2019 No. 1214
The Value Added Tax (Miscellaneous Amendments and Transitional Provisions) (EU Exit) Regulations 2019
Made
Laid before the House of Commons
Coming into force in accordance with regulation 1
The Treasury make the following regulations in exercise of the powers conferred by sections 51(1)(a) and (b), 52(2) and 56(1) of the Taxation (Cross-border Trade) Act 2018 M1 and section 31(2) of the Value Added Tax Act 1994 M2.
The Treasury consider it appropriate in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the EU to make provision in relation to value added tax and customs and to make provision, including transitional provision, in consequence of the Taxation (Cross-border Trade) Act 2018.
In accordance with section 52(2) of that Act, the Treasury consider it appropriate in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the EU for the following Regulations to come into force on such day or days as the Treasury may by regulations under that section appoint.
1994 c. 23; the heading for section 31 is amended by paragraph 30(3) of Schedule 8 to the Taxation (Cross-border Trade) Act 2018 (c. 22) but the amendment is not yet in force.
PART 1Preliminary
Citation and commencementI21
These Regulations may be cited as the Value Added Tax (Miscellaneous Amendments and Transitional Provisions) (EU Exit) Regulations 2019 and come into force on such day or days as the Treasury may by regulations under section 52 of the Taxation (Cross-border Trade) Act 2018 appoint.
PART 2Amendment of primary legislation relating to value added tax
Amendment of Schedule 9 to the Value Added Tax Act 1994 (exemptions)I12
1
Group 5 of Schedule 9 to the Value Added Tax Act 1994 M3 (finance) is amended as follows.
2
In item 9 omit paragraphs (i) and (j).
3
In Note (6) omit—
a
paragraph (b) of the definition of “Gibraltar collective investment scheme” (together with the “or” before it); and
b
the definition of “recognised collective investment scheme constituted in another EEA state”.
4
In Note (6A), for “to (j)” substitute “
to (f)
”
.
PART 3Amendment of secondary legislation relating to value added tax
Amendment of the Value Added Tax (Miscellaneous Amendments, Revocation and Transitional Provisions) (EU Exit) Regulations 2019I33
1
The Value Added Tax (Miscellaneous Amendments, Revocation and Transitional Provisions) (EU Exit) Regulations 2019 M4 are amended as follows.
2
Omit regulation 6 (transitional provisions in relation to Part 20 of the Value Added Tax Regulations 1995).
3
Omit Part 3 (amendment of the Fulfilment Businesses Regulations 2018 and transitional provisions for legislation relating to fulfilment businesses).
F1PART 4Transitional provisions in relation to value added tax
Pt. 4 omitted (31.12.2020) by virtue of The Value Added Tax (Miscellaneous and Transitional Provisions, Amendment and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1495), regs. 1(2), 23(2); S.I. 2020/1641, reg. 2, Sch.
Transitional provision for electronic, telecommunication and broadcasting services; non-union and union schemesF14
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transitional provision for repayments to Community traders F15
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 5Fulfilment Businesses
CHAPTER 1Preliminary
Interpretation and effectI56
1
In this Part—
“the 2017 Act” means the Finance (No. 2) Act 2017 M5;
“the 2018 Regulations” means the Fulfilment Businesses Regulations 2018 M6;
“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;
“imported goods fulfilment business” has the meaning given by section 48 of the 2017 Act, as it has effect on and after F2IP completion day;
“third country goods fulfilment business” has the meaning given by section 48 of the 2017 Act as it had effect immediately before F2IP completion day.
CHAPTER 2Amendments
Amendment of the 2018 RegulationsI47
1
The 2018 Regulations are amended as follows.
2
In regulation 2, in the definition of “customer”, for “a third country goods” substitute “
an imported goods
”
.
3
In regulation 4—
a
in paragraph (1)(a), for “a third country goods” substitute “
an imported goods
”
;
b
for paragraph (2) substitute—
2
An application under paragraph (1)(a) must be made on or before the day on which a person commences carrying on an imported goods fulfilment business.
