule 3A.
(4) A person does not cease to be liable to be registered under this Part of this Schedule except in accordance with paragraph 39.
(5) In determining the value of any person⿿s relevant acquisitions for the purposes of this paragraph, so much of the consideration for any acquisition as represents any liability of the supplier, under the law of a member State, for VAT on the transaction in pursuance of which the acquisition is made, is to be disregarded.
(6) In determining the value of a person⿿s acquisitions for the purposes of sub-paragraph (1) or (2), acquisitions to which paragraph 19(6) of Schedule 9ZB (last acquisition or supply of goods before removal from Northern Ireland fiscal warehousing) applies are to be disregarded.
39 (1) A person who has become liable to be registered under this Part of this Schedule ceases to be so liable if at any time—
(a) the person's relevant acquisitions in the year ending with 31 December last before that time did not have a value exceeding £90,000, and
(b) the Commissioners are satisfied that the value of the person's relevant acquisitions in the year immediately following that year will not exceed £90,000.
(2) But a person does not cease to be liable to be registered under this Part of this Schedule at any time if there are reasonable grounds for believing that the value of that person⿿s relevant acquisitions in the following 30 days will exceed £90,000.
Notification of liability and registration
40 (1) A person who becomes liable to be registered under this Part of this Schedule must notify the Commissioners of the liability—
(a) in the case of a liability under sub-paragraph (1) of paragraph 38, within 30 days of the end of the month when the person becomes so liable, and
(b) in the case of a liability under sub-paragraph (2) of that paragraph, before the end of the period by reference to which the liability arises.
(2) The Commissioners must register any such person (whether or not the person notifies them) with effect from the relevant time or from such earlier time as may be agreed between the Commissioners and the person.
(3) In this paragraph “the relevant time“—
(a) in a case falling within sub-paragraph (1)(a), means the end of the month following the month at the end of which the liability arose, and
(b) in a case falling within sub-paragraph (1)(b), means the beginning of the period by reference to which the liability arose.
Entitlement to be registered etc
41 (1) Where a person who is not liable to be registered under this Act and is not already so registered satisfies the Commissioners that the person makes relevant acquisitions, the Commissioners must, if the person so requests, register the person with effect from the day on which the request is made or from such earlier date as may be agreed between the Commissioners and the person.
(2) Where a person who is not liable to be registered under this Act and is not already so registered—
(a) satisfies the Commissioners that the person intends to make relevant acquisitions from a specified date, and
(b) requests to be registered under this Part of this Schedule,
the Commissioners may, subject to such conditions as they think fit to impose, register the person with effect from such date as may be agreed between the Commissioners and the person.
(3) Conditions imposed under sub-paragraph (2) may—
(a) be so imposed wholly or partly by reference to, or without reference to, any conditions prescribed for the purposes of this paragraph, and
(b) be subsequently varied by the Commissioners (whenever the conditions were imposed).
(4) Where a person who is entitled to be registered under paragraph 9 or 10 of Schedule 1 requests registration under this paragraph, the person is to be registered under that Schedule, and not under this Part of this Schedule.
Notification of matters affecting continuance of registration
42 (1) Any person registered under this Part of this Schedule who ceases to be registrable under this Act must notify the Commissioners of that fact within 30 days of the day on which the person ceases to be registrable.
(2) A person registered under paragraph 41(2) must notify the Commissioners, within 30 days of the first occasion after the person's registration when the person makes a relevant acquisition, that the person has made that acquisition.
(3) For the purposes of this paragraph a person ceases to be registrable under this Act where—
(a) the person ceases to be a person who would be liable or entitled to be registered under this Act if the person's registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded, or
(b) in the case of a person who (having been registered under paragraph 41(2)) has not been such a person during the period of the person's registration, the person ceases to have any intention of making relevant acquisitions.
Cancellation of registration
43 (1) Where a person registered under this Part of this Schedule satisfies the Commissioners that the person is not liable to be so registered, the Commissioners must, if the person so requests, cancel that registration with effect from the day on which the request is made or from such later date as may be agreed between the Commissioners and the person.
(2) Where the Commissioners are satisfied that a person registered under this Part of this Schedule has ceased since the person's registration to be registrable under this Part of this Schedule, they may cancel that registration with effect from the day on which the person so ceased or from such later date as may be agreed between the Commissioners and the person.
(3) Where the Commissioners are satisfied that a person who has been registered under paragraph 41(2) and is not for the time being liable to be registered under this Part of this Schedule—
(a) has not begun, by the date specified in the person's request to be registered, to make relevant acquisitions, or
(b) has contravened any condition of the person's registration,
the Commissioners may cancel the person's registration with effect from the date so specified or, as the case may be, the date of the contravention or from such later date as may be agreed between the Commissioners and the person.
(4) But the Commissioners may not, under sub-paragraph (1), (2) or (3), cancel a person⿿s registration with effect from any time unless the Commissioners are satisfied that it is not a time when that person would be subject to a requirement, or in a case falling under sub-paragraph (2) or (3) a requirement or entitlement, to be registered under this Act.
(5) Where the Commissioners are satisfied that, on the day on which a person was registered under this Part of this Schedule, the person—
(a) was not registrable under this Part of this Schedule, and
(b) in the case of a person registered under paragraph 41(2), did not have the intention by reference to which the person was registered,
the Commissioners may cancel that registration with effect from that day.
(6) The registration of a person who—
(a) is registered under paragraph 41, or
(b) would not, if the person were not registered, be liable or entitled to be registered under any provision of this Act except that paragraph,
may not be cancelled with effect from any time before 1 January which is, or next follows, the second anniversary of the date on which the person's registration took effect.
(7) But sub-paragraph (6) does not apply to cancellation under sub-paragraph (3) or (5).
(8) In determining, for the purposes of sub-paragraphs (4) and (6), whether a person would be subject to a requirement, or would be entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when the person is already registered or when the person is so liable under any other provision is to be disregarded.
(9) For the purposes of this paragraph, a person is registrable under this Part of this Schedule at any time when the person is liable to be registered under this Part of this Schedule or is a person who makes relevant acquisitions.
Exemption from registration
44 (1) Where a person who makes or intends to make relevant acquisitions satisfies the Commissioners that any such acquisition would be an acquisition in pursuance of a transaction which would be zero-rated if it were a taxable supply by a taxable person, the Commissioners may, if the person so requests and the Commissioners think fit, exempt the person from registration under this Part of this Schedule until it appears to the Commissioners that the request should no longer be acted upon or is withdrawn.
(2) Where a person who is exempted under this paragraph from registration under this Part of this Schedule makes any relevant acquisition in pursuance of any transaction which would, if it were a taxable supply by a taxable person, be chargeable to VAT otherwise than as a zero-rated supply, the person must notify the Commissioners of the change within 30 days of the date the acquisition was made.
Power to vary specified sums by regulations
45 The Treasury may by regulations substitute for any of the sums for the time being specified in this Part of this Schedule such greater sums as the Treasury consider appropriate.
Notifications
46 Any notification required under this Part of this Schedule must be made in such form and manner and must contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.
Meaning of relevant acquisition
47 For the purposes of this Part of this Schedule “relevant acquisition” means an acquisition that—
(a) is a taxable acquisition (see paragraph 2(2)) of goods other than goods which are subject to a duty of excise or consist in a new means of transport, and
(b) is otherwise than in pursuance of a taxable supply and is treated, for the purposes of this Act, as taking place in Northern Ireland.
PART 9 Registration in respect of distance sales from the EU to Northern Ireland
Liability to be registered
48 (1) A person who—
(a) is not registered under this Act, and
(b) is not liable to be registered under Schedule 1 or 1A,
becomes liable to be registered under this Part of this Schedule —
(i) in a case where sub-paragraph (1A) applies, on a day determined in accordance with sub-paragraph (1B), or
(ii) in a case where sub-paragraph (1A) does not apply, on any day when the person makes a relevant supply.
(1A) This sub-paragraph applies where —
(a) the person has a single place of establishment, or (where the person does not have a place of establishment) a single place where the person has a permanent address or where the person usually resides, and
(b) that place is in a member State or Northern Ireland.
(1B) The person becomes liable to be registered on any day in a given year if—
(a) in the period beginning with 1 January of that year and ending with that day, the person makes a relevant supply, and
(b) in that period, or in the period beginning with 1 January and ending with 31 December of the year before the year in which that day falls, the person makes European supplies whose value exceeds £8,818.
(2) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) becomes liable to be registered under this Part of this Schedule where—
(a) the person has exercised any option, in accordance with the law of any member State where the person is taxable, for treating relevant supplies made by that person as taking place outside that member State,
(b) the supplies to which the option relates involve the removal of goods from that member State and, apart from the exercise of the option, would be treated, in accordance with the law of that member State, as taking place in that member State, and
(c) the person makes a relevant supply at a time when the option is in force in relation to that person.
(3) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) above becomes liable to be registered under this Part of this Schedule if the person makes a supply that—
(a) is a supply of goods subject to a duty of excise,
(b) involves the removal of the goods to Northern Ireland by or under the directions of the person making the supply,
(c) is a transaction in pursuance of which the goods are acquired in Northern Ireland from a member State by a person who is not a taxable person,
(d) is made in the course or furtherance of a business carried on by the supplier, and
(e) is not anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) of Schedule 4 or paragraph 30 of Schedule 9ZB.
(4) A person is treated as having become liable to be registered under this Part of this Schedule at any time when the person would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 43(3)or 53(5) of this Schedule, paragraph 13(3) of Schedule 1, paragraph 11 of Schedule 1A, or paragraph 6(2) of Schedule 3A.
(5) A person does not cease to be liable to be registered under this Part of this Schedule except in accordance with paragraph 49.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) For the purposes of this paragraph, a supply of goods or services is a “European supply” if it is—
(a) a supply of services listed in Article 58(1) of the VAT Directive to a person who is not a taxable person and who is established, or (where the person does not have a place of establishment) who has a permanent address or who usually resides, in a member State or Northern Ireland and that is not the place mentioned in sub-paragraph (1A)(a) (that is, the place in which the person supplying the services is established etc), or
(b) a supply of goods that would be an “intra-Community distance sale of goods” within the meaning given by Article 14(4) of the VAT Directive if references in that Article to a “Member State” were read as if they included a reference to Northern Ireland ... involving the removal of goods to a member State or Northern Ireland and that is not the place mentioned in sub-paragraph (1A)(a) (that is, the place in which the person supplying the goods is established etc).
(9) For the purposes of sub-paragraph (8)(a), a person is not a taxable person if they are not liable or entitled to register for VAT in accordance with the law of the place where the person to whom the services are supplied is established, has their permanent address or usually resides.
(10) In sub-paragraph (8), “the VAT Directive” means Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.
49 (1) A person who has become liable to be registered under this Part of this Schedule by virtue of paragraph 48(1)(i) ceases to be so liable if at any time—
(a) European supplies made by the person in the year ending with 31 December last before that time did not have a value exceeding £8,818 and did not include any supply in relation to which the conditions mentioned in paragraph 48(3) were satisfied, and
(b) the Commissioners are satisfied that the value of the person's European supplies in the year immediately following that year will not exceed £8,818 and that those supplies will not include a supply in relation to which those conditions are satisfied.
(1A) A person who has become liable to be registered under this Part of this Schedule by virtue of paragraph 48(1)(ii) ceases to be so liable by virtue of that paragraph if at any time paragraph 48(1A) applies in relation to that person.
(1B) A person who has become liable to be registered under this Part of this Schedule by virtue of paragraph 48(3) ceases to be so liable by virtue of that paragraph if at any time the Commissioners are satisfied that the person—
(a) has ceased to make supplies as mentioned in that paragraph, and
(b) will not make such supplies within the period of one year beginning with the day on which the Commissioners are notified or otherwise become aware that the person has ceased to make them.
(2) But —
(a) the fact that a person ceases to be liable to be registered under this Part of this Schedule by virtue of one provision does not prevent the person being liable to be registered under this Part of this Schedule by virtue of another provision, and
(b) a person does not cease to be liable to be registered under this Part of this Schedule at any time when such an option as is mentioned in paragraph 48(2) above is in force in relation to that person.
(3) Sub-paragraphs (8) to (10) of paragraph 48 apply for the purposes of this paragraph as they apply for the purposes of that paragraph.
Notification of liability and registration
50 (1) A person who becomes liable to be registered under this Part of this Schedule must notify the Commissioners of the liability within the period of 30 days after the day on which the liability arises.
(2) The Commissioners must register any such person (whether or not the person has notified them) with effect from the day on which the liability arose or from such earlier time as may be agreed between the Commissioners and the person.
Request to be registered
51 (1) Where a person who is not liable to be registered under this Act and is not already so registered—
(a) satisfies the Commissioners that the person intends—
(i) to exercise an option such as is mentioned in paragraph 48(2) and, from a specified date, to make relevant supplies to which that option will relate,
(ii) from a specified date to make relevant supplies to which any such option that the person has exercised will relate, or
(iii) from a specified date to make supplies in relation to which the conditions mentioned in paragraph 48(3) will be satisfied, and
(b) requests to be registered under this Part of this Schedule,
the Commissioners may, subject to such conditions as they think fit to impose, register the person with effect from such date as may be agreed between the Commissioners and the person.
(2) Conditions imposed under sub-paragraph (1) may—
(a) be imposed wholly or partly by reference to, or without reference to, any conditions prescribed for the purposes of this paragraph, and
(b) be subsequently varied by the Commissioners (whenever the conditions were imposed).
(3) Where a person who is entitled to be registered under paragraph 9 or 10 of Schedule 1 requests registration under this paragraph, the person is to be registered under that Schedule, and not under this Part of this Schedule.
Notification of matters affecting continuance of registration
52 (1) Any person registered under this Part of this Schedule who ceases to be registrable under this Act must notify the Commissioners of that fact within 30 days of the day on which the person ceases to be registrable.
(2) A person registered under paragraph 51 by reference to any intention to exercise any option or to make supplies of any description must notify the Commissioners within 30 days of exercising that option or, as the case may be, of the first occasion after registration when the person makes such a supply, that the person has exercised the option or made such a supply.
(3) A person who has exercised an option mentioned in paragraph 48(2) which, as a consequence of the option's revocation or otherwise, ceases to have effect in relation to any relevant supplies by the person must notify the Commissioners, within 30 days of the option⿿s ceasing so to have effect, that it has done so.
(4) For the purposes of this paragraph, a person ceases to be registrable under this Act where—
(a) the person ceases to be a person who would be liable or entitled to be registered under this Act if the person's registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded, or
(b) in the case of a person who (having been registered under paragraph 51) has not been such a person during the period of the person's registration, the person ceases to have any such intention as is mentioned in sub-paragraph (1)(a) of that paragraph.
Cancellation of registration
53 (1) Where a person registered under this Part of this Schedule satisfies the Commissioners that the person is not liable to be so registered, the Commissioners must, if the person so requests, cancel that registration with effect from the day on which the request is made or from such later date as may be agreed between the Commissioners and the person.
(2) Where the Commissioners are satisfied that a person who has been registered under paragraph 51 and is not for the time being liable to be registered under this Part of this Schedule—
(a) has not, by the date specified in the person's request to be registered, begun to make relevant supplies, exercised the option in question or, as the case may be, begun to make supplies in relation to which the conditions mentioned in paragraph 48(3) are satisfied, or
(b) has contravened any condition of the person's registration,
the Commissioners may cancel the person's registration with effect from the date so specified or, as the case may be, the date of the contravention or from such later date as may be agreed between the Commissioners and the person.
(3) But the Commissioners may not, under sub-paragraph (1) or (2), cancel a person⿿s registration with effect from any time unless the Commissioners are satisfied that it is not a time when that person would be subject to a requirement, or in a case falling under sub-paragraph (2) a requirement or entitlement, to be registered under this Act.
(4) In determining for the purposes of sub-paragraph (3) whether a person would be subject to a requirement, or would be entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when the person is already registered or when the person is so liable under any other provision is to be disregarded.
(5) Where the Commissioners are satisfied that, on the day on which a person was registered under this Part of this Schedule, the person—
(a) was not liable to be registered under this Part of this Schedule, and
(b) in the case of a person registered under paragraph 51, did not have the intention by reference to which the person was registered,
the Commissioners may cancel that registration with effect from that day.
(6) The registration of a person who has exercised an option mentioned in paragraph 48(2) may not be cancelled with effect from any time before the 1 January which is, or next follows, the second anniversary of the date on which the person's registration took effect.
Power to vary specified sums by regulations
54 The Treasury may by regulations substitute for any of the sums for the time being specified in this Part of this Schedule such greater sums as the Treasury consider appropriate.
Notifications
55 Any notification required under this Part of this Schedule must be made in such form and manner and must contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.
Meaning of relevant supply
56 For the purposes of this Part of this Schedule “relevant supply” means a supply of goods that—
(a) involves the removal of the goods to Northern Ireland from a place outside the United Kingdom by or under the directions of the person making the supply,
(b) does not involve the installation or assembly of the goods at a place in Northern Ireland,
(c) is a transaction in pursuance of which goods are acquired in Northern Ireland from a member State by a person who is not a taxable person,
(d) is made in the course or furtherance of a business carried on by the supplier, and
(e) is neither an exempt supply nor a supply of goods which are subject to a duty of excise or consist in a new means of transport and is not anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) of Schedule 4 or paragraph 30 of Schedule 9ZB.
PART 10 Call-off stock arrangements
Where this Part of this Schedule applies
57 (1) This Part of this Schedule applies where—
(a) goods forming part of the assets of any business are removed —
(i) from Northern Ireland for the purpose of being taken to a place in a member State, or
(ii) from a member State for the purpose of being taken to a place in Northern Ireland,
(b) the goods are removed in the course or furtherance of that business by or under the directions of the person carrying on that business (“the supplier”),
(c) the goods are removed with a view to their being supplied in the destination territory, at a later stage and after their arrival there, to another person (“the customer”),
(d) at the time of the removal the customer is entitled to take ownership of the goods in accordance with an agreement existing between the customer and the supplier,
(e) at the time of the removal the supplier does not have a business establishment or other fixed establishment in the destination territory,
(f) at the time of the removal the customer is identified for the purposes of VAT in accordance with the law of the destination territory and both the identity of the customer and the number assigned to the customer for the purposes of VAT by the destination territory are known to the supplier,
(g) as soon as reasonably practicable after the removal the supplier records the removal in the register provided for in Article 243(3) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, and
(h) the supplier includes the number mentioned in paragraph (f) in the recapitulative statement provided for in Article 262(2) of Council Directive 2006/112/EC.
(2) For the purposes of this Part of this Schedule, where the destination territory is Northern Ireland, a customer is identified for the purposes of VAT in accordance with the law of the destination territory if the customer is registered under this Act and is identified for the purposes of VAT in Northern Ireland.
(3) In this Part of this Schedule—
“the destination territory” means—
in a case within paragraph (i) of sub-paragraph (1)(a), the member State concerned, and
in a case within paragraph (ii) of sub-paragraph (1)(a), Northern Ireland, and
“the origin territory” means—
in a case within paragraph (i) of sub-paragraph (1)(a), Northern Ireland, and
in a case within paragraph (ii) of sub-paragraph (1)(a), the member State concerned.
Removal of the goods not to be treated as a supply
58 The removal of the goods from the origin territory is not to be treated by reason of paragraph 30 of Schedule 9ZB as a supply of goods by the supplier.
Goods transferred to the customer within 12 months of arrival
59 (1) The rules in sub-paragraph (2) apply if—
(a) during the period of 12 months beginning with the day the goods arrive in the destination territory the supplier transfers the whole property in the goods to the customer, and
(b) during the period beginning with the day the goods arrive in the destination territory and ending immediately before the time of that transfer no relevant event occurs.
(2) The rules are that—
(a) a supply of the goods in the relevant territory is deemed to be made by the supplier,
(b) the deemed supply is deemed to involve the removal of the goods from the origin territory at the time of the transfer mentioned in sub-paragraph (1),
(c) the consideration given by the customer for the transfer mentioned in sub-paragraph (1) is deemed to have been given for the deemed supply, and
(d) an acquisition of the goods by the customer in pursuance of the deemed supply is deemed to take place in the destination territory.
(3) In sub-paragraph (2) and in paragraphs 60(2) and 61(2) “the relevant territory” means—
(a) where the origin territory is Northern Ireland, the United Kingdom, or
(b) where the origin territory is a member State, that member State.
(4) For the meaning of a “relevant event”, see paragraph 63.
Relevant event occurs within 12 months of arrival
60 (1) The rules in sub-paragraph (2) apply (subject to paragraph 62) if—
(a) during the period of 12 months beginning with the day the goods arrive in the destination territory a relevant event occurs, and
(b) during the period beginning with the day the goods arrive in the destination territory and ending immediately before the time that relevant event occurs the supplier does not transfer the whole property in the goods to the customer.
(2) The rules are that—
(a) a supply of the goods in the relevant territory (see paragraph 59(3)) is deemed to be made by the supplier,
(b) the deemed supply is deemed to involve the removal of the goods from the origin territory at the time the relevant event occurs, and
(c) an acquisition of the goods by the supplier in pursuance of the deemed supply is deemed to take place in the destination territory.
(3) For the meaning of a “relevant event”, see paragraph 63.
Goods not transferred and no relevant event occurs within 12 months of arrival
61 (1) The rules in sub-paragraph (2) apply (subject to paragraph 62) if during the period of 12 months beginning with the day the goods arrive in the destination territory the supplier does not transfer the whole property in the goods to the customer and no relevant event occurs.
(2) The rules are that—
(a) a supply of the goods in the relevant territory (see paragraph 59(3)) is deemed to be made by the supplier,
(b) the deemed supply is deemed to involve the removal of the goods from the origin territory at the beginning of the day following the expiry of the period of 12 months mentioned in sub-paragraph (1), and
(c) an acquisition of the goods by the supplier in pursuance of the deemed supply is deemed to take place in the destination territory.
(3) For the meaning of a “relevant event”, see paragraph 63.
Exception to paragraphs 60 and 61: goods returned to origin territory
62 The rules in paragraphs 60(2) and 61(2) do not apply if during the period of 12 months beginning with the day the goods arrive in the destination territory—
(a) the goods are returned to the origin territory by or under the direction of the supplier, and
(b) the supplier records the return of the goods in the register provided for in Article 243(3) of Council Directive 2006/112/EC.
Meaning of “relevant event”
63 (1) For the purposes of this Part of this Schedule each of the following events is a relevant event—
(a) the supplier forms an intention not to supply the goods to the customer (but see sub-paragraph (2)),
(b) the supplier forms an intention to supply the goods to the customer otherwise than in the destination territory,
(c) the supplier establishes a business establishment or other fixed establishment in the destination territory,
(d) the customer ceases to be identified for the purposes of VAT in accordance with the law of the destination territory,
(e) the goods are removed from the destination territory by or under the directions of the supplier otherwise than for the purpose of being returned to the origin territory, or
(f) the goods are destroyed, lost or stolen.
(2) But the event mentioned in paragraph (a) of sub-paragraph (1) is not a relevant event for the purposes of this Part of this Schedule if—
(a) at the time that the event occurs the supplier forms an intention to supply the goods to another person (“the substitute customer”),
(b) at that time the substitute customer is identified for the purposes of VAT in accordance with the law of the destination territory,
(c) the supplier includes the number assigned to the substitute customer for the purposes of VAT by the destination territory in the recapitulative statement provided for in Article 262(2) of Council Directive 2006/112/EC, and
(d) as soon as reasonably practicable after forming the intention to supply the goods to the substitute customer the supplier records that intention in the register provided for in Article 243(3) of Council Directive 2006/112/EC.
(3) Where the destination territory is Northern Ireland, the reference in sub-paragraph (2)(c) to the number assigned to the substitute customer for the purposes of VAT is to the number assigned to the substitute customer for the purposes of VAT in the United Kingdom along with an NI VAT identifier.
(4) In a case where sub-paragraph (2) applies, references in this Part of this Schedule to the customer are to be then read as references to the substitute customer.
(5) In a case where the goods are destroyed, lost or stolen but it is not possible to determine the date on which that occurred, the goods are to be treated for the purposes of this Part of this Schedule as having been destroyed, lost or stolen on the date on which they were found to be destroyed or missing.
Record keeping by the supplier
64 In a case where the origin territory is Northern Ireland, any record made by the supplier in pursuance of paragraph 57(1)(g), 62(b) or 63(2)(d) must be preserved for such period not exceeding 6 years as the Commissioners may specify in writing.
Record keeping by the customer
65 (1) In a case where the destination territory is Northern Ireland, the customer must as soon as is reasonably practicable make a record of the information relating to the goods that is specified in Article 54A(2) of Council Implementing Regulation (EU) No. 282/2011 of 15 March 2011 laying down implementing measures for Directive 2006/112/EC on the common system of value added tax.
(2) A record made under this paragraph must—
(a) be made in a register kept by the customer for the purposes of this paragraph, and
(b) be preserved for such period not exceeding 6 years as the Commissioners may specify in writing.
PART 11 Modification of other Schedules
Registration in respect of taxable supplies: UK establishment (Schedule 1)
66 (1) Paragraph 1 of Schedule 1 (registration in respect of taxable supplies: UK establishment) has effect as if—
(a) the provisions mentioned in sub-paragraphs (4)(a) and (5) included paragraphs 43(5) and 53(5) of this Schedule (cancellation of registration);
(b) in sub-paragraph (7), after “are supplied” there were inserted “ and any taxable supplies which would not be taxable supplies apart from paragraph 29(1) of Schedule 9ZB ”;
(c) in sub-paragraph (9)—
(i) after “section 18B(4)” there were inserted “ or paragraph 19(5) of Schedule 9ZB ”;
(ii) after “supply” there were inserted “ or acquisition ”.
(2) Paragraph 2 of that Schedule has effect as if in sub-paragraph (7), after paragraph (b) there were inserted—
(c) any acquisition of goods from a member State by one of the constituent members in the course of the activities of the taxable person is to be treated as an acquisition by that person;
.
(3) Paragraph 4(3) of that Schedule has effect as if after “are supplied” there were inserted “ and any taxable supplies which would not be taxable supplies apart from paragraph 29(1) of Schedule 9ZB ”.
Registration in respect of taxable supplies: non-UK establishment (Schedule 1A)
67 Paragraph 3 of Schedule 1A (registration in respect of taxable supplies: non-UK establishment) has effect as if the provisions mentioned in paragraphs (a) to (e) of that paragraph included paragraphs 43(5) and 53(5) of this Schedule.
Registration: disposals of assets where repayment is claimed (Schedule 3A)
68 Paragraph 1 of Schedule 3A (registration in respect of disposals of assets for which a VAT repayment is claimed) has effect as if—
(a) in sub-paragraph (1), after “or 1A” there were inserted “ or Part 8 or 9 of Schedule 9ZA ”, and
(b) the provisions mentioned in sub-paragraph (2) included paragraphs 43(5) and 53(5) of this Schedule.
Valuation of supplies: special cases (Schedule 6)
69 (1) Paragraph 1A of Schedule 6 (valuation: special cases) has effect as if—
(a) in sub-paragraph (4), in the definition of “motor dealer”, after “supplies of” there were inserted “ , or acquiring in Northern Ireland from a member State ”;
(b) in that sub-paragraph, in the definition of “stock in trade”—
(i) in paragraph (a) of that definition, after “supplied to” there were inserted “ or acquired in Northern Ireland from a member State ... ”;
(ii) in paragraph (b) of that definition, after “supply” there were inserted “ , acquisition ”;
(c) in sub-paragraph (6)(a)—
(i) after “supplied” there were inserted “ , acquired in Northern Ireland from a member State ”;
(ii) after “supply” there were inserted “ , acquisition ”.
(2) Paragraph 6(1) of that Schedule has effect as if—
(a) in paragraph (b), after “Schedule 4” there were inserted “ or paragraph 30 of Schedule 9ZB ”;
(b) in paragraph (c), for “that Schedule;” there were substituted “ Schedule 4; or ”;
(c) after that paragraph there were inserted—
(d) paragraph 60(2)(a) or 61(2)(a) of Schedule 9ZA,
.
Zero-rating (Schedule 8)
70 Group 12 in Part 2 of Schedule 8 (zero-rating: drugs etc) has effect as if—
(a) in Note (1), after “goods are” there were inserted “ acquired from a member State or ”;
(b) in Note (5N), in paragraph (b), after “made a” there were inserted “ reckonable zero-rated acquisition, or ”;
(c) in Note (5O), in paragraph (b), after “zero-rated” there were inserted “ acquisition or ”;
(d) in Note (5T), after the definition of “in the required form” there were inserted—
“reckonable zero-rated acquisition”, in relation to a motor vehicle, means an acquisition of the vehicle from a member State in a case where NI acquisition VAT is not chargeable as a result of item 2(f) or 2A.
Exempt supplies (Schedule 9)
71 Group 14 in Part 2 of Schedule 9 (exemptions: supplies of goods where input tax cannot be recovered) has effect as if—
(a) in paragraph (a) of item 1, after “ supply to, ” there were inserted “ or acquisition ”;
(b) in Note (7)(a), after “ supply to, ” there were inserted “ or acquisition ”;
(c) in Note (9)—
(i) in the words before paragraph (a), after “ supply to, ” there were inserted “ or acquisition ”;
(ii) in paragraph (b), after “ supply to, ” there were inserted “ or acquisition ”;
(d) in Note (10)—
(i) after “on a supply” there were inserted “ , acquisition ”;
(ii) after “that supply”, there were inserted “ , acquisition ”;
(e) in Note (15)—
(i) after “anything the supply” there were inserted “ , acquisition ”;
(ii) after “be a supply” there were inserted “ , acquisition ”.
Avoidance (Schedules 9A and 11A)
72 (1) Paragraph 1(5) of Schedule 9A (anti-avoidance provisions: groups) has effect as if, in paragraph (a), after “importation” there were inserted “ or acquisition ”.
(2) Schedule 11A (disclosure of avoidance schemes) has effect as if the reference to VAT “incurred” by a taxable person in paragraph 2A(1)(b) included VAT on the acquisition by the person of any goods from a member State.
Accounting for VAT and payment of VAT (Schedule 11)
73 (1) Regulations under this paragraph may require the submission to the Commissioners by taxable persons, at such times and intervals, in such cases and in such form and manner as may be—
(a) specified in the regulations, or
(b) specified by the Commissioners in accordance with the regulations,
of statements containing such particulars of transactions in which the taxable persons are concerned and to which this sub-paragraph applies, and of the persons concerned in those transactions, as may be so specified.
(2) Sub-paragraph (1) applies to transactions involving the movement of goods between a member State and Northern Ireland, or between member States.
(3) Sections 65 and 66 (inaccuracies in, or and failure to submit, section 55A statements) apply to any statement which is required to be submitted to the Commissioners in accordance with regulations under sub-paragraph (1) as they apply to a section 55A statement.
(4) Regulations under this paragraph may make provision in relation to cases where—
(a) any goods which are subject to a duty of excise or consist in a new means of transport are acquired in Northern Ireland from a member State by any person,
(b) the acquisition of the goods is a taxable acquisition and is not in pursuance of a taxable supply, and
(c) that person is not a taxable person at the time of the acquisition,
for requiring the person who acquires the goods to give to the Commissioners such notification of the acquisition, and for requiring any VAT on the acquisition to be paid, at such time and in such form or manner as may be specified in the regulations or (in the case of the notification requirement) by the Commissioners in accordance with the regulations.
(5) Regulations under this paragraph may provide for a notification required by virtue of sub-paragraph (4)—
(a) to contain such particulars relating to the notified acquisition and any VAT chargeable in relation to it as may be specified in the regulations or by the Commissioners in accordance with the regulations, and
(b) to be given, in prescribed cases, by the personal representative, trustee in bankruptcy, trustee in sequestration, receiver, liquidator or person otherwise acting in a representative capacity in relation to the person who makes that acquisition.
(6) Regulations under this paragraph may provide for—
(a) the time when any invoice described in regulations under paragraph 4(1)(b) of this Schedule or paragraph 28(2)(b) of Schedule 9ZB is to be treated as having been issued;
(b) VAT accounted for and paid by reference to the date of issue of such an invoice to be confined to VAT on so much of the value of the supply or acquisition as is shown on the invoice.
(7) Sub-paragraphs (1) to (4), (5) and (6) are to be treated, for the purposes of this Act, as if they were contained in paragraph 2 of Schedule 11.
Administration, collection and enforcement (Schedule 11)
74 (1) Paragraph 2 of Schedule 11 has effect as if—
(a) in sub-paragraph (5A)(b), after “transport” there were inserted “ acquired from a member State, or ”;
(b) in sub-paragraph (5B)(a), after “chargeable on its” there were inserted “ acquisition or ”;
(c) in sub-paragraph (5D) in the definition of “relevant person”—
(i) before paragraph (b) there were inserted—
(a) where the means of transport has been acquired in Northern Ireland from a member State, the person who so acquires it,
;
(ii) after paragraph (b) there were inserted—
(c) in any other case—
(i) the owner of the means of transport at the time of its arrival in the United Kingdom, or
(ii) where it is subject to a lease or hire agreement, the lessee or hirer of the means of transport at that time.
(2) Paragraph 2(8) of Schedule 11 applies to NI acquisition VAT in respect of an acquisition by any person from a member State of dutiable goods as it applies to VAT in respect of any supply by a taxable person of dutiable goods.
(3) Invoices described in regulations under paragraph 4(2)(b) of this Schedule or paragraph 28(2)(b) of Schedule 9ZB are items to which paragraph 3 of Schedule 11 applies (in addition to the items described in paragraph 3(2)(a) and (b) of that Schedule).
(4) Paragraph 6 of Schedule 11 has effect as if—
(a) after sub-paragraph (1) there were inserted—
(1A) Every person who, at a time when the person is not a taxable person, acquires in Northern Ireland from a member State any goods which are subject to a duty of excise or consist in a new means of transport must keep such records with respect to the acquisition (if it is a taxable acquisition and is not in pursuance of a taxable supply) as the Commissioners may by regulations require.
;
(a) in sub-paragraph (2), after “sub-paragraph (1)” there were inserted “ or (1A) ”.
(5) Paragraph 8(1) of Schedule 11 applies—
(a) to goods in the possession of a person who acquires goods in Northern Ireland from a member State as it applies to goods in the possession of a person who supplies goods, and
(b) to goods in the possession of a Northern Ireland fiscal warehousekeeper as it applies to goods in the possession of a fiscal warehousekeeper.
(6) Paragraph 14(1) has effect as if in paragraph (c), after “paragraph 5A” there were inserted “ or paragraph 73(1) or (4) of Schedule 9ZA ”.
PART 12 Modification of other Acts
Diplomatic privileges etc
75 (1) The following provisions apply to NI acquisition VAT as they apply to value added tax charged in accordance with section 1(1)(c) of this Act—
(a) section 2(5A) of the Diplomatic Privileges Act 1964 (application of Vienna Convention);
(b) paragraph 10(1A) of the Schedule to the Commonwealth Secretariat Act 1966 (immunities and privileges);
(c) section 1(8A) of the Consular Relations Act 1968 (application of Vienna Convention);
(d) paragraph 19(c) of Schedule 1 to the International Organisations Act 1968 (privileges and immunities);
(e) section 1(5) of the Diplomatic and other Privileges Act 1971 (refund of customs duties on hydrocarbon oil used for diplomatic or Commonwealth Secretariat purposes).
(2) Section 8 of the Consular Relations Act 1968 applies to VAT charged on the acquisition of oil in Northern Ireland from a member State as it applies to VAT charged on the importation of oil.
Customs and Excise Duties (General Reliefs) Act 1979
76 Section 13 of the Customs and Excise Duties (General Reliefs) Act 1979 (power to provide reliefs for VAT etc) has effect as if, in subsection (4), in the definition of “value added tax” after “goods” there were inserted “ or on the acquisition of goods from a member State ”.
Vehicle Excise and Registration Act 1994
77 Section 8 of the Vehicle Excise and Registration Act 1994 (vehicles removed into UK) has effect as if, in subsection (2)—
(a) in paragraph (a), after “United Kingdom” there were inserted “ , or on the acquisition of the vehicle from a member State, ”;
(b) in paragraph (c), after “charged on the” there were inserted “ acquisition or ”.
Finance Act 2008
78 (1) Paragraph 11 of Schedule 36 to the Finance Act 2008 (information and inspection powers) has effect as if—
(a) in sub-paragraph (1), after paragraph (a) there were inserted—
(b) premises are used in connection with the acquisition of goods from member States under taxable acquisitions and goods to be so acquired or documents relating to such goods are on those premises,
;
(b) in sub-paragraph (2), in paragraph (c), after “taxable supplies” there were inserted “ , the acquisition of goods from member States under taxable acquisitions ”.
(2) Paragraph 34 of that Schedule has effect as if—
(a) in sub-paragraph (1), after paragraph (a) there were inserted—
(b) the acquisition of goods from a member State,
;
(b) in sub-paragraph (4), after “Schedule 4” there were inserted “ and paragraph 3 of Schedule 9ZA ”.
(3) Paragraph 1 of Schedule 41 to that Act has effect as if in the table there were inserted the following entries—
Value added tax | Obligations under paragraphs 40 and 44(2) of Schedule 9ZA to VATA 1994 (obligations to notify liability to register and notify acquisition affecting exemption from registration).
Value added tax | Obligation under paragraph 50 of Schedule 9ZA to VATA 1994 (obligation to notify liability to register).
Value added tax | Obligation under regulations under paragraph 73(4) of Schedule 9ZA to VATA 1994 (obligation to give notification of acquisition of goods from a member State).
(4) For the purposes of paragraph 7 of that Schedule—
(a) in a case of a failure to comply with an obligation under regulations under paragraph 73(4) of this Schedule, the “potential lost revenue” is the value added tax on the acquisition to which the failure relates (instead of as provided for by paragraph 7(6) of that Schedule), and
(b) the “relevant period” in relation to a failure to comply with paragraph 44(2) of this Schedule is the period beginning on the date of the change or alteration concerned and ending on the date on which HMRC received notification of, or otherwise became fully aware of, that change or alteration.
(5) In a case to which sub-paragraph (6) of paragraph 7 of that Schedule applies (whether as a result of sub-paragraph (3) of this paragraph or otherwise), the amount of the “potential lost revenue” as determined in accordance with that sub-paragraph is—
(a) if the amount of the tax mentioned in that sub-paragraph includes tax on an acquisition of goods from a member State, to be reduced by the amount of any VAT which HMRC are satisfied has been paid on the supply in pursuance of which the goods were acquired under the law of that member State, and
(b) if the amount of that tax includes tax chargeable as a result of paragraph 29 of Schedule 9ZB on a supply, to be reduced by the amount of any VAT which HMRC are satisfied has been paid on that supply under the law of a member State.
Finance Act 2016
79 Schedule 18 to the Finance Act 2016 (serial tax avoidance) has effect as if—
(a) in paragraph 5(4), after paragraph (a) there were inserted—
(b) VAT on the acquisition by the person of any goods from a member State,
;
(b) the references to VAT “incurred” by a taxable person in paragraphs 6(1)(b) and 36(7)(b) included VAT on the acquisition by the person of any goods from a member State.
