The Value Added Tax (Miscellaneous and Transitional Provisions, Amendment and Revocation) (EU Exit) Regulations 2020

PART 2 U.K. Phasing in of border controls: accounting for import VAT

CHAPTER 1 U.K. Preliminary

Interpretation of Part 2 U.K.

3.  In Part 2—

“import VAT” means value added tax chargeable by virtue of section 1(1)(c) M1 of VATA 1994;

“prescribed accounting period” has the meaning given by section 25(1) M2 of VATA 1994;

“registered for VAT” refers to registration under Schedule 1 or 3A to VATA 1994 M3 ;

“relevant importation” has the meaning given by regulation 6;

“transitional EIDR procedure” has the meaning given by regulation 29D(1) of the Customs (Import Duty) (EU Exit) Regulations 2018 M4 and “transitional simplified Customs declaration” has the meaning given by regulation 14 of those Regulations.

Commencement Information

I1 Reg. 3 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Marginal Citations

M1 Section 1(1)(c) was substituted by section 41(2)(b) of TCTA 2018 but that substitution is not yet fully in force.

M2 Section 25(1) is amended by section 43 of, and paragraph 25 of Schedule 8 to, TCTA 2018 but that amendment is not yet in force.

M3 Schedule 1 was amended by section 26 of, and paragraph 13 of Schedule 3 to, the Finance Act 1996 (c. 8), sections 31 and 32 of, and paragraph 1 of Schedule 18 to, the Finance Act 1997 (c. 16), section 136(6) of the Finance Act 2000 (c. 17), section 23 of, and paragraphs 1 and 3 of Schedule 2 to, the Finance Act 2003 (c. 14), section 100(8) and (10) of the Finance Act 2007 (c. 11), sections 203 and 204 of, and paragraphs 2, 11, 12 and 13 of Schedule 28 and paragraphs 1 and 8 of Schedule 29 to, the Finance Act 2012 (c. 14), and section 43 of, and paragraphs 1 and 81 of Schedule 8 to, TCTA 2018. The amendments made by TCTA 2018 are not yet in force. The thresholds in Schedule 1 were most recently amended by S.I. 2017/290.

M4 S.I. 2018/1248; relevantly amended by S.I. 2020/1088 (not yet fully in force).

CHAPTER 2 U.K. Accounting for import VAT by VAT registered persons making transitional simplified Customs declarations using the EIDR procedure

Application of this Chapter U.K.

4.  This Chapter applies to a person who—

(a) makes a transitional simplified Customs declaration in accordance with regulation 29C(1)(a) of the Customs (Import Duty) (EU Exit) Regulations 2018, or makes a declaration that is treated as being made for the purposes of that regulation by regulation 37(1A) of those Regulations, in respect of an importation of goods F1 ..., and

(b) is registered, or required to be registered, for VAT at the time the person makes that declaration.

Textual Amendments

F1 Words in reg. 4(a) omitted (1.1.2022) by virtue of The Taxation (Cross-border Trade) (Miscellaneous Amendments) (EU Exit) (No. 2) Regulations 2021 (S.I. 2021/1444), regs. 1(3), 5(2)

Commencement Information

I2 Reg. 4 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Obligation to account for and pay import VAT in accordance with this Chapter U.K.

5.—(1) A person to whom this Chapter applies (P) must account for and pay import VAT on goods which comprise a relevant importation in accordance with the provision made by this Chapter.

(2) The effect of section 16(2) of VATA 1994 (application of customs enactments) M5 is modified to the extent that this Chapter makes different provision for accounting for import VAT, including the timing of such accounting, on a relevant importation.

Commencement Information

I3 Reg. 5 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Marginal Citations

M5 Section 16 was substituted by section 43 of, and paragraph 13 of Schedule 8 to, TCTA 2018 but that substitution is not yet in force.

Relevant importation U.K.

6.  In this Chapter a “relevant importation” is an importation of goods F2 ... where the goods are—

(a) chargeable with import VAT for which P is liable,

(b) used or to be used by P for the purposes of a business P carries on,

(c) required to be declared for the free circulation procedure under Part 1 of TCTA 2018 F3 ..., and

(d) not of a description excluded from the transitional EIDR procedure by virtue of regulation 29C(4) of the Customs (Import Duty) (EU Exit) Regulations 2018.

Textual Amendments

F2 Words in reg. 6 omitted (1.1.2022) by virtue of The Taxation (Cross-border Trade) (Miscellaneous Amendments) (EU Exit) (No. 2) Regulations 2021 (S.I. 2021/1444), regs. 1(3), 5(3)(a)

F3 Words in reg. 6(c) omitted (1.1.2022) by virtue of The Taxation (Cross-border Trade) (Miscellaneous Amendments) (EU Exit) (No. 2) Regulations 2021 (S.I. 2021/1444), regs. 1(3), 5(3)(b)

Commencement Information

I4 Reg. 6 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Obligation to account for import VAT on VAT return U.K.