4
In regulation 6(1)(c), for “third country goods” substitute “
imported goods
”
.
5
In regulation 8—
a
in paragraphs (3) and (4), in each place it occurs, for “a third country goods” substitute “
an imported goods
”
;
b
in paragraph (5), for “third country goods” substitute “
imported goods
”
.
6
In regulation 9—
a
in paragraph (1), in sub-paragraphs (c) and (d), in each place it occurs, for “a third country goods” substitute “
an imported goods
”
;
b
in paragraph (2)(c), for “a third country goods” substitute “
an imported goods
”
.
7
In regulation 10(1), in sub-paragraphs (c), (d), (e) and (g), in each place it occurs, for “third country goods” substitute “
imported goods
”
.
8
In regulation 11(2)(a)(iii), for “a third country goods” substitute “
an imported goods
”
.
9
In regulation 13, and in the heading for it, for “a third country goods” substitute “
an imported goods
”
.
CHAPTER 3Approval to carry on third country goods fulfilment business deemed to be approval to carry on imported goods fulfilment business
Approvals accepted before F2IP completion dayI108
Applications in process at F2IP completion dayI119
Where before F2IP completion day a person has made an application for an approval to carry on a third country goods fulfilment business, or to vary any condition or restriction to which an approval is subject, that application is deemed on and after F2IP completion day to be an application for an approval to carry on an imported goods fulfilment business or to vary any condition or restriction to which an approval to carry on such a business is subject.
CHAPTER 4M8Transitional provisions for persons who before F2IP completion day were not carrying on a “third country goods fulfilment business” but who, as a result of amendments made by paragraph 123 of Schedule 8 to the Taxation (Cross-border Trade) Act 2018 to section 48 of the 2017 Act, are carrying on “an imported goods fulfilment business” at F2IP completion day or commence doing so during the 9 month period following F2IP completion day
Interpretation of this ChapterI1210
In this Chapter—
“the first period” means the period of 6 months beginning with the day on which F2IP completion day falls;
“the second period” means the period of 3 months immediately following the expiry of the first period.
ApplicationI611
1
This Chapter applies where a person meets the conditions in paragraph (2).
Modification of regulation 4 of the 2018 Regulations (applications for approval and to vary an approval)I812
1
Where this Chapter applies, a person making an application for an approval under regulation 4(1)(a) of the 2018 Regulations must do so in accordance with the time limits in this regulation and regulation 4 of the 2018 Regulations is modified in accordance with paragraphs (2) and (3).
2
Where the person is carrying on an imported goods fulfilment business at F2IP completion day or commences doing so during the first period, the application for an approval must be made before the expiry of the first period.
3
Where the person commences carrying on an imported goods fulfilment business during the second period, the application for an approval must be made before the expiry of the second period.
Penalty assessment for failure to comply with the time limits in regulation 12 aboveI1313
The Commissioners may assess a penalty where a person fails to comply with the requirements set out in regulation 4(2) of the 2018 Regulations as modified by regulation 12.
Suspension of Commissioners' power to assess penalties under regulation 14(1)(b) and (c), (2) and (3) of the 2018 Regulations until on or after the expiry of the second periodI714
Where this Chapter applies, the Commissioners' power to assess a penalty under regulation 14(1)(b) and (c), (2) and (3) of the 2018 Regulations may only be exercised in respect of contraventions taking place after the expiry of the second period.
Transitional provision in relation to sections 53 to 55 of, and Schedule 13 to, the 2017 ActI915
Where this Chapter applies, the provisions of sections 53 to 55 of, and Schedule 13 to, the 2017 Act apply only in relation to contraventions taking place after the expiry of the second period.
2018 c. 22; section 51(1)(a) and (b) permits “the appropriate Minister” to make such provision relating to value added tax and any duty of customs as the appropriate Minister considers appropriate in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the EU and under section 51(4)(b) “the appropriate Minister” means the Treasury. Section 56(1) permits “the appropriate Minister” to make such provision as the appropriate Minister considers appropriate in consequence of the Act and under section 56(5)(b) “the appropriate Minister” means the Treasury.