Value Added Tax Act 1994

[F1 [F2 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 [F3 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 [F4 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 [F5 a participant in a special scheme within the meaning of] that Schedule.

(4) But the [F6 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 [F7 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 [F8 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

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

F2 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

F3 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)

F4 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)

F5 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)

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(4)(a)

F7 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)

F8 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)