The Value Added Tax (Miscellaneous Amendments, Revocation and Transitional Provisions) (EU Exit) Regulations 2019

PART 2 U.K. Amendment of secondary legislation relating to value added tax and transitional provisions

Amendment of the Value Added Tax Regulations 1995 U.K.

2.  The Value Added Tax Regulations 1995 M1 are amended as follows.

Commencement Information

I1 Reg. 2 not in force at made date, see reg. 1

I2 Reg. 2 in force at 31.1.2020 for specified purposes by S.I. 2020/87, regs. 2(b), 3

I3 Reg. 2 in force at 31.12.2020 in so far as not already in force by S.I. 2020/1641, reg. 2, Sch.

Marginal Citations

M1 S.I. 1995/2518; see footnotes below for relevant amending instruments.

F1 3.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Reg. 3 omitted (31.12.2020) by virtue of The Value Added Tax (Miscellaneous Amendments, Northern Ireland Protocol and Savings and Transitional Provisions) (EU Exit) Regulations 2020 (S.I. 2020/1545), regs. 1, 107(2) (with regs. 109-131); S.I. 2020/1641, reg. 2, Sch.

4.—(1) Part 14 (input tax and partial exemption) is amended as follows.

(2) In regulation 102 (use of other methods) M2 , after paragraph (2) insert—

“(2A) Notwithstanding any provision of any method approved or directed to be used under this regulation which purports to have the contrary effect, where the method attributes input tax to exempt supplies specified by the Treasury in an order made under section 26(2)(c) of the Act, no attribution is to be made in relation to any supplies that are made within the United Kingdom unless–

(a) the supply is directly linked to the export of goods and the recipient of the goods is located outside both the United Kingdom and the EU, or

(b) the supply is between a United Kingdom based intermediary and a United Kingdom based service provider and the recipient of any supply being arranged by the intermediary is located outside both the United Kingdom and the EU.”.

(3) In regulation 103B (attribution of input tax incurred on services and related goods used to make financial supplies) M3 , in paragraph (3)(a), for “another” substitute “ a ”.

Commencement Information

I4 Reg. 4 not in force at made date, see reg. 1

I5 Reg. 4(1)(2) in force at 31.1.2020 by S.I. 2020/87, regs. 2(a), 3

I6 Reg. 4(3) in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Marginal Citations

M2 Regulation 102 was amended by S.I. 2005/762, 2007/768, 2009/820, 2010/559 and 2015/1978.

M3 Regulation 103B was amended by S.I. 2004/3140 and 2009/820.

5.—(1) Part 16 (importations, exportations and removals) M4 is amended as follows.

(2) In regulation 117 (interpretation of Part 16)—

(a) in paragraph (8), for “member States” substitute “ United Kingdom ” in both places it occurs;

(b) omit paragraphs (10) and (11).

(3) In regulation 118 (enactments excepted)—

(a) in paragraph (c)—

(i) omit sub-paragraph (i);

(ii) omit sub-paragraph (ii);

F2 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Omit regulation 120 (community legislation excepted).

(6) In regulation 121 (adaptations) omit paragraph (2).

(7) For regulation 121A substitute—

“121A.   In the Customs (Import Duty) (EU Exit) Regulations 2018 M5 , Part 10 (guarantees), in regulation 98(1), regard there being a third sub-paragraph as follows—

“(c) in relation to the VAT chargeable on the importation of goods into the United Kingdom, the specified amount may be nil where in the opinion of an HMRC officer there is no risk to the payment.””.

(8) Omit regulations 121B and 121C.

(9) Omit regulation 123.

(10) For regulation 126 substitute—

“126.   Subject to such conditions as the Commissioners may impose, VAT chargeable on the importation of goods which have been temporarily exported and are re-imported after having undergone repair, process or adaptation outside the United Kingdom, or after having been made up or reworked outside the United Kingdom, shall be payable as if such treatment or process had been carried out in the United Kingdom, if the Commissioners are satisfied that—

(a) at the time of exportation the goods were intended to be re-imported after completion of the treatment or process outside the United Kingdom, and

(b) the ownership in the goods was not transferred to any other person at exportation or during the time they were abroad.”.

(11) In regulation 128, for “member States” substitute “ United Kingdom ”.

(12) In regulation 129(1)(a) and (b), in both places it occurs, for “member States” substitute “ United Kingdom ”.

(13) In regulation 132, for “member States” substitute “ United Kingdom ” in both places it occurs.

(14) In regulation 133, for “member States” substitute “ United Kingdom ” in both places it occurs.

(15) Omit regulations 134 to 145.

Textual Amendments

F2 Reg. 5(3)(b) omitted (31.12.2020) by virtue of The Value Added Tax (Miscellaneous Amendments, Northern Ireland Protocol and Savings and Transitional Provisions) (EU Exit) Regulations 2020 (S.I. 2020/1545), regs. 1, 107(2) (with regs. 109-131); S.I. 2020/1641, reg. 2, Sch.

F3 Reg. 5(4) omitted (31.12.2020) by virtue of The Value Added Tax (Miscellaneous Amendments, Northern Ireland Protocol and Savings and Transitional Provisions) (EU Exit) Regulations 2020 (S.I. 2020/1545), regs. 1, 107(2) (with regs. 109-131); S.I. 2020/1641, reg. 2, Sch.

