Value Added Tax Act 1994

[F1 PART 10 U.K. Call-off stock arrangements

Textual Amendments

F1 Schs. 9ZA, 9ZB inserted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 2 para. 2 (with s. 3(4), Sch. 2 para. 7(7)-(10)) (with savings and transitional provisions in S.I. 2020/1545, Pt. 4); S.I. 2020/1642, reg. 9

Where this Part of this Schedule applies U.K.

57 (1) This Part of this Schedule applies where— U.K.

(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—

  (a)

  in a case within paragraph (i) of sub-paragraph (1)(a), the member State concerned, and

  (b)

  in a case within paragraph (ii) of sub-paragraph (1)(a), Northern Ireland, and

• “the origin territory” means—

  (a)

  in a case within paragraph (i) of sub-paragraph (1)(a), Northern Ireland, and

  (b)

  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 U.K.

58 U.K. 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 U.K.

59 (1) The rules in sub-paragraph (2) apply if— U.K.

(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 U.K.

60 (1) The rules in sub-paragraph (2) apply (subject to paragraph 62) if— U.K.

(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 U.K.

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. U.K.

(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 U.K.

62 U.K. 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” U.K.

63 (1) For the purposes of this Part of this Schedule each of the following events is a relevant event— U.K.

(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 U.K.

64 U.K. 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 U.K.

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. U.K.

(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.]