Credit for VAT on goods removed from Great Britain to Northern IrelandU.K.
19.—(1) Paragraph (2) applies where—
(a)goods are removed from Great Britain or the Isle of Man to Northern Ireland and a person (“P”) is liable for the VAT payable as a result of their entry into Northern Ireland, and
(b)the goods are not removed for the purposes of, or in the course or furtherance of, any business carried on by a registered person.
(2) Where this paragraph applies and subject to paragraph (5)—
(a)P is granted a credit in accordance with paragraph (3), and
(b)P is deemed to have made a payment equal to that credit in respect of the VAT payable as a result of the entry.
(3) The credit referred to in sub-paragraph (2)(a) is—
(a)the total of the VAT incurred on the purchase or importation of the goods in Great Britain [F1or the Isle of Man] by P or, where the goods were given to P, the VAT which was incurred in Great Britain [F1or the Isle of Man] on those goods by the person who gave the goods to P; or
(b)if the goods have been manufactured by P, the total of the VAT incurred on the purchase or importation of the materials used in the manufacture of the goods,
but in either case the credit may not be greater than the VAT payable as a result of the entry.
(4) The total of the VAT referred to in sub-paragraphs (3)(a) and (b) is to be calculated in accordance with the directions of the Commissioners specified in a public notice.
(5) If the amount of the VAT due on the entry of the goods exceeds the amount of the credit allowed under sub-paragraph (2)(a) P must account for and pay the balance in such form and manner, and at such time, as may be specified by the Commissioners in a public notice, or as they may direct in a particular case.
(6) This regulation is to be treated, for the purposes of VATA, as if it had been made under that Act.
Textual Amendments
F1Words in reg. 19(3)(a) inserted (1.12.2021) by The Value Added Tax (Distance Selling and Miscellaneous Amendments) Regulations 2021 (S.I. 2021/1164), regs. 1, 30
Commencement Information
I1Reg. 19 not in force at made date, see reg. 1
I2Reg. 19 in force at 31.12.2020 by S.I. 2020/1641, reg. 2, Sch.