Finance (No. 2) Act 2017
80 Schedule 17 to the Finance (No. 2) Act 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes) has effect as if—
(a) the reference in paragraph 6(2)(b) to VAT “incurred” by a taxable person included VAT on the acquisition by the person of any goods from a member State;
(b) in paragraph 6(5), after paragraph (a) there were inserted—
(b) VAT on the acquisition by the person of any goods from a member State,
.
PART 13 Interpretive provisions
Taxation under the laws of member States etc
81 (1) References in this Act, in relation to a member State, to the law of that member State are to be construed as confined to so much of the law of that member State as for the time being has effect for the purposes of any EU instrument relating to VAT.
(2) References in this Act to a person being taxable in a member State are references to that person being taxable under so much of the law of that member State as makes provision for purposes corresponding, in relation to that member State, to the purposes of so much of this Act as makes provision as to whether a person is a taxable person.
(3) The Commissioners may by regulations make provision for the manner in which any of the following are to be or may be proved for any of the purposes of this Act—
(a) the effect of any provisions of the law of any member State;
(b) that provisions of any such law correspond, in relation to any member State, to any provision of this Act;
(c) that provisions of any such law have a purpose corresponding, in relation to any member State, to the purpose of any provision of this Act.
(4) The Commissioners may by regulations provide—
(a) for a person to be treated for prescribed purposes of this Act as taxable in a member State only where the person has given such notification, and furnished such other information, to the Commissioners as may be prescribed;
(b) for the form and manner in which any notification or information is to be given or furnished under the regulations and what the notification or information must contain;
(c) for the proportion of any consideration for any transaction which is to be taken for the purposes of this Act as representing a liability, under the law of a member State, for VAT to be conclusively determined by reference to such invoices or in such other manner as may be prescribed.
(5) In any proceedings (whether civil or criminal), a certificate of the Commissioners—
(a) that a person was or was not, at any date, taxable in a member State, or
(b) that any VAT payable under the law of a member State has or has not been paid,
is sufficient evidence of that fact until the contrary is proved, and any document purporting to be a certificate under this subsection is deemed to be such a certificate until the contrary is proved.
(6) Without prejudice to the generality of any of the powers of the Commissioners under the relevant information provisions, those powers are, for the purpose of facilitating compliance with any obligation of the United Kingdom under the EU withdrawal agreement, exercisable with respect to matters that are relevant to a charge to VAT under the law of a member State, as they are exercisable with respect to matters that are relevant for any of the purposes of this Act.
(7) The reference in sub-paragraph (6) to the relevant information provisions is a reference to the provisions of section 73(7) and Schedule 11 (see also paragraph 73 which contains provision treated as if contained within that Schedule) relating to—
(a) the keeping of accounts;
(b) the making of returns and the submission of other documents to the Commissioners;
(c) the production, use and contents of invoices;
(d) the keeping and preservation of records;
(e) the furnishing of information and the production of documents.
Territories included in references to member States etc
82 (1) The Commissioners may by regulations provide for the territory of the European Union, or for the member States, to be treated for any of the purposes of this Act as including or excluding such territories as may be prescribed.
(2) Without prejudice to the generality of the powers conferred by sub-paragraph (1) and section 16, the Commissioners may, for any of the purposes of this Act, by regulations provide for prescribed provisions of any customs and excise legislation to apply in relation to cases where any territory is treated under sub-paragraph (1) as excluded from the territory of the European Union, with such exceptions and adaptations as may be prescribed.
(3) In sub-paragraph (2) the reference to customs and excise legislation is a reference to any provision (whenever passed, made or adopted) which has effect in relation to, or to any assigned matter connected with, the importation or exportation of goods or movements of goods between Northern Ireland and Great Britain.
(4) In sub-paragraph (3) “assigned matter” has the same meaning as in the Management Act.
Meaning of “new means of transport”
83 (1) In this Act “means of transport” in the expression “new means of transport” means any of the following if they are intended for the transport of persons or goods—
(a) any ship exceeding 7.5 metres in length;
(b) any aircraft the take-off weight of which exceeds 1550 kilograms;
(c) any motorized land vehicle which—
(i) has an engine with a displacement or cylinder capacity exceeding 48 cubic centimetres, or
(ii) is constructed or adapted to be electrically propelled using more than 7.2 kilowatts.
(2) For the purposes of this Schedule a means of transport is to be treated as new, in relation to any supply or any acquisition from a member State, at any time unless at that time—
(a) the period that has elapsed since its first entry into service is—
(i) in the case of a ship or aircraft, a period of more than 3 months, and
(ii) in the case of a land vehicle, a period of more than 6 months. and
(b) it has, since its first entry into service, travelled under its own power—
(i) in the case of a ship, for more than 100 hours,
(ii) in the case of an aircraft, for more than 40 hours, and
(iii) in the case of a land vehicle, for more than 6000 kilometres.
(3) The Treasury may by order vary this paragraph—
(a) by adding or deleting any ship, aircraft or vehicle of a description specified in the order to or from those which are for the time being specified in sub-paragraph (1);
(b) by altering, omitting or adding to the provisions of sub-paragraph (2) for determining whether a means of transport is new.
(4) The Commissioners may by regulations make provision specifying the circumstances in which a means of transport is to be treated for the purposes of this paragraph as having first entered into service.
VAT charged in a member State
84 Where the context requires it, references in this Schedule to VAT means value added tax charged in accordance with the law of a member State (instead of in accordance with this Act).
SCHEDULE 9ZB Goods removed to or from Northern Ireland and supply rules
Section 40A(2)
PART 1 Importations
Importations
1 (1) The importation of Union goods into the United Kingdom as a result of their entry into Northern Ireland is not an importation for the purposes of value added tax.
(2) Accordingly, no charge to VAT occurs on the importation of Union goods into the United Kingdom as a result of their entry into Northern Ireland (but see paragraph 1 of Schedule 9ZA, which imposes a charge to VAT on the acquisition of goods in Northern Ireland from a member State).
(3) VAT on the importation of any other goods imported into the United Kingdom as a result of their entry into Northern Ireland is to be charged and payable as if it were relevant NI import duty (instead of as provided under section 1(4)).
(4) Sub-paragraph (3) is to be taken as applying, in relation to any VAT chargeable on the importation of such goods—
(a) any provision of Union customs legislation that is relevant to the charging of relevant NI import duty, and
(b) any provision made by or under Part 1 of TCTA 2018 that is relevant to the charging of that duty.
(5) Section 15 (meaning of “importation of goods” into the United Kingdom) applies to the importation of such goods as if—
(a) any reference to import duty were to relevant NI import duty;
(b) the references in subsections (2) and (3) to a Customs, storage, transit or inward processing procedure were to a procedure corresponding to such a procedure under Union customs legislation, and
(c) the reference in subsection (3)(b) to section 5(1) of, or paragraph 1(5) or 3(4) of Schedule 1 to, that Act included any provision (including any provision of Union customs legislation) corresponding to those provisions that may apply to those goods.
(6) In section 16 (application of customs enactments)—
(a) subsection (1) applies to the importation of such goods as if the reference to “other enactments for the time being having effect generally in relation to duties of customs and excise charged by reference to the importation of goods into the United Kingdom” included any provision of Union customs legislation that applies in relation to relevant NI import duty, and
(b) subsections (3) and (4) apply to sub-paragraph (4) of this paragraph as they apply to subsection (2) of that section.
(7) The Commissioners may by regulations—
(a) supplement or modify any provision made by provision that applies to value added tax made by or under any enactment (including provision made by or under this Act or TCTA 2018) so far as it applies to VAT charged on the importation of goods into the United Kingdom as a result of their entry into Northern Ireland;
(b) supplement or modify any provision of Union customs legislation so far as it applies to VAT charged on such an importation.
(8) In this Schedule—
“relevant NI import duty” means duty charged under section 30A(3) of TCTA 2018 (importation of goods: Northern Ireland), and in relation to goods of a description specified in regulations under section 30B(1) of that Act, means that duty as it would be charged if that description were not specified;
“Union customs legislation” means provisions contained in “customs legislation” within the meaning of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (see Article 5(2) of that Regulation), so far as they apply by virtue of section 7A of the European Union (Withdrawal) Act 2018);
“Union goods” has the meaning it has in that Regulation.
(9) This paragraph is subject to paragraph 4 of Schedule 9ZC.
Valuation of imports
2 (1) For the purposes of this Act, the value of goods imported into the United Kingdom as a result of their entry into Northern Ireland is their value as if determined for the purposes of relevant NI import duty, whether or not the goods are subject to that duty.
(2) Accordingly, section 21(1) (value of imported goods) does not apply in relation to such goods.
(3) Subsections (2) to (7) of section 21 apply in relation to such goods (and sub-paragraph (1) is subject to those subsections) as if—
(a) the reference in subsection (2) to the rules mentioned in subsection (1) of that section were to the rules mentioned in sub-paragraph (1);
(b) in subsection (2)(c), after “United Kingdom” there were inserted “ or a member State ”;
(c) the reference in subsection (2A) to the temporary admission procedure under Part 1 of TCTA 2018 were to the procedure that corresponds to that procedure under Union customs legislation.
PART 2 Movements between Northern Ireland and Great Britain
Movements between Northern Ireland and Great Britain
3 (1) A supply of goods that involves the removal of goods from Northern Ireland to Great Britain or vice versa is zero-rated (see section 30(1)) if such other conditions, if any, as may be specified in regulations or imposed by the Commissioners are fulfilled.
(1A) A supply of goods that involves the removal of goods from Great Britain to Northern Ireland is not zero-rated under sub-paragraph (1) if, in respect of the supply, the supplier exercises an option under an order made under section 50A.
(2) Where goods are removed from Northern Ireland to Great Britain, VAT is charged on the entry of those goods into Great Britain as if those goods had been imported into the United Kingdom.
(3) Accordingly, any provision made by or under any enactment—
(a) that is relevant to the charging of VAT on the importation of goods applies in relation to VAT charged as a result of sub-paragraph (2);
(b) that applies to an importation of goods for the purpose of value added tax applies to such a removal (and references in any such provision to imported goods are to be read as including goods that have been so removed).
(4) Where goods are removed from Great Britain to Northern Ireland, VAT is charged on the entry of those goods into Northern Ireland as if those goods had been imported into the United Kingdom as a result of their entry (from a place outside the United Kingdom) into Northern Ireland.
(5) Accordingly, any provision made by or under any enactment—
(a) that is relevant to the charging of VAT on the importation of goods applies (as modified by or under Part 1 of this Schedule) in relation to VAT charged as a result of sub-paragraph (4);
(b) that applies to an importation of goods for the purposes of VAT applies (as modified by or under that Part) to such a removal (and references in this Act to imported goods are to be read as including goods that have been so removed).
(6) Sub-paragraphs (3) and (5)—
(a) do not apply so far as the context otherwise requires, and
(b) are subject to the other provisions of this Part of this Schedule.
(7) The Treasury may by regulations—
(a) supplement or modify any provision that applies to value added tax made by or under any enactment (including provision made by or under this Act or TCTA 2018) so far as it applies to VAT charged as a result of sub-paragraph (2) or (4);
(b) supplement or modify any provision of Union customs legislation so far as it applies to VAT charged as a result of sub-paragraph (4).
Liability for VAT on movements between Great Britain and Northern Ireland
4 (1) This paragraph applies to a removal of goods from Northern Ireland to Great Britain or vice versa, instead of section 15 (general provision relating to imported goods).
(2) Goods are treated as imported—
(a) in the case of goods removed from Northern Ireland to Great Britain, when a liability to pay duty under section 30C of TCTA 2018 (duty on potentially imported goods) in respect of those goods is, or on the relevant assumptions would be, incurred, and
(b) in the case of goods removed from Great Britain to Northern Ireland, when a liability to pay duty under section 40A of TCTA 2018 (duty on certain goods removed to Northern Ireland) in respect of those goods is, or on the relevant assumptions would be, incurred.
(3) Where the removal is made in the course of a taxable supply made by a taxable person, the taxable person is the person who is treated as having imported the goods.
(3A) Where the removal is a removal to which paragraph 6(3A) (certain supplies from a member State to Great Britain via Northern Ireland) applies, the person who supplies the goods is the person who is treated as having imported the goods.
(4) Otherwise, each person who—
(a) in the case of goods removed from Northern Ireland to Great Britain, is, or on the relevant assumptions would be, liable to pay duty under section 30C of TCTA 2018 in respect of those goods, or
(b) in the case of goods removed from Great Britain to Northern Ireland, is, or on the relevant assumptions would be, liable to pay duty under section 40A of TCTA 2018 in respect of those goods,
is a person who is treated as having imported the goods.
(5) For the purposes of this paragraph “the relevant assumptions” are—
(a) in the case of goods removed from Northern Ireland to Great Britain, an assumption that duty under section 30C of TCTA 2018 is chargeable in respect of those goods,
(b) in the case of goods removed from Great Britain to Northern Ireland, an assumption that duty under section 40A of TCTA 2018 is chargeable in respect of those goods,
(c) in a case where there is no obligation to present the goods to customs on their arrival in the part of the United Kingdom to which they are removed, an assumption that there is such an obligation,
(d) an assumption that a liability to duty at a nil rate is replaced by a liability to duty at a higher rate, and
(e) an assumption that no relief from duty is available.
(6) The Commissioners may by regulations make provision—
(a) for any other person to be treated as importing the goods (instead of, or as well as, any person treated as importing the goods as a result of sub-paragraph (3) or (4));
(b) about (including provision modifying) the application, in relation to such a person, of any provision made by or under any enactment that has effect for the purposes of, or in connection with the enforcement of, any obligation to account for and pay VAT;
(c) for requiring any relevant person liable to VAT as a result of provision made by or under this paragraph to give to the Commissioners such notification of the removal of goods in question, and for such VAT to be paid, in such form or manner as may be specified in the regulations or by the Commissioners in accordance with the regulations.
(7) A person is “relevant” for the purposes of sub-paragraph (6)(c) if the person was not a taxable person at the time they became liable to the VAT in question.
(8) If two or more persons are treated as having imported goods those persons are jointly and severally liable to any VAT that is payable on the removal that is treated as an importation as a result of paragraph 3.
(9) The preceding provisions of this paragraph, and any provision made under sub-paragraph (6)(a), are to be ignored in reading any reference to importation or to an importer in anything applied for the purposes of this Act by section 16(1) or (2).
(10) But sub-paragraph (9) does not apply so far as the context otherwise requires or provision to the contrary is contained in regulations under section 16(3).
(11) Sub-paragraphs (3) , (3A) and (4) are subject to paragraph 4A of Schedule 9ZC.
Valuation of goods removed from Northern Ireland to Great Britain
5 (1) This paragraph applies where goods are removed from Northern Ireland to Great Britain and—
(a) the removal is in the course of a supply, or
(b) the last supply of those goods before their removal is zero-rated as a result of that removal.
(2) Where this paragraph applies—
(a) section 21 (value of imported goods) does not apply for the purpose of determining the value of those goods, and
(b) the value of those goods is to be treated as—
(i) in a case falling within sub-paragraph (1)(a), the value of the supply in accordance with section 19 and Schedule 6 (value of supply of goods), and
(ii) in a case falling within sub-paragraph (1)(b), the value of the last supply of those goods before their removal as determined in accordance with that section and that Schedule.
Relief for qualifying Northern Ireland goods
6 (1) No VAT is to be charged on the removal of qualifying Northern Ireland goods from Northern Ireland to Great Britain as a result of paragraph 3(2) unless the removal is made in the course of a taxable supply made by a taxable person.
(2) But the relief provided by sub-paragraph (1) does not apply to a removal of qualifying goods from Northern Ireland to Great Britain if—
(a) the last supply of those goods before their removal is zero-rated as a result of that removal, ...
(b) duty under section 30C of TCTA 2018 is charged on that removal as a result of subsection (2) of that section (duty on goods removed for an avoidance purpose) , or
(c) sub-paragraph (3A) applies to the removal.
(3) Any VAT that is chargeable as a result of sub-paragraph (2)(a) becomes chargeable from the later of—
(a) the time when the goods were treated as having been imported as a result of the removal, and
(b) the time at which that last supply becomes zero-rated.
(3A) This sub-paragraph applies to a removal if—
(a) the removal is in the course of a supply, and
(b) the goods are qualifying Northern Ireland goods as a result of having been removed from a member State to Northern Ireland in the course of that supply.
(4) In this paragraph “qualifying Northern Ireland goods” has the meaning it has in the European Union (Withdrawal) Act 2018 (see section 8C(6) of that Act).
Zero-rating of supplies made before declaration on removal
7 Item 1 of Group 13 of Schedule 8 (zero-rating)—
(a) applies to a supply of goods which are removed from Great Britain to Northern Ireland as if the reference to a Customs declaration were to such a declaration made for the purposes of Union customs legislation (rather than under Part 1 of TCTA 2018);
(b) does not apply to goods which are removed from Northern Ireland to Great Britain where no Customs declaration under Part 1 of TCTA 2018 is required to be made in respect of the removal of the goods.
PART 3 Modifications in relation to exports
Movements of goods by charities
8 Subsection (5) of Section 30 (export by charities treated as supply in United Kingdom) has effect as if the reference to the export of goods—
(a) included the removal of goods from Great Britain to Northern Ireland, and
(b) did not include the export of goods from Northern Ireland to a place in the member States.
Goods exported from Northern Ireland
9 Section 30(6) (zero-rating of exports by supplier) has effect as if reference to the export of goods did not include the export of goods from Northern Ireland to a place in the member States.
Zero-rating regulations
10 Subsection (8) of section 30 (power to zero-rate supplies where goods have been or are to be exported) has effect as if reference to the export of goods—
(a) included the removal of goods from Northern Ireland to Great Britain, or vice versa, and
(b) did not include the export of goods from Northern Ireland to a place in the member States.
Zero-rating of supply of exported goods let on hire
11 Section 30(9) (zero-rating of supply of exported goods let on hire) has effect as if the reference to the export of goods did not include the export of goods from Northern Ireland to a place in the member States.
Application of section 30(10)
12 (1) Where a supply of goods has been zero-rated under paragraph 3(1), or as a result of regulations under section 30(8), on the basis that the goods have been or are to be removed from Northern Ireland to Great Britain, section 30(10) (forfeiture of goods found in the United Kingdom) applies in relation to that supply as if any reference to the United Kingdom were to Northern Ireland.
(2) Where a supply of goods has been zero-rated under paragraph 3(1) or 31A(3), or as a result of regulations under section 30(8), on the basis that the goods have been or are to be removed from Great Britain to Northern Ireland, section 30(10) applies in relation to that supply as if any reference to the United Kingdom were to Great Britain.
Relief from VAT on importation of goods
13 (1) Section 37 (relief from VAT on importation of goods) has effect as if any reference to the export of goods did not include the export of goods from Northern Ireland to a place in the member States.
(2) That section has effect in relation to a removal of goods from Northern Ireland to Great Britain (which is treated as an importation as a result of paragraph 3(3)) as if any reference to the export of goods included their removal from Great Britain to Northern Ireland.
(3) That section has effect in relation to a removal of goods from Great Britain to Northern Ireland (which is treated as an importation as a result of paragraph 3(5)) as if any reference to the export of goods included their removal from Northern Ireland to Great Britain.
Schedule 8: modifications to Group 13 and 15
14 (1) Item 3 of Group 13 of Schedule 8 (zero-rating) has effect as if the reference to goods for export did not include goods for export from Northern Ireland to a place in the member States.
(2) Group 15 of that Schedule has effect as if—
(a) any reference to the export of goods did not include the export of goods from Northern Ireland to a place in the member States;
(b) any reference to the export of goods, other than the reference in item 3, included the removal of goods from Great Britain to Northern Ireland or vice versa;
(c) after item 3 there were inserted—
3A The removal by a charity of goods donated to it—
(a) from Great Britain to Northern Ireland;
(b) from Northern Ireland to Great Britain.
PART 4 Warehouses
Modification of sections 18 and 18A
15 (1) Section 18 (place and time of supply) has effect as if—
(a) every reference to the United Kingdom were to Great Britain, other than the references—
(i) in the phrases “taking place outside the United Kingdom” and “taking place in the United Kingdom”, and
(ii) in the definition of “warehouse” in subsection (6);
(b) in subsection (6)—
(i) in the definition of “the duty point”, in paragraph (b), after “import duty” there were inserted “ or duty under section 30C of TCTA 2018 ”;
(ii) in the definition of “warehouse”, in paragraph (a), after “import duty” there were inserted “ or duty under section 30C of TCTA 2018 ”.
(2) Section 18A (fiscal warehousing) has effect as if the reference to “such place in the United Kingdom” in subsection (3) were to “such place in Great Britain”.
Place and time of supply: Northern Ireland warehouses
16 (1) A supply of goods, or an acquisition of goods in Northern Ireland from a member State, is treated as taking place outside the United Kingdom where—
(a) the goods are subject to a Northern Ireland warehousing regime,
(b) they have been removed—
(i) from a place outside the member States, other than Northern Ireland, and have entered the territory of the European Union, or
(ii) from a place outside the member States and have entered Northern Ireland (which includes goods removed to Northern Ireland from Great Britain),
(c) the material time for their supply, or their acquisition in Northern Ireland, is while they are subject to that regime and before the duty point, and
(d) those goods are not, or are not mixed with, any dutiable goods which were produced or manufactured in Northern Ireland or acquired from a member State.
(2) The Commissioners may by regulations provide that sub-paragraph (1) does not apply in circumstances specified or described in the regulations.
(3) A supply of dutiable goods which were produced or manufactured in Northern Ireland or acquired from a member State, or a supply of a mixture of such goods and other goods, is treated as taking place outside the United Kingdom where the conditions in sub-paragraph (5) are met.
(4) An acquisition in Northern Ireland from a member State of dutiable goods is treated as taking place outside the United Kingdom where those conditions are met.
(5) Those conditions are—
(a) that the goods are subject to a Northern Ireland warehousing regime,
(b) that the material time for the supply mentioned in sub-paragraph (3), or the acquisition mentioned in sub-paragraph (4), is while the goods are subject to that regime and before the duty point, and
(c) that the material time for any subsequent supply of those goods is also while the goods are subject to that regime and before the duty point.
(6) Where—
(a) the conditions in sub-paragraph (5)(a) and (b) are met in relation to a supply of goods mentioned in sub-paragraph (3) or an acquisition of goods mentioned in sub-paragraph (4),
(b) the condition in sub-paragraph (5)(c) is not met in relation to that supply or acquisition, and
(c) the supply or acquisition is treated as taking place within the United Kingdom,
sub-paragraph (7) applies to the supply or acquisition.
(7) Where this sub-paragraph applies to a supply or acquisition of goods, the supply or acquisition is treated as taking place at the earlier of—
(a) the time when the goods are removed from the Northern Ireland warehousing regime, and
(b) the duty point.
(8) Where sub-paragraph (7) applies to a supply of goods, any VAT payable on the supply must be paid—
(a) at the time when the supply is treated as taking place, and
(b) by—
(i) the person who removed the goods from the Northern Ireland warehousing regime, or
(ii) the person who is required to pay any duty or agricultural levy in respect of the goods.
(9) The Commissioners may by regulations make provision for enabling a taxable person to pay the VAT the person is required to pay by virtue of sub-paragraph (8) at a time later than that provided for by that sub-paragraph.
(10) Regulations under sub-paragraph (9) may in particular make provision for either or both of the following—
(a) for the taxable person to pay the VAT together with the VAT chargeable on other supplies by the person of goods and services;
(b) for the taxable person to pay the VAT together with any duty of excise deferment of which has been granted to the person under section 127A of the Customs and Excise Management Act 1979,
and the regulations may make different provision for different descriptions of taxable person and for different descriptions of goods.
(11) In this paragraph—
“dutiable goods” means any goods which are subject—
to a duty of excise, or
in accordance with any provision for the time being having effect for transitional purposes in connection with the accession of any State to the European Union, to any EU customs duty or agricultural levy of the European Union;
“the duty point”, in relation to any goods, means—
in the case of goods which are subject to a duty of excise, the time when the requirement to pay the duty on those goods takes effect, and
in the case of goods which are not so subject—
the time when the requirement to pay duty charged under section 30A(3) of TCTA 2018 (importation of goods: Northern Ireland) on those goods takes effect,
the time when the requirement to pay duty charged under section 40A of TCTA 2018 (duty on goods potentially for export from Northern Ireland) on those goods takes effect, or
the time when any Community customs debt in respect of duty on the entry of the goods into the territory of the European Union would be incurred or, as the case may be, the corresponding time in relation to any such duty or levy as is mentioned in paragraph (b) of the definition of dutiable goods;
“Northern Ireland warehouse” means any warehouse where goods may be stored in the United Kingdom or a member State without payment of any one or more of the following—
duty charged under section 30A(3) of TCTA 2018 (importation of goods: Northern Ireland) or under section 40A of TCTA 2018 (duty on goods potentially for export from Northern Ireland);
EU customs duty;
any agricultural levy of the European Union;
VAT on the importation of the goods into any member State;
VAT on the importation of goods into the United Kingdom as a result of their entry into Northern Ireland;
any duty of excise or any duty which is equivalent in a member State to a duty of excise.
(12) References in this paragraph to goods being subject to a Northern Ireland warehousing regime are to goods being kept in a Northern Ireland warehouse or being transported between Northern Ireland warehouses (whether in the same country or different countries) without the payment in a country of any duty, levy or VAT; and references to the removal of goods from a warehousing regime are to be construed accordingly.
Northern Ireland fiscal warehouses
17 (1) The Commissioners may, if it appears to them proper, upon application approve any registered person as a Northern Ireland fiscal warehousekeeper, and such approval is subject to such conditions as the Commissioners impose.
(2) Subject to those conditions and to regulations made under paragraph 25(6), such a person is entitled to keep a Northern Ireland fiscal warehouse.
(3) “Northern Ireland fiscal warehouse” means a place in Northern Ireland in the occupation or under the control of a Northern Ireland fiscal warehousekeeper that the warehousekeeper has notified to the Commisioners as a Northern Ireland fiscal warehouse.
(4) Retail premises may not be notified as a Northern Ireland fiscal warehouse.
(5) A place notified under sub-paragraph (3) is a Northern Ireland fiscal warehouse from the later of—
(a) the date the Commissioners received the notification, and
(b) the date specified in the notice from which the notification is to have effect.
(6) A place ceases to be a Northern Ireland fiscal warehouse—
(a) if that place ceases to be in the occupation or under the control of the Northern Ireland fiscal warehousekeeper, or
(b) if the Northern Ireland fiscal wareshousekeeper notifies the Commissioners that the place is to cease to be a Northern Ireland fiscal warehouse.
(7) The Commissioners may in considering an application by a person to be a Northern Ireland fiscal warehousekeeper take into account any matter which they consider relevant, and may without prejudice to the generality of that provision take into account all or any one or more of the following—
(a) the person's record of compliance and ability to comply with the provisions made by or under this Act;
(b) the person's record of compliance and ability to comply with the provisions made by or under the customs and excise Acts (as defined in the Management Act);
(c) the person's record of compliance and ability to comply with Union customs legislation;
(d) the person's record of compliance and ability to comply with the requirements of member States relating to VAT and duties equivalent to duties of excise;
(e) if the applicant is a company, the records of compliance and ability to comply with the matters set out in paragraphs (a) to (d) of its directors, persons connected with its directors, its managing officers, any shadow directors or any of those persons, and, if it is a close company, the records of compliance and ability to comply with the matters set out in those paragraphs of the beneficial owners of the shares of the company or any of them;
(f) if the applicant is an individual, the records of compliance and ability to comply with the matters set out in those paragraphs of any company of which the applicant is or has been a director, managing officer or shadow director or, in the case of a close company, a shareholder or the beneficial owner of shares.
(8) For the purposes of paragraphs (e) and (f) of sub-paragraph (7)—
(a) a person is “connected” with a director if that person is the director's spouse or civil partner, or is a relative, or the spouse or civil partner of a relative, of the director or of the director's spouse or civil partner;
(b) “managing officer” in relation to a body corporate, means any manager, secretary or other similar officer of the body corporate or any person purporting to act in any such capacity or as a director;
(c) “shadow director” has the meaning given by section 251 of the Companies Act 2006;
(d) “close company” has the meaning it has in the Corporation Tax Acts (see Chapter 2 of Part 10 of the Corporation Tax Act 2010).
(9) Subject to sub-paragraph (10), a person approved under sub-paragraph (1) remains a Northern Ireland fiscal warehousekeeper until the person—
(a) ceases to be a registered person, or
(b) notifies the Commissioners in writing that the person is to cease to be a Northern Ireland fiscal warehousekeeper.
(10) The Commissioners may if they consider it appropriate from time to time—
(a) impose conditions on a Northern Ireland fiscal warehousekeeper in addition to those conditions, if any, imposed under sub-paragraph (1);
(b) vary or revoke any conditions previously imposed;
(c) withdraw approval of any person as a Northern Ireland fiscal warehousekeeper;
(d) withdraw Northern Ireland fiscal warehouse status from any premises.
(11) Any application by or on behalf of a person to be a Northern Ireland fiscal warehousekeeper must be in writing and in such form as the Commissioners may direct and must be accompanied by such information as the Commissioners require.
(12) Any approval by the Commissioners under sub-paragraph (1), and any withdrawal of approval or other act by them under sub-paragraph (10), must be notified to the fiscal warehousekeeper in writing and takes effect on such notification being made or on any later date specified for the purpose in the notification.
(13) Without prejudice to the provisions of section 43 concerning liability for VAT, “registered person”, for the purposes of this paragraph, includes any person who under that section is for the time being treated as a member of a group.
Conversion of relevant fiscal warehouses etc
18 (1) Sub-paragraph (2) applies to any place in Northern Ireland that was a fiscal warehouse immediately before the coming into force of paragraph 17.
(2) On the coming into force of that paragraph, a place to which this sub-paragraph applies becomes a Northern Ireland fiscal warehouse (and may cease to be in accordance with that paragraph).
(3) On the coming into force of that paragraph, any fiscal warehousekeeper in relation to such a place immediately before the coming into force of that paragraph becomes a Northern Ireland warehousekeeper (and may cease to be in accordance with that paragraph).
(4) But a person does not cease to be a fiscal warehousekeeper in relation to a place in Great Britain as a result of sub-paragraph (3).
(5) Sub-paragraph (6) applies to a fiscal warehousekeeper who becomes a Northern Ireland fiscal warehousekeeper as a result of sub-paragraph (3).
(6) Any condition imposed under section 18A(1) or (6) that, immediately before the coming into force of paragraph 17, applied to a fiscal warehousekeeper to whom this sub-paragraph applies, applies to that person as a Northern Ireland fiscal warehousekeeper as if imposed under paragraph 17 (and may be varied or revoked accordingly).
(7) In this paragraph “fiscal warehouse” and “fiscal warehousekeeper” have the meaning they have in sections 18A to 18F (see section 18F).
Northern Ireland fiscal warehouses: relief
19 (1) Sub-paragraphs (5) and (6) apply where—
(a) there is an acquisition of goods in Northern Ireland from a member State,
(b) those goods are eligible goods,
(c) either—
(i) the acquisition takes place while the goods are subject to a Northern Ireland fiscal warehousing regime, or
(ii) after the acquisition but before the supply, if any, of those goods which next occurs, the acquirer causes the goods to be placed in a Northern Ireland fiscal warehousing regime, and
(d) the acquirer, not later than the time of the acquisition, prepares and keeps a certificate that the goods are subject to a fiscal warehousing regime, or (as the case may be) that the acquirer will cause paragraph (c)(ii) to be satisfied.
(2) A certificate prepared for the purposes of sub-paragraph (1)(d) must be kept for such period as the Commissioners may by regulations specify.
(3) Sub-paragraphs (5) and (6) also apply where—
(a) there is a supply of goods,
(b) those goods are eligible goods,
(c) either—
(i) that supply takes place while the goods are subject to a Northern Ireland fiscal warehousing regime, or
(ii) after that supply but before the supply, if any, of those goods which next occurs, the person to whom the former supply is made causes the goods to be placed in a Northern Ireland fiscal warehousing regime,
(d) in a case falling within paragraph (c)(ii), the person to whom the supply is made gives the supplier, not later than the time of the supply, a certificate that the person will cause paragraph (c)(ii) to be satisfied, and
(e) the supply is not a retail transaction.
(4) A certificate under sub-paragraph (1)(d) or (3)(d) must be in such form as may be specified by regulations or by the Commissioners in accordance with regulations.
(5) An acquisition or supply to which this sub-paragraph applies is treated for the purposes of this Act as taking place outside the United Kingdom if any subsequent supply of those goods is while they are subject to the Northern Ireland fiscal warehousing regime.
(6) Where an acquisition or supply to which this sub-paragraph applies falls, for the purposes of this Act, to be treated as taking place in the United Kingdom that acquisition or supply is treated for the purposes of this Act as taking place when the goods are removed from the Northern Ireland fiscal warehousing regime.
(7) Where—
(a) sub-paragraph (6) applies to an acquisition or a supply,
(b) the acquisition or supply is taxable and not zero-rated, and
(c) the acquirer or supplier is not a taxable person but would be were it not for paragraph 1(9) of Schedule 1 and paragraphs 38(6) and 48(7) of Schedule 9ZA, or any of those provisions,
VAT is chargeable on that acquisition or supply notwithstanding that the acquirer or the supplier is not a taxable person.
(8) For the purposes of this paragraph, apart from sub-paragraph (6), an acquisition or supply is treated as taking place at the material time for the acquisition or supply.
(9) In this paragraph “eligible goods” has the meaning it has in section 18B, but as if in section 18B(6)(b)—
(a) in sub-paragraph (i)—
(i) after “import duty” there were inserted “ , and any duty under section 30A(3) of TCTA 2018, ”;
(ii) after “those Acts” there were inserted “ or Union customs legislation ”;
(b) in sub-paragraph (ii), after “section 1(1)(c)” there were inserted “ (including any VAT chargeable on the movement of goods from Great Britain to Northern Ireland as a result of paragraph 3(4)) ”.
(10) The Commissioners may by regulations provide that goods of a description specified in regulations are, for the purposes of this paragraph, to be treated—
(a) where such goods are not of a description falling within Schedule 5A (goods eligible to be fiscally warehoused), as if they were;
(b) where such goods are of a description falling within that Schedule, as if they were not.
(11) The Commissioners may by regulations provide for the zero-rating of supplies of goods, or of such goods as may be specified in regulations, in cases where—
(a) the Commissioners are satisfied that the supply in question involves both—
(i) the removal of the goods from a Northern Ireland fiscal warehousing regime, and
(ii) their being placed in a warehousing regime in a member State, or in such member State or States as may be prescribed, where that regime is established by provisions of the law of that member State corresponding, in relation to that member State, to the provisions of this paragraph and paragraph 17, and
(b) such other conditions, if any, as may be specified in the regulations or the Commissioners may impose are fulfilled.
(12) Section 30(10) (zero-rating) applies in relation to regulations made under sub-paragraph (11) as it applies to regulations made under section 30(8) or (9).
Modification of section 18B
20 Section 18B(5) (fiscally warehoused goods: relief) has effect as if after “Schedule 1” there were inserted “ and paragraphs 38(6) and 48(7) of Schedule 9ZA, or any of those provisions ”.
Northern Ireland warehouses and fiscal warehouses: services
21 (1) Section 18C has effect as if any reference to—
(a) “a warehousing or fiscal warehousing regime” were to “a warehousing, Northern Ireland warehousing, fiscal warehousing, or Northern Ireland fiscal warehousing regime”;
(b) “a warehouse or a fiscal warehousekeeper” were to “a warehouse, Northern Ireland warehouse, fiscal or Northern Ireland fiscal warehousekeeper”;
(c) “a warehousing regime” were to “a warehousing or Northern Ireland warehousing regime”;
(d) “a fiscal warehousing regime” were to “a fiscal or Northern Ireland fiscal warehousing regime”.
(2) Subsection (2) of that section has effect in relation to goods subject to a Northern Ireland warehousing or Northern Ireland fiscal warehousing regime as if the term “material time” had the meaning it has in this Part of this Schedule.
(3) Subsection (3) of that section has effect in relation to goods subject to a Northern Ireland warehousing or Northern Ireland fiscal warehousing regime as if the term “duty point” had the meaning it has in paragraph 16.
(4) Subsection (4)(b) of that section has effect in relation to goods subject to a Northern Ireland fiscal warehousing regime as if after “carried out under” there were inserted “ Union customs legislation (within the meaning of Schedule 9ZB) or under ”.
Removal from warehousing: accountability
22 (1) This paragraph applies to any supply to which paragraph 19(6) applies (supply treated as taking place on removal or duty point) and any acquisition to which paragraph 19(7) applies (acquisition treated as taking place on removal where acquirer not a taxable person).
(2) Any VAT payable on the supply or acquisition must (subject to any regulations under sub-paragraph (3)) be paid—
(a) at the time when the supply or acquisition is treated as taking place under the paragraph in question, and
(b) by the person by whom the goods are removed or, as the case may be, together with the excise duty, by the person who is required to pay that duty.
(3) The Commissioners may by regulations make provision for enabling a taxable person to pay the VAT the person is required to pay by virtue of sub-paragraph (2) at a time later than that provided by that sub-paragraph.
(4) Regulations may make different provisions for different descriptions of taxable persons and for different descriptions of goods and services.
Deficiency in Northern Ireland fiscally warehoused goods
23 (1) Section 18E applies—
(a) to goods which have been subject to a Northern Ireland fiscal warehousing regime as it applies to goods which have been subject to a fiscal warehousing regime, and
(b) to a Northern Ireland fiscal warehousekeeper as it applies to a fiscal warehousekeeper.
(2) In this paragraph “fiscal warehousekeeper” has the meaning it has in sections 18A to 18F (see section 18F).
Incorrect Northern Ireland fiscal warehousing certificates
24 (1) Where—
(a) a person who makes, or is to make, an acquisition of goods in Northern Ireland from a member State prepares a certificate for the purposes of paragraph 19(1)(d), and
(b) the certificate is incorrect,
the person preparing the certificate is liable to a penalty.
(2) The amount of the penalty is the amount of VAT actually chargeable on the acquisition.
(3) A person is not liable to a penalty under sub-paragraph (1) if the person satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for having prepared the certificate in question.
(4) If a person is convicted of an offence (whether under this Act or otherwise) by reason of preparing an incorrect certificate for the purposes of paragraph 19(1)(d), the person is not liable to a penalty under sub-paragraph (1).
(5) A penalty under sub-paragraph (1) is to be treated, for the purposes of sections 76 and 83 (assessments and appeals), as if it were a penalty under section 62 (incorrect certificates).
(6) Section 62 has effect as if in subsection (1)(a)(ii), after “18C(1)(c)” there were inserted “ or paragraph 19(3)(d) of Schedule 9ZB (Northern Ireland fiscal warehouses) ”.
Supplementary provision
25 (1) In this Part of this Schedule—
“eligible goods” is to be construed in accordance with paragraph 19(9) and (10);
“material time”—
in relation to any acquisition or supply the time of which is determined in accordance with regulations under section 6(14) or paragraph 4(2)(b) of Schedule 9ZA, means such time as may be prescribed for the purpose of this paragraph by those regulations,
in relation to any other acquisition, means the time of the first removal of the goods (see paragraph 4(5) of that Schedule), and
in relation to any other supply, means the time when the supply would be treated as taking place in accordance with subsection (2) of section 6 if paragraph (c) of that subsection were omitted;
“Northern Ireland fiscal warehouse” is to be construed in accordance with paragraph 17;
“Northern Ireland fiscal warehousekeeper” is to be construed in accordance with that paragraph;
“Northern Ireland warehouse” has the meaning given by paragraph 16(11).
