SCHEDULES
SCHEDULE 8 Zero-rating
Part II The Groups
F2F1GROUP 22FREE ZONES
Sch. 8 Pt. II Group 22 inserted (8.11.2021) by The Free Zones (Customs, Excise and Value Added Tax) Regulations 2021 (S.I. 2021/1156), regs. 1, 8(3)
Item No
1
The supply by one free zone business (“A”) to another free zone business (“B”) of—
a
free zone procedure goods, if—
i
the supply of the goods would (apart from this provision) be taxable but not zero-rated, and
ii
A was authorised to make the supply;
b
a service wholly performed in the free zone on or in relation to free zone procedure goods by a person authorised to do so, if—
i
the supply of the service would (apart from this provision) be taxable but not zero-rated, and
ii
before a VAT invoice is issued in respect of the supply, B notifies A in writing that this provision applies to the supply.
NOTES
1
“Free zone business” means a person who is—
a
authorised to declare goods for a free zone procedure or to carry out a free zone activity, and
b
registered under this Act or exempted from registration under paragraph 13 of Schedule 1A to this Act.
2
References to a person authorised to do a thing are references to a person authorised in accordance with the Special Procedures Regulations to do that thing.
3
“Special Procedures Regulations” means the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018.
4
“Free zone activity” and “free zone procedure” have the meanings given by the Special Procedures Regulations.
5
Goods are “free zone procedure goods” if they—
a
are subject to a free zone procedure, or
b
comprise goods within paragraph (a) that have been combined with domestic goods by a person authorised to do so.
6
“Domestic goods” has the meaning given by section 33 of the Taxation (Cross-border Trade) Act 2018.
7
“Free zone” means an area in the United Kingdom designated as a special area for customs purposes under section 100A of the Management Act.
Sch. 8 Pt. 2 Group 19 Note (1)(d) inserted (1.1.2024) by The Value Added Tax (Women’s Sanitary Products: Reusable Underwear) Order 2023 (S.I. 2023/1341), arts. 1, 2