7.  P must account for and pay the import VAT on goods which comprise a relevant importation on the return that P is required to make for the prescribed accounting period in which the liability for the import VAT is incurred.

Commencement Information

I5 Reg. 7 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Application with modifications of the Value Added Tax (Accounting Procedures for Import VAT for VAT Registered Persons and Amendment) (EU Exit) Regulations 2019 U.K.

8.  The following provisions of the Value Added Tax (Accounting Procedures for Import VAT for VAT Registered Persons and Amendment) (EU Exit) Regulations 2019 M6 apply for the purposes of this Chapter with, where applicable, the stated modification—

F4 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) [F5 regulation 10(2)] (appeals).

Textual Amendments

F4 Reg. 8(a) omitted (1.1.2023) by virtue of The Finance Act 2009, Sections 101 and 102 (Value Added Tax) (Late Payment Interest and Repayment Interest) (Exceptions and Consequential Amendments) Order 2022 (S.I. 2022/1298), arts. 1(3)(a), 8(2)(a); S.I. 2022/1278, reg. 2(3)(4)

F5 Words in reg. 8(b) substituted (1.1.2023) by The Finance Act 2009, Sections 101 and 102 (Value Added Tax) (Late Payment Interest and Repayment Interest) (Exceptions and Consequential Amendments) Order 2022 (S.I. 2022/1298), arts. 1(3)(a), 8(2)(b); S.I. 2022/1278, reg. 2(3)(4)

Commencement Information

I6 Reg. 8 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Marginal Citations

M6 S.I. 2019/60; this instrument is not yet in force.

Modification of the VAT Regulations where this Chapter applies U.K.

9.  Where this Chapter applies the following provisions of the VAT Regulations M7 are to be applied with the stated modifications—

(a) regulation 28 (estimation of output tax) is to be read as if—

(i) the reference to “output tax” includes import VAT chargeable on goods comprising a relevant importation; and

(ii) the words from “in the next prescribed accounting period” to the end were “in the prescribed accounting period in which the Commissioners make available to the person details of the amount of import duty due from the person on goods comprising a relevant importation (and in this regulation “import duty” means import duty charged under section 1 of the Taxation (Cross-border Trade) Act 2018).”;

(b) regulation 29(3) (claims for input tax) is to be read as if the words from “in the next prescribed accounting period” to the end read “in the prescribed accounting period in which the Commissioners make available to the person details of the amount of import duty due from the person in that prescribed accounting period on goods comprising a relevant importation (and “import duty” in this regulation means import duty charged under section 1 of the Taxation (Cross-border Trade) Act 2018).”;

(c) regulation 32(3)(baa) (the VAT account) and regulation 40(1)(ba) (VAT to be accounted for on returns and payment of VAT) are to be read as if after “2019” were added “ or Chapter 2 of Part 2 of the Value Added Tax (Miscellaneous and Transitional Provisions, Amendment and Revocation) (EU Exit) Regulations 2020 M8 , ”.

Commencement Information

I7 Reg. 9 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Marginal Citations

M7 S.I. 1995/2518; relevantly amended by S.I. 1997/1086, 2003/1114, 2009/586, 2019/59 and 2019/60. The amendments made by S.I. 2019/59 and S.I. 2019/60 are not yet in force.

M8 This instrument.

CHAPTER 3 U.K. Accounting for import VAT: other circumstances

Power to make provision by public notice for bringing into account import VAT U.K.

10.—(1) The Commissioners may by public notice M9 make such provision for, or in connection with, the bringing into account of import VAT as they consider appropriate in the circumstances specified in paragraph (2).

(2) The circumstances referred to in paragraph (1) are that a person purports to make a transitional simplified Customs declaration in accordance with regulation 29C(1)(a) of the Customs (Import Duty) (EU Exit) Regulations 2018 in respect of an importation of goods F6 ... but—

(a) the person is ineligible to do so;

(b) the person purports to do so in respect of goods which are of a description not eligible for the transitional EIDR procedure; or

(c) the declaration is incomplete.

Textual Amendments

F6 Words in reg. 10(2) omitted (1.1.2022) by virtue of The Taxation (Cross-border Trade) (Miscellaneous Amendments) (EU Exit) (No. 2) Regulations 2021 (S.I. 2021/1444), regs. 1(3), 5(4)

Commencement Information

I8 Reg. 10 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.

Marginal Citations

M9 Any public notice made under this provision will be published at https://www.gov.uk/government/collections/customs-vat-and-excise-uk-transition-legislation-from-1-january-2021. Free of charge hard copies will be available on request from the HMRC helpline on 0300 200 3700 ([phone] for outside the UK enquiries) or by writing to HM Revenue and Customs – VAT Written Enquiries Team, 123 St Vincent Street, Glasgow City, Glasgow, G2 5EA, United Kingdom.