(2) Any reference in this Part of this Schedule to goods being subject to a Northern Ireland fiscal warehousing regime is, subject to any regulations made under sub-paragraph (6), a reference to eligible goods being kept in a Northern Ireland fiscal warehouse or being transferred between Northern Ireland fiscal warehouses in accordance with such regulations; and any reference to the removal of goods from a Northern Ireland fiscal warehousing regime are to be construed accordingly.
(3) Where as a result of an operation on eligible goods subject to a Northern Ireland fiscal warehousing regime they change their nature but the resulting goods are also eligible goods, the provisions of this Part of this Schedule apply as if the resulting goods were the original goods.
(4) Where as a result of an operation on eligible goods subject to a Northern Ireland fiscal warehousing regime they cease to be eligible goods, on their ceasing to be so this Part applies as if they had at that time been removed from the regime; and for that purpose the proprietor of the goods is treated as if that person were the person removing them.
(5) Where—
(a) any person ceases to be a Northern Ireland fiscal warehousekeeper, or
(b) any premises cease to have Northern Ireland fiscal warehouse status,
this Part of this Schedule applies as if the goods of which the person is the fiscal warehousekeeper, or the goods in the fiscal warehouse, as the case may be, had at that time been removed from the fiscal warehousing regime; and for that purpose the proprietor of the goods is to be treated as if the proprietor were the person removing them.
(6) The Commissioners may make regulations governing the deposit, keeping, securing and treatment of goods in a Northern Ireland fiscal warehouse, and the removal of goods from a Northern Ireland fiscal warehouse.
(7) Regulations may, without prejudice to the generality of sub-paragraph (6), include provision—
(a) in relation to—
(i) goods which are, have been or are to be subject to a Northern Ireland fiscal warehousing regime,
(ii) other goods which are, have been or are to be kept in Northern Ireland fiscal warehouses,
(iii) Northern Ireland fiscal warehouse premises, and
(iv) Northern Ireland fiscal warehousekeepers and their businesses,
as to the keeping, preservation and production of records and the furnishing of returns and information by Northern Ireland fiscal warehousekeepers and any other persons;
(b) requiring goods deposited in a fiscal warehouse to be produced to or made available for inspection by an authorised person on the request of that authorised person;
(c) prohibiting the carrying out on Northern Ireland fiscally warehoused goods of such operations as the Commissioners may prescribe;
(d) regulating the transfer of goods from one Northern Ireland fiscal warehouse to another;
(e) concerning goods which, though kept in a Northern Ireland fiscal warehouse, are not eligible goods or are not intended by a relevant person to be goods in respect of which reliefs are to be enjoyed under this Part of this Schedule;
(f) prohibiting a Northern Ireland fiscal warehousekeeper from allowing goods to be removed from a Northern Ireland fiscal warehousing regime without payment of any VAT payable under paragraph 22 on or by reference to that removal and, if in breach of that prohibition the warehousekeeper allows goods to be so removed, making the warehousekeeper liable for the VAT jointly and severally with the remover,
and may contain such incidental or supplementary provisions as the Commissioners think necessary or expedient.
(8) Regulations may make different provision for different cases, including different provision for different Northern Ireland fiscal warehousekeepers or descriptions of Northern Ireland fiscal warehousekeeper, for Northern Ireland fiscal warehouses of different descriptions or for goods of different classes or descriptions or of the same class or description in different circumstances.
Modification of other provisions
26 (1) Paragraph 3 of Schedule 6 (valuation: special cases) has effect in relation to goods whose supply involves their removal to Northern Ireland from a place outside the United Kingdom as if—
(a) in sub-paragraph (1)(a)(ii), before “agricultural levy” there were inserted “customs duty or”;
(b) in sub-paragraph (1)(b), for “section 18(4)” there were substituted “ paragraph 16(7) of Schedule 9ZB ”;
(c) in sub-paragraph (2), for “section 18” there were substituted “ paragraph 16 of Schedule 9ZB ”.
(2) Paragraph 2(8) of Schedule 11 has effect as if after “section 18” there were inserted “ in relation to goods other than goods in Northern Ireland, or paragraph 16 of Schedule 9ZB in relation to goods in Northern Ireland ”.
(3) Section 702 of the Income Tax (Earnings and Pensions) Act 2003 (meaning of “readily convertible asset”) has effect as if in subsection (6)(a), in the definition of “warehousing regime”, after “Value Added Tax Act 1994 (c23))” there were inserted “ or a Northern Ireland warehousing or Northern Ireland fiscal warehousing regime (within the meaning of paragraphs 16 to 25 of Schedule 9ZB to that Act) ”.
(4) Paragraph 11 of Schedule 36 to the Finance Act 2008 (power to inspect premises) has effect as if—
(a) in sub-paragraph (1)(c), after “warehouse” there were inserted “ or Northern Ireland fiscal warehouse ”;
(b) in sub-paragraph (2)(c), after “warehousing” there were inserted “ or Northern Ireland fiscal warehousing ”.
PART 5 Rules relating to particular supplies
Supplies of gas, electricity or heat
27 (1) Paragraph 3(1) (zero-rating of supplies involving removal of goods from Northern Ireland to Great Britain or vice versa) does not apply to a supply of relevant goods.
(2) In this paragraph “relevant goods” has the meaning it has in section 9A (reverse charge on gas, electricity, heat or cooling).
Time of supply involving both a supply and an acquisition
28 (1) Where any supply of goods involves both—
(a) the removal of the goods from Northern Ireland, and
(b) their acquisition in a member State by a person who is liable for VAT on the acquisition in accordance with provisions of the law of that member State corresponding, in relation to that member State, to the provisions of paragraph 2,
subsections (2), (4) to (6) and (10) to (12) of section 6 (time of supply) do not apply and the supply is treated for the purposes of this Act as taking place on whichever is the earlier of the days specified in sub-paragraph (2).
(2) The days mentioned in sub-paragraph (1) are—
(a) the 15th day of the month following that in which the removal in question takes place, and
(b) the day of the issue, in respect of the supply, of a VAT invoice or of an invoice of such other description as the Commissioners may by regulations prescribe.
(3) Section 6(14) has effect as if after “section 55(4)” there were inserted “ or paragraph 28 of Schedule 9ZB ”.
Distance selling between EU and Northern Ireland: place of supply
29 (1) Goods whose place of supply is not determined under subsection (2) or (3) of section 7 (place of supply of goods) are treated as supplied in the United Kingdom where—
(a) the supply involves the removal of the goods to Northern Ireland by or under the directions of the person who supplies them,
(b) the supply is a transaction in pursuance of which the goods are acquired in Northern Ireland from a member State by a person who is not a taxable person,
(c) the supplier—
(i) is liable to be registered under Part 9 of Schedule 9ZA, ...
(ii) would be so liable if the supplier were not already registered under this Act or liable to be registered under Schedule 1 or 1A, or
(iii) is registered under the OSS scheme or a participant in a non-UK scheme (within the meaning of Schedule 9ZD), and
(d) the supply is neither a supply of goods consisting in a new means of transport nor anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) of Schedule 4 or paragraph 30 of Schedule 9ZB.
(2) Goods whose place of supply is not determined under sub-paragraph (1) or subsection (2) or (3) of section 7 and which do not consist in a new means of transport are treated as supplied outside the United Kingdom where—
(a) the supply involves the removal of the goods from Northern Ireland, by or under the directions of the person who supplies them, to a member State,
(b) the person who makes the supply is taxable in a member State, and
(c) provisions of the law of that member State corresponding, in relation to that member State, to the provisions made by sub-paragraph (1) make that person liable to VAT on the supply.
(3) But sub-paragraph (2) does not apply in relation to any supply in a case where the liability mentioned in sub-paragraph (2)(c) depends on the exercise by any person of an option in the United Kingdom corresponding to such an option as is mentioned in paragraph 48(2) of Schedule 9ZA unless that person has given, and has not withdrawn, a notification to the Commissioners that the person wishes supplies by that person to be treated as taking place outside the United kingdom where they are supplies in relation to which the other requirements of sub-paragraph (2) are satisfied.
(4) The Commissioners may by regulations provide that a notification for the purposes of sub-paragraph (3) is not to be given or withdrawn except in such circumstances, and in such form and manner, as may be prescribed.
(5) For the purposes of this paragraph—
(a) where goods, in the course of their removal from a place in Northern Ireland to another place in Northern Ireland leave and re-enter Northern Ireland the removal is not to be treated as a removal from or to Northern Ireland, and
(b) where goods, in the course of their removal from a place in Northern Ireland to another place in the United Kingdom leave and re-enter the United Kingdom the removal is not to be treated as a removal from Northern Ireland.
(6) Section 7 has effect as if the references in subsections (5A) to (7) to “the preceding provisions of this section” included sub-paragraphs (1) and (2) of this paragraph.
Removal of business assets to be treated as a supply of goods
30 (1) A person carrying on a business makes a supply of goods where—
(a) the goods form part of the assets of that business,
(b) they are removed from Northern Ireland or a member State under the directions of that person, and
(c) the removal is in the course or furtherance of that business for the purpose of being taken to a place in—
(i) in the case of goods removed from Northern Ireland, a member State, or
(ii) in the case of goods removed from a member State, to another member State or to Northern Ireland.
(2) Sub-paragraph (1) applies to the removal of goods, whether or not that removal of the goods is, or is connected with, a transaction for consideration.
(3) Sub-paragraph (1) does not apply—
(a) to a case falling within paragraph 5(1) of Schedule 4 (matters to be treated as supply of goods or services),
(b) to the removal of goods from Northern Ireland where that removal is in the course of their removal from one part of Northern Ireland to another part of Northern Ireland,
(c) to the removal of goods from a member State where that removal is in the course of their removal from one part of a member State to another part of that member State,
(d) to goods which have been removed from a place outside the member States for entry into the territory of the European Union and are removed from a member State before the time when any Community customs debt in respect of any EU customs duty on their entry into that territory would be incurred,
(e) to goods which have been removed from a place outside the United Kingdom and the member States for entry into Northern Ireland and are removed from Northern Ireland before any duty under section 30A(3) of TCTA 2018 on their entry into Northern Ireland would be incurred, or
(f) to goods which have been removed from Great Britain to Northern Ireland and are removed from Northern Ireland before any duty under section 40A of TCTA 2018 on their entry into Northern Ireland would be incurred.
(4) Sub-paragraph (1) is subject to paragraph 58 of Schedule 9ZA (call-off stock arrangements).
Application of section 43 (company groups) to goods in Northern Ireland
31 Subsection (1)(a) of Section 43 (disregard of supplies between members of groups) does not apply to a supply of goods if the goods are in Northern Ireland at the time they are supplied unless the supplier and the recipient each has a business establishment, or some other fixed establishment, in Northern Ireland.
Partially exempt supplies
31A (1) A removal of goods from Great Britain to Northern Ireland to which this sub-paragraph applies is to be treated as a taxable supply of goods made in the course or furtherance of a business carried on by the person who removes the goods.
(2) Sub-paragraph (1) applies to a removal of goods if—
(a) the removal is not (ignoring sub-paragraph (1)) made in the course of a taxable supply,
(b) before the removal the goods were supplied to, or were imported by, the person who removed them (“P”),
(c) P is, at the time of that supply or importation and at the time of the removal, a taxable person,
(d) P has incurred VAT on that supply or importation,
(e) the removal takes place within 12 months of P becoming liable to that VAT,
(f) some, or all, of the VAT incurred on the supply or importation has not been credited as input tax in relation to P because it has, before the removal, been attributed to—
(i) both taxable and exempt supplies, or
(ii) exempt supplies, and
(g) either—
(i) P has not used the goods before their removal, or
(ii) P meets the condition in sub-paragraph (3).
(3) That condition is that P uses the goods, after their removal, exclusively for the purpose of making—
(a) in a case falling within sub-paragraph (2)(f)(i), both taxable and exempt supplies, or
(b) in a case falling within sub-paragraph (2)(f)(ii), exempt supplies.
(4) A supply of goods which is treated as arising under sub-paragraph (1) is zero-rated.
(5) VAT incurred by P on the removal of the goods from Great Britain to Northern Ireland (see paragraph 3(4)) is not to be treated as attributable (for the purposes of section 26) to the supply treated as arising under sub-paragraph (1).
Movement of own goods from Great Britain to Northern Ireland for non-business purposes
31B (1) A removal of goods from Great Britain to Northern Ireland to which this sub-paragraph applies is to be treated as a taxable supply of goods made in the course or furtherance of a business carried on by the person who removes the goods.
(2) Subject to sub-paragraph (4), sub-paragraph (1) applies to a removal of goods if—
(a) the removal is not (ignoring sub-paragraph (1)) made in the course or furtherance of a business,
(b) before the removal the goods were supplied to, or imported by, the person who removed them (“P”),
(c) P is, at the time of that supply or importation and at the time of the removal, a taxable person,
(d) P has incurred VAT on that supply or importation,
(e) the removal takes place within 12 months of P becoming liable to that VAT,
(f) some, or all, of the VAT incurred on the supply or importation has not been credited as input tax in relation to P because it has, before the removal, been attributed to—
(i) both business and non-business VAT, or
(ii) non-business VAT, and
(g) P meets the condition in sub-paragraph (3).
(3) That condition is that P uses the goods, after their removal, exclusively for—
(a) in a case falling within sub-paragraph (2)(f)(i), both business and non-business purposes, or
(b) in a case falling within sub-paragraph (2)(f)(ii), non-business purposes.
(4) Sub-paragraph (1) does not apply in relation to—
(a) a removal of goods to which paragraph 31A of this Schedule applies, or
(b) an export by a charity to which section 30(5) (as applied by paragraph 8 of this Schedule) applies.
(5) A supply of goods which is treated as arising under sub-paragraph (1) is zero-rated.
(6) VAT incurred by P on the removal of goods from Great Britain to Northern Ireland (see paragraph 3(4) of Schedule 9ZB) is not to be treated as attributable (for the purposes of section 26) to the supply treated as arising under sub-paragraph (1).
PART 6 Northern Ireland and the Isle of Man
Application of Part 2 of this Schedule
32 (1) Paragraph 3(1) (zero-rating of supply of goods removed from Great Britain to Northern Ireland and vice versa) applies to goods removed from Northern Ireland to the Isle of Man as they apply to goods removed from Northern Ireland to Great Britain.
(2) The following provisions apply to goods removed to Northern Ireland from the Isle of Man as they apply to goods removed from Great Britain to Northern Ireland—
(a) sub-paragraphs (4) and (5) of paragraph 3 (charge on goods removed from Great Britain to Northern Ireland);
(b) sub-paragraphs (6) and (7) of that paragraph (so far as they relate to sub-paragraph (4) or (5)).
(3) Paragraph 4 (liability for VAT on movements between Great Britain and Northern Ireland) applies to goods removed to Northern Ireland from the Isle of Man as they apply to goods removed from Great Britain to Northern Ireland as if the references to a “taxable person” included a person who is, or is required to be, registered under an Act of Tynwald for the purposes of any tax imposed by or under an Act of Tynwald which corresponds to VAT.
(4) Paragraph 7 (zero-rating of supplies made before declaration on removal) applies to goods removed to Northern Ireland from the Isle of Man as it applies to goods removed from Great Britain to Northern Ireland.
Modifications in relation to exports: goods removed to Isle of Man
33 (1) Subsection (8) of section 30 (power to zero-rate supplies where goods have been or are to be exported) has effect as if reference to the export of goods included the removal of goods from Northern Ireland to the Isle of Man.
(2) Where a supply of goods has been zero-rated as a result of paragraph 3(1) or regulations under section 30(8), on the basis that the goods have been or are to be removed from Northern Ireland to the Isle of Man, section 30(10) applies in relation to that supply as if any reference to the United Kingdom were to Northern Ireland.
(3) Section 37 (relief from VAT on importation of goods) has effect in relation to a removal of goods to Northern Ireland from the Isle of Man (which is treated as an importation as a result of paragraphs 3(5) and 32(2)) as if any reference to the export of goods included their removal from Northern Ireland to the Isle of Man.
(4) Group 15 of Schedule 8 (zero-rating) has effect as if—
(a) any reference to the export of goods, other than the reference in item 3, included the removal of goods from Northern Ireland to the Isle of Man;
(b) the modification made by paragraph 14(2)(c) applied to the removal of goods to the Isle of Man from Northern Ireland as it applies to the removal of goods from Northern Ireland to Great Britain.
Warehouses
34 Part 4 (warehouses) has effect as if any reference to Great Britain included the Isle of Man (see also article 2 of the Value Added Tax (Isle of Man) Order 1982 which provides that this Act has effect as if the Isle of Man were part of the United Kingdom subject to the provisions of that Order).
Extent
35 Nothing in this Part of this Schedule is to be taken as extending to the Isle of Man.
PART 7 Supplies from a member State to Great Britain via Northern Ireland: registration
36 (1) Part 3 of Schedule 9ZC (liability to be registered of persons treated as having imported goods under Part 1 of that Schedule) applies in relation to a person treated as having imported goods under paragraph 4(3A) of this Schedule as it applies to a person treated as having imported goods under Part 1 of that Schedule.
(2) But sub-paragraph (1) does not apply in relation to a person who is treated as having imported goods under Part 1 of Schedule 9ZC.
(3) For the purposes of sub-paragraph (1), Schedule 9ZC has effect as if—
(a) in paragraph 13 (meaning of relevant supply) the reference to Part 1 of that Schedule were to paragraph 4(3A) of this Schedule, and
(b) references to facilitating a relevant supply were ignored.
SCHEDULE 9ZC Online sales by overseas persons and low value importations: modifications relating to the Northern Ireland Protocol
Section 40A(3)
PART 1 Modification of this Act
1 Except in relation to a removal to which paragraph 6(3A) of Schedule 9ZB (certain supplies from a member State to Great Britain via Northern Ireland) applies, references in the following provisions of this Act to goods being imported do not include goods imported into the United Kingdom as a result of their entry into Northern Ireland or goods treated as having been imported into the United Kingdom as a result of their being removed from Northern Ireland to Great Britain—
(a) section 5A(3) (the imported consignment condition);
(b) section 7(5B)(b) (place of supply of goods);
(c) section 7AA(1)(c) (reverse charge on goods supplied from abroad).
1A Section 5A has effect as if in subsection (1)(c)(ii) after “outside the United Kingdom” there were inserted “ and prior to the supply the goods were located in Great Britain ”.
1B This Act has effect as if after section 5A there were inserted—
Supplies of goods in Northern Ireland facilitated by online marketplaces: deemed supply
5B (1) This section applies where—
(a) a person (“P”) makes a taxable supply of goods in the course or furtherance of a business to another person (“R”),
(b) the supply is facilitated by an online marketplace, and
(c) either the special scheme condition or the Union goods condition is met.
(2) For the purposes of this Act—
(a) P is to be treated as having supplied the goods to the operator of the online marketplace, and
(b) the operator is to be treated as having supplied the goods to R in the course or furtherance of a business carried on by the operator.
(3) The special scheme condition is met where—
(a) R belongs in Northern Ireland and is not a taxable person,
(b) the supply is a qualifying supply of goods within the meaning of Schedule 9ZE, and
(c) the operator of the online marketplace is a participant in a special scheme within the meaning of that Schedule.
(4) But the special scheme condition is not met where—
(a) P is established in the United Kingdom, and
(b) the supply involves the removal of goods from Great Britain or the Isle of Man to Northern Ireland.
(5) The Union goods condition is met where—
(a) P is not established in Northern Ireland or a member State,
(b) R either—
(i) belongs in Northern Ireland and is not a taxable person, or
(ii) belongs in a member State and is not liable or entitled to be registered for VAT in accordance with the law of that member State, and
(c) the supply is a supply of Union goods that are located in Northern Ireland at the time they are supplied.
(6) But the Union goods condition is not met where—
(a) P is established in Great Britain or the Isle of Man, and
(b) R belongs in Northern Ireland.
(7) In this section, “Union goods” has the same meaning as in Regulation (EU) 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (see Article 5(23) of that Regulation).
2 Section 77F (exception from liability under section 5A) has effect as if—
(a) in the heading, after “section 5A” there were inserted “ or Part 1 of Schedule 9ZC ”;
(b) in subsection (1), after “section 5A” there were inserted “ or Part 1 of Schedule 9ZC ”;
(c) in subsection (2), after “(as defined in section 5A” there were inserted “ or Part 1 of Schedule 9ZC, as the case may be ”.
2A In Part 2 of Schedule 8 (zero-rating: the groups), Group 21 (online marketplaces: deemed supply) has effect as if after Item 1 there were inserted—
2 A supply by a person not established in Northern Ireland or a member State that is deemed to be a supply to an operator of an online marketplace by virtue of section 5B (as it has effect in accordance with paragraph 1B of this Schedule).
3 (1) In Schedule 11, paragraph 6 has effect subject to the following modifications.
(1A) Sub-paragraph (1) has effect as if at the start there were inserted “Subject to paragraph 6ZA,
(2) Sub-paragraph (4C) has effect as if—
(a) the “or” at the end of paragraph (a) were omitted;
(b) after paragraph (b) there were inserted
, or
(c) Part 1 of Schedule 9ZC makes provision about who is treated as having imported those goods.
(3) Sub-paragraph (4D) has effect as if—
(a) the “or” at the end of paragraph (b) were omitted;
(b) after paragraph (c) there were inserted
, or
(d) is treated as having imported goods under Part 1 of Schedule 9ZC.
3A Schedule 11 has effect as if after paragraph 6 there were inserted—
6ZA (1) An operator of an online marketplace must preserve and make available records relating to a relevant taxable supply in accordance with the requirements of Article 242a of the VAT Directive and Article 54c of the Implementing Regulation.
(2) In this paragraph—
“the Implementing Regulation” has the same meaning as in Schedule 9ZE;
“relevant taxable supply” means a supply of goods where that supply is deemed to be a supply by an operator of an online marketplace by virtue of section 5B (as it has effect in accordance with paragraph 1B of this Schedule);
“the VAT Directive” has the same meaning as in Schedule 9ZE.
3B (1) Sub-paragraph (2) applies (instead of section 6) to a supply of goods deemed to have taken place by section 5B(2)(a) or (b) (as it has effect in accordance with paragraph 1B of this Schedule).
(2) The supply of goods is to be treated as taking place at the time when payment for the goods has been accepted within the meaning of Article 41a of the Implementing Regulation.
(3) In this paragraph, “the Implementing Regulation” has the same meaning as in Schedule 9ZE.
4 (1) Sub-paragraph (2) applies, instead of section 15(4) and (5) (as modified by paragraph 1 of Schedule 9ZB), where—
(a) goods are imported into the United Kingdom as a result of their entry into Northern Ireland in the course or furtherance of a business by a person (“P”),
(b) that importation is in the course of a taxable supply to a person (“R”) who—
(i) is not registered under this Act, or
(ii) is registered under this Act but who has not provided P or, where the supply is facilitated by an online marketplace, the operator of that marketplace, with R's VAT registration number,
(c) the intrinsic value of the consignment of which the goods are part is not more than £135, and
(d) the consignment of which the goods are part—
(i) does not contain excepted goods, and
(ii) is not a consignment in relation to which a postal operator established outside the United Kingdom has an obligation under an agreement with the Commissioners to pay any import VAT that is chargeable on the importation of that consignment into the United Kingdom.
(2) The person who is treated as having imported the goods is—
(a) in a case where the supply is facilitated by an online marketplace, the operator of the online marketplace, or
(b) in any other case, P.
(3) In sub-paragraph (1)(b)(ii), “VAT registration number” means the number allocated by the Commissioners to a person registered under this Act.
(4) For the purposes of sub-paragraph (1)(d)(i), “excepted goods” means goods of a class or description subject to any duty of excise whether or not those goods are in fact chargeable with that duty, and whether or not that duty has been paid on the goods.
(5) The Commissioners may by regulations substitute a different figure for a figure that is at any time specified in sub-paragraph (1)(c).
4A (1) Sub-paragraph (2) applies, instead of paragraph 4(3) , (3A) and (4) of Schedule 9ZB, in relation to a removal of goods from Northern Ireland to Great Britain or, as the case may be, vice versa where—
(a) the removal is in the course of a supply by a person established outside of the United Kingdom (“P”), and
(b) the supply is facilitated by an online marketplace.
(2) The operator of the online marketplace is the person who is treated as having imported the goods.
(3) But sub-paragraph (2) does not apply where the person to whom the goods are supplied (“R”)—
(a) is registered under this Act,
(b) has provided the operator of the online marketplace with R's VAT registration number, and
(c) the operator of the online marketplace has provided P with that number and details of the supply before the end of the relevant period.
(4) In sub-paragraph (3)—
“relevant period” means the period of 7 days beginning with the day on which the supply is treated as taking place under section 6 or such longer period as the Commissioners may allow in general or specific directions;
“VAT registration number” means the number allocated by the Commissioners to a person registered under this Act.
(5) The Commissioners may by regulations specify the details that must be provided for the purposes of sub-paragraph (3)(c).
PART 2 Modification of the Value Added Tax (Imported Goods) Relief Order 1984
PART 2A Modification of the Value Added Tax Regulations 1995
5A (1) In the Value Added Tax Regulations 1995 (S.I. 1995/2518), Part 3 (VAT invoices and other invoicing requirements) has effect subject to the following modifications.
(2) In regulation 13 (obligation to provide a VAT invoice), paragraph (1C) has effect as if—
(a) in sub-paragraph (a), after “section 5A” there were inserted “ or 5B (as it has effect in accordance with paragraph 1B of Schedule 9ZC to the Act) ”;
(b) in sub-paragraph (b), after “section 7(5B) of” there were inserted “ , or paragraph 38 of Schedule 9ZE to, ”.
(3) In regulation 13A (electronic invoicing), paragraph (5) has effect as if—
(a) in sub-paragraph (a), after “section 5A” there were inserted “ or 5B (as it has effect in accordance with paragraph 1B of Schedule 9ZC to the Act) ”;
(b) in sub-paragraph (b), after “section 7(5B) of” there were inserted “ , or paragraph 38 of Schedule 9ZE to, ”.
(4) Regulation 16B (retailers' and simplified invoices: exceptions), has effect as if—
(a) in sub-paragraph (a), after “section 5A” there were inserted “ or 5B (as it has effect in accordance with paragraph 1B of Schedule 9ZC to the Act) ”;
(b) in sub-paragraph (b), after “section 7(5B) of” there were inserted “ , or paragraph 38 of Schedule 9ZE to, ”.
PART 3 Registration
Liability to be registered
6 (1) A person who is treated as having imported goods under Part 1 of this Schedule and—
(a) is not registered under this Act, and
(b) is not liable to be registered under Schedule 1, 1A or 9ZA to this Act,
becomes liable to be registered under this Schedule at the point they are so treated.
(2) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) becomes liable to be registered under this Schedule at any time if there are reasonable grounds for believing that the person will be treated as having imported goods under Part 1 of this Schedule in the following 30 days.
(3) A person is treated as having become liable to be registered under this Schedule at any time when the person would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 11(2) of this Schedule, paragraph 13(3) of Schedule 1, paragraph 11 of Schedule 1A, paragraph 6(2) of Schedule 3A or paragraph 43 or 53 of Schedule 9ZA.
(4) A person does not cease to be liable to be registered under this Schedule except in accordance with paragraph 7.
7 (1) A person who has become liable to be registered under this Schedule ceases to be so liable at any time if the Commissioners are satisfied that the person is no longer a person who is, or will be, treated as having imported goods under Part 1 of this Schedule.
(2) But a person does not cease to be liable to be registered under this Schedule at any time if there are reasonable grounds for believing that the person will be treated as having imported goods under Part 1 of this Schedule in the following 30 days.
Notification of liability and registration
8 (1) A person who becomes liable to be registered under this Schedule must notify the Commissioners of the liability—
(a) in the case of a liability under sub-paragraph (1) of paragraph 6, within 30 days of the person becoming so liable, and
(b) in the case of a liability under sub-paragraph (2) of that paragraph, before the end of the period by reference to which the liability arises.
(2) The Commissioners must register any such person (whether or not the person notifies them) with effect from the relevant time.
(3) In this paragraph “the relevant time”—
(a) in a case falling within sub-paragraph (1)(a), means the beginning of the day on which the liability arose, and
(b) in a case falling within sub-paragraph (1)(b), means the beginning of the period by reference to which the liability arose.
Entitlement to be registered etc
9 (1) Where a person who is not liable to be registered under this Act and is not already so registered—
(a) satisfies the Commissioners that the person intends to make or facilitate a relevant supply from a specified date, and
(b) requests to be registered under this Schedule,
the Commissioners may, subject to such conditions as they think fit to impose, register the person with effect from such date as may be agreed between the Commissioners and the person.
(2) Conditions imposed under sub-paragraph (1) may—
(a) be so imposed wholly or partly by reference to, or without reference to, any conditions prescribed for the purposes of this paragraph, and
(b) be subsequently varied by the Commissioners (whenever the conditions were imposed).
(3) Where a person who is entitled to be registered under paragraph 9 or 10 of Schedule 1 requests registration under this paragraph, the person is to be registered under that Schedule, and not under this Schedule.
Notification of matters affecting continuance of registration
10 (1) Any person registered under this Schedule who ceases to be registrable under this Act must notify the Commissioners of that fact within 30 days of the day on which the person ceases to be registrable.
(2) A person registered under paragraph 9(1) must notify the Commissioners, within 30 days of the first occasion after the person's registration when the person makes or facilitates a relevant supply, that the person has made or facilitated that supply.
(3) For the purposes of this paragraph a person ceases to be registrable under this Act where—
(a) the person ceases to be a person who would be liable or entitled to be registered under this Act if the person's registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded, or
(b) in the case of a person who (having been registered under paragraph 9(1)) has not been such a person during the period of the person's registration, the person ceases to have any intention of making or facilitating relevant supplies.
Cancellation of registration
11 (1) Where a person registered under this Schedule satisfies the Commissioners that the person is not liable to be so registered, the Commissioners must, if the person so requests, cancel that registration with effect from the day on which the request is made or from such later date as may be agreed between the Commissioners and the person.
(2) Where the Commissioners are satisfied that a person registered under this Schedule has ceased since the person's registration to be registrable under this Schedule, they may cancel that registration with effect from the day on which the person so ceased or from such later date as may be agreed between the Commissioners and the person.
(3) Where the Commissioners are satisfied that a person who has been registered under paragraph 9(1) and is not for the time being liable to be registered under this Schedule—
(a) has not begun, by the date specified in the person's request to be registered, to make or facilitate relevant supplies, or
(b) has contravened any condition of the person's registration,
the Commissioners may cancel the person's registration with effect from the date so specified or, as the case may be, the date of the contravention or from such later date as may be agreed between the Commissioners and the person.
(4) But the Commissioners may not, under sub-paragraph (1), (2) or (3), cancel a person⿿s registration with effect from any time unless the Commissioners are satisfied that it is not a time when that person would be subject to a requirement, or in a case falling under sub-paragraph (2) or (3) a requirement or entitlement, to be registered under this Act.
(5) Where the Commissioners are satisfied that, on the day on which a person was registered under this Schedule, the person—
(a) was not registrable under this Schedule, and
(b) in the case of a person registered under paragraph 9(1), did not have the intention by reference to which the person was registered,
the Commissioners may cancel that registration with effect from that day.
(6) In determining, for the purposes of sub-paragraph (4), whether a person would be subject to a requirement, or would be entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when the person is already registered or when the person is so liable under any other provision is to be disregarded.
(7) For the purposes of this paragraph, a person is registrable under this Schedule at any time when the person is liable to be registered under this Schedule or is a person who makes or facilitates relevant supplies.
Notifications
12 Any notification required under this Part of this Schedule must be made in such form and manner and must contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.
Meaning of relevant supply
13 For the purposes of this Part of this Schedule a supply is a “relevant supply” if the person making or facilitating it would be treated as having imported goods under Part 1 of this Schedule.
Modification of the Finance Act 2008
14 Paragraph 1 of Schedule 41 to the Finance Act 2008 (penalties: failure to notify etc) has effect as if in the table there were inserted the following entry—
Value added tax | Obligation under paragraph 8 of Schedule 9ZC to VATA 1994 (obligations to notify liability to register and notify matters affecting continuance of registration).
SCHEDULE 9ZD Distance selling of goods from Northern Ireland: special accounting scheme
Section 40A
PART 1 Introduction
Overview
1 In this Schedule—
(a) Parts 2 and 3 establish a special accounting scheme (the One Stop Shop scheme, referred to in this Schedule as the “OSS scheme”) which may be used by persons making intra-Community distance sales of goods from Northern Ireland to member States;
(b) Part 4 is about persons participating in a non-UK scheme;
(c) Part 5 is about the collection of UK VAT;
(d) Part 6 is about appeals;
(e) Part 7 contains definitions.
“Scheme supply”
2 For the purposes of this Schedule, “scheme supply” means a supply of goods that would be an “intra-Community distance sale of goods” within the meaning given by Article 14(4) of the VAT Directive if references in that Article to a “Member State” were read as if they included a reference to Northern Ireland ....
PART 2 Registration
The register
3 Persons registered under the OSS scheme are to be registered in a single register kept by the Commissioners for the purposes of the scheme.
Persons who may be registered
4 (1) A person (“P”) may register under the OSS scheme if—
(a) P makes or intends to make one or more scheme supplies in the course of a business that P carries on,
(b) one of the following applies—
(i) P's business is established in Northern Ireland,
(ii) P's business is not established in Northern Ireland or a member State but P has a fixed establishment in Northern Ireland, or
(iii) P's business is not established in Northern Ireland or a member State and P does not have a fixed establishment in Northern Ireland, but P makes or intends to make scheme supplies from Northern Ireland to a member State and does not have a fixed establishment in a member State, and
(c) P is not barred from registering by—
(i) sub-paragraph (2),
(ii) the second or third paragraph of Article 369a(2) of the VAT Directive, or
(iii) any provision of the Implementing Regulation.
(2) P may not be registered under the OSS scheme if they are a participant in a non-UK scheme (see para 38(1)).
(3) P must register under the OSS scheme if P intends to account for VAT on scheme supplies even if P is ... registered under this Act.
Becoming registered
5 (1) The Commissioners must register a person (“P”) under the OSS scheme if P—
(a) satisfies them that the requirements for registration are met (see paragraph 4), and
(b) makes a request in accordance with this paragraph (a “registration request”).
(2) A registration request must state—
(a) P's name and postal and electronic addresses (including any websites),
(b) whether or not P has begun to make scheme supplies and (if so) the date on which P began to do so, and
(c) whether or not P has previously been identified under a non-UK scheme and (if so) the date on which P was first identified under the scheme concerned.
(3) A registration request must—
(a) contain any further information, and any declaration about its contents, that the Commissioners may by regulations require, and
(b) be made by such electronic means, and in such manner, as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require.
Date on which registration takes effect
6 Where a person (“P”) is registered under this Schedule, P's registration takes effect on the date determined in accordance with Article 57d of the Implementing Regulation.
Further provision about registration
7 The Commissioners may, by means of a notice published by them, make further provision about registration under this Schedule.
Notification of changes etc
8 (1) A person (“P”) registered under the OSS scheme must inform the Commissioners of the date when P first makes scheme supplies (unless P has already given the Commissioners that information under paragraph 5(2)(b)).
(2) That information, and any information P is required to give under Article 57h of the Implementing Regulation (notification of certain changes), must be communicated by such electronic means, and in such manner, as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require.
Cancellation of registration
9 The Commissioners must cancel the registration of a person (“P”) under the OSS scheme if—
(a) P has ceased to make, or no longer intends to make, scheme supplies and has notified the Commissioners of that fact;
(b) the Commissioners otherwise determine that P has ceased to make, or no longer intends to make, such supplies;
(c) P has ceased to satisfy any of the other requirements for registration in paragraph 4(1) and has notified the Commissioners of that fact,
(d) the Commissioners otherwise determine that P has ceased to satisfy any of those conditions, or
(e) the Commissioners determine that P has persistently failed to comply with P's obligations in or under this Schedule or the Implementing Regulation.
PART 3 Liability, returns, payment etc
Liability to pay ... VAT to Commissioners
10 (1) This paragraph applies where a person (“P”)—
(a) makes a scheme supply, and
(b) is registered under the OSS scheme when the supply is made.
(2) P is liable to pay to the Commissioners the gross amount of VAT on the supply.
(3) The gross amount of VAT on the supply is determined in accordance with sub-paragraphs (4) and (5), without any deduction of VAT pursuant to Article 168 of the VAT Directive.
(4) If the supply is treated as made in the United Kingdom, the amount is the amount of VAT that would be charged on the supply on the assumption for all purposes of this Act relating to the determination of—
(a) whether or not VAT is chargeable under this Act on the supply,
(b) how much VAT is chargeable under this Act on the supply, and
(c) any other matter that the Commissioners may specify by regulations,
that P is registered under this Act.
(5) If the supply is treated as made in a member State, the amount is the amount of VAT charged on the supply in accordance with the law of that member State.
OSS scheme returns
11 (1) A person (“P”) who is or has been registered under the OSS scheme must submit a return (an “OSS scheme return”) to the Commissioners for each reporting period.
(2) Each quarter for the whole or part of which P is registered under the OSS scheme is a “reporting period” for P.
OSS scheme returns: further requirements
12 (1) An OSS scheme return is to be made out in sterling.
(2) Any conversion from one currency into another for the purposes of sub-paragraph (1) is to be made using the exchange rates published by the European Central Bank—
(a) for the last day of the reporting period to which the OSS scheme return relates, or
(b) if no such rate is published for that day, for the next day for which such a rate is published.
(3) An OSS scheme return—
(a) must be submitted to the Commissioners before the end of the month following the month in which the last day of the reporting period to which it relates falls;
(b) must be submitted by such electronic means, and in such form and manner, as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require.
Payment
13 (1) A person who is required to submit an OSS scheme return must pay, by the deadline for submitting the return, the amounts required in accordance with paragraph 10 in respect of scheme supplies made in the reporting period to which the return relates.
(2) A payment under this paragraph must be made in such manner as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require.
Availability of records
14 (1) A person (“P”) who is registered under the OSS scheme must keep and make available to the Commissioners, on request, ... obligatory records ....
(2) The records must be made available by electronic means.
(3) In sub-paragraph (1) “obligatory records” means records , of transactions entered into by P covered by the scheme, containing the information referred to in Article 63c(1) of the Implementing Regulation.
Amounts required to be paid to member States
15 Section 44 of the Commissioners for Revenue and Customs Act 2005 (requirement to pay receipts into the Consolidated Fund) does not apply to any money received for or on account of VAT that is required to be paid to a member State under Article 46 of Council Regulation (EU) No 904/2010.
Persons registered under the OSS scheme who are also registered under this Act
15A. (1) A person (“P”) who—
(a) is registered under the OSS scheme, and
(b) is also registered, or required to be registered, under this Act,
is not required to discharge any obligation placed on them as a taxable person, to the extent that the obligation relates to a scheme supply treated as made in the United Kingdom.
