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

PART 5 U.K. Fulfilment Businesses

CHAPTER 1 U.K. Preliminary

Interpretation and effect U.K.

6.—(1) In this Part—

“the 2017 Act” means the Finance (No. 2) Act 2017 M1 ;

“the 2018 Regulations” means the Fulfilment Businesses Regulations 2018 M2 ;

“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;

“imported goods fulfilment business” has the meaning given by section 48 of the 2017 Act, as it has effect on and after [F1 IP completion day];

“third country goods fulfilment business” has the meaning given by section 48 of the 2017 Act as it had effect immediately before [F1 IP completion day].

(2) The changes effected by regulation 7(3) in relation to regulation 4 of the 2018 Regulations do not have effect in relation to a person who was carrying on a third country goods fulfilment business before [F1 IP completion day]M3 .

Textual Amendments

F1 Words in Pt. 5 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), 23(3); S.I. 2020/1641, reg. 2, Sch.

Commencement Information

I1 Reg. 6 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Marginal Citations

M1 2017 c. 32; see S.I. 2018/298 for commencement of Part 3 (fulfilment businesses). Part 3 and Schedule 13 were amended by section 43 of, and paragraphs 122 to 130 of Schedule 8 to, the Taxation (Cross-border Trade) Act 2018 (c. 22) on a day yet to be appointed by the Treasury.

M2 S.I. 2018/326; previously amended by Part 3 of S.I. 2019/513 but Part 3 is not in force and is omitted by regulation 3(3) of these Regulations.

M3 The effect of this is to ensure that the time limits set out in regulation 4 of the Fulfilment Businesses Regulations 2018 as it had effect before exit day remain applicable to a person who was already carrying on a third country goods fulfilment business before exit day.

CHAPTER 2 U.K. Amendments

Amendment of the 2018 Regulations U.K.

7.—(1) The 2018 Regulations are amended as follows.

(2) In regulation 2, in the definition of “customer”, for “a third country goods” substitute “ an imported goods ”.

(3) In regulation 4—

(a) in paragraph (1)(a), for “a third country goods” substitute “ an imported goods ”;

(b) for paragraph (2) substitute—

“(2) An application under paragraph (1)(a) must be made on or before the day on which a person commences carrying on an imported goods fulfilment business.”.

(4) In regulation 6(1)(c), for “third country goods” substitute “ imported goods ”.

(5) In regulation 8—

(a) in paragraphs (3) and (4), in each place it occurs, for “a third country goods” substitute “ an imported goods ”;

(b) in paragraph (5), for “third country goods” substitute “ imported goods ”.

(6) In regulation 9—

(a) in paragraph (1), in sub-paragraphs (c) and (d), in each place it occurs, for “a third country goods” substitute “ an imported goods ”;

(b) in paragraph (2)(c), for “a third country goods” substitute “ an imported goods ”.

(7) In regulation 10(1), in sub-paragraphs (c), (d), (e) and (g), in each place it occurs, for “third country goods” substitute “ imported goods ”.

(8) In regulation 11(2)(a)(iii), for “a third country goods” substitute “ an imported goods ”.

(9) In regulation 13, and in the heading for it, for “a third country goods” substitute “ an imported goods ”.

Commencement Information

I2 Reg. 7 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

CHAPTER 3 U.K. Approval to carry on third country goods fulfilment business deemed to be approval to carry on imported goods fulfilment business

Approvals accepted before [F1 IP completion day] U.K.

8.  Where before [F1 IP completion day] the Commissioners have accepted an application for an approval to carry on a third country goods fulfilment business, that approval is deemed on and after [F1 IP completion day] to be an approval to carry on an imported goods fulfilment business.

Textual Amendments

F1 Words in Pt. 5 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), 23(3); S.I. 2020/1641, reg. 2, Sch.

Commencement Information

I3 Reg. 8 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Applications in process at [F1 IP completion day] U.K.

9.  Where before [F1 IP completion day] a person has made an application for an approval to carry on a third country goods fulfilment business, or to vary any condition or restriction to which an approval is subject, that application is deemed on and after [F1 IP completion day] to be an application for an approval to carry on an imported goods fulfilment business or to vary any condition or restriction to which an approval to carry on such a business is subject.

Textual Amendments

F1 Words in Pt. 5 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), 23(3); S.I. 2020/1641, reg. 2, Sch.

Commencement Information

I4 Reg. 9 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

CHAPTER 4 U.K. M4 Transitional provisions for persons who before [F1 IP completion day] were not carrying on a “third country goods fulfilment business” but who, as a result of amendments made by paragraph 123 of Schedule 8 to the Taxation (Cross-border Trade) Act 2018 to section 48 of the 2017 Act, are carrying on “an imported goods fulfilment business” at [F1 IP completion day] or commence doing so during the 9 month period following [F1 IP completion day]

Marginal Citations

M4 2018 c. 22.

Interpretation of this Chapter U.K.

10.  In this Chapter—

“the first period” means the period of 6 months beginning with the day on which [F1 IP completion day] falls;

“the second period” means the period of 3 months immediately following the expiry of the first period.

Commencement Information

I5 Reg. 10 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Application U.K.

11.—(1) This Chapter applies where a person meets the conditions in paragraph (2).

(2) The conditions are that the person—

(a) was not carrying on a third country goods fulfilment business before [F1 IP completion day],

(b) is carrying on an imported goods fulfilment business at [F1 IP completion day] or commences carrying on an imported goods fulfilment business within the period of 9 months beginning with the day on which [F1 IP completion day] falls, and

(c) the imported goods fulfilment business referred to in sub-paragraph (b) would not have qualified as a “third country goods fulfilment business” before [F1 IP completion day].

Commencement Information

I6 Reg. 11 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Modification of regulation 4 of the 2018 Regulations (applications for approval and to vary an approval) U.K.

12.—(1) Where this Chapter applies, a person making an application for an approval under regulation 4(1)(a) of the 2018 Regulations must do so in accordance with the time limits in this regulation and regulation 4 of the 2018 Regulations is modified in accordance with paragraphs (2) and (3).

(2) Where the person is carrying on an imported goods fulfilment business at [F1 IP completion day] or commences doing so during the first period, the application for an approval must be made before the expiry of the first period.

(3) Where the person commences carrying on an imported goods fulfilment business during the second period, the application for an approval must be made before the expiry of the second period.

Commencement Information

I7 Reg. 12 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Penalty assessment for failure to comply with the time limits in regulation 12 above U.K.

13.  The Commissioners may assess a penalty where a person fails to comply with the requirements set out in regulation 4(2) of the 2018 Regulations as modified by regulation 12.

Commencement Information

I8 Reg. 13 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Suspension of Commissioners' power to assess penalties under regulation 14(1)(b) and (c), (2) and (3) of the 2018 Regulations until on or after the expiry of the second period U.K.

14.  Where this Chapter applies, the Commissioners' power to assess a penalty under regulation 14(1)(b) and (c), (2) and (3) of the 2018 Regulations may only be exercised in respect of contraventions taking place after the expiry of the second period.

Commencement Information

I9 Reg. 14 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Transitional provision in relation to sections 53 to 55 of, and Schedule 13 to, the 2017 Act U.K.

15.  Where this Chapter applies, the provisions of sections 53 to 55 of, and Schedule 13 to, the 2017 Act apply only in relation to contraventions taking place after the expiry of the second period.

Commencement Information

I10 Reg. 15 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.