Commencement Information

I7 Reg. 5 not in force at made date, see reg. 1

I8 Reg. 5 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Marginal Citations

M4 Part 16 was amended by S.I. 1995/3147, 1996/210, 1999/438, 2000/258, 2000/634, 2001/630, 2003/1485, 2003/2318, 2004/1082, 2006/587, 2006/3292, 2011/1043, 2013/2241, 2013/3211 and 2019/60. The amendments made by S.I. 2019/60 are not yet in force.

M5 S.I. 2018/1248, amended by S.I. 2019/326 and 2019/486.

Transitional provisions in relation to the Value Added Tax Regulations 1995 U.K.

F4 6.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Reg. 6 omitted (31.12.2020) by virtue of The Value Added Tax (Miscellaneous Amendments and Transitional Provisions) (EU Exit) Regulations 2019 (S.I. 2019/1214), regs. 1, 3(2); S.I. 2020/1641, reg. 2, Sch.

Amendment of the Value Added Tax (Relief for European Research Infrastructure Consortia) Order 2012 U.K.

F5 7.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5 Reg. 7 omitted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by virtue of Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 2 para. 13 (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

Amendment of the Value Added Tax (Postal Packets and Amendment) (EU Exit) Regulations 2018 U.K.

F6 8.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 Reg. 8 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), 22(2); S.I. 2020/1641, reg. 2, Sch.

General transitional provision in relation to value added tax and power to make further provision U.K.

9.—(1) The amendments made in relation to value added tax by any regulations made by the appropriate Minister under the Taxation (Cross-border Trade) Act 2018, or by statutory instrument under any other enactment in consequence of, or otherwise in connection with, the United Kingdom's withdrawal from the EU, do not have effect in relation to supplies made, and acquisitions taking place, before [F7 IP completion day].

(2) In determining for the purposes of this regulation the time when a supply or acquisition of goods is made ignore sections 18(4)(a) and 18B(4) of the Value Added Tax Act 1994 M6 .

(3) In determining for the purposes of this regulation the time when a supply of services is made—

(a) invoices and other documents provided to any person before [F7 IP completion day] are to be disregarded,

(b) so much (if any) of any payment received by the supplier before [F7 IP completion day] as relates to times on or after [F7 IP completion day] is to be treated as received on [F7 IP completion day], and

(c) so much (if any) of any payment received by the supplier on or after [F7 IP completion day] as relates to times before [F7 IP completion day] is to be treated as received before [F7 IP completion day].

(4) A payment in respect of any services is to be taken for the purposes of paragraph (3) to relate to the time of the performance of those services.

(5) But where a payment is received in respect of any services the performance of which takes place over a period, a part of which falls before [F7 IP completion day] and a part of which does not—

(a) an apportionment is to be made, on a just and reasonable basis, of the extent to which the payment is attributable to so much of the performance of those services as took place before [F7 IP completion day],

(b) the payment is to that extent to be taken for the purposes of paragraph (3) to relate to a time before [F7 IP completion day], and

(c) the remainder, if any, of the payment is to be taken for the purposes of paragraph (3) to relate to times on or after [F7 IP completion day].

Textual Amendments

F7 Words in reg. 9 substituted (31.12.2020) by The Value Added Tax (Miscellaneous and Transitional Provisions, Amendment and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1495), regs. 1(2), 22(3); S.I. 2020/1641, reg. 2, Sch.

Commencement Information

I9 Reg. 9 not in force at made date, see reg. 1

I10 Reg. 9 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Marginal Citations

M6 Section 18B was inserted by paragraph 5 of Schedule 3 to the Finance Act 1996 (c. 8). Sections 18(4)(a) and 18B(4) were amended by paragraphs 16 and 18 of Schedule 8 to the Taxation (Cross-border Trade) Act 2018 (c. 22). Under section 57(3) of that Act those amendments will come into force on such day as the Treasury may by regulations appoint. No such regulations have been made at the time these Regulations are made.

[F8 10.   The amendments made in relation to value added tax by any regulations made by the appropriate Minister under the Taxation (Cross-border Trade) Act 2018, or by statutory instrument under any other enactment in consequence of, or otherwise in connection with, the United Kingdom's withdrawal from the EU, do not have effect in relation to a supply of goods dispatched or transported from the territory of the United Kingdom to the territory of a member State of the EU, or vice versa, provided that the dispatch or transport started before IP completion day and ended thereafter.]

Textual Amendments

F8 Reg. 10 substituted (31.12.2020) by The Value Added Tax (Miscellaneous and Transitional Provisions, Amendment and Revocation) (EU Exit) Regulations 2020 (S.I. 2020/1495), regs. 1(2), 22(4); S.I. 2020/1641, reg. 2, Sch.

Commencement Information

I11 Reg. 10 not in force at made date, see reg. 1

I12 Reg. 10 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

11.  Her Majesty's Revenue and Customs M7 may make additional provision to deal with specific transitional issues that arise as a result of the amendments made in relation to value added tax by any regulations made by the appropriate Minister under the Taxation (Cross-border Trade) Act 2018, or under any other enactment in consequence of, or otherwise in connection with, the United Kingdom's withdrawal from the EU, in a public notice published by them.

Commencement Information

I13 Reg. 11 not in force at made date, see reg. 1

I14 Reg. 11 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Marginal Citations

M7 Schedule 1 to the Interpretation Act 1978 (c. 30) provides that “Her Majesty's Revenue and Customs” has the meaning given by section 4 of the Commissioners for Revenue and Customs Act 2005 (c. 11).