(2) The reference in sub-paragraph (1) to an obligation placed on P as a taxable person is to an obligation—
(a) to which P is subject under or by virtue of this Act, and
(b) to which P would not be subject if P was neither registered nor required to be registered under this Act.
(3) This paragraph does not prevent P claiming, in reliance on section 25(2) (deduction of input tax from output tax by a taxable person), a credit for input tax incurred on scheme supplies treated as made in the United Kingdom.
PART 4 Persons registered under non-UK special accounting schemes
Meaning of “a non-UK scheme”
16 (1) In this Schedule “a non-UK scheme” means any provision of the law of a member State which implements Section 3 of Chapter 6 of Title XII of the VAT Directive.
(2) In relation to a non-UK scheme, references to the “administering member State” are to the member State under whose law the scheme is established.
Exemption from requirement to register under this Act
17 (1) A participant in a non-UK scheme is not required to be registered under this Act by virtue of making scheme supplies in respect of which the participant is required to make returns under that other scheme.
(2) Sub-paragraph (1) overrides any contrary provision in this Act.
(3) Where a participant in a non-UK scheme who is not registered under this Act (“the unregistered person”) makes relevant supplies, it is to be assumed for all purposes of this Act relating to the determination of—
(a) whether or not VAT is chargeable under this Act on those supplies,
(b) how much VAT is chargeable under this Act on those supplies,
(c) the time at which those supplies are treated as taking place, and
(d) any other matter that the Commissioners may specify by regulations,
that the unregistered person is registered under this Act.
(4) Scheme supplies made by the unregistered person are “relevant supplies” if—
(a) the value of the supplies must be accounted for in a return required to be made by the unregistered person under a non-UK scheme, and
(b) the supplies are treated as made in the United Kingdom.
De-registration
18 (1) Sub-paragraph (2) applies where a person (“P”) who is registered under Schedule 1A or Part 9 of Schedule 9ZA—
(a) satisfies the Commissioners that P intends to apply for identification under a non-UK scheme, and
(b) asks the Commissioners to cancel P's registration under Schedule 1A or Part 9 of Schedule 9ZA (as the case may be).
(2) The Commissioners may cancel P's registration under Schedule 1A or Part 9 of Schedule 9ZA (as the case may be) with effect from—
(a) the day on which the request is made, or
(b) a later date agreed between P and the Commissioners.
Scheme participants who are also registered under this Act
19 (1) A person (“P”) who—
(a) is a participant in a non-UK scheme, and
(b) is also registered, or required to be registered, under this Act,
is not required to discharge any obligation placed on them as a taxable person, to the extent that the obligation relates to relevant supplies.
(2) The reference in sub-paragraph (1) to an obligation placed on P as a taxable person is to an obligation—
(a) to which P is subject under or by virtue of this Act, and
(b) to which P would not be subject if P was neither registered nor required to be registered under this Act.
(3) A supply made by a participant in a non-UK scheme is a “relevant supply” if—
(a) the value of the supply must be accounted for in a return required to be made by the participant under that scheme, and
(b) the supply is treated as made in the United Kingdom.
(4) The Commissioners may by regulations specify cases in relation to which sub-paragraph (1) is not to apply.
(5) In section 25(2) (deduction of input tax from output tax by a taxable person) the reference to output tax that is due from the taxable person does not include any VAT that the taxable person is liable under a non-UK scheme to pay to the tax authorities for the administering member State.
Value of supplies to connected persons
20 In paragraph 1 of Schedule 6 (valuation: supply to connected person at less than market value) the reference to a supply made by a taxable person is to be read as including a scheme supply that is made by a participant in a non-UK scheme (and is treated as made in the United Kingdom).
Refund of VAT on supplies of goods and services supplied to scheme participant
21 The power of the Commissioners to make regulations under section 39 (repayment of VAT to those in business overseas) includes power to make provision for giving effect to the second sentence of Article 369j of the VAT Directive (which provides for VAT on certain supplies to participants in special accounting schemes to be refunded in accordance with Directive 2008/9/EC).
Availability of records
21A. (1) A person (“P”) who is a participant in a non-UK special scheme must keep and make available to the Commissioners, on request, obligatory records.
(2) The records must be made available by electronic means.
(3) In sub-paragraph (1) “obligatory records” means records, of transactions entered into by P covered by the scheme, containing the information referred to in Article 63c(1) of the Implementing Regulation.
PART 5 Collection of ...UK VAT
Assessments: general modifications of section 73
22 (1) For the purposes of this Schedule, section 73 (failure to make returns etc) is to be read as if—
(a) the reference in subsection (1) of that section to returns required under this Act included relevant non-UK returns, ...
(b) references in that section to a prescribed accounting period included a tax period , and
(c) references in that section to a VAT credit included a repayment to persons who are not taxable persons of an amount of VAT paid under and in accordance with this Schedule.
(2) See also the modifications in paragraph 23.
(3) In this Schedule “relevant non-UK return” means a non-UK return (see paragraph 38(1)) that is required to be made (wholly or partly) in respect of scheme supplies that are treated as made in the United Kingdom.
Assessments in connection with increase in consideration: modifications
23 (1) Sub-paragraphs (2) and (3) make modifications of section 73 which—
(a) have effect for the purposes of this Schedule, and
(b) are in addition to any other modifications of those sections made by this Schedule.
(2) Section 73 has effect as if, after subsection (3), there were inserted—
(3A) Where a person has failed to make an amendment or notification that the person is required to make under paragraph 33 of Schedule 9ZD in respect of an increase in the consideration for a UK supply (as defined in paragraph 33(7)), the Commissioners may assess the amount of VAT due from the person as a result of the increase to the best of their judgement and notify it to the person.
(3B) An assessment under subsection (3A)—
(a) is of VAT due for the tax period mentioned in paragraph 33(1)(a) of Schedule 9ZD;
(b) must be made within the time limits provided for in section 77, and must not be made after the end of the period of—
(i) 2 years after the end of the tax period referred to in paragraph 33(1)(a) of Schedule 9ZD, or if later,
(ii) one year after evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge.
(3C) Subject to section 77, where further evidence such as is mentioned in subsection (3B)(b)(ii) comes to the Commissioners' knowledge after they have made an assessment under subsection (3A), another assessment may be made under that subsection, in addition to any earlier assessment.
(3) The reference in section 73(9) to subsection (1) of that section is taken to include a reference to section 73(3A) (treated as inserted by sub-paragraph (2)).
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assessments: consequential modifications
24 References to prescribed accounting periods in section 77 (assessments: time limits, etc) are to be read in accordance with the modifications made by paragraphs 22 and 23—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deemed amendments of ... returns
25 (1) Where a person who has made an OSS scheme return or a relevant non-UK return makes a claim under paragraph 31(7)(b) (overpayments) in relation to an error in the return, the ... return is taken for the purposes of this Act to have been amended by the information in the claim.
(2) Where a person who has made an OSS scheme return or a relevant non-UK return gives the Commissioners a notice relating to the return under paragraph 33(2) (increase or decrease in consideration), the ... return is taken for the purposes of this Act to have been amended by that information.
(3) Where (in a case not falling within sub-paragraph (1) or (2)) a person who has made an OSS scheme return or a relevant non-UK return notifies the Commissioners ... of a change that needs to be made to the return to correct an error, or rectify an omission, in it, the ... return is taken for the purposes of this Act to have been amended by that information.
Interest on VAT: “reckonable date”
26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Default surcharge: notice of special surcharge period
27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Further default after service of notice
28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Default surcharge: exceptions for reasonable excuse etc
29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest in certain cases of official error
30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overpayments
31 (1) A person may make a claim if the person—
(a) has made a non-UK return for a tax period relating wholly or partly to scheme supplies treated as made in the United Kingdom,
(b) has accounted to the tax authorities for the administering member State for VAT in respect of those supplies, and
(c) in doing so has brought into account as UK VAT due to those authorities an amount (“the overpaid amount”) that was not UK VAT due to them.
(2) A person may make a claim if the person has, as a participant in a non-UK scheme, paid (to the tax authorities for the administering member State or to the Commissioners) an amount by way of UK VAT that was not UK VAT due (“the overpaid amount”), otherwise than in the circumstances mentioned in sub-paragraph (1)(c).
(3) A person who is or has been a participant in a non-UK scheme may make a claim if the Commissioners—
(a) have assessed the person to VAT for a tax period, and
(b) in doing so, have brought into account as VAT an amount (“the amount not due”) that was not VAT due.
(4) Where a person makes a claim under sub-paragraph (1) or (2), the Commissioners must repay the overpaid amount to the person.
(5) Where a person makes a claim under sub-paragraph (3), the Commissioners must credit the person with the amount not due.
(6) Where—
(a) as a result of a claim under sub-paragraph (3) an amount is to be credited to a person, and
(b) after setting any sums against that amount under or by virtue of this Act, some or all of the amount remains to the person's credit,
the Commissioners must pay (or repay) to the person so much of the amount as remains to the person's credit.
(7) The reference in sub-paragraph (1) to a claim is to a claim made—
(a) by correcting, in accordance with Article 61 of the Implementing Regulation, the error in the non-UK return mentioned in sub-paragraph (1)(a), or
(b) (after the expiry of the period during which the non-UK return may be amended under Article 61) to the Commissioners.
(8) Sub-paragraphs (1) and (2) do not require any amount to be repaid except to the extent that is required by Article 63 of the Implementing Regulation.
Overpayments: supplementary
32 (1) In section 80 (credit for, or repayment of, overstated or overpaid VAT), subsections (3) to (3C) (unjust enrichment) and (4A) ... and (6) (recovery by assessment of amounts wrongly credited) have effect as if—
(a) a claim—
(i) under paragraph 31(1) were a claim under section 80(1),
(ii) under paragraph 31(2) were a claim under section 80(1B), and
(iii) under paragraph 31(3) were a claim under section 80(1A);
(b) references in that section to a prescribed accounting period included a tax period.
(2) In section 80(3) to (3C), (4A) ... and (6), as modified by sub-paragraph (1), references to the crediting of amounts are to be read as including the payment of amounts.
(3) The Commissioners are not liable to repay the overpaid amount on a claim made—
(a) under paragraph 31(2), or
(b) as mentioned in paragraph 31(7)(b),
if the claim is made more than 4 years after the relevant date.
(4) On a claim made under paragraph 31(3), the Commissioners are not liable to credit the amount not due if the claim is made more than 4 years after the relevant date.
(5) The “relevant date” is—
(a) in the case of a claim under paragraph 31(1), the end of the tax period mentioned in paragraph 31(1)(a), except in the case of a claim resulting from an incorrect disclosure;
(b) in the case of a claim under paragraph 31(1) resulting from an incorrect disclosure, the end of the tax period in which the disclosure was made;
(c) in the case of a claim under paragraph 31(2), the date on which the payment was made;
(d) in the case of a claim under paragraph 31(3), the end of the quarter in which the assessment was made.
(6) A person makes an “incorrect disclosure” where—
(a) the person discloses to the tax authorities in question (whether the Commissioners or the tax authorities for the administering member State) that the person has not brought into account for a tax period an amount of UK VAT due for the period (“the disclosed amount”),
(b) the disclosure is made in a later tax period, and
(c) some or all of the disclosed amount is not in fact VAT due.
Increase or decrease in consideration for a supply : cases outside Article 61 of the Implementing Regulation
33 (1) This paragraph applies where—
(a) a person makes an OSS scheme return or a non-UK return for a tax period (“the affected tax period”) relating (wholly or partly) to a UK supply, and
(b) after the end of the period during which the person is entitled under Article 61 of the Implementing Regulation to amend their return the amount of the consideration for the UK supply increases or decreases.
(2) The person must, in the tax period in which the increase or decrease is accounted for in the person’s business accounts, notify the Commissioners of the adjustment needed to the figures in the OSS scheme return or non-UK return (as the case may be) because of the increase or decrease.
(3) Where the change to which a notice under sub-paragraph (2) relates is an increase in the consideration for a supply, the person must pay to the Commissioners the difference between—
(a) the amount of VAT that was chargeable on the supply before the increase in consideration, and
(b) the amount of VAT that is chargeable in respect of the whole of the increased consideration for the supply.
(4) Where the change to which an amendment or notice under sub-paragraph (2) relates is a decrease in the consideration for a supply, the amendment or notice has effect as a claim; and where a claim is made the Commissioners must repay any UK VAT paid by the person that would not have been UK VAT due from the person had the consideration for the supply always been the decreased amount.
(5) The Commissioners may by regulations specify—
(a) the latest time by which, and the form and manner in which, a claim or other notice under sub-paragraph (2) must be given;
(b) the latest time by which, and the form in which, a payment under sub-paragraph (3) must be made ....
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) In this paragraph “UK supply” means a scheme supply that is treated as made in the United Kingdom.
Bad debts
34 Where a participant in a non-UK scheme—
(a) has submitted a non-UK return to the tax authorities for the administering member State, and
(b) amends the return to take account of the writing-off as a bad debt of the whole or part of the consideration for a scheme supply that is treated as made in the United Kingdom,
the amending of the return may be treated as the making of a claim to the Commissioners for the purposes of section 36(2) (bad debts: claim for refund of VAT).
Penalties for errors: disclosure
35 Where a person corrects a non-UK return in a way that constitutes telling the tax authorities for the administering member State about—
(a) an inaccuracy in the return,
(b) a supply of false information, or
(c) a withholding of information,
the person is regarded as telling HMRC about that for the purposes of paragraph 9 of Schedule 24 to the Finance Act 2007.
Set-offs
36 Where a participant in a non-UK scheme is liable to pay UK VAT to the tax authorities for the administering member State in accordance with the scheme, the UK VAT is regarded for the purposes of section 130(6) of the Finance Act 2008 (set-off) as payable to the Commissioners.
PART 6 Appeals
37 (1) An appeal lies to the tribunal with respect to any of the following—
(a) a refusal to register a person under the OSS scheme;
(b) the cancellation of the registration of any person under the OSS scheme;
(c) a refusal to make a repayment under paragraph 31 (overpayments), or a decision by the Commissioners as to the amount of a repayment due under that provision;
(d) a refusal to make a repayment under paragraph 33(4) (decrease in consideration);
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) Part 5 of this Act (reviews and appeals), and any order or regulations under that Part, have effect as if an appeal under this paragraph were an appeal which lies to the tribunal under section 83(1) (but not under any particular paragraph of that subsection).
(3) Where the Commissioners have made an assessment under section 73 in reliance on paragraph 22 or 23—
(a) section 83(1)(p)(i): (appeals against assessments under section 73(1) etc) applies as if the relevant non-UK return were a return under this Act, and
(b) the references in section 84(3) and (5) to the matters mentioned in section 83(1)(p) are to be read accordingly.
PART 7 Interpretation
38 (1) In this Schedule—
“administering member State”, in relation to a non-UK scheme, has the meaning given by paragraph 16(2);
“the Implementing Regulation” means Council Implementing Regulation (EU) No 282/2011;
“non-UK return” means a return required to be made, for a tax period, under a non-UK scheme;
“non-UK scheme” has the meaning given by paragraph 16(1);
“OSS scheme” has the meaning given by paragraph 1(a);
“OSS scheme return” has the meaning given by paragraph 11(1);
“participant”, in relation to a non-UK scheme, means a person who is identified under that scheme;
“relevant non-UK return” has the meaning given by paragraph 22(3);
“reporting period” is to be read in accordance with paragraph 11(2);
“scheme supply” has the meaning given by paragraph 2;
“tax period” means a period for which a person is required to make a return under a non-UK scheme;
“UK VAT” means VAT in respect of scheme supplies treated as made in the United Kingdom;
“the VAT Directive” means Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.
(2) In relation to a non-UK scheme (or a non-UK return), references in this Schedule to “the tax authorities” are to the tax authorities for the member State under whose law the scheme is established.
(3) References in this Schedule to scheme supplies being “treated as made” in the United Kingdom are to their being treated as made in the United Kingdom by paragraph 29(1) of Schedule 9ZB.
SCHEDULE 9ZE Distance selling of goods imported to Northern Ireland: special accounting scheme
Section 40A
PART 1 Introduction
Overview
1 In this Schedule—
(a) Parts 2 and 3 establish a special accounting scheme (the Import One Stop Shop scheme, referred to in this Schedule as the “IOSS scheme”) which may be used by certain persons making supplies of goods—
(i) to Northern Ireland from countries or territories other than Great Britain, the Isle of Man or member States, or
(ii) into the European Union from countries or territories other than Northern Ireland or member States;
(b) Part 4 makes provision about the collection of UK VAT on such supplies;
(c) Part 5 makes provision about IOSS representatives;
(d) Part 6 makes supplementary provision;
(e) Part 7 is about appeals;
(f) Part 8 contains definitions.
Qualifying supplies of goods
2 (1) For the purposes of this Schedule, a supply of goods is , subject to sub-paragraph (3), a “qualifying supply of goods” if—
(a) the supply is a distance sale of goods imported from third territories or third countries for the purposes of the second paragraph of Article 14(4) of the VAT Directive (as modified by sub-paragraph (2)),
(b) the intrinsic value of the consignment of which the goods are part is not more than £135, and
(c) the consignment of which the goods are part does not contain goods of a class or description subject to any duty of excise, whether or not those goods are in fact chargeable with that duty, and whether or not that duty has been paid on those goods.
(2) For the purposes of sub-paragraph (1)(a), the second paragraph of Article 14(4) of the VAT Directive is to be read as if after “Member State” there were inserted “ or Northern Ireland ”.
(3) A supply of goods is not a “qualifying supply of goods” if—
(a) the goods are in Great Britain or the Isle of Man at the time they are sold,
(b) the supply involves the goods being removed from Great Britain or the Isle of Man to Northern Ireland, and
(c) the recipient of the goods belongs in Northern Ireland.
PART 2 Registration
The register
3 Persons registered under the IOSS scheme are to be registered in a single register kept by the Commissioners for the purposes of the scheme.
Persons who may be registered
4 A person (“P”) may register under the IOSS scheme if—
(a) P makes or intends to make one or more qualifying supplies of goods in the course of a business that P carries on,
(b) one of the following applies—
(i) P is established in Northern Ireland,
(ii) P is established in a country or territory with which the EU has concluded an agreement making provision corresponding or similar to that contained in Council Directive 2010/24/EU or Regulation (EU) No 904/2010, or
(iii) P is represented by an IOSS representative established in Northern Ireland (see Part 5),
(c) P is not identified under any provision of the law of a member State which implements Section 4 of Chapter 6 of Title XII of the VAT Directive, and
(d) P is not barred from registering by—
(i) the second paragraph of Article 369l(3) of the VAT Directive, or
(ii) any provision of the Implementing Regulation.
Becoming registered
5 (1) The Commissioners must register a person (“P”) under the IOSS scheme if P—
(a) satisfies them that the requirements for registration are met (see paragraph 4), and
(b) makes a request in accordance with this paragraph (a “registration request”).
(2) A registration request must state—
(a) P's name and postal and electronic addresses (including any websites);
(b) the number (if any) P has been allocated by the tax authorities in the country in which P belongs;
(c) the date on which P began, or intends to begin, making qualifying supplies of goods.
(3) A registration request must include a statement—
(a) that P is not established in a member State, or
(b) that P is so established, but is represented by an IOSS representative established in Northern Ireland.
(4) A registration request must—
(a) contain any further information, and any declaration about its contents, that the Commissioners may by regulations require, and
(b) be made by such electronic means, and in such manner, as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require.
Date on which registration takes effect
6 Where a person (“P”) is registered under this Schedule, P's registration takes effect on the date determined in accordance with Article 57d of the Implementing Regulation.
Further provision about registration
7 (1) Where the Commissioners register a person under the IOSS scheme who is an IOSS representative the Commissioners must also register under the IOSS scheme each person represented by the representative.
(2) The Commissioners may, by means of a notice published by them, make further provision about registration under this Schedule.
Notification of changes etc
8 A notification under Article 57h of the Implementing Regulation (notification of certain changes) must be given by such electronic means, and in such manner, as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations prescribe.
Cancellation of registration
9 The Commissioners must cancel the registration of a person (“P”) under the IOSS scheme if—
(a) P has ceased to make, or no longer intends to make, qualifying supplies of goods and has notified the Commissioners of that fact,
(b) the Commissioners otherwise determine that P has ceased to make, or no longer intends to make, such supplies,
(c) P has ceased to satisfy any of the other conditions for registration in paragraph 4 and has notified the Commissioners of that fact,
(d) the Commissioners otherwise determine that P has ceased to satisfy any of those conditions,
(e) the Commissioners determine that P has persistently failed to comply with P's obligations in or under this Schedule or the Implementing Regulation, or
(f) any of the circumstances described in Article 369r(3)(a) to (e) of the VAT Directive occur in relation to P.
PART 3 Liability, returns, payment etc
Liability to pay VAT to Commissioners
10 (1) This paragraph applies where a person (“P”)—
(a) makes a qualifying supply of goods, and
(b) is registered under the IOSS scheme when the supply is made.
(2) P is liable to pay to the Commissioners the VAT on the supply under and in accordance with this Schedule.
(3) The amount of VAT which a person is liable to pay on the supply is to be determined in accordance with sub-paragraphs (4) to (6), without any deduction of VAT pursuant to Article 168 of the VAT Directive.
(4) If the supply is treated as made in the United Kingdom, the amount is the amount of VAT charged on the supply under this Act (see paragraph 34(2)) and that amount is to be regarded for the purposes of this Act as VAT charged in accordance with this Act.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) If the supply is treated as made in a member State, the amount is the amount of VAT charged on the supply in accordance with the law of that member State.
IOSS scheme returns
11 (1) A person (“P”) who is, or has been, registered under this Schedule must submit a return (an “IOSS scheme return”) to the Commissioners for each reporting period.
(2) Each month for the whole or any part of which P is registered under this Schedule is a “reporting period” for P.
IOSS scheme returns: further requirements
12 (1) An IOSS scheme return is to be made out in sterling.
(2) Any conversion from one currency into another for the purposes of sub-paragraph (1) is to be made using the exchange rates published by the European Central Bank—
(a) for the last day of the reporting period to which the IOSS scheme return relates, or
(b) if no such rate is published for that day, for the next day for which such a rate is published.
(3) An IOSS scheme return—
(a) must be submitted to the Commissioners before the end of the calendar month following the month in which the last day of the reporting period to which it relates falls;
(b) must be submitted by such electronic means, and in such form and manner, as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require.
Payment
13 (1) A person who is required to submit an IOSS scheme return must pay, by the deadline for submitting the return, the amounts required in accordance with paragraph 10 in respect of qualifying supplies of goods made in the reporting period to which the return relates.
(2) A payment under this paragraph must be made in such manner as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require.
Availability of records : persons registered under the IOSS scheme
14 (1) A person (“P”) who is registered under the IOSS scheme must keep and make available to the Commissioners, on request, ... obligatory records ....
(2) The records must be made available by electronic means.
(3) In sub-paragraph (1) “obligatory records” means records , of transactions entered into by P covered by the scheme, containing the information referred to in Article 63c(2) of the Implementing Regulation.
Amounts required to be paid to member States
15 Section 44 of the Commissioners for Revenue and Customs Act 2005 (requirement to pay receipts into the Consolidated Fund) does not apply to any money received for or on account of VAT that is required to be paid to a member State under Article 46 of Council Regulation (EU) No 904/2010.
PART 4 Collection etc of UK VAT
Assessments: general modifications of section 73
16 (1) For the purposes of this Schedule, section 73 (failure to make returns etc) is to be read as if—
(a) the reference in subsection (1) of that section to returns required under this Act included relevant special scheme returns, ...
(b) references in that section to a prescribed accounting period included a tax period , and
(c) references in that section to a VAT credit included a repayment to persons who are not taxable persons of an amount of VAT paid under and in accordance with this Schedule.
(2) See also the modifications in paragraph 17.
(3) In this Schedule “relevant special scheme return” means a special scheme return (see paragraph 43(1)) that is required to be made (wholly or partly) in respect of qualifying supplies of goods that are treated as made in the United Kingdom.
Assessments in connection with increase in consideration: modifications
17 (1) Sub-paragraphs (2) and (3) make modifications of section 73 which—
(a) have effect for the purposes of this Schedule, and
(b) are in addition to any other modifications of those sections made by this Schedule.
(2) Section 73 has effect as if, after subsection (3), there were inserted—
(3A) Where a person has failed to make an amendment or notification that the person is required to make under paragraph 27 of Schedule 9ZE in respect of an increase in the consideration for a UK supply (as defined in paragraph 27(7)), the Commissioners may assess the amount of VAT due from the person as a result of the increase to the best of their judgement and notify it to the person.
(3B) An assessment under subsection (3A)—
(a) is of VAT due for the tax period mentioned in paragraph 27(1)(a) of Schedule 9ZE;
(b) must be made within the time limits provided for in section 77, and must not be made after the end of the period of—
(i) 2 years after the end of the tax period referred to in paragraph 27(1)(a), or if later,
(ii) one year after evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge.
(3C) Subject to section 77, where further evidence such as is mentioned in subsection (3B)(b)(ii) comes to the Commissioners' knowledge after they have made an assessment under subsection (3A), another assessment may be made under that subsection, in addition to any earlier assessment.
(3) The reference in section 73(9) to subsection (1) of that section is taken to include a reference to section 73(3A) (treated as inserted by sub-paragraph (2)).
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assessments: consequential modifications
18 References to prescribed accounting periods in section 77 (assessments: time limits etc) are to be read in accordance with the modifications made by paragraphs 16 and 17—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deemed amendments of relevant special scheme returns
19 (1) Where a person who has made a relevant special scheme return makes a claim under paragraph 25(7)(b) (overpayments) in relation to an error in the return, the relevant special scheme return is taken for the purposes of this Act to have been amended by the information in the claim.
(2) Where a person who has made a relevant special scheme return gives the Commissioners a notice relating to the return under paragraph 27(2)(b) (increase or decrease in consideration), the relevant special scheme return is taken for the purposes of this Act to have been amended by that information.
(3) Where (in a case not falling within sub-paragraph (1) or (2)) a person who has made a relevant special scheme return notifies the Commissioners (after the expiry of the period during which the special scheme return may be amended under Article 61 of the Implementing Regulation) of a change that needs to be made to the return to correct an error, or rectify an omission, in it, the relevant special scheme return is taken for the purposes of this Act to have been amended by that information.
Interest on VAT: “reckonable date”
20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Default surcharge: notice of special surcharge period
21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Further default after service of notice
22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Default surcharge: exceptions for reasonable excuse etc
23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest in certain cases of official error
24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overpayments
25 (1) A person may make a claim if the person—
(a) has made a special scheme return for a tax period relating wholly or partly to qualifying supplies of goods treated as made in the United Kingdom,
(b) has accounted to the tax authorities for the administering member State for VAT in respect of those supplies, and
(c) in doing so has brought into account as UK VAT due to those authorities an amount (“the overpaid amount”) that was not UK VAT due to them.
(2) A person may make a claim if the person has, as a participant in a special scheme, paid (to the tax authorities for the administering member State or to the Commissioners) an amount by way of UK VAT that was not UK VAT due (“the overpaid amount”), otherwise than in the circumstances mentioned in sub-paragraph (1)(c).
(3) A person who is or has been a participant in a special scheme may make a claim if the Commissioners—
(a) have assessed the person to VAT for a tax period, and
(b) in doing so, have brought into account as VAT an amount (“the amount not due”) that was not VAT due.
(4) Where a person makes a claim under sub-paragraph (1) or (2), the Commissioners must repay the overpaid amount to the person.
(5) Where a person makes a claim under sub-paragraph (3), the Commissioners must credit the person with the amount not due.
(6) Where—
(a) as a result of a claim under sub-paragraph (3) an amount is to be credited to a person, and
(b) after setting any sums against that amount under or by virtue of this Act, some or all of the amount remains to the person's credit,
the Commissioners must pay (or repay) to the person so much of the amount as remains to the person's credit.
(7) The reference in sub-paragraph (1) to a claim is to a claim made—
(a) by correcting, in accordance with Article 61 of the Implementing Regulation, the error in the special scheme return mentioned in sub-paragraph (1)(a), or
(b) (after the expiry of the period during which the special scheme return may be amended under Article 61) to the Commissioners.
(8) Sub-paragraphs (1) and (2) do not require any amount to be repaid except to the extent that is required by Article 63 of the Implementing Regulation.
Overpayments: supplementary
26 (1) In section 80 (credit for, or repayment of, overstated or overpaid VAT), subsections (3) to (3C) (unjust enrichment) and (4A) ... and (6) (recovery by assessment of amounts wrongly credited) have effect as if—
(a) a claim—
(i) under paragraph 25(1) were a claim under section 80(1),
(ii) under paragraph 25(2) were a claim under section 80(1B), and
(iii) under paragraph 25(3) were a claim under section 80(1A);
(b) references in that section to a prescribed accounting period included a tax period.
(2) In section 80(3) to (3C), (4A) ... and (6), as modified by sub-paragraph (1), references to the crediting of amounts are to be read as including the payment of amounts.
(3) The Commissioners are not liable to repay the overpaid amount on a claim made—
(a) under paragraph 25(2), or
(b) as mentioned in paragraph 25(7)(b),
if the claim is made more than 4 years after the relevant date.
(4) On a claim made under paragraph 25(3), the Commissioners are not liable to credit the amount not due if the claim is made more than 4 years after the relevant date.
(5) The “relevant date” is—
(a) in the case of a claim under paragraph 25(1), the end of the tax period mentioned in paragraph 25(1)(a), except in the case of a claim resulting from an incorrect disclosure;
(b) in the case of a claim under paragraph 25(1) resulting from an incorrect disclosure, the end of the tax period in which the disclosure was made;
(c) in the case of a claim under paragraph 25(2), the date on which the payment was made;
(d) in the case of a claim under paragraph 25(3), the end of the quarter in which the assessment was made.
(6) A person makes an “incorrect disclosure” where—
(a) the person discloses to the tax authorities in question (whether the Commissioners or the tax authorities for the administering member State) that the person has not brought into account for a tax period an amount of UK VAT due for the period (“the disclosed amount”),
(b) the disclosure is made in a later tax period, and
(c) some or all of the disclosed amount is not in fact VAT due.
Increase or decrease in consideration for a supply
27 (1) This paragraph applies where—
(a) a person makes a special scheme return for a tax period (“the affected tax period”) relating (wholly or partly) to a UK supply, and
(b) after the return has been made the amount of the consideration for the UK supply increases or decreases.
(2) The person must, in the tax period in which the increase or decrease is accounted for in the person's business accounts—
(a) amend the special scheme return to take account of the increase or decrease, or
(b) (if the period during which the person is entitled under Article 61 of the Implementing Regulation to amend the special scheme return has expired) notify the Commissioners of the adjustment needed to the figures in the special scheme return because of the increase or decrease.
(3) Where the change to which an amendment or notice under sub-paragraph (2) relates is an increase in the consideration for a UK supply, the person must pay to the tax authorities for the administering member State (in accordance with Article 62 of the Implementing Regulation) or, in a case falling within sub-paragraph (2)(b), the Commissioners, the difference between—
(a) the amount of VAT that was chargeable on the supply before the increase in consideration, and
(b) the amount of VAT that is chargeable in respect of the whole of the increased consideration for the supply.
(4) Where the change to which an amendment or notice under sub-paragraph (2) relates is a decrease in the consideration for a UK supply, the amendment or notice has effect as a claim; and where a claim is made the Commissioners must repay any VAT paid by the person that would not have been VAT due from the person had the consideration for the supply always been the decreased amount.
(5) The Commissioners may by regulations specify—
(a) the latest time by which, and the form and manner in which, a claim or other notice under sub-paragraph (2)(b) must be given;
(b) the latest time by which, and the form in which, a payment under sub-paragraph (3) must be made in a case within sub-paragraph (2)(b).
(6) A payment made under sub-paragraph (3) in a case within sub-paragraph (2)(a) must be made before the end of the tax period referred to in sub-paragraph (2).
(7) In this paragraph “UK supply” means a qualifying supply of goods that is treated as made in the United Kingdom.
Bad debts
28 Where a participant in a special scheme—
(a) has submitted a special scheme return to the tax authorities for the administering member State, and
(b) amends the return to take account of the writing-off as a bad debt of the whole or part of the consideration for a qualifying supply of goods that is treated as made in the United Kingdom,
the amending of the return may be treated as the making of a claim to the Commissioners for the purposes of section 36(2) (bad debts: claim for refund of VAT).
Penalties for errors: disclosure
29 Where a person corrects a special scheme return in a way that constitutes telling the tax authorities for the administering member State about—
(a) an inaccuracy in the return,
(b) a supply of false information, or
(c) a withholding of information,
the person is regarded as telling HMRC about that for the purposes of paragraph 9 of Schedule 24 to the Finance Act 2007 (reductions for disclosure).
Set-offs
30 Where a participant in a special scheme is liable to pay UK VAT to the tax authorities for the administering member State in accordance with the scheme, the UK VAT is regarded for the purposes of section 130(6) of the Finance Act 2008 (set-off) as payable to the Commissioners.
Availability of records: participants in a special scheme (other than the IOSS scheme)
30A. (1) A person (“P”) who is a participant in a special scheme (other than the IOSS scheme) must keep and make available to the Commissioners, on request, obligatory records.
(2) The records must be made available by electronic means.
(3) In sub-paragraph (1) “obligatory records” means records, of transactions entered into by P covered by the scheme, containing the information referred to in Article 63c(2) of the Implementing Regulation.
PART 5 IOSS representatives
Eligibility and representation
31 (1) A person may register as an IOSS representative for the purposes of the IOSS scheme if the person is established in Northern Ireland.
(2) A person may not be represented by more than one IOSS representative at a time.
Register
32 (1) Before a person (“R”) can be registered as an IOSS representative, R must provide to the Commissioners the information required by Article 369p(2) and (3) of the VAT Directive.
(2) The Commissioners may by regulations or by means of a notice published by them make further provision about the registration of a person as an IOSS representative.
(3) The provision that may be made under sub-paragraph (2) includes provision—
(a) requiring the registration of the names of IOSS representatives against the names of the person (or persons) they represent in the register kept for the purposes of this Schedule;
(b) imposing requirements to be met before a person may be registered in that register as an IOSS representative or before such registration may be cancelled;
(c) making it the duty of an IOSS representative, for the purposes of registration, to notify the Commissioners, within such period as may be prescribed, that the representative's appointment has taken effect or has ceased to have effect;
(d) allowing the Commissioners to refuse to register a person as an IOSS representative, or to cancel a person's registration as an IOSS representative, in such circumstances as may be specified in the regulations;
(e) as to the manner and circumstances in which a person is to be appointed, or is to be treated as having ceased to be, an IOSS representative;
(f) about the making or deletion of entries relating to IOSS representatives in the register kept for the purposes of this Schedule.
Duties and obligations
33 Where a person registered under the IOSS scheme (“P”) is represented by an IOSS representative (“R”), R—
(a) may act on P's behalf in relation to the IOSS scheme,
(b) must secure (where appropriate by acting on P's behalf) P's compliance with and discharge of the obligations and liabilities to which P is subject by virtue of or under this Schedule, and
(c) is personally liable in respect of—
(i) any failure to secure P's compliance with or discharge of any such obligation or liability, and
(ii) anything done for purposes connected with acting on P's behalf,
as if the obligations and liabilities imposed on P were imposed jointly and severally on R and P.
PART 6 Supplementary provision
Registration under this Act
34 (1) Notwithstanding any provision in this Act to the contrary ..., a participant in a special scheme is not required to be registered under this Act by virtue of making qualifying supplies of goods.
(2) Where a participant in a special scheme (“the scheme participant”) makes relevant supplies, it is to be assumed for all purposes of this Act relating to the determination of—
(a) whether or not VAT is chargeable under this Act on those supplies,
(b) how much VAT is chargeable under this Act on those supplies, and
(c) any other matter that the Commissioners may specify by regulations,
that the scheme participant is registered under this Act.
(3) A supply made by a participant in a special scheme is a “relevant supply” if—
(a) the value of the supply must be accounted for in a special scheme return, and
(b) the supply is treated as made in the United Kingdom.
(4) References in this Schedule to a person being registered under this Act do not include a reference to that person being registered under the IOSS scheme.
De-registration
35 Where a person (“P”) who is registered under Schedule 1 or 1A solely by virtue of the fact that P makes or intends to make qualifying supplies of goods satisfies the Commissioners that P intends to apply for—
(a) registration under this Schedule, or
(b) identification under any provision of the law of a member State which implements Section 4 of Chapter 6 of Title XII of the VAT Directive,
the Commissioners may, if P so requests, cancel P's registration under Schedule 1 or, as the case may be, 1A with effect from the day on which the request is made or from such later date as may be agreed between P and the Commissioners.
Scheme participants who are also registered under this Act
36 (1) A person who—
(a) is a participant in a special scheme, and
(b) is also registered, or required to be registered, under this Act,
is not required to discharge any obligation placed on the person as a taxable person, so far as the obligation relates to relevant supplies unless the obligation is an input tax obligation.
(2) The reference in sub-paragraph (1) to an obligation placed on the person as a taxable person is to an obligation—
(a) to which the person is subject under or by virtue of this Act, and
(b) to which the person would not be subject if the person were neither registered nor required to be registered under this Act.
(3) A supply made by a participant in a special scheme is a “relevant supply” if—
(a) the value of the supply must be accounted for in a return required to be made by the participant under the special scheme, and
(b) the supply is treated as made in the United Kingdom.
(4) In section 25(2) (deduction of input tax from output tax by a taxable person) the reference to output tax that is due from the taxable person does not include any VAT that the taxable person is liable under a special scheme to pay to the tax authorities for the administering member State.
(5) In this paragraph, “input tax obligation” means an obligation imposed on a taxable person relating to a claim to deduct under section 25(2) or to the payment of a VAT credit.
No VAT chargeable on supplies by special scheme participants not registered for VAT
36A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
No import VAT chargeable on qualifying supplies of goods
37 (1) No charge to VAT occurs on the importation of goods into the United Kingdom as a result of their entry into Northern Ireland ... where—
(a) that importation ... is in the course of a supply of those goods which is a qualifying supply of goods, and
(b) the person making the supply is a participant in a special scheme.
(2) The Commissioners may by means of a notice published by them make provision about the procedures that must be followed or the conditions that must be complied with to satisfy them that an importation ... falls within sub-paragraph (1).
Time and place of supply of goods
38 (1) Sub-paragraphs (3) and (4) apply (instead of sections 6 and 7) for the purposes of determining when and where a supply of goods within sub-paragraph (2) takes place.
(2) A supply of goods is within this sub-paragraph where—
(a) the supply of those goods is a qualifying supply of goods,
(b) the supply is not facilitated by an online marketplace,
(c) the person making the supply is a participant in a special scheme, and
(d) the goods are supplied to a person in Northern Ireland or a member State.
(3) The supply of goods is to be treated as taking place at the time when payment for the goods has been accepted, within the meaning of Article 61b of the Implementing Regulation.
(4) The goods are to be treated as supplied—
(a) in the case of goods supplied to a person in Northern Ireland, in the United Kingdom;
(b) in the case of goods supplied to a person in a member State, in that member State.
