Value Added Tax Act 1994

F1 [F1 PART 2 U.K. Movements between Northern Ireland and Great Britain

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

Movements between Northern Ireland and Great Britain U.K.

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. U.K.

(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 U.K.

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). U.K.

(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.

[F2 (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).

[F3 (11) Sub-paragraphs (3) [F4 , (3A)] and (4) are subject to paragraph 4A of Schedule 9ZC.]

Textual Amendments

F2 Sch. 9ZB para. 4(3A) inserted (1.8.2021) by The Value Added Tax (Miscellaneous Amendments and Repeals) (EU Exit) Regulations 2021 (S.I. 2021/714), regs. 1, 5(2)(a) (as amended by S.I. 2021/779, regs. 1, 2)

F3 Sch. 9ZB para. 4(11) 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. 27(3) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

F4 Word in Sch. 9ZB para. 4(11) inserted (1.8.2021) by The Value Added Tax (Miscellaneous Amendments and Repeals) (EU Exit) Regulations 2021 (S.I. 2021/714), regs. 1, 5(2)(b) (as amended by S.I. 2021/779, regs. 1, 2)

Valuation of goods removed from Northern Ireland to Great Britain U.K.

5 (1) This paragraph applies where goods are removed from Northern Ireland to Great Britain and— U.K.

(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 U.K.

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. U.K.

(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) [F5 the last supply of those goods before their removal is zero-rated as a result of [F6 that removal, F7 ...]]

[F8 (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)] [F9 , or

(c) sub-paragraph (3A) applies to the removal.]

(3) Any VAT that is chargeable as a result of sub-paragraph [F10 (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.

[F11 (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).

Textual Amendments

F5 Words in Sch. 9ZB para. 6(2)(a) in Sch. 9ZB para. 6(2) renumbered as Sch. 9ZB para. 6(2)(a) (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 5(a); S.I. 2020/1641, reg. 2, Sch.

F6 Words in Sch. 9ZB para. 6(2)(a) substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 5(b); S.I. 2020/1641, reg. 2, Sch.

F7 Word in Sch. 9ZB para. 6(2)(a) omitted (1.8.2021) by virtue of The Value Added Tax (Miscellaneous Amendments and Repeals) (EU Exit) Regulations 2021 (S.I. 2021/714), regs. 1, 5(3)(a)(i) (as amended by S.I. 2021/779, regs. 1, 2)

F8 Sch. 9ZB para. 6(2)(b) inserted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 5(c); S.I. 2020/1641, reg. 2, Sch.

F9 Sch. 9ZB para. 6(2)(c) and word inserted (1.8.2021) by The Value Added Tax (Miscellaneous Amendments and Repeals) (EU Exit) Regulations 2021 (S.I. 2021/714), regs. 1, 5(3)(a)(ii) (as amended by S.I. 2021/779, regs. 1, 2)

F10 Word in Sch. 9ZB para. 6(3) substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1544), regs. 1, 5(d); S.I. 2020/1641, reg. 2, Sch.

F11 Sch. 9ZB para. 6(3A) inserted (1.8.2021) by The Value Added Tax (Miscellaneous Amendments and Repeals) (EU Exit) Regulations 2021 (S.I. 2021/714), regs. 1, 5(3)(b) (as amended by S.I. 2021/779, regs. 1, 2)

Zero-rating of supplies made before declaration on removal U.K.

7 U.K. 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.]