After paragraph 36 insert—

“No VAT chargeable on supplies by special scheme participants not registered for VAT

36A.

Where a person (“P”)—

(a)

has a business establishment, or some other fixed establishment, in the United Kingdom or the Isle of Man in relation to a business carried on by P,

(b)

makes a qualifying supply of goods that is treated as made in the United Kingdom,

(c)

is a participant in a special scheme when the supply is made, and

(d)

is not registered, or liable to be registered, under Schedule 1,

no VAT is chargeable on the supply under this Act.”.