Place of supply of goods: supplies facilitated by online marketplaces
39 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Sub-paragraph (4) applies (instead of section 7) to a supply of goods deemed to have taken place by section 5B(2)(a) where the operator of the online marketplace that facilitated the supply of goods from P to R (within the meaning of that section) is a participant in a special scheme.
(4) The supply of goods is to be treated as taking place outside the United Kingdom.
(5) Sub-paragraph (6) applies (instead of section 7) to a supply of goods deemed to have taken place by section 5B(2)(b) where the operator of the online marketplace that facilitated the supply of goods from P to R (within the meaning of that section) is a participant in a special scheme.
(6) The supply of goods is to be treated as taking place in the United Kingdom.
VAT representatives
40 Section 48(1ZA) (VAT representatives) does not permit the Commissioners to direct a participant in a special scheme to appoint a VAT representative.
Refund of UK VAT
41 (1) Part 21 of the Value Added Tax Regulations 1995 (S.I. 1995/2518) has effect in relation to a participant in a special scheme as it applies to a trader (within the meaning of those Regulations) subject to the following modifications.
(2) Regulation 186 (repayments of VAT) has effect as if after “imported by him into the United Kingdom” there were inserted “ by virtue of their entry into Northern Ireland ”.
(3) That Part has effect as if regulations 187, 188(1) and 188(2)(b) were omitted (VAT representatives and persons to whom Part 21 applies).
PART 7 Appeals
Appeals
42 (1) An appeal lies to the tribunal with respect to any of the following—
(a) a refusal to register a person under the IOSS scheme;
(b) the cancellation of the registration of any person under the IOSS scheme;
(c) a refusal to make a repayment under paragraph 25 (overpayments), or a decision by the Commissioners as to the amount of a repayment due under that provision;
(d) a refusal to make a repayment under paragraph 27(4) (decrease in consideration);
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) Part 5 of this Act (reviews and appeals), and any order or regulations under that Part, have effect as if an appeal under this paragraph were an appeal which lies to the tribunal under section 83(1) (but not under any particular paragraph of that subsection).
(3) Where the Commissioners have made an assessment under section 73 in reliance on paragraph 16 or 17—
(a) section 83(1)(p)(i) (appeals against assessments under section 73(1) etc) applies as if the special scheme return were a return under this Act, and
(b) the references in section 84(3) and (5) to the matters mentioned in section 83(1)(p) are to be read accordingly.
PART 8 Interpretation
Interpretation
43 (1) In this Schedule—
“administering member State”, in relation to a special scheme, means the member State under whose law the scheme is established;
“the Implementing Regulation” means Council Implementing Regulation (EU) No 282/2011;
“IOSS scheme” has the meaning given by paragraph 1(a);
“IOSS scheme return” has the meaning given by paragraph 11(1);
“participant in a special scheme” means a person who—
is registered under the IOSS scheme, or
is identified under any provision of the law of a member State which implements Section 4 of Chapter 6 of Title XII of the VAT Directive;
“qualifying supply of goods” has the meaning given by paragraph 2;
“registration request” is to be construed in accordance with paragraph 5(1)(b);
“relevant special scheme return” has the meaning given by paragraph 16(3);
“reporting period” is to be read in accordance with paragraph 11(2);
“special scheme” means—
the IOSS scheme, or
any other scheme, under the law of a member State, implementing Section 4 of Chapter 6 of Title XII of the VAT Directive;
“special scheme return” means—
an IOSS scheme return, or
a value added tax return submitted to the tax authorities of a member State;
“tax period” means—
a reporting period (under the accounting scheme under this Schedule), or
any other period for which a person is required to make a return under a special scheme;
“UK VAT” means VAT which a person is liable to pay (whether in the United Kingdom or a member State) in respect of qualifying supplies treated as made in the United Kingdom at a time when the person is or was a participant in a special scheme;
“value added tax return”, in relation to a member State, means any value added tax return required to be submitted under any provision of the law of that member State which implements Article 369s of the VAT Directive;
“the VAT Directive” means Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.
(2) References in this Schedule to qualifying supplies of goods being “treated as made”—
(a) in the United Kingdom are to their being treated as made in the United Kingdom by paragraph 38 or 39;
(b) in a member State are to their being treated as made in that member State by virtue of any provision of the law of that member State which gives effect to Article 33(c) of the VAT Directive.
SCHEDULE 9ZF Modifications etc in connection with Schedules 9ZD and 9ZE
Section 40A
PART 1 Modifications of this Act
1 This Act has effect subject to the following modifications.
1A. Section 3 (taxable persons and registration) has effect as if, after subsection (4), there were inserted—
(5) A person is not to be treated as being registered under this Act merely by virtue of the person being registered under the OSS scheme (within the meaning of Schedule 9ZD) or the IOSS scheme (within the meaning of Schedule 9ZE).
.
2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 (1) Section 80 (credit for, or repayment of, overstated or overpaid VAT) has effect subject to the following modifications.
(2) Subsection (7) has effect as if after “this section” there were inserted “(and paragraph 31 of Schedule 9ZD and paragraph 25 of Schedule 9ZE)”.
(3) That section has effect as if after subsection (7) there were inserted—
(8) References in this section to output tax include references to UK VAT paid under and in accordance with Schedule 9ZD or 9ZE by a person who is registered under the OSS scheme or IOSS scheme (as the case may be) but who is not a taxable person.
(9) In subsection (8), “UK VAT”, the “OSS scheme” and the “IOSS scheme” have the same meanings as in Schedules 9ZD and 9ZE.
(10) References in this section to a prescribed accounting period include a tax period (within the meanings of Schedules 9ZD and 9ZE).
6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Schedule 1A (registration in respect of taxable supplies: non-UK establishment) has effect as if after paragraph 11 there were inserted—
12 Paragraphs 8 to 11 are subject to paragraph 18 of Schedule 9ZD and paragraph 35 of Schedule 9ZE (cancellation of registration of persons seeking to be registered under the Schedule concerned).
8A. Schedule 11 (administration, collection and enforcement) has effect as if in paragraph 4 (power to require security and production of evidence), after sub-paragraph (1A) there were inserted—
(1B) For the purposes of sub-paragraph (1A) “VAT credit” includes a repayment of an amount of VAT paid under and in accordance with Schedule 9ZD or 9ZE (the OSS and IOSS schemes).
PART 2 Modifications etc of other Acts
Finance Act 2007
9 In Schedule 24 to FA 2007, paragraph 1 (error in taxpayer's document) has effect as if—
(a) in the table, after the entry relating to a VAT return, statement or declaration in connection with a claim there were inserted—
VAT | Return under a special accounting scheme.
;
(b) before sub-paragraph (5) there were inserted—
(4A) In this paragraph “return under a special accounting scheme” means any of the following, so far as relating to supplies of goods treated as made in the United Kingdom—
(a) an OSS scheme return or a relevant non-UK return under Schedule 9ZD to VATA 1994 (see paragraphs 11 and 22(3) of that Schedule);
(b) a relevant special scheme return under Schedule 9ZE to VATA 1994 (see paragraphs 11 and 16(3) of that Schedule).
(4B) In a case where a return under a special accounting scheme is required to be submitted to an authority other than HMRC, for the purposes of sub-paragraph (1) the return is regarded as given to HMRC when it is submitted to that authority.
Finance Act 2009
10 FA 2009 has effect subject to the following modifications.
11 Section 101 (late payment interest on sums due to HMRC) has effect as if after subsection (9) there were inserted—
(10) The reference in subsection (1) to amounts payable to HMRC includes—
(a) amounts of UK VAT payable under a non-UK scheme;
(b) amounts of UK VAT payable under a special scheme;
(c) amounts payable under Schedule 26 to FA 2021 by way of penalties in relation to a failure to pay an amount of UK VAT—
(i) payable under paragraph 10(2) of Schedule 9ZD, or paragraph 10(2) of Schedule 9ZE, to VATA 1994;
(ii) payable under a non-UK scheme in respect of scheme supplies treated as made in the United Kingdom, or a special scheme in respect of qualifying supplies of goods treated as made in the United Kingdom;
(iii) shown in an assessment made by HMRC in default of an OSS scheme return or a relevant non-UK return;
(iv) shown in an assessment made by HMRC in default of a relevant special scheme return.
and references in Schedule 53 to amounts due or payable to HMRC are to be read accordingly.
(11) In subsection (10)—
(a) expressions that are also used in Schedule 9ZD to VATA 1994 (the OSS scheme) have the same meaning that they have in that Schedule, and
(b) expressions that are also used in Schedule 9ZE to VATA 1994 (the IOSS scheme) have the same meaning that they have in that Schedule
11A Section 102 (repayment interest on sums to be paid by HMRC) has effect as if after subsection (1) there were inserted—
(1A) This section also applies to an amount paid by a person to a person other than HMRC that is repaid by HMRC under—
(a) paragraph 31(4) of Schedule 9ZD, or paragraph 25(4) of Schedule 9ZE, to VATA 1994;
(b) section 36(2) of VATA 1994 by virtue of paragraph 34 of Schedule 9ZD, or paragraph 28 of Schedule 9ZE, to VATA 1994.
11B Part 2 of Schedule 54 (repayment interest: special provision as to repayment interest start date) has effect as if after paragraph 12C there were inserted—
Payments in connection with the OSS and IOSS schemes
12CA (1) This paragraph applies in the case of any payment (or repayment) under—
(a) paragraph 31(4) of Schedule 9ZD, or paragraph 25(4) of Schedule 9ZE, to VATA 1994;
(b) section 36(2) of VATA 1994 by virtue of paragraph 34 of Schedule 9ZD, or paragraph 28 of Schedule 9ZE, to VATA 1994.
(2) The repayment interest start date is the later of—
(a) the date (if any) on which the claim giving rise to the payment (or repayment) was required to be made, and
(b) the date on which the claim was in fact made.
11C Part 2A of Schedule 54 (repayment interest: VAT: special provision as to period for which amount carries interest) has effect as if—
(a) at the beginning of paragraph 12D there were inserted “Subject to paragraph 12DA,”;
(b) after paragraph 12D there were inserted—
12DA In this Part of this Schedule—
“prescribed accounting period” also includes a tax period within the meanings of Schedules 9ZD and 9ZE to VATA 1994;
“VAT credit” also includes a repayment to persons who are not taxable persons (within the meaning of VATA 1994) of an amount of VAT paid under and in accordance with Schedule 9ZD or 9ZE to that Act;
“VAT return” also includes—
an OSS scheme return or a relevant non-UK return within the meaning of Schedule 9ZD to VATA 1994;
a relevant special scheme return within the meaning of Schedule 9ZE to VATA 1994.
11D Part 2 of Schedule 54A (further provision as to late payment interest and repayment interest: Value Added Tax) has effect as if—
(a) at the beginning of paragraph 5 there were inserted “Subject to paragraph 5A”;
(b) after paragraph 5 there were inserted—
5A In this Part of this Schedule—
“prescribed accounting period” also includes a tax period within the meanings of Schedules 9ZD and 9ZE to VATA 1994;
“VAT credit” also includes a repayment to persons who are not taxable persons (within the meaning of VATA 1994) of an amount of VAT paid under and in accordance with Schedule 9ZD or 9ZE to that Act.
.
12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxation (Cross-border Trade) Act 2018
13 (1) Section 54 of the Taxation (Cross-border Trade) Act 2018 (prohibition on collection of certain taxes or duties on behalf of country or territory without reciprocity) does not apply in relation to VAT collected by HMRC under Schedule 9ZD or 9ZE.
(2) But sub-paragraph (1) is not to be read as having any bearing on whether or not, in the absence of that sub-paragraph, accounting for VAT collected under those Schedules would otherwise have been authorised.
Finance Act 2021
13A (1) Schedule 26 to FA 2021 (penalties for failure to pay tax) has effect subject to the following modifications.
(2) Paragraph 1(1) has effect as if in the table headed “Value added tax”, after item 1 there were inserted—
1A | Amount of UK VAT payable under paragraph 10(2) of Schedule 9ZD to VATA 1994 | The date determined in accordance with paragraph 13(1) of Schedule 9ZD to VATA 1994 as the date by which the amount must be paid
1B | Amount of UK VAT payable under paragraph 10(2) of Schedule 9ZE to VATA 1994 | The date determined in accordance with paragraph 13(1) of Schedule 9ZE to VATA 1994 as the date by which the amount must be paid
1C | Amount of UK VAT payable to the tax authorities for the administering member State under a non-UK scheme in respect of scheme supplies treated as made in the United Kingdom | The date by which a non-UK return relating to the amount must be submitted
1D | Amount of UK VAT payable to the tax authorities for the administering member State under a special scheme in respect of qualifying supplies of goods treated as made in the United Kingdom | The date by which a special scheme return relating to the amount must be submitted
.
(3) Paragraph 1(2) has effect as if—
(a) the words from “annual” to the end became paragraph (a), and
(b) after that paragraph there were inserted—
(b) terms used in entries 1A and 1C that are also used in Schedule 9ZD to VATA 1994 have the meanings given in that Schedule, and
(c) terms used in entries 1B and 1D that are also used in Schedule 9ZE to VATA 1994 have the meanings given in that Schedule
.
(4) Paragraph 3 has effect as if—
(a) after sub-paragraph (2) there were inserted—
(2A) An assessment or determination is also made by HMRC in default of a return if it is made where—
(a) a person is required to submit an OSS scheme return or a relevant non-UK return (within the meanings of Schedule 9ZD to VATA 1994) or a relevant special scheme return (within the meaning of Schedule 9ZE to VATA 1994),
(b) that person fails to submit the return on or before the date by which it is required to be submitted, and
(c) if the return had been submitted as required the return would have shown that an amount falling within item 1A, 1B, 1C or 1D of the table in paragraph 1 headed “Value added tax” was due and payable.
;
(b) in sub-paragraph (3), after “(2)” there were inserted “or (2A)”.
PART 3 Modifications of secondary legislation
Value Added Tax Regulations 1995
14 The Value Added Tax Regulations 1995 (S.I. 1995/2518) have effect subject to the following modifications.
15 In Part 5A (reimbursement arrangements), regulation 43A (interpretation of Part 5A) has effect as if, in the definition of “claim”, after paragraph (a) there were inserted—
(b) a claim made under paragraph 31 of Schedule 9ZD, or paragraph 25 of Schedule 9ZE, to the Act (claims which have effect for the purpose of section 80(3) of the Act as if they were section 80 claims).
16 (1) Part 19 (bad debt relief (the new scheme)) has effect subject to the following modifications.
(2) Regulation 165 (interpretation of Part 19) has effect as if—
(a) in the definition of “claim”, after “regulations 166” there were inserted “ or 166A ”;
(b) in the definition of “return”, after “regulation 25” there were inserted “but “relevant non-UK return” has the meaning given by paragraph 22(3) of Schedule 9ZD to the Act and “relevant special scheme return” has the meaning given by paragraph 16(3) of Schedule 9ZE to the Act”;
(c) at the appropriate place there were inserted—
“tax period” has the meaning given by paragraph 38 of Schedule 9ZD or paragraph 43 of Schedule 9ZE (as the case may be) to the Act
.
(3) Regulation 166 (the making of a claim to the Commissioners) has effect as if, at the beginning of paragraph (1) there were inserted “Subject to regulation 166A, and”.
(4) That Part has effect as if after regulation 166 there were inserted—
The making of a claim to the Commissioners: special accounting schemes
166AA (1) This regulation applies where the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return.
(2) Where this regulation applies, the claimant must make the claim by—
(a) amending, in accordance with Article 61 of the Implementing Regulation, that relevant non-UK return or relevant special scheme return, or
(b) (where the period during which a person is entitled to make such an amendment has expired) notifying the Commissioners of the claim in writing in English.
(5) Regulation 168 (records required to be kept by the claimant) has effect as if after paragraph (3) there were inserted—
(4) Where regulation 166AA applies, “prescribed accounting period” in this regulation is to be read as “tax period”.
(6) Regulation 171 (repayment of a refund) has effect as if at—
(a) at the beginning of paragraph (1) there were inserted “Subject to regulation 171A,”;
(b) at the beginning of paragraph (2) there were inserted “Subject to regulation 171B,”;
(c) at the beginning of paragraph (3) there were inserted “subject to regulation 171B and,”.
(7) Those Regulations have effect as if after regulation 171 there were inserted—
Calculation of repayment where reduction in consideration: special accounting schemes
171A In a case falling within sub-paragraph (b)(iii) of regulation 171(1) where the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return, the amount to be repaid is such an amount as is equal to the amount by which the VAT chargeable on the relevant supply is reduced.
Timing and method of repayments: special accounting schemes
171B (1) Where—
(a) the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return, and
(b) a repayment is required by regulation 171(1),
that repayment must be made no later than twenty days after the end of the tax period in which the payment for the relevant supply is received or the reduction in consideration is accounted for in the claimant's business accounts.
(2) Where—
(a) the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return, and
(b) a repayment is required by regulation 171(3),
that repayment must be made no later than twenty days after the end of the tax period in which the failure to comply first occurred.
(3) In either case the repayment must be made by—
(a) amending the relevant non-UK return or the relevant special scheme return for the tax period in which the VAT on the relevant supply was brought into account, or
(b) (where the relevant period has expired) sending the sum due to the Commissioners.
(4) In sub-paragraph (3)(b), the “relevant period” is the period of 3 years beginning with the day on which the relevant non-UK return or the relevant special scheme return for the tax period in which the VAT on the relevant supply was brought into account was required to be submitted.
17 (1) Part 20A of those Regulations (Repayments to EU traders incurring VAT on goods in Northern Ireland) has effect subject to the following modifications.
(2) Regulation 184D has effect as if, in the alternative version of regulation 173B(2)(c), after “Northern Ireland” there were inserted “, unless it is a supply or importation—
(a) that is a scheme supply for the purposes of Schedule 9ZD to the Act, and
(b) that is made by a person who is registered under that Schedule when the supply is made”;
(3) Regulation 184I has effect as if, in the alternative version of regulation 173L(2), after “Northern Ireland” there were inserted “, unless it is a supply—
(a) that is a scheme supply for the purposes of Schedule 9ZD of the Act, and
(b) that is made by a person who is registered under that Schedule when the supply is made”.
18 The Regulations have effect as if after regulation 213 there were inserted—
PART 26 UK OSS and IOSS special accounting schemes: registration, notification of changes and returns
Interpretation
214 (1) In this Part—
“applicant” means a person making a registration request under paragraph 5 of Schedule 9ZD or paragraph 5 of Schedule 9ZE to the Act;
“principal VAT Directive” means Council Directive 2006/112/EC of 28 November on the common system of value added tax;
“relevant place” means Northern Ireland or a member State.
(2) In regulations 215 and 216, references to a number allocated under Article 362 of the principal VAT Directive mean a number allocated at any time under that Article.
Registration requests: OSS scheme
215 A registration request under paragraph 5 of Schedule 9ZD to the Act must contain details of—
(a) any VAT identification number or tax reference number by which the applicant is identified for VAT purposes by any relevant place in accordance with Article 214, Article 239 or Article 240 of the principal VAT Directive, and the name of that relevant place,
(b) any number previously allocated to the applicant by a member State or the United Kingdom under Article 362 of the principal VAT Directive, or otherwise for the purposes of Article 369d of the principal VAT Directive, and the name of that relevant place,
(c) where the applicant has previously been identified under a non-UK scheme (within the meaning of Schedule 9ZD to the Act), the date the applicant ceased to be so identified,
(d) whether the applicant is treated as a member of a group under any of sections 43A to 43D of the Act, and
(e) the name of any relevant place in which the applicant has a fixed establishment, and the address of each such fixed establishment.
Registration requests: IOSS scheme
216 A registration request under paragraph 5 of Schedule 9ZE to the Act must contain details of—
(a) any VAT identification number or tax reference number by which the applicant is identified for VAT purposes by any relevant place in accordance with Article 214, Article 239 or Article 240 of the principal VAT Directive, and the name of that relevant place, and
(b) any number previously allocated to the applicant by a member State or the United Kingdom under Article 362 of the principal VAT Directive, or otherwise for the purposes of Article 369q of the principal VAT Directive, and the name of that relevant place.
Registration requests: declaration
217 A registration request under paragraph 5 of Schedule 9ZD or paragraph 5 of Schedule 9ZE to the Act must also contain a declaration by the applicant that the information the applicant has provided in the registration request is accurate and complete to the best of the applicant's knowledge.
Requirement to use electronic portal
218 The following communications must be made by using the electronic portal set up by the Commissioners for the purposes of implementing Sections 3 and 4 of Chapter 6 of Title XII to the principal VAT Directive—
(a) a registration request under paragraph 5 of Schedule 9ZD or paragraph 5 of Schedule 9ZE to the Act;
(b) the information required by paragraph 8 of Schedule 9ZD or paragraph 8 of Schedule 9ZE to the Act;
(c) a return required under paragraph 11 of Schedule 9ZD or paragraph 11 of Schedule 9ZE to the Act.
PART 27 Non-UK OSS and IOSS special accounting schemes: adjustments, claims and error correction
Meaning of “tax period”
219 In this Part, “tax period” has the meaning given by paragraph 38 of Schedule 9ZD or paragraph 43 of Schedule 9ZE (as the case may be) to the Act.
Amending a special accounting scheme return
219A (1) Any amendment to a return under a special accounting scheme for a tax period in which a relevant supply was brought into account must—
(a) be made in a subsequent return under a special accounting scheme of the same type,
(b) be made before the end of the period of three years beginning with the day on which the return for the tax period in which the relevant supply was brought into account was required to be submitted, and
(c) include details of—
(i) the member State in which the relevant supply was made;
(ii) the tax period to which the amendment relates;
(iii) the amount of VAT concerned.
(2) In this regulation, “return under a special accounting scheme” means any of the following, so far as relating to supplies of goods treated as made in the United Kingdom—
(a) an OSS scheme return or a relevant non-UK return under Schedule 9ZD to the Act (see paragraphs 11 and 22(3) of that Schedule);
(b) an IOSS scheme return or a relevant special scheme return under Schedule 9ZE to VATA 1994 (see paragraphs 11 and 16(3) of that Schedule).
Correction of errors on non-UK and special scheme returns more than 3 years after the date the original return was required to be made
220 (1) In this regulation “notice” means a notice given under paragraph 25(3) of Schedule 9ZD or paragraph 19(3) of Schedule 9ZE to the Act.
(2) A person giving a notice (P) must do so—
(a) no later than 4 years after the end of the tax period in respect of which the return identified in the notice was required to be made; and
(b) in writing in English.
(3) P must also provide such documentary evidence in support of the notice as P possesses.
Claims in respect of overpaid VAT
221 (1) A person making a claim under paragraph 31(1) of Schedule 9ZD, or paragraph 25(1) of Schedule 9ZE, to the Act must provide to the Commissioners at the time of making the claim a statement in writing in English explaining how the claim is calculated.
(2) A person making a claim under any other provision of paragraph 31 of Schedule 9ZD, or paragraph 25 of Schedule 9ZE to the Act must—
(a) make that claim to the Commissioners, and
(b) provide to the Commissioners at the time of making the claim a statement in writing in English explaining how the claim is calculated.
Increases or decreases in consideration occurring more than 3 years after the end of the affected tax period
222 (1) A claim or other notice made under paragraph 33(2)(b) of Schedule 9ZD or paragraph 27(2)(b) of Schedule 9ZE to the Act must be made in writing in English.
(2) A person making a payment—
(a) under paragraph 33(3) of Schedule 9ZD to the Act in a case falling within paragraph 33(2)(b) of that Schedule, or
(b) under paragraph 27(3) of Schedule 9ZE to the Act in a case falling within paragraph 27(2)(b) of that Schedule,
must do so no later than twenty days after the end of the tax period in which the increase in consideration is accounted for in the person's business accounts.
Scheme participants who are also taxable persons: disapplication of paragraph 19(1)
223 (1) Paragraph 19(1) of Schedule 9ZD to the Act is not to apply in the case of an input tax obligation.
(2) In this regulation “input tax obligation” means an obligation imposed on a taxable person relating to a claim to deduction under section 25(2) of the Act or to payment of a VAT credit.
Power to give directions
1 (1) Subject to paragraph 2 below, the Commissioners may give a direction under this Schedule if, in any case—
(a) a relevant event has occurred;
(b) the condition specified in sub-paragraph (3) below is fulfilled;
(c) that condition would not be fulfilled apart from the occurrence of that event; and
(d) in the case of an event falling within sub-paragraph (2)(b) below, the transaction in question is not a supply which is the only supply by reference to which the case falls within paragraphs (a) to (c) above.
(2) For the purposes of this Schedule, a relevant event occurs when a person—
(a) begins to be, or ceases to be, treated as a member of a group; or
(b) enters into any transaction.
(3) The condition mentioned in sub-paragraph (1) above is that—
(a) there has been, or will or may be, a taxable supply on which VAT has been, or will or may be, charged otherwise than by reference to the supply’s full value;
(b) there is at least a part of the supply which is not or, as the case may be, would not be zero-rated; and
(c) the charging of VAT on the supply otherwise than by reference to its full value gives rise or, as the case may be, would give rise to a tax advantage.
(4) For the purposes of this paragraph the charging of VAT on a supply (“the undercharged supply”) otherwise than by reference to its full value shall be taken to give rise to a tax advantage if, and only if, a person has become entitled—
(a) to credit for input tax allowable as attributable to that supply or any part of it, or
(b) in accordance with regulations under section 39, to any repayment in respect of that supply or any part of it.
(5) The cases where a person shall be taken for the purposes of sub-paragraph (4) above to have become entitled to a credit for input tax allowable as attributable to the undercharged supply, or to a part of it, shall include any case where—
(a) a person has become entitled to a credit for any input tax on the supply to him, or the ... importation by him, of any goods or services; and
(b) whatever the supplies to which the credit was treated as attributable when the entitlement to it arose, those goods or services are used by him in making the undercharged supply, or a part of it.
(6) For the purposes of sub-paragraphs (4) and (5) above where—
(a) there is a supply of any of the assets of a business of a person (“the transferor”) to a person to whom the whole or any part of that business is transferred as a going concern (“the transferee”), and
(b) that supply is treated, in accordance with an order under section 5(3), as being neither a supply of goods nor a supply of services,
the question, so far as it falls to be determined by reference to those assets, whether a credit for input tax to which any person has become entitled is one allowable as attributable to the whole or any part of a supply shall be determined as if the transferor and the transferee were the same person.
(7) Where, in a case to which sub-paragraph (6) above applies, the transferor himself acquired any of the assets in question by way of a supply falling within paragraphs (a) and (b) of that sub-paragraph, that sub-paragraph shall have the effect, as respects the assets so acquired, of requiring the person from whom those assets were acquired to be treated for the purposes of sub-paragraphs (4) and (5) above as the same person as the transferor and the transferee, and so on in the case of any number of successive supplies falling within those paragraphs.
(8) For the purposes of this paragraph any question—
(a) whether any credit for input tax to which a person has become entitled was, or is to be taken to have been, a credit allowable as attributable to the whole or any part of a supply, or
(b) whether any repayment is a repayment in respect of the whole or any part of a supply,
shall be determined, in relation to a supply of a right to goods or services or to a supply of goods or services by virtue of such a right, as if the supply of the right and supplies made by virtue of the right were a single supply of which the supply of the right and each of those supplies constituted different parts.
(9) References in this paragraph to the full value of a supply are references to the amount which (having regard to any direction under paragraph 1 of Schedule 6) would be the full value of that supply for the purposes of the charge to VAT if that supply were not a supply falling to be disregarded, to any extent, in pursuance of section 43(1)(a).
(10) References in this paragraph to the supply of a right to goods or services include references to the supply of any right, option or priority with respect to the supply of goods or services, and to the supply of an interest deriving from any right to goods or services.
Restrictions on giving directions
2 (1) The Commissioners shall not give a direction under this Schedule by reference to a relevant event if they are satisfied that—
(a) the change in the treatment of the person, or
(b) the transaction in question,
had as its main purpose or, as the case may be, as each of its main purposes a genuine commercial purpose unconnected with the fulfilment of the condition specified in paragraph 1(3) above.
(2) This paragraph shall not apply where the relevant event is the termination of a person's treatment as a member of a group by a notice under section 43C(1) or (3).
Form of directions under Schedule
3 (1) The directions that may be given by the Commissioners under this Schedule are either—
(a) a direction relating to any supply of goods or services that has been made, in whole or in part, by one person to another; or
(b) a direction relating to a particular person.
(2) A direction under this Schedule relating to a supply shall require it to be assumed (where it would not otherwise be the case) that, to the extent described in the direction, the supply was not a supply falling to be disregarded in pursuance of section 43(1)(a).
(3) A direction under this Schedule relating to a person shall require it to be assumed (where it would not otherwise be the case) that, for such period (comprising times before the giving of the direction or times afterwards or both) as may be described in the direction, the person—
(a) did not fall to be treated, or is not to be treated, as a member of a group, or of a particular group so described; or
(b) fell to be treated, or is to be treated, as a member of any group so described of which, for that period, it was or is eligible to be a member.
(4) Where a direction under this Schedule requires any assumptions to be made, then—
(a) so far as the assumptions relate to times on or after the day on which the direction is given, this Act shall have effect in relation to such times in accordance with those assumptions; and
(b) paragraph 6 below shall apply for giving effect to those assumptions in so far as they relate to earlier times.
(5) A direction falling within sub-paragraph (3)(b) above may identify in relation to any times or period the person who is to be assumed to have been, or to be, the representative member of the group at those times or for that period.
(6) A direction under this Schedule may vary the effect of a previous direction under this Schedule.
(7) The Commissioners may at any time, by notice in writing to the person to whom it was given, withdraw a direction under this Schedule.
(8) The refusal or non-refusal by the Commissioners of an application such as is mentioned in section 43B shall not prejudice the power of the Commissioners to give a direction under this Schedule requiring any case to be assumed to be what it would have been had the application not been refused or, as the case may be, had it been refused.
Time limit on directions
4 (1) A direction under this Schedule shall not be given more than six years after whichever is the later of—
(a) the occurrence of the relevant event by reference to which it is given; and
(b) the time when the relevant entitlement arose.
(2) A direction under this Schedule shall not be given by reference to a relevant event occurring on or before 28th November 1995.
(3) Subject to sub-paragraphs (1) and (2) above, a direction under this Schedule—
(a) may be given by reference to a relevant event occurring before the coming into force of this Schedule; and
(b) may require assumptions to be made in relation to times (including times before 29th November 1995) falling before the occurrence of the relevant event by reference to which the direction is given, or before the relevant entitlement arose.
(4) For the purposes of this paragraph the reference, in relation to the giving of a direction, to the relevant entitlement is a reference to the entitlement by reference to which the requirements of paragraph 1(4) above are taken to be satisfied for the purposes of that direction.
Manner of giving directions
5 (1) A direction under this Schedule relating to a supply may be given to—
(a) the person who made the supply to which the direction relates; or
(b) any person who, at the time when the direction is given, is the representative member of a group of which the person mentioned in paragraph (a) was treated as being a member at the time of the supply.
(2) A direction under this Schedule relating to a person (“the relevant person”) may be given to that person or to any person who at the time when the direction is given is, or in pursuance of the direction is to be treated as, the representative member of a group of which the relevant person—
(a) is treated as being a member;
(b) was treated as being a member at a time to which the direction relates; or
(c) is to be treated as being, or having been, a member at any such time.
(3) A direction given to any person under this Schedule shall be given to him by notice in writing.
(4) A direction under this Schedule must specify the relevant event by reference to which it is given.
Assessment in consequence of a direction
6 (1) Subject to sub-paragraph (3) below, where—
(a) a direction is given under this Schedule, and
(b) there is an amount of VAT (“the unpaid tax”) for which a relevant person would have been liable before the giving of the direction if the facts had accorded with the assumptions specified in the direction,
the Commissioners may, to the best of their judgement, assess the amount of unpaid tax as tax due from the person to whom the direction was given or another relevant person and notify their assessment to that person.
(2) In sub-paragraph (1) above the reference to an amount of VAT for which a person would, on particular assumptions, have been liable before the giving of a direction under this Schedule is a reference to the aggregate of the following—
(a) any amount of output tax which, on those assumptions but not otherwise, would have been due from a relevant person at the end of a prescribed accounting period ending before the giving of the direction;
(b) the amount of any credit for input tax to which a relevant person is treated as having been entitled at the end of such an accounting period but to which he would not have been entitled on those assumptions; and
(c) the amount of any repayment of tax made to a relevant person in accordance with regulations under section 39 but to which he would not have been entitled on those assumptions.
(3) Where any assessment falls to be made under this paragraph in a case in which the Commissioners are satisfied that the actual revenue loss is less than the unpaid tax, the total amount to be assessed under this paragraph shall not exceed what appears to them, to the best of their judgement, to be the amount of that loss.
(4) For the purposes of the making of an assessment under this paragraph in relation to any direction, the actual revenue loss shall be taken to be equal to the amount of the unpaid tax less the amount given by aggregating the amounts of every entitlement—
(a) to credit for input tax, or
(b) to a repayment in accordance with regulations under section 39,
which (whether as an entitlement of the person in relation to whom the assessment is made or as an entitlement of any other person) would have arisen on the assumptions contained in the direction, but not otherwise.
(5) An assessment under this paragraph relating to a direction may be notified to the person to whom that direction is given by being incorporated in the same notice as that direction.
(6) An assessment under this paragraph shall not be made—
(a) more than one year after the day on which the direction to which it relates was given, or
(b) in the case of any direction that has been withdrawn.
(7) Where an amount has been assessed on any person under this paragraph and notified to him—
(a) that amount shall be deemed (subject to the provisions of this Act as to appeals) to be an amount of VAT due from him;
(b) that amount may be recovered accordingly, either from that person or, in the case of a person who is for the time being treated as a member of a group, from the representative member of that group; and
(c) to the extent that more than one person is liable by virtue of any assessment under this paragraph in respect of the same amount of unpaid tax, those persons shall be treated as jointly and severally liable for that amount.
(8) Sub-paragraph (7) above does not have effect if or to the extent that the assessment in question has been withdrawn or reduced.
(9) Section 77(6) applies in relation to an assessment under this paragraph as it applies in relation to an assessment under section 73 or 76.
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(11) In this paragraph “ a relevant person ”, in relation to a direction, means—
(a) the person to whom the direction is given;
(b) the person who was the representative member of any group of which the person mentioned in paragraph (a) was treated as being, or in pursuance of the direction is to be treated as having been, a member at a time to which the assumption specified in the direction relates; or
(c) any person who, in pursuance of the direction, is to be treated as having been the representative member of such a group.
Interpretation of Schedule etc.
7 (1) References in this Schedule to being treated as a member of a group and to being eligible to be treated as a member of a group shall be construed in accordance with section 43 to 43C.
(2) For the purposes of this Schedule the giving of any notice or notification to any receiver, liquidator or person otherwise acting in a representative capacity in relation to another shall be treated as the giving of a notice or, as the case may be, notification to the person in relation to whom he so acts.
Section 51
PART 1 THE OPTION TO TAX LAND
Introduction
Overview of the option to tax
1. (1) This Part of the Schedule makes provision for a person to opt to tax any land.
(2) The effect of the option to tax is dealt with in paragraph 2 (exempt supplies become taxable), as read with paragraph 3.
(3) Grants are excluded from the effect of paragraph 2 by—
(a) paragraph 5 (dwellings designed or adapted, and intended for use, as dwelling etc),
(b) paragraph 6 (conversion of buildings for use as dwelling etc),
(c) paragraph 7 (charities),
(d) paragraph 8 (residential caravans),
(e) paragraph 9 (residential houseboats),
(f) paragraph 10 (relevant housing associations), and
(g) paragraph 11 (grant to individual for construction of dwelling).
(4) Paragraphs 12 to 17 (anti-avoidance: developers of land etc) provide for certain supplies to which any grant gives rise to be excluded from the effect of paragraph 2.
(5) Paragraphs 18 to 30 deal with—
(a) the scope of the option to tax,
(b) the day from which the option to tax has effect,
(c) notification requirements,
(d) elections to opt to tax land subsequently acquired,
(e) the revocation of the option,
(f) the effect of the option to tax in relation to new buildings, and
(g) requirements for prior permission in the case of exempt grants made before the exercise of an option to tax.
(6) Paragraphs 31 to 34 deal with definitions which apply for the purposes of this Part, as well as other supplemental matters.
The option to tax
Effect of the option to tax: exempt supplies become taxable
2. (1) This paragraph applies if—
(a) a person exercises the option to tax any land under this Part of this Schedule, and
(b) a grant is made in relation to the land at any time when the option to tax it has effect.
(2) If the grant is made—
(a) by the person exercising that option, or
(b) by a relevant associate (if that person is a body corporate),
the grant does not fall within Group 1 of Schedule 9 (exemptions for land).
(3) For the meaning of “relevant associate”, see paragraph 3.
Meaning of “relevant associate”
3. (1) This paragraph explains for the purposes of this Part of this Schedule what is meant by a “relevant associate” in a case where a person (“the opter”) exercises an option to tax in relation to any building or land.
(2) A person is a relevant associate of the opter if under sections 43A to 43D (groups of companies) the person—
(a) was treated as a member of the same group as the opter at the time when the option first had effect,
(b) has been so treated at any later time when the opter had a relevant interest in the building or land, or
(c) has been treated as a member of the same group as a person within paragraph (a) or (b) of this sub-paragraph at a time when that person had a relevant interest in the building or land.
(3) But a person (“P”) ceases to be a relevant associate of the opter in relation to the building or land in the following circumstances.
(4) P ceases to be a relevant associate of the opter in relation to the building or land at the time when all of the following conditions are first met—
(a) P has no relevant interest in the building or land ,
(aa) where P has disposed of such an interest, it is not the case that a supply for the purposes of the charge to VAT in respect of the disposal—
(i) is yet to take place, or
(ii) would be yet to take place if one or more conditions (such as the happening of an event or the doing of an act) were to be met,
(b) P or the opter is not treated under sections 43A to 43D as a member of the group mentioned above, and
(c) P is not connected with any person who has a relevant interest in the building or land where that person is the opter or another relevant associate of the opter.
(5) P also ceases to be a relevant associate of the opter in relation to the building or land if P—
(a) meets conditions specified in a public notice (see paragraph 4), or
(b) gets the prior permission of the Commissioners (also, see that paragraph).
The time when P ceases to be a relevant associate of the opter is determined in accordance with that paragraph.
(6) In this paragraph “relevant interest in the building or land” means an interest in, right over or licence to occupy the building or land (or any part of it).
Permission for a body corporate to cease to be a relevant associate of the opter
4. (1) This paragraph applies for the purposes of paragraph 3(5) in relation to a person (“P”) who has been a relevant associate of the opter.
(2) If the conditions specified in the public notice under paragraph 3(5)(a) are met in relation to P, P ceases to be a relevant associate of the opter only if notification of those conditions being met is given to the Commissioners.
(3) The notification must—
(a) be made in a form specified in a public notice,
(b) state the day from which P is to cease to be a relevant associate of the opter (which may not be before the day on which the notification is given),
(c) contain a statement by P certifying that, on that day, the conditions specified in the public notice under paragraph 3(5)(a) are met in relation to P, and
(d) contain other information specified in a public notice.
(4) An application for the prior permission of the Commissioners must—
(a) be made in a form specified in a public notice,
(b) contain a statement by P certifying which (if any) of the conditions specified in the public notice under paragraph 3(5)(a) are met in relation to P, and
(c) contain other information specified in a public notice.
