Value Added Tax Act 1994

F1 [F1 PART 1 U.K. Modification of this Act

Textual Amendments

F1 Sch. 9ZC 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. 3 para. 28 (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

1 U.K. [F2 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).

Textual Amendments

F2 Words in Sch. 9ZC para. 1 inserted (1.8.2021) by The Value Added Tax (Miscellaneous Amendments and Repeals) (EU Exit) Regulations 2021 (S.I. 2021/714), regs. 1, 6(2) (as amended by S.I. 2021/779, regs. 1, 2)

[F3 1A U.K. 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 ”.]

Textual Amendments

F3 Sch. 9ZC para. 1A 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. 3 para. 29(2) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

[F4 1B U.K. This Act has effect as if after section 5A there were inserted—

5B “Supplies of goods in Northern Ireland facilitated by online marketplaces: deemed supply

(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 [F5 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 [F6 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 [F7 a participant in a special scheme within the meaning of] that Schedule.

(4) But the [F8 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 [F9 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 [F10 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).”]

Textual Amendments

F4 Sch. 9ZC para. 1B inserted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 8(2); S.I. 2021/770, reg. 3

F5 Word in Sch. 9ZC para. 1B substituted (1.12.2021) by The Value Added Tax (Distance Selling and Miscellaneous Amendments No. 2) Regulations 2021 (S.I. 2021/1165), regs. 1, 7(2)

F6 Word in Sch. 9ZC para. 1B substituted (1.12.2021) by The Value Added Tax (Distance Selling and Miscellaneous Amendments No. 2) Regulations 2021 (S.I. 2021/1165), regs. 1, 7(3)(a)

F7 Words in Sch. 9ZC para. 1B substituted (1.12.2021) by The Value Added Tax (Distance Selling and Miscellaneous Amendments No. 2) Regulations 2021 (S.I. 2021/1165), regs. 1, 7(3)(b)

F8 Word in Sch. 9ZC para. 1B substituted (1.12.2021) by The Value Added Tax (Distance Selling and Miscellaneous Amendments No. 2) Regulations 2021 (S.I. 2021/1165), regs. 1, 7(4)(a)

F9 Words in Sch. 9ZC para. 1B inserted (1.12.2021) by The Value Added Tax (Distance Selling and Miscellaneous Amendments No. 2) Regulations 2021 (S.I. 2021/1165), regs. 1, 7(4)(b)

F10 Words in Sch. 9ZC para. 1B inserted (1.12.2021) by The Value Added Tax (Distance Selling and Miscellaneous Amendments No. 2) Regulations 2021 (S.I. 2021/1165), regs. 1, 7(5)

2 U.K. 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 ”.

[F11 2A U.K. 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).”]

Textual Amendments

F11 Sch. 9ZC para. 2A inserted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 8(3); S.I. 2021/770, reg. 3

3 (1) In Schedule 11, paragraph 6 has effect subject to the following modifications. U.K.

[F12 (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.”

Textual Amendments

F12 Sch. 9ZC para. 3(1A) inserted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 8(4); S.I. 2021/770, reg. 3

[F13 3A U.K. 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.”

Textual Amendments

F13 Sch. 9ZC paras. 3A, 3B inserted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 8(5); S.I. 2021/770, reg. 3

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). U.K.

(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.]

Textual Amendments

F13 Sch. 9ZC paras. 3A, 3B inserted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 8(5); S.I. 2021/770, reg. 3

4 (1) Sub-paragraph (2) applies, instead of section 15(4) and (5) (as modified by paragraph 1 of Schedule 9ZB), where— U.K.

(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).

[F14 4A (1) Sub-paragraph (2) applies, instead of paragraph 4(3) [F15 , (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— U.K.

(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).]]

Textual Amendments

F14 Sch. 9ZC para. 4A 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. 3 para. 29(3) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

F15 Word in Sch. 9ZC para. 4A inserted (1.8.2021) by The Value Added Tax (Miscellaneous Amendments and Repeals) (EU Exit) Regulations 2021 (S.I. 2021/714), regs. 1, 6(3) (as amended by S.I. 2021/779, regs. 1, 2)