Finance Act 2021

PART 1 U.K. Amendments to Schedules 9ZA and 9ZB to VATA 1994

Amendments to Part 9 of Schedule 9ZA to VATA 1994 U.K.

1 U.K. Part 9 of Schedule 9ZA to VATA 1994 (value added tax on acquisitions in Northern Ireland from Member States: registration in respect of distance sales) is amended as follows.

Commencement Information

I1 Sch. 18 para. 1 in force for specified purposes at Royal Assent, see s. 95(6)(a)

2 (1) Paragraph 48 (liability to be registered) is amended as follows. U.K.

(2) In sub-paragraph (1), in the words after paragraph (b), for “on any day” to the end substitute “—

(i) in a case where sub-paragraph (1A) applies, on a day determined in accordance with sub-paragraph (1B), or

(ii) in a case where sub-paragraph (1A) does not apply, on any day when the person makes a relevant supply.”

(3) After that sub-paragraph insert—

“(1A) This sub-paragraph applies where —

(a) the person has a single place of establishment, or (where the person does not have a place of establishment) a single place where the person has a permanent address or where the person usually resides, and

(b) that place is in a member State or Northern Ireland.

(1B) The person becomes liable to be registered on any day in a given year if—

(a) in the period beginning with 1 January of that year and ending with that day, the person makes a relevant supply, and

(b) in that period, or in the period beginning with 1 January and ending with 31 December of the year before the year in which that day falls, the person makes European supplies whose value exceeds £8,818.”

(4) Omit sub-paragraphs (6) and (7).

(5) At the end insert—

“(8) For the purposes of this paragraph, a supply of goods or services is a “European supply” if it is—

(a) a supply of services listed in Article 58(1) of the VAT Directive to a person who is not a taxable person and who is established, or (where the person does not have a place of establishment) who has a permanent address or who usually resides, in a member State or Northern Ireland and that is not the place mentioned in sub-paragraph (1A)(a) (that is, the place in which the person supplying the services is established etc), or

(b) a supply of goods that would be an “intra-Community distance sale of goods” within the meaning given by Article 14(4) of the VAT Directive if references in that Article to a “Member State” were read as if they included a reference to Northern Ireland (and references to a “third country” and “third territory” were read accordingly as including Great Britain) involving the removal of goods to a member State or Northern Ireland and that is not the place mentioned in sub-paragraph (1A)(a) (that is, the place in which the person supplying the goods is established etc).

(9) For the purposes of sub-paragraph (8)(a), a person is not a taxable person if they are not liable or entitled to register for VAT in accordance with the law of the place where the person to whom the services are supplied is established, has their permanent address or usually resides.

(10) In sub-paragraph (8), “the VAT Directive” means Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.”

Commencement Information

I2 Sch. 18 para. 2 in force for specified purposes at Royal Assent, see s. 95(6)(a)

3 (1) Paragraph 49 (ceasing to be liable to be registered) is amended as follows. U.K.

(2) In sub-paragraph (1)—

(a) in the words before paragraph (a), after “this Schedule” insert “ by virtue of paragraph 48(1)(i) ”;

(b) in paragraph (a), for “the relevant supplies” substitute “ European supplies ”;

(c) in paragraph (b), for “relevant supplies” substitute “ European supplies ”;

(d) in paragraphs (a) and (b), for “£70,000” in both places it occurs substitute “ £8,818 ”.

(3) After that sub-paragraph insert—

“(1A) A person who has become liable to be registered under this Part of this Schedule by virtue of paragraph 48(1)(ii) ceases to be so liable by virtue of that paragraph if at any time paragraph 48(1A) applies in relation to that person.

(1B) A person who has become liable to be registered under this Part of this Schedule by virtue of paragraph 48(3) ceases to be so liable by virtue of that paragraph if at any time the Commissioners are satisfied that the person—

(a) has ceased to make supplies as mentioned in that paragraph, and

(b) will not make such supplies within the period of one year beginning with the day on which the Commissioners are notified or otherwise become aware that the person has ceased to make them.”

(4) In sub-paragraph (2) after “But” insert “—

(a) the fact that a person ceases to be liable to be registered under this Part of this Schedule by virtue of one provision does not prevent the person being liable to be registered under this Part of this Schedule by virtue of another provision, and

(b)”.

(5) After sub-paragraph (2) insert—

“(3) Sub-paragraphs (8) to (10) of paragraph 48 apply for the purposes of this paragraph as they apply for the purposes of that paragraph.”

Commencement Information

I3 Sch. 18 para. 3 in force for specified purposes at Royal Assent, see s. 95(6)(a)

Amendments to Part 5 of Schedule 9ZB to VATA 1994 U.K.

4 U.K. In Part 5 of Schedule 9ZB to VATA 1994 (goods removed to or from Northern Ireland: rules relating to particular supplies), in paragraph 29 (distance selling between EU and Northern Ireland: place of supply)—

(a) in sub-paragraph (1)(c)—

(i) omit the “or” at the end of paragraph (i);

(ii) for the “and” at the end of paragraph (ii) substitute “ or ”;

(iii) after that paragraph insert—

“(iii) is registered under the OSS scheme or a non-UK scheme (within the meaning of Schedule 9ZD), and”;

(b) in sub-paragraph (3), after “paragraph 48(2)” insert “ of Schedule 9ZA ”.

Commencement Information

I4 Sch. 18 para. 4 in force for specified purposes at Royal Assent, see s. 95(6)(a)