(5) If P gets the prior permission of the Commissioners, P ceases to be a relevant associate of the opter from—
(a) the day on which the Commissioners give their permission, or
(b) such earlier or later day as they specify in their permission.
(6) The Commissioners may specify an earlier day only if—
(a) P has purported to give a notification of P's ceasing to be a relevant associate of the opter,
(b) the conditions specified in the public notice are not, in the event, met in relation to P, and
(c) the Commissioners consider that the grounds on which those conditions are not so met are insignificant.
(7) The day specified may be the day from which P would have ceased to be a relevant associate of the opter if those conditions had been so met.
(8) The Commissioners may specify conditions subject to which their permission is given and, if any of those conditions are broken, they may treat the application as if it had not been made.
Exclusions from effect of option to tax
Dwellings designed or adapted, and intended for use, as dwelling etc
5. (1) An option to tax has no effect in relation to any grant in relation to a building or part of a building if the building or part of the building is designed or adapted, and is intended, for use—
(a) as a dwelling or number of dwellings, or
(b) solely for a relevant residential purpose.
(2) In relation to the expression “relevant residential purpose”, see the certification requirement imposed as a result of the application of Note (12) of Group 5 of Schedule 8 by paragraph 33 of this Schedule.
Conversion of buildings for use as dwelling etc
6. (1) An option to tax has no effect in relation to any grant made to a person (“the recipient”) in relation to a building or part of a building if the recipient certifies that the building or part of the building is intended for use—
(a) as a dwelling or number of dwellings, or
(b) solely for a relevant residential purpose.
(2) The recipient must give the certificate to the person making the grant (“the seller”)—
(a) within the period specified in a public notice, or
(b) if the seller agrees, at any later time before the seller makes a supply to which the grant gives rise.
(3) The recipient may give the certificate to the seller only if the recipient—
(a) intends to use the building or part of the building as mentioned above,
(b) has the relevant conversion intention, or
(c) is a relevant intermediary.
(4) The recipient is a relevant intermediary if—
(a) the recipient intends to dispose of the relevant interest to another person, and
(b) that other person gives the recipient a certificate stating that the other person has the relevant conversion intention or the relevant disposal intention.
(5) For this purpose a person has the relevant disposal intention if—
(a) the person intends to dispose of the relevant interest to a third person, and
(b) the third person gives a qualifying certificate to the person.
(6) A person (P) gives a qualifying certificate to another if P gives a certificate to that other person stating that P has the relevant conversion intention or intends to dispose of the relevant interest to another person (Q) who has given a certificate to P stating—
(a) that Q has the relevant conversion intention, or
(b) that Q intends to dispose of the relevant interest to another person who has given a qualifying certificate to Q,
and so on (in the case of further disposals of the relevant interest).
(7) In this paragraph—
“the relevant conversion intention”, in relation to a person, means an intention of the person to convert the building or part of the building with a view to its being used as mentioned above, and
“the relevant interest”, in relation to any interest in the building or part of the building to which the grant gives rise, means the whole of that interest.
(8) For the purposes of this paragraph a building or part of a building is not to be regarded as intended for use as a dwelling or number of dwellings at any time if there is intended to be a period before that time during which it will not be so used (but disregarding use for incidental or other minor purposes).
(9) For the purposes of this paragraph the reference to use solely for a relevant residential purpose is to be read without regard to Note (12) of Group 5 of Schedule 8 (which would otherwise apply as a result of paragraph 33 of this Schedule).
(10) The Commissioners may publish a notice for the purposes of this paragraph—
(a) preventing a person from giving any certificate under this paragraph unless the person meets conditions specified in the notice,
(b) specifying the form in which any certificate under this paragraph must be made, and
(c) specifying any information which any certificate under this paragraph must contain.
Charities
7. (1) An option to tax has no effect in relation to any grant made to a person in relation to a building or part of a building intended by the person for use—
(a) solely for a relevant charitable purpose, but
(b) not as an office.
(2) In relation to the expression “relevant charitable purpose”, see the certification requirement imposed as a result of the application of Note (12) of Group 5 of Schedule 8 by paragraph 33 of this Schedule.
Residential caravans
8. (1) An option to tax has no effect in relation to any grant made in relation to a pitch for a residential caravan.
(2) A caravan is not a residential caravan if residence in it throughout the year is prevented by the terms of a covenant, statutory planning consent or similar permission.
Residential houseboats
9. (1) An option to tax has no effect in relation to any grant made in relation to facilities for the mooring of a residential houseboat.
“Mooring” includes anchoring or berthing.
(2) In this paragraph—
(a) “houseboat” means a houseboat within the meaning of Group 9 of Schedule 8, and
(b) a houseboat is not a residential houseboat if residence in it throughout the year is prevented by the terms of a covenant, statutory planning consent or similar permission.
Relevant housing associations
10. (1) An option to tax has no effect in relation to any grant made to a relevant housing association in relation to any land if the association certifies that the land is to be used (after any necessary demolition work) for the construction of a building or buildings intended for use—
(a) as a dwelling or number of dwellings, or
(b) solely for a relevant residential purpose.
(2) The association must give the certificate to the person making the grant (“the seller”)—
(a) within the period specified in a public notice, or
(b) if the seller agrees, at any later time before the seller makes a supply to which the grant gives rise.
(3) In this paragraph “relevant housing association” means—
(za) a private registered provider of social housing,
(a) a registered social landlord within the meaning of Part 1 of the Housing Act 1996 (... Welsh registered social landlords),
(b) a registered social landlord within the meaning of the Housing (Scotland) Act 2010 (asp17) which is either—
(i) a society registered under the Co-operative and Community Benefit Societies and Credit Unions Act 1965 (c.12), or
(ii) a company within the meaning of the Companies Act 2006 (c.46), or
(c) a registered housing association within the meaning of Part 2 of the Housing (Northern Ireland) Order 1992 (Northern Irish registered housing associations).
(4) For the purposes of this paragraph the reference to use solely for a relevant residential purpose is to be read without regard to Note (12) of Group 5 of Schedule 8 (which would otherwise apply as a result of paragraph 33 of this Schedule).
(5) The Commissioners may publish a notice for the purposes of this paragraph—
(a) specifying the form in which any certificate under this paragraph must be made, and
(b) specifying any information which any certificate under this paragraph must contain.
Grant to individual for construction of dwelling
11. An option to tax has no effect in relation to any grant made to an individual if—
(a) the land is to be used for the construction of a building intended for use by the individual as a dwelling, and
(b) the construction is not carried out in the course or furtherance of a business carried on by the individual.
Anti-avoidance
Developers of exempt land
12. (1) A supply is not, as a result of an option to tax, a taxable supply if—
(a) the grant giving rise to the supply was made by a person (“the grantor”) who was a developer of the land, and
(b) the exempt land test is met.
(2) The exempt land test is met if, at the time when the grant was made (or treated for the purposes of this paragraph as made), the relevant person intended or expected that the land—
(a) would become exempt land (whether immediately or eventually and whether or not as a result of the grant), or
(b) would continue, for a period at least, to be exempt land.
(3) “The relevant person” means—
(a) the grantor, or
(b) a development financier.
(4) For the meaning of a development financier, see paragraph 14.
(5) For the meaning of “exempt land”, see paragraphs 15 and 16.
(6) If a supply is made by a person other than the person who made the grant giving rise to it—
(a) the person making the supply is treated for the purposes of this paragraph as the person who made the grant giving rise to it, and
(b) the grant is treated for the purposes of this paragraph as made at the time when that person made the first supply arising from the grant.
(7) For a special rule in the case of a grant made on or after 19th March 1997 and before 10th March 1999, see paragraph 17.
(8) Nothing in this paragraph applies in relation to a supply arising from—
(a) a grant made before 26th November 1996, or
(b) a grant made on or after that date but before 30th November 1999, in pursuance of a written agreement entered into before 26th November 1996, on terms which (as terms for which provision was made by that agreement) were fixed before 26th November 1996.
Meaning of grants made by a developer
13. (1) This paragraph applies for the purposes of paragraph 12.
(2) A grant made by any person (“the grantor”) in relation to any land is made by a developer of the land if—
(a) the land is, or was intended or expected to be, a relevant capital item (see sub-paragraphs (3) to (5)), and
(b) the grant is made at an eligible time as respects that capital item (see sub-paragraph (6)).
(3) The land is a relevant capital item if—
(a) the land, or
(b) the building or part of a building on the land,
is a capital item in relation to the grantor.
(4) The land was intended or expected to be a relevant capital item if the grantor, or a development financier, intended or expected that—
(a) the land, or
(b) a building or part of a building on, or to be constructed on, the land,
would become a capital item in relation to the grantor or any relevant transferee.
(5) A person is a relevant transferee if the person is someone to whom the land, building or part of a building was to be transferred—
(a) in the course of a supply, or
(b) in the course of a transfer of a business or part of a business as a going concern.
(6) A grant is made at an eligible time as respects a capital item if it is made before the end of the period provided in the relevant regulations for the making of adjustments relating to the deduction of input tax as respects the capital item.
(7) But if—
(a) a person other than the grantor is treated by paragraph 12(6) as making the grant of the land, and
(b) the grant is consequently treated as made at what would otherwise be an ineligible time,
the grant is treated instead as if were not made at an ineligible time.
(8) In this paragraph a “capital item”, in relation to any person, means an asset falling, in relation to the person, to be treated as a capital item for the purposes of the relevant regulations.
(9) In this paragraph “the relevant regulations”, as respects any item, means regulations under section 26(3) and (4) providing for adjustments relating to the deduction of input tax to be made as respects that item.
Meaning of “development financier”
14. (1) This paragraph explains for the purposes of paragraphs 12 to 17 what is meant, in relation to the grantor of any land, by a development financier.
(2) A “development financier” means a person who—
(a) has provided finance for the grantor’s development of the land, or
(b) has entered into any arrangement to provide finance for the grantor’s development of the land,
with the intention or in the expectation that the land will become exempt land or continue (for a period at least) to be exempt land.
(3) For the purposes of this paragraph references to finance being provided for the grantor’s development of the land are to doing (directly or indirectly) any one or more of the following—
(a) providing funds for meeting the whole or any part of the cost of the grantor’s development of the land,
(b) procuring the provision of such funds by another,
(c) providing funds for discharging (in whole or in part) any liability that has been or may be incurred by any person for or in connection with the raising of funds to meet the cost of the grantor’s development of the land, and
(d) procuring that any such liability is or will be discharged (in whole or in part) by another.
(4) For the purposes of this paragraph references to providing funds for a particular purpose are to—
(a) the making of a loan of funds that are or are to be used for that purpose,
(b) the provision of any guarantee or other security in relation to such a loan,
(c) the provision of any of the consideration for the issue of any shares or other securities issued wholly or partly for raising those funds,
(d) the provision of any consideration for the acquisition by any person of any shares or other securities issued wholly or partly for raising those funds, or
(e) any other transfer of assets or value as a consequence of which any of those funds are made available for that purpose.
(5) For the purposes of this paragraph references to the grantor’s development of the land are to the acquisition by the grantor of the asset which—
(a) consists in the land or a building or part of a building on the land, and
(b) is, or (as the case may be) was intended or expected to be, a relevant capital item in relation to the grantor (within the meaning of paragraph 13).
(6) For this purpose the reference to the acquisition of the asset includes—
(a) its construction or reconstruction, and
(b) the carrying out in relation to it of any other works by reference to which it is, or was intended or expected to be, a relevant capital item (within the meaning of paragraph 13).
(7) In this paragraph “arrangement” means any agreement, arrangement or understanding (whether or not legally enforceable).
Meaning of “exempt land”: basic definition
15. (1) This paragraph explains for the purposes of paragraphs 12 to 17 what is meant by exempt land.
(2) Land is exempt land if, at any time before the end of the relevant adjustment period as respects that land—
(a) a relevant person is in occupation of the land, and
(b) that occupation is not wholly, or substantially wholly, for eligible purposes.
(3) Each of the following is a relevant person—
(a) the grantor,
(b) a person connected with the grantor,
(c) a development financier, and
(d) a person connected with a development financier.
(3A) Where a person (“P”) is in occupation of the land at any time before the end of the relevant adjustment period as respects that land, P is treated for the purposes of sub-paragraph (2) as not in occupation of the land at that time if—
(a) the building occupation conditions are met at that time, or
(b) P’s occupation of the land arises solely by reference to any automatic teller machine of P.
(4) The relevant adjustment period as respects any land is the period provided in the relevant regulations (within the meaning of paragraph 13) for the making of adjustments relating to the deduction of input tax as respects the land.
(5) For the purposes of this paragraph any question whether a person’s occupation of any land is “wholly, or substantially wholly,” for eligible purposes is to be decided by reference to criteria specified in a public notice.
Meaning of “exempt land”: the building occupation conditions
15A. (1) For the purposes of paragraph 15(3A), the building occupation conditions are met at any time (“the time in question”) if—
(a) the grant consists of or includes the grant of a relevant interest in a building, and
(b) P does not, at the time in question, occupy—
(i) any part of the land that is not a building, or
(ii) more than the maximum allowable percentage of any relevant building.
(2) For the purposes of sub-paragraph (1)(b)(i) and (ii) occupation by a person connected with P is treated as occupation by P if that occupation is not wholly, or substantially wholly, for eligible purposes.
(3) For the purposes of sub-paragraph (1)(b)(i) occupation by a person of—
(a) land used for the parking of cars or other vehicles, or
(b) land that is within the curtilage of a building,
is disregarded if the occupation is ancillary to the occupation by that person of a building.
(4) In sub-paragraph (1)(b)(ii)—
“the maximum allowable percentage” means—
2% where P is the grantor or a person connected with the grantor, and
10% where P is a development financier or a person connected with a development financier (but not also the grantor or a person connected with the grantor), and
“relevant building”—
means a building any relevant interest in which is included in the grant, other than any part of such a building in which, immediately before the grant, neither the grantor nor any person connected with the grantor held a relevant interest, but
does not include any building P’s occupation of which arises solely by reference to any automatic teller machine of P.
(5) The way in which occupation by a person of a building is measured for the purposes of sub-paragraph (1)(b)(ii) is to be determined in accordance with conditions specified in a public notice.
(6) In this paragraph “relevant interest”, in relation to a building or part of a building, means any interest in, right over or licence to occupy the building or part.
(6A) Sub-paragraph (5) of paragraph 15 (determination of whether occupation “wholly, or substantially wholly” for eligible purposes to be by reference to criteria in public notice) applies for the purposes of this paragraph.
(7) Sub-paragraphs (4) to (7) of paragraph 18 (meaning of “building”) apply for the purposes of this paragraph.
Meaning of “exempt land”: eligible purposes
16. (1) This paragraph explains what is meant for the purposes of paragraph 15 by a person occupying land for eligible purposes.
(2) A person cannot occupy land at any time for eligible purposes unless the person is a taxable person at that time (but this rule is qualified by sub-paragraphs (5) and (6)).
(3) A taxable person occupies land for eligible purposes so far as the occupation is for the purpose of making creditable supplies (but this rule is qualified by sub-paragraphs (5) to (7)).
(4) “Creditable supplies” means supplies which—
(a) are or are to be made in the course or furtherance of a business carried on by the person, and
(b) are supplies of such a description that the person would be entitled to a credit for any input tax wholly attributable to those supplies.
(5) Any occupation of land by a body to which section 33 applies (local authorities etc) is occupation of the land for eligible purposes so far as the occupation is for purposes other than those of a business carried on by the body.
(6) Any occupation of land by a Government department (within the meaning of section 41) is occupation of the land for eligible purposes.
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) If a person occupying land—
(a) holds the land in order to put it to use for particular purposes, and
(b) does not occupy it for any other purpose,
the person is treated for the purposes of this paragraph, for so long as the conditions in paragraphs (a) and (b) continue to be met, as occupying the land for the purposes for which the person proposes to use it.
(9) If land is in the occupation of a person (“A”) who—
(a) is not a taxable person, but
(b) is a person whose supplies are treated for the purposes of this Act as made by another person (“B”) who is a taxable person,
the land is treated for the purposes of this paragraph as if A and B were a single taxable person.
(10) For the purposes of this paragraph a person occupies land—
(a) whether the person occupies it alone or together with one or more other persons, and
(b) whether the person occupies all of the land or only part of it.
Paragraph 12: grants made on or after 19th March 1997 and before 10th March 1999
17. (1) A grant in relation to land which was made—
(a) on or after 19th March 1997, and
(b) before 10th March 1999,
is treated for the purposes of paragraph 12 as made on 10th March 1999 if, at the time of the grant, the capital item test was met.
(2) The capital item test was met if the person making the grant, or a development financier, intended or expected that—
(a) the land, or
(b) a building or part of a building on, or to be constructed on, the land,
would become a capital item in relation to the grantor or any relevant transferee but it had not become such an item.
(3) For the purposes of that test “capital item” and “relevant transferee” have the meaning given by paragraph 13.
Scope of the option, its duration, notification etc
Scope of the option
18. (1) An option to tax has effect in relation to the particular land specified in the option.
(2) If an option to tax is exercised in relation to—
(a) a building, or
(b) part of a building,
the option has effect in relation to the whole of the building and all the land within its curtilage.
(3) If an option to tax—
(a) is exercised in relation to any land, but
(b) is not exercised by reference to a building or part of a building,
the option is nonetheless taken to have effect in relation to any building which is (or is to be) constructed on the land (as well as in relation to land on which no building is constructed).
(4) For the purposes of this paragraph—
(a) buildings linked internally or by a covered walkway, and
(b) complexes consisting of a number of units grouped around a fully enclosed concourse,
are treated as a single building.
(5) But for those purposes—
(a) buildings which are linked internally are not treated as a single building if the internal link is created after the buildings are completed, and
(b) buildings which are linked by a covered walkway are not treated as a single building if the walkway starts to be constructed after the buildings are completed.
(6) In this paragraph a “building” includes—
(a) an enlarged or extended building,
(b) an annexe to a building, and
(c) a planned building.
(7) In this paragraph “covered walkway” does not include a covered walkway to which the general public has reasonable access.
The day from which the option has effect
19. (1) An option to tax has effect from—
(a) the start of the day on which it is exercised, or
(b) the start of any later day specified in the option.
(2) But if, when an option to tax is exercised, the person exercising the option intends to revoke it in accordance with paragraph 23 (revocation of option: the “cooling off” period), the option is treated for the purposes of this Act as if it had never been exercised.
(3) An option to tax may be revoked in accordance with paragraph 22(2) or (3) and any of paragraphs 23 to 25, but not otherwise.
(4) This paragraph needs to be read with—
(a) paragraph 20 (requirement to notify the option), and
(b) paragraph 29(3) (application for prior permission in the case of an exempt grant before the exercise of an option to tax).
Requirement to notify the option
20. (1) An option to tax has effect only if—
(a) notification of the option is given to the Commissioners within the allowed time, and
(b) that notification is given together with such information as the Commissioners may require.
(2) Notification of an option is given within the allowed time if (and only if) it is given—
(a) before the end of the period of 30 days beginning with the day on which the option was exercised, or
(b) before the end of such longer period beginning with that day as the Commissioners may in any particular case allow.
(3) The Commissioners may publish a notice for the purposes of this paragraph specifying—
(a) the form in which a notification under this paragraph must be made, and
(b) the information which a notification under this paragraph must contain.
(4) Notification of an option to tax does not need to be given under this paragraph if the option is treated as exercised in accordance with paragraph 29(3).
Real estate elections: elections to opt to tax land subsequently acquired
21. (1) A person (E) may make an election (a “real estate election”) for this paragraph to have effect in relation to—
(a) relevant interests in any building or land which E acquires after the election is made, and
(b) relevant interests in any building or land which a person acquires after the election is made at a time when the person is a relevant group member.
(2) If E makes a real estate election—
(a) E is treated for the purposes of this Part of this Schedule as if E had exercised an option to tax in relation to the building or land in which the relevant interest is acquired,
(b) that option is treated for those purposes as if it had been exercised on the day on which the acquisition was made and as if it had effect from the start of that day, and
(c) paragraph 20 does not apply in relation to that option,
but this sub-paragraph is subject to sub-paragraphs (3) to (5).
(3) A person (P) is not to be treated as a result of this paragraph as exercising an option to tax in relation to any building or land where at any time—
(a) P, or any person who was a relevant group member at that time, exercises an option to tax in relation to the building (or part of the building) or land apart from this paragraph, and
(b) that option has effect from a time earlier than the time from which an option to tax exercised by P in relation to the building or land would otherwise have been treated as having effect as a result of this paragraph.
(4) A person (P) is not to be treated as a result of this paragraph as exercising an option to tax in relation to any building or land in which a relevant interest is acquired (“the later interest”) if—
(a) the person making the acquisition in question held another relevant interest in that building or land before P makes a real estate election, and
(b) the person making the acquisition in question continues to hold that other relevant interest at the time when the later interest is acquired.
(5) A person is not to be treated as a result of this paragraph as exercising an option to tax in relation to any building or land if—
(a) a relevant interest in the building or land is acquired as mentioned in sub-paragraph (1), and
(b) on the relevant assumptions the case would fall within paragraph 28 (pre-option exempt grants: requirement for prior permission before exercise of option to tax).
(6) The relevant assumptions are that—
(a) the effect of this paragraph is disregarded, and
(b) the day from which the person would want the option to tax to have effect for the purposes of paragraphs 28 or 29(3) is the day on which the relevant interest is acquired.
(7) A real estate election has effect only if—
(a) notification of the election is given to the Commissioners before the end of the period of 30 days beginning with the day on which it was made or such longer period as the Commissioners may in any particular case allow,
(b) the notification is made in a form specified in a public notice, and
(c) the notification contains information so specified.
(8) The Commissioners may at any time require a person who has made a real estate election to give to the Commissioners information specified in a public notice before the end of—
(a) the period of 30 days beginning with that time, or
(b) such longer period as the Commissioners may in any particular case allow.
(9) If a person (P) does not comply with that requirement—
(a) the Commissioners may revoke the election, and
(b) that revocation has effect in relation to relevant interests in any building or land acquired after the notified time by P or a person who is a relevant group member at the time of acquisition.
“The notified time” means the time specified in a notification given by the Commissioners to P (which may not be before the notification is given).
(10) A real estate election may not be revoked except in accordance with sub-paragraph (9).
(11) If a real estate election made by a person (P) is revoked in accordance with that sub-paragraph, another real estate election may be made at any subsequent time by—
(a) P, or
(b) any person who is a relevant group member at that subsequent time,
but only with the prior permission of the Commissioners.
(12) In this paragraph—
“relevant group member”, in relation to any person (“P”) making a real estate election and any time, means a person who is treated under sections 43A to 43D as a member of the same group as P at that time, and
“relevant interest”, in relation to any building or land, means any interest in, right over or licence to occupy the building or land (or any part of it).
(13) For the purposes of this paragraph, the time at which a relevant interest in any building or land is acquired is—
(a) the time at which a supply is treated as taking place for the purposes of the charge to VAT in respect of the acquisition, or
(b) if there is more than one such time, the earliest of them.
(14) For the purposes of sub-paragraph (13)(a), any order under section 5(3)(c) that would otherwise have the effect that the acquisition in question is to be treated as neither a supply of goods nor a supply of services is to be disregarded.
Real estate elections: supplementary
22. (1) This paragraph applies if, at any time (“the relevant time”), a person (E) makes a real estate election under paragraph 21.
(2) An option to tax exercised in relation to any building or part of any building before the relevant time by—
(a) E, or
(b) any relevant group member,
is treated for the purposes of this Part of this Schedule as if it had been revoked from the relevant time if, at that time, neither E nor any relevant group member has a relevant interest in that building.
(3) An option to tax exercised in relation to any land (otherwise than by reference to any building or part of a building) before the relevant time by—
(a) E, or
(b) any relevant group member,
is treated for the purposes of this Part of this Schedule as if it had been revoked in accordance with sub-paragraph (4) from the relevant time if, at that time, neither E nor any relevant group member has a relevant interest in that land, or E or any relevant group member has a relevant interest in only some of it.
(4) The option is treated for the purposes of this Part of this Schedule as if it had been revoked in relation to—
(a) that land, or
(b) the parts of that land in which neither E nor any relevant group member has a relevant interest at the relevant time,
as the case may be.
(5) Sub-paragraphs (2) and (3) are subject to paragraph 26 (anti-avoidance).
(6) An option to tax (“the original option”) exercised in relation to any land (otherwise than by reference to any building or part of a building) before the relevant time by—
(a) E, or
(b) any relevant group member,
may, in circumstances specified in a public notice, be converted by E into separate options to tax if, at the relevant time, E or any relevant group member has a relevant interest in the land or any part of it.
(7) The original option is converted into separate options to tax different parcels of land comprised in that land or part.
(8) Those separate options to tax are treated for the purposes of this Part of this Schedule—
(a) as if they had been exercised by E, and
(b) as if they had effect from the time from which the original option had effect.
(9) But—
(a) those separate options to tax are treated for the purposes of paragraph 3(2) as if they had effect from the relevant time, and
(b) paragraph 23 (revocation of an option: the “cooling off” period) does not apply to those separate options to tax.
(10) The notification of the election given by E must identify—
(a) the separate options to tax treated as exercised by E as a result of sub-paragraphs (6) to (8), and
(b) the different parcels of land in relation to which those separate options to tax are treated as having effect.
(11) In this paragraph—
(a) any reference to any relevant group member is to a body corporate which is a relevant group member at the relevant time, and
(b) any reference to any relevant group member, in relation to any relevant interest in any building or land (or any part of it), is to any relevant group member regardless of whether it has exercised an option to tax the building or land (or any part of it).
(12) In this paragraph “relevant group member” and “relevant interest”, have the meaning given by paragraph 21.
(13) In this paragraph any reference to a real estate election under paragraph 21 does not include an election which is made under sub-paragraph (11) of that paragraph.
Revocation of option: the “cooling off” period
23. (1) An option to tax any land exercised by any person (“the taxpayer”) may be revoked with effect from the day on which it was exercised if—
(a) the time that has lapsed since the day on which the option had effect is less than 6 months,
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) no tax has become chargeable as a result of the option,
(d) there is no relevant transfer of a business as a going concern (see sub-paragraph (2)), and
(e) notification of the revocation is given to the Commissioners (see sub-paragraph (3)).
(2) There is no relevant transfer of a business as a going concern if, since the option had effect, no grant in relation to the land has been made which is treated as neither a supply of goods nor a supply of services because—
(a) the supply is a supply of the assets of a business by the taxpayer to a person to whom the business (or part of it) is transferred as a going concern, or
(b) the supply is a supply of assets of a business by a person to the taxpayer to whom the business (or part of it) is so transferred.
(3) The notification of the revocation must—
(a) be made in a form specified in a public notice, and
(b) contain information so specified.
(4) The Commissioners may publish a notice for the purposes of this paragraph providing that a revocation under this paragraph is effective only if—
(a) the conditions specified in the notice are met in relation to the option, or
(b) the taxpayer gets the prior permission of the Commissioners on an application made to them before the end of the 6 month period mentioned above.
(5) A notice under sub-paragraph (4) may—
(a) provide that, in a case falling with paragraph (a) of that sub-paragraph, the taxpayer must certify that the conditions specified under that paragraph are met in relation to the option,
(b) specify the form in which an application under paragraph (b) of that sub-paragraph must be made,
(c) provide that an application under that paragraph must contain a statement by the taxpayer certifying which (if any) of the conditions specified under sub-paragraph (4)(a) are met in relation to the option,
(d) specify other information which an application under sub-paragraph (4)(a) must contain, and
(e) provide that the Commissioners may specify conditions subject to which their permission is given and, if any of those conditions are broken, the Commissioners may treat the revocation as if it had not been made.
Revocation of option: lapse of 6 years since having a relevant interest
24. (1) An option to tax exercised by any person in relation to any building or land is treated for the purposes of this Part of this Schedule as revoked if the person does not have a relevant interest in the building or land throughout any continuous period of 6 years beginning at any time after the option has effect.
(2) The option to tax is treated for the purposes of this Part of this Schedule as revoked from the end of that period.
(3) In this paragraph “a relevant interest in the building or land” means an interest in, right over or licence to occupy the building or land (or any part of it).
(4) This paragraph is subject to paragraph 26 (anti-avoidance).
Revocation of option: lapse of more than 20 years since option had effect
25. (1) An option to tax any land exercised by any person (“the taxpayer”) may be revoked if the time that has lapsed since the day on which the option had effect is more than 20 years and—
(a) at the time when the option is to be revoked the conditions specified in a public notice are met in relation to the option (in which case, see sub-paragraphs (2) to (4)), or
(b) the taxpayer gets the prior permission of the Commissioners (in which case, see the remaining sub-paragraphs).
(2) If the conditions specified in the public notice are met in relation to the option, the revocation has effect only if notification of the revocation is given to the Commissioners.
(3) The notification must—
(a) be made in the specified form,
(b) state the day from which the option is to be revoked (which may not be before the day on which the notification is given),
(c) contain a statement by the taxpayer certifying that, on that day, the conditions specified in the public notice are met in relation to the option, and
(d) contain other information specified in a public notice.
(4) If—
(a) notification of the revocation of an option is given to the Commissioners on the basis that the conditions specified in the public notice were met in relation to the option, but
(b) it is subsequently discovered that those conditions were not met in relation to the option,
the Commissioners may nonetheless treat the option as if it had been validly revoked in accordance with this paragraph.
(5) An application for the prior permission of the Commissioners must—
(a) be made in a form specified in a public notice,
(b) contain a statement by the taxpayer certifying which (if any) of the conditions specified in the public notice under sub-paragraph (1)(a) are met in relation to the option, and
(c) contain other information specified in a public notice.
(6) If the taxpayer gets the prior permission of the Commissioners for the revocation of an option, the option is revoked from—
(a) the day on which the Commissioners give their permission, or
(b) such earlier or later day or time as they may specify in their permission.
(7) The Commissioners may specify an earlier day or time only if—
(a) the taxpayer has purported to give a notification of the revocation of the option,
(b) the conditions specified in the public notice are not, in the event, met in relation to the option, and
(c) the Commissioners consider that the grounds on which those conditions are not so met are insignificant.
(8) The Commissioners may specify a day or time under sub-paragraph (6)(b) by reference to the happening of an event or the meeting of a condition.
(9) The Commissioners may specify conditions subject to which their permission is given and, if any of those conditions are broken, they may treat the revocation as if it had not been made.
Revocation of option under paragraph 22(2) or (3) or 24: anti-avoidance
26. (1) Sub-paragraphs (2) and (3) of paragraph 22 (revocation of option to tax where a real estate election is made) do not apply if condition A or B is met.
(2) Paragraph 24 (lapse of option to tax) does not apply if condition A, B or C is met.
(3) Condition A is that—
(a) the opter, or a relevant associate of the opter, disposes of a relevant interest in the building or land before the relevant time, and
(b) at the relevant time, a supply for the purposes of the charge to VAT in respect of the disposal—
(i) is yet to take place, or
(ii) would be yet to take place if one or more conditions (such as the happening of an event or the doing of an act) were to be met.
(4) Condition B is that—
(a) the opter is a body corporate that was, at any time before the relevant time, treated under sections 43A to 43D as a member of a group (“the group”), and
(b) before the relevant time, a relevant associate of the opter in relation to the building or land ceased to be treated under those sections as a member of the group without at the same time meeting the conditions in sub-paragraph (5).
(5) A person (“A”) meets the conditions in this sub-paragraph if—
(a) A has no relevant interest in the building or land,
(b) where A has disposed of such an interest, it is not the case that a supply for the purposes of the charge to VAT in respect of the disposal—
(i) is yet to take place, or
(ii) would be yet to take place if one or more conditions (such as the happening of an event or the doing of an act) were to be met, and
(c) A is not connected with any person who has a relevant interest in the building or land where that person is the opter or another relevant associate of the opter.
(6) Condition C is that the opter is a body corporate and, at the relevant time, a relevant associate of the opter in relation to the building or land—
(a) is treated under sections 43A to 43D as a member of the same group as the opter, and
(b) holds a relevant interest in the building or land or has held such an interest at any time within the previous 6 years.
(7) In this paragraph—
“relevant interest in the building or land” means an interest in, right over or license to occupy the building or land (or any part of it);
“the relevant time”, in relation to any option to tax, means the time from which the option would (but for this paragraph) have been treated as revoked as a result of paragraph 22(2) or (3) or 24;
“opter” means the person who exercised the option to tax in question.
Exclusion of new building from effect of an option
27. (1) This paragraph applies if—
(a) a person (“the taxpayer”) has at any time opted to tax any land,
(b) at any subsequent time the construction of a building (“the new building”) on the land begins, and
(c) no land within the curtilage of the new building is within the curtilage of an existing building.
(2) The taxpayer may exclude—
(a) the whole of the new building, and
(b) all the land within its curtilage,
from the effect of the option if notification of that exclusion is given to the Commissioners.
(3) The exclusion has effect from the earliest of the following times—
(a) the time when a grant of an interest in, or in any part of, the new building is first made,
(b) the time when the new building, or any part of it, is first used,
(c) the time when the new building is completed.
(4) The notification of the exclusion must—
(za) be given before the end of the period of 30 days beginning with the day on which it is to have effect or such longer period as the Commissioners may in any case allow,
(a) be made in a form specified in a public notice,
(b) state the time from which it is to have effect, and
(c) contain other information so specified.
(5) Sub-paragraphs (4) to (6) of paragraph 18 (meaning of “building”) apply for the purposes of this paragraph as they apply for the purposes of that paragraph.
(6) For the purposes of this paragraph the reference to the construction of a building is to be read without regard to Note (17) or (18)(b) of Group 5 of Schedule 8 (which would otherwise apply as a result of paragraph 33 of this Schedule).
(7) The Commissioners may publish a notice for determining the time at which the construction of a building on any land is to be taken to begin for the purposes of this paragraph.
Pre-option exempt grants: requirement for prior permission before exercise of option to tax
28. (1) This paragraph applies if—
(a) a person wants to exercise an option to tax any land with effect from a particular day,
(b) at any time (“the relevant time”) before that day the person has made, makes or intends to make an exempt supply to which any grant in relation to the land gives rise, and
(c) the relevant time is within the period of 10 years ending with that day.
(2) The person may exercise the option to tax the land only if—
(a) the conditions specified in a public notice are met in relation to the land, or
(b) the person gets the prior permission of the Commissioners (but see also paragraph 30).
(3) The Commissioners must refuse their permission if they are not satisfied that there would be a fair and reasonable attribution of relevant input tax to relevant supplies.
(4) For this purpose—
“relevant input tax” means input tax incurred, or likely to be incurred, in relation to the land, and
“relevant supplies” means supplies to which any grant in relation to the land gives rise which would be taxable (if the option has effect).
(5) In deciding whether there would be a fair and reasonable attribution of relevant input tax to relevant supplies, the Commissioners must have regard to all the circumstances of the case.
(6) But they must have regard in particular to—
(a) the total value of any exempt supply to which any grant in relation to the land gives rise and which is made or to be made before the day from which the person wants the option to have effect,
(b) the expected total value of any supply to which any grant in relation to the land gives rise that would be taxable (if the option has effect), and
(c) the total amount of input tax incurred, or likely to be incurred, in relation to the land.
Paragraph 28: application for prior permission
29. (1) An application for the prior permission of the Commissioners under paragraph 28 must—
(a) be made in a form specified in a public notice,
(b) contain a statement by the applicant certifying which (if any) of the conditions specified in the public notice under paragraph 28(2)(a) are met in relation to the land, and
(c) contain other information specified in a public notice.
(2) The Commissioners may specify conditions subject to which their permission is given and, if any of those conditions are broken, they may treat the application as if it had not been made.
(3) If the applicant (A) gets the prior permission of the Commissioners, A is, as a result of this sub-paragraph, treated for the purposes of this Part of this Schedule as if A had exercised the option to tax the land with effect from—
(a) the start of the day on which the application was made, or
(b) the start of any later day specified in the application.
Paragraph 28: purported exercise where prior permission not obtained
30. (1) This paragraph applies if—
(a) an option to tax was purportedly exercised in a case where, before the option could be exercised, the prior permission of the Commissioners was required under paragraph 28, and
(b) notification of the purported option was purportedly given to the Commissioners in accordance with paragraph 20.
(2) The Commissioners may, in the case of any such option, subsequently dispense with the requirement for their prior permission to be given under paragraph 28.
(3) If the Commissioners dispense with that requirement, a purported option—
(a) is treated for the purposes of this Part of this Schedule as if it had instead been validly exercised, and
(b) has effect in accordance with paragraph 19.
Supplementary provisions
Timing of grant and supplies
31. (1) This paragraph applies if—
(a) an option to tax is exercised in relation to any land,
(b) a grant in relation to the land would otherwise be taken to have been made (whether in whole or in part) before the time when the option has effect, and
(c) the grant gives rise to supplies which are treated for the purposes of this Act as taking place after that time.
(2) For the purposes of this Part of this Schedule, the option to tax has effect, in relation to those supplies, as if the grant had been made after that time.
Supplies in relation to a building where part designed or intended for residential or charitable use and part designed or intended for other uses
32. Note (10) of Group 5 of Schedule 8 applies for the purposes of this Part of this Schedule.
Definitions in Schedules 8 or 9 that are applied for the purposes of this Schedule
33. In this Part of this Schedule, references to the expressions listed in the first column are to be read in accordance with the provisions listed in the second column—
Expression | Provision
building designed or adapted for use as a dwelling or a number of dwellings | Note (2) to Group 5 of Schedule 8
completion of a building | Note (2) to Group 1 of Schedule 9
construction of a building | Notes (16) to (18) to Group 5 of Schedule 8 (but see paragraph 27(6) of this Schedule)
construction of a building intended for use as a dwelling or a number of dwellings | Note (3) to Group 5 of Schedule 8
grant | Note (1) to Group 5 of Schedule 8/ Notes (1) and (1A) to Group 1 of Schedule 9
use for a relevant charitable purpose | Notes (6) and (12) to Group 5 of Schedule 8
use for a relevant residential purpose | Notes (4), (5) and (12) to Group 5 of Schedule 8 (but see paragraphs 6(9) and 10(4) of this Schedule)
Other definitions etc
34. (1) In this Part of this Schedule—
“notification” means written notification, and
“permission” means written permission.
(2) For the purposes of this Part of this Schedule any question whether a person is connected with another person is to be decided in accordance with section 1122 of the Corporation Tax Act 2010 ; but this is subject to sub-paragraph (2A).
(2A) For the purposes of this Part of this Schedule, a company is not connected with another company only because both are under the control of—
(a) the Crown,
(b) a Minister of the Crown,
(c) a government department, or
(d) a Northern Ireland department.
(2B) In sub-paragraph (2A) “company” and “control” have the same meaning as in section 839 of the Taxes Act.
(3) Any reference in any provision of this Part of this Schedule to a public notice is to a notice published by the Commissioners for the purposes of that provision.
PART 2 RESIDENTIAL AND CHARITABLE BUILDINGS: CHANGE OF USE ETC
Introductory
35. (1) This Part of this Schedule applies where one or more relevant zero-rated supplies relating to a building (or part of a building) have been made to a person (“P”).
(2) In this Part of this Schedule—
“relevant zero-rated supply” means a grant or other supply which relates to a building (or part of a building) intended for use solely for—
a relevant residential purpose, or
a relevant charitable purpose,
and which, as a result of Group 5 of Schedule 8, is zero-rated (in whole or in part);
“relevant premises” means the building (or part of a building) in relation to which a relevant zero-rated supply has been made to P;
“relevant period”, in relation to relevant premises, means 10 years beginning with the day on which the relevant premises are completed.
(3) Where P is a person treated as a member of a group under sections 43A to 43D, any reference in this Part of this Schedule to P includes a reference to any member of that group.
Disposal of interest or change of use following relevant zero-rated supply
36. (1) Paragraph 37 applies on each occasion during the relevant period when—
(a) there is an increase in the proportion of the relevant premises falling within sub-paragraph (2) or (3), and
(b) as a result, the proportion of the relevant premises so falling (“R2”) exceeds the maximum proportion of those premises so falling at any earlier time in the relevant period (“R1”).
(2) The relevant premises fall (or part of the relevant premises falls) within this sub-paragraph if P has, since the beginning of the relevant period, disposed of P’s entire interest in the relevant premises (or part).
(3) The relevant premises fall (or a part of the relevant premises falls) within this sub-paragraph if—
(a) those premises do not (or that part does not) fall within sub-paragraph (2), and
(b) those premises are (or that part is) being used for a purpose that is neither a relevant residential purpose nor a relevant charitable purpose.
(4) Sub-paragraph (5) applies where—
(a) only a proportion of the use of the relevant premises (or the use of a part of those premises) is for a relevant residential purpose or a relevant charitable purpose, and
(b) that use is not confined to a part of those premises (or of that part) which is used solely for a relevant residential purpose or a relevant charitable purpose.
(5) Where this sub-paragraph applies, sub-paragraph (3) applies as if—
(a) the same proportion of the relevant premises (or part) were being used for a relevant residential purpose or a relevant charitable purpose, and
(b) the remainder of the relevant premises (or part) were being used for a purpose that is neither a relevant residential purpose nor a relevant charitable purpose.
(6) Where P is a charity using the relevant premises (or a part of the relevant premises) as a village hall or similarly in providing social or recreational facilities for a local community the premises are (or the part is) treated as being used for a relevant charitable purpose whether or not any person in occupation is using the premises (or part) for a relevant charitable purpose.
Charge to VAT
37. (1) Where this paragraph applies, P’s interest, right or licence in the relevant premises held immediately prior to the time when the increase referred to in paragraph 36(1) occurs is treated for the purposes of this Part of this Schedule as—
(a) supplied to P for the purposes of a business which P carries on, and
(b) supplied by P in the course or furtherance of that business
immediately prior to the time of that increase.
(2) The supply is taken to be a taxable supply which is not zero-rated as a result of Group 5 of Schedule 8.
(3) The value of the supply is taken to be—
(a) in the case of the first deemed supply under this paragraph, the amount obtained by the formula—
R2×Y×(120−Z120), and
(b) in the case of any subsequent deemed supply under this paragraph, the amount obtained by the formula—
(R2−R1)×Y×(120−Z120)
(4) For the purpose of sub-paragraph (3)—
(a) R1 and R2 have the meaning given by paragraph 36(1)(b),
(b) Y is the amount that yields an amount of VAT chargeable on it equal to—
(i) the VAT which would have been chargeable on the relevant zero-rated supply, or
(ii) if there was more than one supply, the aggregate amount of the VAT which would have been chargeable on the supplies,
had the relevant premises not been intended for use solely for a relevant residential purpose or a relevant charitable purpose, and
(c) Z is the number of whole months since the day on which the relevant premises were completed.
Supplies in relation to a building where part designed for residential or charitable use and part designed for other uses
38. Note (10) of Group 5 of Schedule 8 applies for the purposes of this Part of this Schedule.
Definitions
39. In this Part of this Schedule, references to the expressions listed in the first column are to be read in accordance with the provisions listed in the second column—
Expression | Provision
completion of a building | Note (2) to Group 1 of Schedule 9
grant | Note (1) to Group 5 of Schedule 8/ Notes (1) and (1A) to Group 1 of Schedule 9
use for a relevant charitable purpose | Notes (6) and (12) to Group 5 of Schedule 8
use for a relevant residential purpose | Notes (4), (5) and (12) to Group 5 of Schedule 8
PART 3 GENERAL
Benefit of consideration for grant accruing to a person other than the grantor
40. (1) This paragraph applies if the benefit of the consideration for the grant of an interest in, right over or licence to occupy land accrues to a person (“the beneficiary”) other than the person making the grant.
(2) The beneficiary is to be treated for the purposes of this Act as the person making the grant.
(3) So far as any input tax of the person actually making the grant is attributable to the grant, it is to be treated for the purposes of this Act as input tax of the beneficiary.
SCHEDULE 10A Face-value vouchers issued before 1 January 2019
Meaning of “face-value voucher” etc
1 (1) In this Schedule “face-value voucher” means a token, stamp or voucher (whether in physical or electronic form) that represents a right to receive goods or services to the value of an amount stated on it or recorded in it.
(2) References in this Schedule to the “face value” of a voucher are to the amount referred to in sub-paragraph (1) above.
Nature of supply
2 The issue of a face-value voucher, or any subsequent supply of it, is a supply of services for the purposes of this Act.
Treatment of credit vouchers
3 (1) This paragraph applies to a face-value voucher issued by a person who—
(a) is not a person from whom goods or services may be obtained by the use of the voucher, and
(b) undertakes to give complete or partial reimbursement to any such person from whom goods or services are so obtained.
Such a voucher is referred to in this Schedule as a “credit voucher”.
(2) The consideration for any supply of a credit voucher shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the voucher.
(3) Sub-paragraph (2) above does not apply if any of the persons from whom goods or services are obtained by the use of the voucher fails to account for any of the VAT due on the supply of those goods or services to the person using the voucher to obtain them.
(4) The Treasury may by order specify other circumstances in which sub-paragraph (2) above does not apply.
Treatment of retailer vouchers
4 (1) This paragraph applies to a face-value voucher issued by a person who—
(a) is a person from whom goods or services may be obtained by the use of the voucher, and
(b) if there are other such persons, undertakes to give complete or partial reimbursement to those from whom goods or services are so obtained.
Such a voucher is referred to in this Schedule as a “retailer voucher”.
(2) The consideration for the issue of a retailer voucher shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the voucher.
(3) Sub-paragraph (2) above does not apply if—
(a) the voucher is used to obtain goods or services from a person other than the issuer, and
(b) that person fails to account for any of the VAT due on the supply of those goods or services to the person using the voucher to obtain them.
(4) Any supply of a retailer voucher subsequent to the issue of it shall be treated in the same way as the supply of a voucher to which paragraph 6 below applies.
Treatment of postage stamps
5 The consideration for the supply of a face-value voucher that is a postage stamp shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the stamp.
Treatment of other kinds of face-value voucher
6 (1) This paragraph applies to a face-value voucher that is not a credit voucher, a retailer voucher or a postage stamp.
(2) A supply of such a voucher is chargeable at the rate in force under section 2(1) (standard rate) except where sub-paragraph (3), (4) or (5) below applies.
(3) Where the voucher is one that can only be used to obtain goods or services in one particular non-standard rate category, the supply of the voucher falls in that category.
(4) Where the voucher is used to obtain goods or services all of which fall in one particular non-standard rate category, the supply of the voucher falls in that category.
(5) Where the voucher is used to obtain goods or services in a number of different rate categories—
(a) the supply of the voucher shall be treated as that many different supplies, each falling in the category in question, and
(b) the value of each of those supplies shall be determined on a just and reasonable basis.
Vouchers supplied free with other goods or services
7 Where—
(a) a face-value voucher (other than a postage stamp) and other goods or services are supplied to the same person in a composite transaction, and
(b) the total consideration for the supplies is no different, or not significantly different, from what it would be if the voucher were not supplied,
the supply of the voucher shall be treated as being made for no consideration.
Exclusion of single purpose vouchers
7A Paragraphs 2 to 4, 6 and 7 do not apply in relation to the issue, or any subsequent supply, of a face-value voucher that represents a right to receive goods or services of one type which are subject to a single rate of VAT.
Interpretation
8 (1) In this Schedule—
“credit voucher” has the meaning given by paragraph 3(1) above;
“face value” has the meaning given by paragraph 1(2) above;
“face value voucher” has the meaning given by paragraph 1(1) above;
“retailer voucher” has the meaning given by paragraph 4(1) above.
(2) For the purposes of this Schedule—
(a) the “rate categories” of supplies are—
(i) supplies chargeable at the rate in force under section 2(1) (standard rate),
(ii) supplies chargeable at the rate in force under section 29A (reduced rate),
(iii) zero-rated supplies, and
(iv) exempt supplies and other supplies that are not taxable supplies;
(b) the “non-standard rate categories” of supplies are those in sub-paragraphs (ii), (iii) and (iv) of paragraph (a) above;
(c) goods or services are in a particular rate category if a supply of those goods or services falls in that category.
(3) A reference in this Schedule to a voucher being used to obtain goods or services includes a reference to the case where it is used as part-payment for those goods or services.
SCHEDULE 10B VAT treatment of vouchers issued on or after 1 January 2019
Section 51C
Meaning of “voucher”
1 (1) In this Schedule “voucher” means an instrument (in physical or electronic form) in relation to which the following conditions are met.
(2) The first condition is that one or more persons are under an obligation to accept the instrument as consideration for the provision of goods or services.
(3) The second condition is that either or both of—
(a) the goods and services for the provision of which the instrument may be accepted as consideration, and
(b) the persons who are under the obligation to accept the instrument as consideration for the provision of goods or services,
are limited and are stated on or recorded in the instrument or the terms and conditions governing the use of the instrument.
(4) The third condition is that the instrument is transferable by gift (whether or not it is transferable for consideration).
(5) The following are not vouchers—
(a) an instrument entitling a person to a reduction in the consideration for the provision of goods or services;
(b) an instrument functioning as a ticket, for example for travel or for admission to a venue or event;
(c) postage stamps.
Meaning of related expressions
2 (1) This paragraph gives the meaning of other expressions used in this Schedule.
(2) “Relevant goods or services”, in relation to a voucher, are any goods or services for the provision of which the voucher may be accepted as consideration.
(3) References in this Schedule to the transfer of a voucher do not include the voucher being offered and accepted as consideration for the provision of relevant goods or services.
(4) References in this Schedule to a voucher being offered or accepted as consideration for the provision of relevant goods or services include references to the voucher being offered or accepted as part consideration for the provision of relevant goods or services.
VAT treatment of vouchers: general rule
3 (1) The issue, and any subsequent transfer, of a voucher is to be treated for the purposes of this Act as a supply of relevant goods or services.
(2) References in this Schedule to the “paragraph 3 supply”, in relation to the issue or transfer of a voucher, are to the supply of relevant goods or services treated by this paragraph as having been made on the issue or transfer of the voucher.
Single purpose vouchers: special rules
4 (1) A voucher is a single purpose voucher if, at the time it is issued, the following are known—
(a) the place of supply of the relevant goods or services, and
(b) that any supply of relevant goods or services falls into a single supply category (and what that supply category is).
(2) The supply categories are—
(a) supplies chargeable at the rate in force under section 2(1) (standard rate),
(b) supplies chargeable at the rate in force under section 29A (reduced rate),
(c) zero-rated supplies, and
(d) exempt supplies and other supplies that are not taxable supplies.
(3) For the purposes of this paragraph, assume that the supply of relevant goods or services is the provision of relevant goods or services for which the voucher may be accepted as consideration (rather than the supply of relevant goods or services treated as made on the issue or transfer of the voucher).
5 (1) This paragraph applies where a single purpose voucher is accepted as consideration for the provision of relevant goods or services.
(2) The provision of the relevant goods or services is not a supply of goods or services for the purposes of this Act.
(3) But where the person who provides the relevant goods or services (the “provider”) is not the person who issued the voucher (the “issuer”), for the purposes of this Act the provider is to be treated as having made a supply of those goods or services to the issuer.
Multi-purpose vouchers: special rules
6 A voucher is a multi-purpose voucher if it is not a single purpose voucher.
7 (1) Any consideration for the issue or subsequent transfer of a multi-purpose voucher is to be disregarded for the purposes of this Act.
(2) The paragraph 3 supply made on the issue or subsequent transfer of a multi-purpose voucher is to be treated as not being a supply within section 26(2).
8 (1) Where a multi-purpose voucher is accepted as consideration for the provision of relevant goods or services, for the purposes of this Act—
(a) the provision of the relevant goods or services is to be treated as a supply, and
(b) the value of the supply treated as having been made by paragraph (a) is determined as follows.
(2) If the consideration for the most recent transfer of the voucher for consideration is known to the supplier, the value of the supply is such amount as, with the addition of the VAT chargeable on the supply, is equal to that consideration.
(3) If the consideration for the most recent transfer of the voucher for consideration is not known to the supplier, the value of the supply is such amount as, with the addition of the VAT chargeable on the supply, is equal to the face value of the voucher.
(4) The “face value” of a voucher is the monetary value stated on or recorded in—
(a) the voucher, or
(b) the terms and conditions governing the use of the voucher.
Intermediaries
9 (1) This paragraph applies where—
(a) a voucher is issued or transferred by an agent who acts in their own name, and
(b) the paragraph 3 supply is a supply of services to which section 47(3) would apply (apart from this paragraph).
(2) Section 47(3) does not apply.
(3) The paragraph 3 supply is treated as both a supply to the agent and a supply by the agent.
10 Nothing in this Schedule affects the application of this Act to any services provided, by a person who issues or transfers a voucher, in addition to the issue or transfer of the voucher.
Composite transactions
11 (1) This paragraph applies where, as part of a composite transaction—
(a) goods or services are supplied to a person, and
(b) a voucher is issued or transferred to that person.
(2) If the total consideration for the transaction is not different, or not significantly different, from what it would be if the voucher were not issued or transferred, the paragraph 3 supply is to be treated as being made for no consideration.
SCHEDULE 11 Administration, collection and enforcement
Section 58.
General
1 The Commissioners for Her Majesty’s Revenue and Customs shall be responsible for the collection and management of VAT.
Accounting for VAT... and payment of VAT
2 (1) Regulations under this paragraph may require the keeping of accounts , the making of returns and the submission of information in such form and manner as may be specified in the regulations ... or by the Commissioners in accordance with the regulations.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3A) Regulations under this paragraph may require the submission to the Commissioners by taxable persons, at such times and intervals, in such cases and in such form and manner as may be—
(a) specified in the regulations, or
(b) specified by the Commissioners in accordance with the regulations,
of statements containing such particulars of supplies to which section 55A(6) applies in which the taxable persons are concerned, and of the persons concerned in those supplies, as may be so specified.
(3B) Regulations under this paragraph may make provision for requiring—
(a) a person who first makes a supply of goods or services to which section 55A(6) applies (a “reverse charge supply”),
(b) a person who ceases making reverse charge supplies without intending subsequently to make such supplies, or
(c) a person who has fallen within paragraph (b) above but who nonetheless starts to make reverse charge supplies again,
to give to the Commissioners such notification of that fact at such time and in such form and manner as may be specified in the regulations or by the Commissioners in accordance with the regulations.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5A) Regulations under this paragraph may make provision—
(a) for requiring the relevant person to give to the Commissioners such notification of the arrival in the United Kingdom of goods consisting of a means of transport, at such time and in such form and manner, as may be specified in the regulations or by the Commissioners in accordance with the regulations, and
(b) where notification of the arrival of a means of transport imported into the United Kingdom is required by virtue of paragraph (a), for requiring any VAT on its importation to be paid at such time and in such manner as may be specified in the regulations.
(5B) The provision that may be made by regulations made by virtue of sub-paragraph (5A) includes—
(a) provision for a notification required by virtue of that sub-paragraph to contain such particulars relating to the notified arrival of the means of transport and any VAT chargeable on its ... importation as may be specified in the regulations or by the Commissioners in accordance with the regulations,
(b) provision for such a notification to be given by a person who is not the relevant person and is so specified, or is of a description so specified,
(c) provision for such a notification to contain a declaration, given in such form and by such person as may be so specified, as to the information contained in the notification, and
(d) supplementary, incidental, consequential or transitional provision (including provision amending any provision made by or under this Act or any other enactment).
(5C) Subsection (3) of section 97 (orders subject to Commons approval) applies to a statutory instrument containing any regulations made by virtue of sub-paragraph (5A) which amend an enactment as it applies to an order within subsection (4) of that section.
(5D) For the purposes of sub-paragraph (5A)—
...
“relevant person”, in relation to the arrival of a means of transport in the United Kingdom, means—
...
where it has been imported ..., the person liable to pay VAT on the importation, and
...
(5E) For the purposes of sub-paragraphs (5A) to (5D) “means of transport” means—
(a) any ship which exceeds 7.5 metres in length,
(b) any aircraft the take-off weight of which exceeds 1550 kilograms, or
(c) any motorised land vehicle which—
(i) has an engine with a displacement or cylinder capacity exceeding 48 cubic centimetres, or
(ii) is constructed or adapted to be electrically propelled using more than 7.2 kilowatts,
but only if the ship, aircraft or vehicle is intended for the transport of persons or goods.
(5F) The Treasury may by order vary sub-paragraph (5E) by adding or deleting any ship, aircraft or vehicle of a description specified in the order to or from those which are for the time being specified there.
(6) Regulations under this paragraph may make special provision for such taxable supplies by retailers of any goods or of any description of goods or of services or any description of services as may be determined by or under the regulations and, in particular—
(a) for permitting the value which is to be taken as the value of the supplies in any prescribed accounting period or part thereof to be determined, subject to any limitations or restrictions, by such method or one of such methods as may have been described in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice or as may be agreed with the Commissioners; and
(b) for determining the proportion of the value of the supplies which is to be attributed to any description of supplies; and
(c) for adjusting that value and proportion for periods comprising two or more prescribed accounting periods or parts thereof.
(7) Regulations under this paragraph may make provision whereby, in such cases and subject to such conditions as may be determined by or under the regulations, VAT in respect of a supply may be accounted for and paid by reference to the time when consideration for the supply is received; and any such regulations may make such modifications of the provisions of this Act (including in particular, but without prejudice to the generality of the power, the provisions as to the time when, and the circumstances in which, credit for input tax is to be allowed) as appear to the Commissioners necessary or expedient.
(8) Regulations under this paragraph may make provision whereby, in such cases and subject to such conditions as may be determined by or under the regulations—
(a) VAT in respect of any supply by a taxable person of dutiable goods, ...
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
may be accounted for and paid, and any question as to the inclusion of any duty or agricultural levy in the value of the supply ... determined, by reference to the duty point or by reference to such later time as the Commissioners may allow.
In this sub-paragraph “dutiable goods” and “duty point” have the same meanings as in section 18.
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10) Regulations under this paragraph may make provision—
(a) for treating VAT chargeable in one prescribed accounting period as chargeable in another such period; and
(b) with respect to the making of entries in accounts for the purpose of making adjustments, whether for the correction of errors or otherwise; and
(c) for the making of financial adjustments in connection with the making of entries in accounts for the purpose mentioned in paragraph (b) above and
(d) for a person, for purposes connected with the making of any such entry or financial adjustment, to be required to provide to any prescribed person, or to retain, a document in the prescribed form containing prescribed particulars of the matters to which the entry or adjustment relates; and
(e) for enabling the Commissioners, in such cases as they may think fit, to dispense with or relax a requirement imposed by regulations made by virtue of paragraph (d) above.
(11) Regulations under this paragraph may make different provision for different circumstances and may provide for different dates as the commencement of prescribed accounting periods applicable to different persons.
(11A) Regulations under this paragraph may include incidental, supplemental, consequential, saving, transitional or transitory provision.
(12) The provisions made by regulations under this paragraph for cases where goods are treated as supplied by a taxable person by virtue of paragraph 7 of Schedule 4 may require VAT chargeable on the supply to be accounted for and paid, and particulars thereof to be provided, by such other person and in such manner as may be specified by the regulations.
(13) Where, at the end of a prescribed accounting period, the amount of VAT due from any person or the amount of any VAT credit would be less than £1, that amount shall be treated as nil.
VAT invoices
2A (1) Regulations may require a taxable person supplying goods or services to provide an invoice (a “VAT invoice”) to the person supplied.
(2) A VAT invoice must give—
(a) such particulars as may be prescribed of the supply, the supplier and the person supplied;
(b) such an indication as may be prescribed of whether VAT is chargeable on the supply under this Act ...;
(c) such particulars of any VAT that is so chargeable as may be prescribed.
(3) Regulations may confer power on the Commissioners to allow the requirements of any regulations as to the information to be given in a VAT invoice to be relaxed or dispensed with.
(4) Regulations may—
(a) provide that the VAT invoice that is required to be provided in connection with a particular description of supply must be provided within a prescribed time after the supply is treated as taking place, or at such time before the supply is treated as taking place as may be prescribed;
(b) allow for the invoice to be issued later than required by the regulations where it is issued in accordance with general or special directions given by the Commissioners.
(5) Regulations may—
(a) make provision about the manner in which a VAT invoice may be provided, including provision prescribing conditions that must be complied with in the case of an invoice issued by a third party on behalf of the supplier;
(b) prescribe conditions that must be complied with in the case of a VAT invoice that relates to more than one supply;
(c) make, in relation to a document that refers to a VAT invoice and is intended to amend it, such provision corresponding to that which may be made in relation to a VAT invoice as appears to the Commissioners to be appropriate.
(6) Regulations may confer power on the Commissioners to require a person who has received in the United Kingdom a VAT invoice that is (or part of which is) in a language other than English to provide them with an English translation of the invoice (or part).
(7) Regulations under this paragraph—
(a) may be framed so as to apply only in prescribed cases or only in relation to supplies made to persons of prescribed descriptions;
(b) may make different provision for different circumstances.
Self-billed invoices
2B (1) This paragraph applies where a taxable person provides to himself a document (a “self-billed invoice”) that purports to be a VAT invoice in respect of a supply of goods or services to him by another taxable person.
(2) Subject to compliance with such conditions as may be—
(a) prescribed,
(b) specified in a notice published by the Commissioners, or
(c) imposed in a particular case in accordance with regulations,
a self-billed invoice shall be treated as the VAT invoice required by regulations under paragraph 2A above to be provided by the supplier.
(3) For the purposes of section 6(4) (under which the time of supply can be determined by the prior issue of an invoice) a self-billed invoice shall not be treated as issued by the supplier.
(4) For the purposes of section 6(5) and (6) (under which the time of supply can be determined by the subsequent issue of an invoice) a self-billed invoice in relation to which the conditions mentioned in sub-paragraph (2) are complied with shall, subject to compliance with such further conditions as may be prescribed, be treated as issued by the supplier.
In such a case, any notice of election given or request made for the purposes of section 6(5) or (6) by the person providing the self-billed invoice shall be treated for those purposes as given or made by the supplier.
(5) Regulations under this paragraph—
(a) may be framed so as to apply only in prescribed cases or only in relation to supplies made to persons of prescribed descriptions;
(b) may make different provision for different circumstances.
Electronic communication and storage of VAT invoices etc
3 (1) Regulations may prescribe, or provide for the Commissioners to impose in a particular case, conditions that must be complied with in relation to—
(a) the provision by electronic means of any item to which this paragraph applies;
(b) the preservation by electronic means of any such item or of information contained in any such item.
(2) The items to which this paragraph applies are—
(a) any VAT invoice;
(b) any document that refers to a VAT invoice and is intended to amend it;
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Regulations under this paragraph may make different provision for different circumstances.
Power to require security and production of evidence
4 (1) The Commissioners may, as a condition of allowing or repaying input tax to any person, require the production of such evidence relating to VAT as they may specify.
(1A) If they think it necessary for the protection of the revenue, the Commissioners may require, as a condition of making any VAT credit, the giving of such security for the amount of the payment as appears to them appropriate.
(2) If they think it necessary for the protection of the revenue, the Commissioners may require a taxable person, as a condition of his supplying or being supplied with goods or services under a taxable supply, to give security, or further security, for the payment of any VAT that is or may become due from—
(a) the taxable person, or
(b) any person by or to whom relevant goods or services are supplied.
(3) In sub-paragraph (2) above “relevant goods or services” means goods or services supplied by or to the taxable person.
(4) Security under sub-paragraph (2) above shall be of such amount, and shall be given in such manner, as the Commissioners may determine.
(5) The powers conferred on the Commissioners by sub-paragraph (2) above are without prejudice to their powers under section 48(7).
Recovery of VAT, etc
5 (1) VAT due from any person shall be recoverable as a debt due to the Crown.
(2) Where an invoice shows a supply of goods or services as taking place with VAT chargeable on it, there shall be recoverable from the person who issued the invoice an amount equal to that which is shown on the invoice as VAT or, if VAT is not separately shown, to so much of the total amount shown as payable as is to be taken as representing VAT on the supply.
(3) Sub-paragraph (2) above applies whether or not—
(a) the invoice is a VAT invoice issued in pursuance of paragraph 2(1) above; or
(b) the supply shown on the invoice actually takes or has taken place, or the amount shown as VAT, or any amount of VAT, is or was chargeable on the supply; or
(c) the person issuing the invoice is a taxable person;
and any sum recoverable from a person under the sub-paragraph shall, if it is in any case VAT be recoverable as such and shall otherwise be recoverable as a debt due to the Crown.
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Duty to keep records
6 (1) Every taxable person shall keep such records as the Commissioners may by regulations require ....
(2) Regulations under sub-paragraph (1) above may make different provision for different cases and may be framed by reference to such records as may be specified in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice.
(3) The Commissioners may require any records kept in pursuance of this paragraph to be preserved for such period not exceeding 6 years as they may specify in writing (and different periods may be specified for different cases).
(4) The duty under this paragraph to preserve records may be discharged—
(a) by preserving them in any form and by any means, or
(b) by preserving the information contained in them in any form and by any means,
subject to any conditions or exceptions specified in writing by the Commissioners for Her Majesty's Revenue and Customs.
(4A) In relation to a relevant taxable person, a duty under this paragraph to preserve records relating to a relevant taxable supply must be discharged by at least preserving the information contained in the records electronically.
(4B) A relevant taxable person must make available to the Commissioners electronically on request any records preserved in accordance with sub-paragraph (4A).
(4C) In sub-paragraph (4A) “relevant taxable supply” means a supply of goods where—
(a) that supply is deemed to be a supply by an operator of an online marketplace by virtue of section 5A, or
(b) the place of supply of those goods is determined by section 7(5B).
(4D) In sub-paragraphs (4A) and (4B) “relevant taxable person” means a person who is a taxable person and who—
(a) is the operator of an online marketplace,
(b) is a person making taxable supplies of goods facilitated by an online marketplace, or
(c) makes taxable supplies, the place of supply of which is determined by section 7(5B).
(5) The Commissioners may by regulations make further provision about the form in which, and means by which, records are to be kept and preserved.
(6) Regulations under sub-paragraph (5) may—
(a) make different provision for different cases;
(b) provide for any provision of the regulations to be subject to conditions or exceptions specified in writing by the Commissioners;
(c) include incidental, supplemental, consequential, saving, transitional or transitory provision.
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10) Regulations under sub-paragraph (5) requiring records to be kept or preserved in electronic form may (among other things) make provision—
(a) as to the electronic form in which records are to be kept or preserved,
(b) for the production of the contents of records kept or preserved in accordance with the regulations,
(c) as to conditions that must be complied with in connection with the keeping or preservation of electronic records,
(d) for treating records as not having been kept or preserved unless conditions are complied with,
(e) for authenticating records,
(f) about the manner of proving for any purpose the contents of any records (including provision for the application of conclusive or other presumptions).
(11) Regulations under sub-paragraph (5) requiring records to be kept or preserved in electronic form may—
(a) allow any authorisation or requirement for which the regulations may provide to be given by means of a specific or general direction given by the Commissioners,
(b) provide that the conditions of an authorisation or requirement are to be taken to be satisfied only where the Commissioners are satisfied as to specified matters.
6A (1) The Commissioners may direct any taxable person named in the direction to keep such records as they specify in the direction in relation to such goods as they so specify.
(2) A direction under this paragraph may require the records to be compiled by reference to VAT invoices or any other matter.
(3) The Commissioners may not make a direction under this paragraph unless they have reasonable grounds for believing that the records specified in the direction might assist in identifying taxable supplies in respect of which the VAT chargeable might not be paid.
(4) The taxable supplies in question may be supplies made by—
(a) the person named in the direction, or
(b) any other person.
(5) A direction under this paragraph—
(a) must be given by notice in writing to the person named in it,
(b) must warn that person of the consequences under section 69B of failing to comply with it, and
(c) remains in force until it is revoked or replaced by a further direction.
(6) The Commissioners may require any records kept in pursuance of this paragraph to be preserved for such period not exceeding 6 years as they may require.
(7) Sub-paragraph (4) of paragraph 6 (preservation of information) applies for the purposes of this paragraph as it applies for the purposes of that paragraph.
(8) This paragraph is without prejudice to the power conferred by paragraph 6(1) to make regulations requiring records to be kept.
(9) Any records required to be kept by virtue of this paragraph are in addition to any records required to be kept by virtue of paragraph 6.
Furnishing of information and production of documents
7 (1) The Commissioners may by regulations make provision for requiring taxable persons to notify to the Commissioners such particulars of changes in circumstances relating to those persons or any business carried on by them as appear to the Commissioners required for the purpose of keeping the register kept under this Act up to date.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Power to take samples
8 (1) An authorised person may take samples from goods that are in the possession of either a person who supplies goods or a fiscal warehousekeeper if it appears necessary to do so—
(a) to protect the revenue against mistake or fraud, and
(b) to determine how the goods, or the material of which they are made, ought to be or to have been treated for the purposes of VAT.
(2) Any sample taken under this paragraph shall be disposed of and accounted for in such manner as the Commissioners may direct.
(3) Where a sample is taken under this paragraph from the goods in any person’s possession and is not returned to him within a reasonable time and in good condition the Commissioners shall pay him by way of compensation a sum equal to the cost of the sample to him or such larger sum as they may determine.
Power to require opening of machines on which relevant machine games are played
9 An authorised person may at any reasonable time require a person making such a supply as is referred to in section 23(1) or any person acting on his behalf—
(a) to open any machine on which relevant machine games (as defined in section 23A) are capable of being played; and
(b) to carry out any other operation which may be necessary to enable the authorised person to ascertain the amount which, in accordance with section 23(3), is to be taken as the value of supplies made in the circumstances mentioned in subsection (1) of that section in any period.
Entry and search of premises and persons
10 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Order for access to recorded information etc.
11 (1) Where, on an application by an authorised person, a justice of the peace or, in Scotland, a justice (within the meaning of section 308 of the Criminal Procedure (Scotland) Act 1995) is satisfied that there are reasonable grounds for believing—
(a) that an offence in connection with VAT is being, has been or is about to be committed, and
(b) that any recorded information (including any document of any nature whatsoever) which may be required as evidence for the purpose of any proceedings in respect of such an offence is in the possession of any person,
he may make an order under this paragraph.
(2) An order under this paragraph is an order that the person who appears to the justice to be in possession of the recorded information to which the application relates shall—
(a) give an authorised person access to it, and
(b) permit an authorised person to remove and take away any of it which he reasonably considers necessary,
not later than the end of the period of 7 days beginning on the date of the order or the end of such longer period as the order may specify.
(3) The reference in sub-paragraph (2)(a) above to giving an authorised person access to the recorded information to which the application relates includes a reference to permitting the authorised person to take copies of it or to make extracts from it.
(4) Where the recorded information consists of information stored in any electronic form, an order under this paragraph shall have effect as an order to produce the information in a form in which it is visible and legible or from which it can readily be produced in a visible and legible form and, if the authorised person wishes to remove it, in a form in which it can be removed.
(5) This paragraph is without prejudice to paragraphs 7 and 10 above.
Procedure where documents etc. are removed
12 (1) An authorised person who removes anything in the exercise of a power conferred by or under paragraph 10 or 11 above shall, if so requested by a person showing himself—
(a) to be the occupier of premises from which it was removed, or
(b) to have had custody or control of it immediately before the removal,
provide that person with a record of what he removed.
(2) The authorised person shall provide the record within a reasonable time from the making of the request for it.
(3) Subject to sub-paragraph (7) below, if a request for permission to be granted access to anything which—
(a) has been removed by an authorised person, and
(b) is retained by the Commissioners for the purposes of investigating an offence,
is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed or by someone acting on behalf of such a person, the officer shall allow the person who made the request access to it under the supervision of an authorised person.
(4) Subject to sub-paragraph (7) below, if a request for a photograph or copy of any such thing is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall—
(a) allow the person who made the request access to it under the supervision of an authorised person for the purpose of photographing it or copying it, or
(b) photograph or copy it, or cause it to be photographed or copied.
(5) Where anything is photographed or copied under sub-paragraph (4)(b) above the photograph or copy shall be supplied to the person who made the request.
(6) The photograph or copy shall be supplied within a reasonable time from the making of the request.
(7) There is no duty under this paragraph to grant access to, or to supply a photograph or copy of, anything if the officer in overall charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice—
(a) that investigation;
(b) the investigation of an offence other than the offence for the purposes of the investigation of which the thing was removed; or
(c) any criminal proceedings which may be brought as a result of—
(i) the investigation of which he is in charge, or
(ii) any such investigation as is mentioned in paragraph (b) above.
(8) Any reference in this paragraph to the officer in overall charge of the investigation is a reference to the person whose name and address are endorsed on the warrant or order concerned as being the officer so in charge.
13 (1) Where, on an application made as mentioned in sub-paragraph (2) below, the appropriate judicial authority is satisfied that a person has failed to comply with a requirement imposed by paragraph 12 above, the authority may order that person to comply with the requirement within such time and in such manner as may be specified in the order.
(2) An application under sub-paragraph (1) above shall be made—
(a) in the case of a failure to comply with any of the requirements imposed by paragraph 12(1) and (2) above, by the occupier of the premises from which the thing in question was removed or by the person who had custody or control of it immediately before it was so removed, and
(b) in any other case, by the person who had such custody or control.
(3) In this paragraph “the appropriate judicial authority” means—
(a) in England and Wales, a magistrates’ court;
(b) in Scotland, the sheriff; and
(c) in Northern Ireland, a court of summary jurisdiction.
(4) In England and Wales and Northern Ireland, an application for an order under this paragraph shall be made by way of complaint; and sections 21 and 42(2) of the Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this paragraph.
Evidence by certificate, etc
14 (1) A certificate of the Commissioners—
(a) that a person was or was not, at any date, registered under this Act; or
(b) that any return required by or under this Act has not been made or had not been made at any date; or
(c) that any statement or notification required to be submitted or given to the Commissioners in accordance with any regulations under paragraph 2(5A) above has not been submitted or given or had not been submitted or given at any date; ...
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
shall be sufficient evidence of that fact until the contrary is proved.
(2) A photograph of any document furnished to the Commissioners for the purposes of this Act and certified by them to be such a photograph shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself.
(3) Any document purporting to be a certificate under sub-paragraph (1) or (2) above shall be deemed to be such a certificate until the contrary is proved.
Section 58A
Interpretation
1 In this Schedule—
“designated scheme” has the meaning given by paragraph 3(4);
“non-deductible tax”, in relation to a taxable person, has the meaning given by paragraph 2A;
“notifiable scheme” has the meaning given by paragraph 5(1);
“scheme” includes any arrangements, transaction or series of transactions;
“tax advantage” is to be read in accordance with paragraph 2.
Obtaining a tax advantage
2 (1) For the purposes of this Schedule, a taxable person obtains a tax advantage if—
(a) in any prescribed accounting period, the amount by which the output tax accounted for by him exceeds the input tax deducted by him is less than it would otherwise be,
(b) he obtains a VAT credit when he would not otherwise do so, or obtains a larger VAT credit or obtains a VAT credit earlier than would otherwise be the case,
(c) in a case where he recovers input tax as a recipient of a supply before the supplier accounts for the output tax, the period between the time when the input tax is recovered and the time when the output tax is accounted for is greater than would otherwise be the case, or
(d) in any prescribed accounting period, the amount of his non-deductible tax is less than it would otherwise be.
(2) For the purposes of this Schedule, a person who is not a taxable person obtains a tax advantage if his non-refundable tax is less than it would otherwise be.
(3) In sub-paragraph (2), “non-refundable tax”, in relation to a person who is not a taxable person, means—
(a) VAT on the supply to him of any goods or services,
(b) VAT on the acquisition by him from another member State of any goods, and
(c) VAT paid or payable by him on the importation of any goods from a place outside the member States,
but excluding (in each case) any VAT in respect of which he is entitled to a refund from the Commissioners by virtue of any provision of this Act.
Meaning of “non-deductible tax”
2A (1) In this Schedule “non-deductible tax”, in relation to a taxable person, means—
(a) input tax for which he is not entitled to credit under section 25, and
(b) any VAT incurred by him which is not input tax and in respect of which he is not entitled to a refund from the Commissioners by virtue of any provision of this Act.
(2) For the purposes of sub-paragraph (1)(b), the VAT “incurred” by a taxable person is—
(a) VAT on the supply to him of any goods or services,
(b) ... and
(c) VAT paid or payable by him on the importation of any goods ....
Designation by order of avoidance schemes
3 (1) If it appears to the Treasury—
(a) that a scheme of a particular description has been, or might be, entered into for the purpose of enabling any person to obtain a tax advantage, and
(b) that it is unlikely that persons would enter into a scheme of that description unless the main purpose, or one of the main purposes, of doing so was the obtaining by any person of a tax advantage,
the Treasury may by order designate that scheme for the purposes of this paragraph.
(2) A scheme may be designated for the purposes of this paragraph even though the Treasury are of the opinion that no scheme of that description could as a matter of law result in the obtaining by any person of a tax advantage.
(3) The order must allocate a reference number to each scheme.
(4) In this Schedule “designated scheme” means a scheme of a description designated for the purposes of this paragraph.
Designation by order of provisions included in or associated with avoidance schemes
4 (1) If it appears to the Treasury that a provision of a particular description is, or is likely to be, included in or associated with schemes that are entered into for the purpose of enabling any person to obtain a tax advantage, the Treasury may by order designate that provision for the purposes of this paragraph.
(2) A provision may be designated under this paragraph even though it also appears to the Treasury that the provision is, or is likely to be, included in or associated with schemes that are not entered into for the purpose of obtaining a tax advantage.
(3) In this paragraph “provision” includes any agreement, transaction, act or course of conduct.
Meaning of “notifiable scheme”
5 (1) For the purposes of this Schedule, a scheme is a “notifiable scheme”if—
(a) it is a designated scheme, or
(b) although it is not a designated scheme, conditions A and B below are met in relation to it.
(2) Condition A is that the scheme includes, or is associated with, a provision of a description designated under paragraph 4.
(3) Condition B is that the scheme has as its main purpose, or one of its main purposes, the obtaining of a tax advantage by any person.
Duty to notify Commissioners
6 (1) This paragraph applies in relation to a taxable person where—
(a) the amount of VAT shown in a return in respect of a prescribed accounting period as payable by or to him is less than or greater than it would be but for any notifiable scheme to which he is party, ...
(b) he makes a claim for the repayment of output tax or an increase in credit for input tax in respect of any prescribed accounting period in respect of which he has previously delivered a return and the amount claimed is greater than it would be but for such a scheme, or
(c) the amount of his non-deductible tax in respect of any prescribed accounting period is less than it would be but for such a scheme.
(2) Where the scheme is a designated scheme, the taxable person must notify the Commissioners within the prescribed time, and in such form and manner as may be required by or under regulations, of the reference number allocated to the scheme under paragraph 3(3).
(2A) Sub-paragraph (2) does not apply to a taxable person in relation to any scheme if he has on a previous occasion—
(a) notified the Commissioners under that sub-paragraph in relation to the scheme, or
(b) provided the Commissioners with prescribed information under sub-paragraph (3) (as it applied before the scheme became a designated scheme) in relation to the scheme.
(3) Where the scheme is not a designated scheme, the taxable person must, subject to sub-paragraph (4), provide the Commissioners within the prescribed time, and in such form and manner as may be required by or under regulations, with prescribed information relating to the scheme.
(4) Sub-paragraph (3) does not apply where the scheme is one in respect of which any person has previously—
(a) provided the Commissioners with prescribed information under paragraph 9, and
(b) provided the taxable person with a reference number notified to him by the Commissioners under paragraph 9(2)(b).
(5) Sub-paragraph (3) also does not apply where the scheme is one in respect of which the taxable person has on a previous occasion provided the Commissioners with prescribed information under that sub-paragraph.
(6) This paragraph has effect subject to paragraph 7.
Exemptions from duty to notify under paragraph 6
7 (1) Paragraph 6 does not apply to a taxable person in relation to a scheme—
(a) where the taxable person is not a group undertaking in relation to any other undertaking and conditions A and B below, as they have effect in relation to the scheme, are met in relation to the taxable person, or
(b) where the taxable person is a group undertaking in relation to any other undertaking and conditions A and B below, as they have effect in relation to the scheme, are met in relation to the taxable person and every other group undertaking.
(2) Condition A is that the total value of the person’s taxable supplies and exempt supplies in the period of twelve months ending immediately before the beginning of the relevant period is less than the minimum turnover.
(3) Condition B is that the total value of the person’s taxable supplies and exempt supplies in the prescribed accounting period immediately preceding the relevant period is less than the appropriate proportion of the minimum turnover.
(4) In sub-paragraphs (2) and (3) “the minimum turnover” means—
(a) in relation to a designated scheme, £600,000, and
(b) in relation to any other notifiable scheme, £10,000,000.
(5) In sub-paragraph (3) “the appropriate proportion” means the proportion which the length of the prescribed accounting period bears to twelve months.
(6) The value of a supply of goods or services shall be determined for the purposes of this paragraph on the basis that no VAT is chargeable on the supply.
(7) The Treasury may by order substitute for the sum for the time being specified in sub-paragraph (4)(a) or (b) such other sum as they think fit.
(8) This paragraph has effect subject to paragraph 8.
(9) In this paragraph—
“relevant period” means the prescribed accounting period referred to in paragraph 6(1)(a), (b) or (c);
“undertaking” and “group undertaking” have the same meanings as in section 1161 of the Companies Act 2006.
Power to exclude exemption
8 (1) The purpose of this paragraph is to prevent the maintenance or creation of any artificial separation of business activities carried on by two or more persons from resulting in an avoidance of the obligations imposed by paragraph 6.
(2) In determining for the purposes of sub-paragraph (1) whether any separation of business activities is artificial, regard shall be had to the extent to which the different persons carrying on those activities are closely bound to one another by financial, economic and organisational links.
(3) If the Commissioners make a direction under this section—
(a) the persons named in the direction shall be treated for the purposes of paragraph 7 as a single taxable person carrying on the activities of a business described in the direction with effect from the date of the direction or, if the direction so provides, from such later date as may be specified in the direction, and
(b) if paragraph 7 would not exclude the application of paragraph 6, in respect of any notifiable scheme, to that single taxable person, it shall not exclude the application of paragraph 6, in respect of that scheme, to the persons named in the direction.
(4) The Commissioners shall not make a direction under this section naming any person unless they are satisfied—
(a) that he is making or has made taxable or exempt supplies,
(b) that the activities in the course of which he makes those supplies form only part of certain activities, the other activities being carried on concurrently or previously (or both) by one or more other persons, and
(c) that, if all the taxable and exempt supplies of the business described in the direction were taken into account, conditions A and B in paragraph 7(2) and (3), as those conditions have effect in relation to designated schemes, would not be met in relation to that business.
(5) A direction under this paragraph shall be served on each of the persons named in it.
(6) A direction under this paragraph remains in force until it is revoked or replaced by a further direction.
Voluntary notification of avoidance scheme that is not designated scheme
9 (1) Any person may, at any time, provide the Commissioners with prescribed information relating to a scheme or proposed scheme of a particular description which is (or, if implemented, would be) a notifiable scheme by virtue of paragraph 5(1)(b).
(2) On receiving the prescribed information, the Commissioners may—
(a) allocate a reference number to the scheme (if they have not previously done so under this paragraph), and
(b) notify the person who provided the information of the number allocated.
Penalty for failure to notify use of notifiable scheme
10 (1) A person who fails to comply with paragraph 6 shall be liable, subject to sub-paragraphs (2) and (3), to a penalty of an amount determined under paragraph 11.
(2) Conduct falling within sub-paragraph (1) shall not give rise to liability to a penalty under this paragraph if the person concerned satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for the failure.
(3) Where, by reason of conduct falling within sub-paragraph (1)—
(a) a person is convicted of an offence (whether under this Act or otherwise), or
(b) a person is assessed to a penalty under section 60 or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007,
that conduct shall not give rise to a penalty under this paragraph.
Amount of penalty
11 (1) Where the failure mentioned in paragraph 10(1) relates to a notifiable scheme that is not a designated scheme, the amount of the penalty is £5,000.
(2) Where the failure mentioned in paragraph 10(1) relates to a designated scheme, the amount of the penalty is 15 per cent. of the VAT saving (as determined under sub-paragraph (3)).
(3) For this purpose the VAT saving is—
(a) to the extent that the case falls within paragraph 6(1)(a), the aggregate of—
(i) the amount by which the amount of VAT that would, but for the scheme, have been shown in returns in respect of the relevant periods as payable by the taxable person exceeds the amount of VAT that was shown in those returns as payable by him, and
(ii) the amount by which the amount of VAT that was shown in such returns as payable to the taxable person exceeds the amount of VAT that would, but for the scheme, have been shown in those returns as payable to him, ...
(b) to the extent that the case falls within paragraph 6(1)(b), the amount by which the amount claimed exceeds the amount which the taxable person would, but for the scheme, have claimed, and
(c) to the extent that—
(i) the case falls within paragraph 6(1)(c), and
(ii) the excess of the notional non-deductible tax of the taxable person for the relevant periods over his non-deductible tax for those periods is not represented by a corresponding amount which by virtue of paragraph (a) or (b) is part of the VAT saving,
the amount of the excess.
(4) In sub-paragraph (3)(a) and (c) “the relevant periods” means the prescribed accounting periods beginning with that in respect of which the duty to comply with paragraph 6 first arose and ending with the earlier of the following—
(a) the prescribed accounting period in which the taxable person complied with that paragraph, and
(b) the prescribed accounting period immediately preceding the notification by the Commissioners of the penalty assessment.
(5) In sub-paragraph (3)(c), “notional non-deductible tax”, in relation to a taxable person, means the amount that would, but for the scheme, have been the amount of his non-deductible tax.
Penalty assessments
12 (1) Where any person is liable under paragraph 10 to a penalty of an amount determined under paragraph 11, the Commissioners may, subject to sub-paragraph (3), assess the amount due by way of penalty and notify it to him accordingly.
(2) The fact that any conduct giving rise to a penalty under paragraph 10 may have ceased before an assessment is made under this paragraph shall not affect the power of the Commissioners to make such an assessment.
(3) In a case where—
(a) the penalty falls to be calculated by reference to the VAT saving as determined under paragraph 11(3), and
(b) the notional tax cannot readily be attributed to any one or more prescribed accounting periods,
the notional tax shall be treated for the purposes of this Schedule as attributable to such period or periods as the Commissioners may determine to the best of their judgment and notify to the person liable for the penalty.
(3A) In sub-paragraph (3) “the notional tax” means—
(a) the VAT that would, but for the scheme, have been shown in returns as payable by or to the taxable person, or
(b) any amount that would, but for the scheme, have been the amount of the non-deductible tax of the taxable person.
(4) No assessment to a penalty under this paragraph shall be made more than two years from the time when facts sufficient, in the opinion of the Commissioners, to indicate that there has been a failure to comply with paragraph 6 in relation to a notifiable scheme came to the Commissioners' knowledge.
(5) Where the Commissioners notify a person of a penalty in accordance with sub-paragraph (1), the notice of assessment shall specify—
(a) the amount of the penalty,
(b) the reasons for the imposition of the penalty,
(c) how the penalty has been calculated, and
(d) any reduction of the penalty in accordance with section 70.
(6) Where a person is assessed under this paragraph to an amount due by way of penalty and is also assessed under section 73(1), (2), (7), (7A) or (7B) for any of the prescribed accounting periods to which the assessment under this paragraph relates, the assessments may be combined and notified to him as one assessment, but the amount of the penalty shall be separately identified in the notice.
(7) If an amount is assessed and notified to any person under this paragraph, then unless, or except to the extent that, the assessment is withdrawn or reduced, that amount shall be recoverable as if it were VAT due from him.
(8) Subsection (10) of section 76 (notification to certain persons acting for others) applies for the purposes of this paragraph as it applies for the purposes of that section.
Penalty assessments
13 Regulations under this Schedule—
(a) may make different provision for different circumstances, and
(b) may include transitional provisions or savings.
Section 100.
General provisions
1 (1) The continuity of the law relating to VAT shall not be affected by the substitution of this Act for the enactments repealed by this Act and earlier enactments repealed by and corresponding to any of those enactments (“the repealed enactments”).
(2) Any reference, whether express or implied, in any enactment, instrument or document (including this Act or any Act amended by this Act) to, or to things done or falling to be done under or for the purposes of, any provision of this Act shall, if and so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision in the repealed enactments has or had effect, a reference to, or as the case may be, to things done or falling to be done under or for the purposes of, that corresponding provision.
(3) Any reference, whether express or implied, in any enactment, instrument or document (including the repealed enactments and enactments, instruments and documents passed or made or otherwise coming into existence after the commencement of this Act) to, or to things done or falling to be done under or for the purposes of, any of the repealed enactments shall, if and so far as the nature of the reference permits, be construed as including, in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision of this Act has effect, a reference to, or as the case may be to things done or falling to be done under or for the purposes of, that corresponding provision.
(4) Without prejudice to paragraphs (1) to (3) above, in any case where as respects the charge to VAT on any supply, acquisition or importation made at a time before 1st September 1994 but falling in a prescribed accounting period to which Part I applies
(a) an enactment applicable to that charge to VAT is not re-enacted in this Act or is re-enacted with amendments which came into force after that time, or
(b) a repealed enactment corresponding to an enactment in this Act did not apply to that charge to VAT,
any question arising under Part I and relating to that charge to VAT shall continue to be determined in accordance with the law in force at that time.
Validity of subordinate legislation
2 So far as this Act re-enacts any provision contained in a statutory instrument made in exercise of powers conferred by any Act, it shall be without prejudice to the validity of that provision, and any question as to its validity shall be determined as if the re-enacted provision were contained in a statutory instrument made under those powers.
Provisions related to the introduction of VAT
3 Where a vehicle in respect of which purchase tax was remitted under section 23 of the Purchase Tax Act 1963 (vehicles for use outside the United Kingdom) is brought back to the United Kingdom the vehicle shall not, when brought back, be treated as imported for the purpose of VAT chargeable on the importation of goods.
Supply in accordance with pre-21.4.75 arrangements
4 Where there were in force immediately before 21st April 1975 arrangements between the Commissioners and any taxable person for supplies made by him (or such supplies made by him as were specified in the arrangements) to be treated as taking place at times or on dates which, had section 6(10) been in force when the arrangements were made, could have been provided for by a direction under that section, he shall be treated for the purposes of that section as having requested the Commissioners to give a direction thereunder to the like effect, and the Commissioners may give a direction (or a general direction applying to cases of any class or description specified in the direction) accordingly.
President, chairmen etc of tribunals
5 (1) Any appointment to a panel of chairmen of the tribunals current at the commencement of this Act and made by the Treasury before the passing of the 1983 Act shall not be affected by the repeal by this Act of paragraph 8 of Schedule 10 to that Act.
(2) The terms of appointment of any person who was appointed to the office of President of the tribunal or chairman or other member of the tribunals before 1st April 1986 and holds that office on the coming into force of this Act shall continue to have effect notwithstanding the re-enactment, as Schedule 12 to this Act, of Schedule 8 to the 1983 Act as amended by Schedule 8 to the Finance Act 1985.
Overseas suppliers accounting through their customers
6 Notwithstanding the repeal by this Act of section 32B of the 1983 Act, that section shall continue to apply in relation to any supply in relation to which section 14 does not apply by virtue of section 14(8), and for the purposes to this paragraph section 32B shall have effect as if it were included in Part III of this Act, any reference in section 32B to any enactment repealed by this Act being read as a reference to the corresponding provision of this Act.
Supplies of fuel and power for domestic or charity use
7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Group 4A Fuel and power for domestic or charity use
Item No.
1 Supplies for qualifying use of—
(a) coal, coke or other solid substances held out for sale solely as fuel;
(b) coal gas, water gas, producer gases or similar gases;
(c) petroleum gases, or other gaseous hydrocarbons, whether in a gaseous or liquid state;
(d) fuel oil, gas oil or kerosene; or
(e) electricity, heat or air-conditioning.
Notes:
(1) “Qualifying use” means—
(a) domestic use; or
(b) use by a charity otherwise than in the course or furtherance of a business.
(2) The following supplies are always for domestic use—
(a) a supply of not more than one tonne of coal or coke held out for sale as domestic fuel;
(b) a supply of wood, peat or charcoal not intended for sale by the recipient;
(c) a supply to a person at any premises of piped gas (that is, gas within paragraph (b) of item 1, or of petroleum gas in a gaseous state, provided through pipes) where the gas (together with any other piped gas provided to him at the premises by the same supplier) was not provided at a rate exceeding 150 therms a month or, if the supplier charges for the gas by reference to the number of kilowatt hours supplied, 4397 kilowatt hours a month;
(d) a supply of petroleum gas in a liquid state where the gas is supplied in cylinders the net weight of each of which is less than 50 kilogrammes and either the number of cylinders supplied is 20 or fewer or the gas is not intended for sale by the recipient;
(e) a supply of petroleum gas in a liquid state, otherwise than in cylinders, to a person at any premises at which he is not able to store more than two tonnes of such gas;
(f) a supply of not more than 2,300 litres of fuel oil, gas oil or kerosene;
(g) a supply of electricity to a person at any premises where the electricity (together with any other electricity provided to him at the premises by the same supplier) was not provided at a rate exceeding 1000 kilowatt hours a month.
(3) Supplies not within Note (2) are for domestic use if and only if the goods supplied are for use in—
(a) a building, or part of a building, which consists of a dwelling or number of dwellings;
(b) a building, or part of a building, used for a relevant residential purpose;
(c) self-catering holiday accommodation;
(d) a caravan; or
(e) a houseboat.
(4) Use for a relevant residential purpose means use as—
(a) a home or other institution providing residential accommodation for children;
(b) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder;
(c) a hospice;
(d) residential accommodation for students or school pupils;
(e) residential accommodation for members of any of the armed forces;
(f) a monastery, nunnery or similar establishment; or
(g) an institution which is the sole or main residence of at least 90 per cent. of its residents,
except use as a hospital, a prison or similar institution or an hotel or inn or similar establishment.
(5) Self-catering holiday accommodation includes any accommodation advertised or held out as such.
(6) “Houseboat” means a boat or other floating decked structure designed or adapted for use solely as a place of permanent habitation and not having means of, or capable of being readily adapted for, self-propulsion.
(7) Where there is a supply of goods partly for qualifying use and partly not—
(a) if at least 60 per cent. of the goods are supplied for qualifying use, the whole supply shall be treated as a supply for qualifying use; and
(b) in any other case, an apportionment shall be made to determine the extent to which the supply is a supply for qualifying use.
(8) Paragraph (a) of item 1 shall be deemed to include combustible materials put up for sale for kindling fires but shall not include matches.
(9) Paragraphs (b) and (c) of item 1 do not include any road fuel gas (within the meaning of the Hydrocarbon Oil Duties Act 1979) on which a duty of excise has been charged or is chargeable.
(10) Paragraph (d) of item 1 does not include hydrocarbon oil on which a duty of excise has been or is to be charged without relief from, or rebate of, such duty by virtue of the provisions of the Hydrocarbon Oil Duties Act 1979.
(11) “Fuel oil” means heavy oil which contains in solution an amount of asphaltenes of not less than 0.5 per cent. or which contains less than 0.5 per cent. but not less than 0.1 per cent. of asphaltenes and has a closed flash point not exceeding 150°C.
(12) “Gas oil” means heavy oil of which not more than 50 per cent. by volume distils at a temperature not exceeding 240°C and of which more than 50 per cent. by volume distils at a temperature not exceeding 340°C.
(13) “Kerosene” means heavy oil of which more than 50 per cent. by volume distils at a temperature not exceeding 240°C.
(14) “Heavy oil” shall have the same meaning as in the Hydrocarbon Oil Duties Act 1979.
Zero-rated supplies of goods and services
8 (1) A supply of services made after the commencement of this Act in pursuance of a legally binding obligation incurred before 21st June 1988 shall if—
(a) the supply fell within item 2 of Group 8A of Schedule 5 to the 1983 Act immediately before 1st April 1989, and
(b) it was by virtue of paragraph 13(1) of Schedule 3 to the Finance Act 1989 a zero-rated supply,
be a zero-rated supply for the purposes of this Act.
(2) Where a grant, assignment or other supply is zero-rated by virtue of this paragraph, it is not a relevant zero-rated supply for the purposes of Part 2 of Schedule 10.
Bad debt relief
9 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) Claims for refunds of VAT shall not be made in accordance with section 36 of this Act in relation to—
(a) any supply made before 1st April 1989; or
(b) any supply as respects which a claim is or has been made under section 22 of the 1983 Act.
Supplies during construction of buildings and works
10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Offences and Penalties
11 Where an offence for the continuation of which a penalty was provided has been committed under an enactment repealed by this Act, proceedings may be taken under this Act in respect of the continuance of the offence after the commencement of this Act in the same manner as if the offence had been committed under the corresponding provision of this Act.
12 Part IV of this Act, except section 72, shall not apply in relation to any act done or omitted to be done before 25th July 1985, and the following provision of this Schedule shall have effect accordingly.
13 (1) Section 72 shall have effect in relation to any offence committed or alleged to have been committed at any time (“the relevant time”) before the commencement of this Act subject to the following provisions of this paragraph.
(2) Where the relevant time falls between 25th July 1983 and 26th July 1985 (the dates of passing of the 1983 and 1985 Finance Acts respectively), section 72 shall apply—
(a) with the substitution in subsection (1)(b), (3)(ii) and (8)(b) of “2 years” for “ 7 years ”;
(b) with the omission of subsections (2) and (4) to (7).
14 (1) The provisions of this paragraph have effect in relation to section 59.
(2) Section 59 shall apply in any case where a person is in default in respect of a prescribed accounting period which has ended before the commencement of this Act, but shall have effect in any case where the last day referred to in subsection (1) of that section falls before 1st October 1993 subject to the following modifications—
(a) for the words “a prescribed accounting period” in subsection (2)(a) there shall be substituted “ any two prescribed accounting periods ”;
(b) with the addition of the following paragraph in subsection (2)—
(aa) the last day of the later one of those periods falls on or before the first anniversary of the last day of the earlier one; and
;
(c) for the words “period referred to in paragraph (a)” in subsection (2)(b) there shall be substituted “ slater period referred to in paragraph (aa) ”; and
(d) for the words “a default in respect of a prescribed accounting period and that period” in subsection (3) there shall be substituted “ defaults in respect of two prescribed accounting periods and the second of those periods ”.
(3) Section 59 shall have effect, in any case where a person has been served with a surcharge liability notice and that person is in default in respect of a prescribed accounting period because of a failure of the Commissioners to receive a return or an amount of VAT on or before a day falling before 30th September 1993 with the omission of—
(a) subsection (4)(b);
(b) the words in subsection (5) “and for which he has outstanding VAT”; and
(c) subsection (6).
15 (1) Section 63 does not apply in relation to returns and assessments made for prescribed accounting periods beginning before 1st April 1990 but subject to that shall have effect in relation to the cases referred to in the following sub-paragraphs subject to the modifications there specified.
(2) Subsection (1) shall have effect in a case falling within paragraph (b) of that subsection where the assessment was made on or before 10th March 1992 with the substitution of “20 per cent.” for “ 15 per cent. ”.
(3) In relation to any prescribed accounting period beginning before 1st December 1993 section 63 shall have effect with the substitution—
(a) for the words in subsection (2) following “exceeds” of “ either 30 per cent. of the true amount of the VAT for that period or whichever is the greater of £10,000 and 5 per cent. of the true amount of VAT for that period. ” and with the omission of subsections (4) to (6); and
(b) for the words in subsection (8) from “subsections” to “statements” of “ subsection (7) that the statement by each of those returns is a correct statement ”.
(4) In relation to any prescribed accounting period beginning before 1st June 1994 section 63 shall have effect with the substitution for subsection (3) of the following subsection—
(3) Any reference in this section to the VAT for a prescribed accounting period which would have been lost if an inaccuracy had not been discovered is a reference to the aggregate of—
(a) the amount (if any) by which credit for input tax for that period was overstated; and
(b) the amount (if any) by which output tax for that period was understated;
but if for any period there is an understatement of credit for input tax or an overstatement of output tax, allowance shall be made for that error in determining the VAT for that period which would have been so lost.
and in subsection (8) for “this section” there shall be substituted “ subsections (5) and (7) above ”.
16 (1) In relation to any prescribed accounting period beginning before 1st December 1993 section 64 shall have effect subject to the following modifications—
(a) in subsection (1)(b) for the words from “whichever” to “period” there shall be substituted “ whichever is the greater of £100 and 1 per cent. of the true amount of VAT for that period ”;
(b) for subsections (2) and (3) there shall be substituted—
(2) Subsection (3) below applies in any case where—
(a) there is a material inaccuracy in respect of any two prescribed accounting periods, and
(b) the last day of the later one of those periods falls on or before the second anniversary of the last day of the earlier one, and
(c) after 29th July 1988 the Commissioners serve notice on the person concerned (“a penalty liability notice”) specifying as a penalty period for the purposes of this section a period beginning on the date of the notice and ending on the second anniversary of that date.
(3) If there is a material inaccuracy in respect of a prescribed accounting period ending within the penalty period specified in a penalty liability notice served on the person concerned that person shall be liable to a penalty equal to 15 per cent. of the VAT for that period which would have been lost if the inaccuracy had not been discovered.
;
(c) in subsection (4) for “(5)” there shall be substituted “ (7) ”; and
(d) in subsection (6) the words from “except” to the end shall be omitted.
(2) A penalty liability notice shall not be served under section 64 by reference to any material inaccuracy in respect of a prescribed accounting period beginning before 1st December 1993, and the penalty period specified in any penalty liability notice served before that day shall be deemed to end with the day before that day.
17 Section 70 shall not apply in relation to any penalty to which a person has been assessed before 27th July 1993 and in the case of any penalty in relation to which that section does not apply by virtue of this paragraph, section 60 shall have effect subject to the following modifications—
(a) in subsection (1) for “subsection (6)” there shall be substituted “ subsections (3A) and (6) ”;
(b) after subsection (3) there shall be inserted—
(3A) If a person liable to a penalty under this section has co-operated with the Commissioners in the investigation of his true liability to tax or, as the case may be, of his true entitlement to any payment, refund or repayment, the Commissioners or, on appeal, a tribunal may reduce the penalty to an amount which is not less than half what it would have been apart from this subsection; and in determining the extent of any reduction under this subsection, the Commissioners or tribunal shall have regard to the extent of the co-operation which the person concerned has given to the Commissioners in their investigation.
;
(c) in subsection (4)(b) for the words from “under” to “this section” there shall be substituted “ to reduce a penalty under this section, as provided in subsection (4) above, and, in determining the extent of such a reduction in the case of any person, the Commissioners or tribunal will have regard to the extent of the co-operation which he has given to the Commissioners in their investigation ”;
and in section 61(6) for “70” there shall be substituted “ 60(3A) ”.
18 Section 74 shall not apply in relation to prescribed accounting periods beginning before 1st April 1990 and subsection (3) of that section shall not apply in relation to interest on amounts assessed or, as the case may be, paid before 1st October 1993.
Importation of goods
19 Nothing in this Act shall prejudice the effect of the Finance (No.2) Act 1992 (Commencement No.4 and Transitional Provisions) Order 1992 and accordingly—
(a) where Article 4 of that Order applies immediately before the commencement of this Act in relation to any importation of goods, that Article and the legislation repealed by this Act shall continue to apply in relation to that importation as if this Act had not been enacted, and
(b) where Article 5 of that Order applies in relation to any goods, this Act shall apply in relation to those goods in accordance with that Article and Article 6 of that Order.
Assessments
20 An assessment may be made under section 73 in relation to amounts paid or credited before the commencement of this Act but—
(a) in relation to an amount paid or credited before 30th July 1990 section 73(2) shall have effect with the omission of the words from “or which” to “out to be”, and
(b) in relation to amounts repaid or paid to any person before the passing of the Finance Act 1982 section 73 shall have effect with the omission of subsection (2).
Set-off of credits
21 Section 81 shall have effect in relation to amounts becoming due before 10th May 1994 with the omission of subsections (4) and (5).
VAT tribunals
22 (1) Without prejudice to paragraph 1 above, section 83 applies to things done or omitted to be done before the coming into force of this Act and accordingly references in Part V to any provision of this Act includes a reference to the corresponding provision of the enactments repealed by this Act or by any enactment repealed by such an enactment.
(2) Section 84 shall have effect before such day as may be appointed for the purposes of section 18(3) of the Finance Act 1994 with the substitution for subsection (5) of the following subsection—
(5) No appeal shall lie with respect to any matter that has been or could have been referred to arbitration under section 127 of the Management Act as applied by section 16.
Isle of Man
23 Nothing in paragraph 7 of Schedule 14 shall affect the validity of any Order made under section 6 of the Isle of Man Act 1979 and, without prejudice to section 17 of the Interpretation Act 1978, for any reference in any such Order to any enactment repealed by this Act there shall be substituted a reference to the corresponding provision of this Act.
Diplomatic Privileges Act 1964 c.81
1 In section 2(5A) of the Diplomatic Privileges Act 1964 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.
Commonwealth Secretariat Act 1966 c.10
2 In paragraph 10(1A) of the Commonwealth Secretariat Act 1966 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.
Consular Relations Act 1968 c.18
3 In section 1(8A) of the Consular Relations Act 1968 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.
International Organisations Act 1968 c.48
4 In paragraph 19(c) of Schedule 1 to the International Organisations Act 1968 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.
Diplomatic and other Privileges Act 1971 c.64
5 In section 1(5) of the Diplomatic and other Privileges Act 1971 for “2A or 2B of the Value Added Tax Act 1983” there shall be substituted “ 10 or 15 of the Value Added Tax Act 1994 ”.
Customs and Excise Management Act 1979 c.2
6 In section 1(1) of the Customs and Excise Management Act 1979 for the definition of “free zone goods” there shall be substituted—
“free zone goods” are goods which are within a free zone;
.
Isle of Man Act 1979 c.58
7 (1) In section 1(1)(d) of the Isle of Man Act for “13 of the Value Added Tax Act 1983” there shall be substituted “ 23 of the Value Added Tax Act 1994 ”.
(2) In section 6 of that Act—
(a) for “1983” in each place where it occurs there shall be substituted “ 1994 ”;
(b) in subsection (2)(f) for “29” there shall be substituted “ 43 ”;
(c) in subsection (4)(a) for “16(9)” there shall be substituted “ 30(10) ”;
(d) in subsection (4)(b) for “Schedule 7” there shall be substituted “ Schedule 11 ”; and
(e) in subsection (4)(c) for “39(3)” there shall be substituted “ 72(8) ”.
(3) In section 14(4)(b) for “section 33(2A) of the Finance Act 1972” there shall be substituted “ paragraph 5(3) of Schedule 11 to the Value Added Tax Act 1994 ”.
Insolvency Act 1986 c.45
8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bankruptcy (Scotland) Act 1985 c.66
9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income and Corporation Taxes Act 1988 c.1
10 (1) The Income and Corporation Taxes Act 1988 shall be subject to the following amendments.
(2) In section 827 for—
(a) “Chapter II of Part I of the Finance Act 1985” there shall be substituted “ Part IV of the Value Added Tax Act 1994 ”;
(b) “13 to 17A” there shall be substituted “ 60 to 70 ”;
(c) “18” and “19” there shall be substituted respectively “ 74 ” and “ 59 ”;
(d) “20 of the Finance Act 1985” there shall be substituted “ 79 of that Act ”.
Capital Allowances Act 1990 c.1
11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tribunals and Inquiries Act 1992 c.53
12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance Act 1994 c.9
13 In section 7 of the Finance Act 1994—
(a) in subsection (4) for “25 and 29 of the Finance Act 1985” and “40 of the Value Added Tax Act 1983” there shall be substituted, respectively, “ 85 and 87 of the Value Added Tax Act 1994 ” and “ 83 of that Act ” ;
(b) in subsection (5) for “8 to the Value Added Tax Act 1983” there shall be substituted “ 12 to the Value Added Tax Act 1994 ”.
Vehicle Excise and Registration Act 1994 c.22
14 In paragraph 23 of Schedule 2 to the Vehicle Excise and Registration Act 1994—
(a) for “2C of the Value Added Tax Act 1983” there shall be substituted “ 3 of the Value Added Tax Act 1994 ”;
(b) for “(7) of section 16” there shall be substituted “ (8) of section 30 ”; and
(c) for “subsection (9)” there shall be substituted “ subsection (10) ”.
Acts of Parliament
Chapter | Short title | Extent of repeal
1979 c.2. | Customs and Excise Management Act 1979 | Sections 100B and 100C.
1983 c.55. | Value Added Tax Act 1983 | The whole Act.
1984 c.24. | Dentists Act 1984 | In Schedule 5, paragraph 16.
1984 c.43. | Finance Act 1984 | Sections 10 to 13.
Schedule 6.
1984 c.51. | Inheritance Tax Act 1984 | In Schedule 8, paragraph 24.
1984 c.60. | Police and Criminal Evidence Act 1984 | In Schedule 6, paragraph 41.
1985 c.54. | Finance Act 1985 | Sections 11 to 33.
Schedules 6, 7 and 8.
In Schedule 26, paragraph 14.
1986 c.41. | Finance Act 1986 | Sections 9 to 15.
Schedule 6.
1987 c.16. | Finance Act 1987 | Sections 11 to 19.
Schedule 2.
1987 c.18. | Debtors (Scotland) Act 1987 | In Schedule 4, paragraph 4.
1988 c.39. | Finance Act 1988 | Sections 13 to 22.
1988 c.54. | Road Traffic (Consequential Provisions) Act 1988 | In Schedule 3, paragraph 32.
1989 c.26. | Finance Act 1989 | Sections 18 to 26.
Schedule 3.
1989 c.40. | Companies Act 1989 | In Schedule 18, paragraph 27.
1989 c.44. | Opticians Act 1989 | Section 37(3).
1990 c.11. | Planning (Consequential Provisions) Act 1990 | In Schedule 2, paragraph 61.
1990 c.19. | National Health Service and Community Care Act 1990 | Section 61(4).
In Schedule 8, paragraph 9.
1990 c.29. | Finance Act 1990 | Sections 10 to 16.
1990 c.41. | Courts and Legal Services Act 1990 | In Schedule 10, paragraph 52.
1990 c.42. | Broadcasting Act 1990 | In Schedule 20, paragraph 37.
1991 c.21. | Disability Living Allowance and Disability Working Allowance Act 1991 | In Schedule 2, paragraph 13.
1991 c.31. | Finance Act 1991 | Sections 13 to 18.
1992 c.12. | Taxation of Chargeable Gains Act 1992 | In Schedule 10, paragraph 6.
1992 c.20. | Finance Act 1992 | Sections 6 and 7.
1992 c.48. | Finance (No.2) Act 1992 | Sections 14(1) and (3) to (6).
Sections 15 to 17.
Schedule 3, Parts I and II.
1992 c.52. | Trade Union and Labour Relations (Consolidation) Act 1992 | In Schedule 2, paragraph 32.
1992 c.53. | Tribunals and Inquiries Act 1992 | In Schedule 3, paragraph 17.
1993 c.8. | Judicial Pensions and Retirement Act 1993 | In Schedule 6, paragraph 35.
In Schedule 8, paragraph 16.
1993 c.34. | Finance Act 1993 | Sections 42 to 50.
Schedule 2.
1994 c.9 | Finance Act 1994 | Section 7(1) and (2).
In section 18(3) the words from “and for” to the end.
Sections 45 and 47.
1994 c.22 | Vehicle Excise and Registration Act 1994 | In Schedule 3, paragraph 21.
Statutory Instruments
Chapter | Short title | Extent of repeal
S.I.1980/440 | Value Added Tax (Fuel and Power) Order 1980 | The whole Order.
S.I.1983/1717 | Value Added Tax (Charities Etc.) Order 1983 | The whole Order.
S.I.1984/489 | Value Added Tax (Handicapped Persons) Order 1984 | The whole Order.
S.I.1984/631 | Value Added Tax (Lifeboats) Order 1984 | The whole Order.
S.I.1984/766 | Value Added Tax (Charities Etc.) Order 1984 | The whole Order.
S.I.1984/767 | Value Added Tax (Marine etc. Insurance) Order 1984 | The whole Order.
S.I.1984/959 | Value Added Tax (Handicapped Persons) (No.2) Order 1984 | The whole Order.
S.I.1984/1784 | Value Added Tax (Optical Appliances) Order 1984 | The whole Order.
S.I.1985/18 | Value Added Tax (Protected Buildings) Order 1985 | The whole Order.
S.I.1985/431 | Value Added Tax (Charities Etc.) Order 1985 | The whole Order.
S.I.1985/432 | Value Added Tax (Finance) Order 1985 | The whole Order.
S.I.1985/799 | Value Added Tax (Hiring of Goods) Order 1985 | The whole Order.
S.I.1985/919 | Value Added Tax (Handicapped Persons) Order 1985 | Article 3.
S.I.1985/1900 | Value Added Tax (Welfare) Order 1985 | The whole Order.
S.I.1986/530 | Value Added Tax (Handicapped Persons and Charities) Order 1986 | The whole Order.
S.I.1987/437 | Value Added Tax (Charities) Order 1987 | The whole Order.
S.I.1987/517 | Value Added Tax (Betting, Gaming and Lotteries) Order 1987 | The whole Order.
S.I.1987/518 | Value Added Tax (International Services) Order 1987 | The whole Order.
S.I.1987/1072 | Value Added Tax (Construction of Buildings) (No.2) Order 1987 | Article 2.
S.I.1987/860 | Value Added Tax (Finance) Order 1987 | The whole Order.
S.I.1987/1259 | Value Added Tax (Education) Order 1987 | The whole Order.
S.I.1987/1806 | Value Added Tax (Tour Operators) Order 1987 | Article 11.
S.I.1988/507 | Value Added Tax (Confectionery) Order 1988 | The whole Order.
S.I.1988/1282 | Value Added Tax (Training) Order 1988 | The whole Order.
S.I.1989/267 | Value Added Tax (Education) Order 1989 | The whole Order.
S.I.1989/470 | Value Added Tax (Fund-Raising Events and Charities) Order 1989 | The whole Order.
S.I.1989/2272 | Value Added Tax (Finance, Health and Welfare) Order 1989 | The whole Order.
S.I.1990/682 | Value Added Tax (Increase of Registration Limits) Order 1990 | The whole Order.
S.I.1990/750 | Value Added Tax (Charities) Order 1990 | The whole Order.
S.I.1990/752 | Value Added Tax (Transport) Order 1990 | The whole Order.
S.I.1990/2037 | Value Added Tax (Insurance) Order 1990 | The whole Order.
S.I.1990/2129 | Value Added Tax (Charities) (No.2) Order 1990 | The whole Order.
S.I.1990/2553 | Value Added Tax (Construction of Dwellings and Land) Order 1990 | The whole Order.
S.I.1991/737 | Value Added Tax (Charities) Order 1991 | The whole Order.
S.I.1991/738 | Value Added Tax (Increase of Registration Limits) Order 1991 | The whole Order.
S.I.1991/2534 | Value Added Tax (Piped Gas) (Metrication) Order 1991 | The whole Order.
S.I.1991/2569 | Value Added Tax (Buildings and Land) Order 1991 | The whole Order.
S.I.1992/628 | Value Added Tax (Charities and Aids for Handicapped Persons) Order 1992 | The whole Order.
S.I.1992/629 | Value Added Tax (Increase of Registration Limits) Order 1992 | The whole Order.
S.I.1992/733 | Value Added Tax (Increase for Consideration for Fuel) Order 1992 | The whole Order.
S.I.1992/3065 | Value Added Tax (Motor Vehicles for the Handicapped) Order 1992 | The whole Order.
S.I.1992/3126 | Value Added Tax (Transport) Order 1992 | The whole Order.
S.I.1992/3127 | Value Added Tax (Means of Transport) Order 1992 | The whole Order.
S.I.1992/3131 | Value Added Tax (Tax Free Shops) Order 1992 | The whole Order.
S.I.1992/3223 | Value Added Tax (International Services and Transport) Order 1992 | The whole Order.
S.I.1993/765 | Value Added Tax (Increase for Consideration for Fuel) Order 1993 | The whole Order.
S.I.1993/766 | Value Added Tax (Increase of Registration Limits) Order 1993 | The whole Order.
S.I.1993/767 | Value Added Tax (Protective Boots and Helmets) Order 1993 | The whole Order.
S.I.1993/1124 | Value Added Tax (Education) (No.2) Order 1993 | The whole Order.
S.I.1993/2214 | Finance Act 1993 (Appointed Day) Order 1993 | The whole Order.
S.I.1993/2328 | Value Added Tax (Reverse Charge) Order 1993 | The whole Order.
S.I.1993/2498 | Value Added Tax (Beverages) Order 1993 | The whole Order.
S.I.1993/2498 | Value Added Tax (Beverages) Order 1983 | The whole Order.
S.I.1993/2952 | Value Added Tax (Increase of Consideration for Fuel) (No.2) Order 1993 | The whole Order.
S.I.1993/2953 | Value Added Tax (Increase of Registration Limits) (No.2) Order 1993 | The whole Order.
S.I.1994/686 | Value Added Tax (Tax Free Shops) Order 1994 | The whole Order.
S.I.1994/687 | Value Added Tax (Sport, Physical Education and Fund-Raising Events) 1994 | The whole Order.
S.I.1994/1188 | Value Added Tax (Education) Order 1994 | The whole Order.