Citation and commencement

1. These Regulations may be cited as the Value Added Tax (Miscellaneous Amendments to the Value Added Tax Act 1994 and Revocation) (EU Exit) Regulations 2020 and come into force on such day or days as the Treasury may by regulations under section 52 of the Taxation (Cross-border Trade) Act 2018 appoint.

Amendment of the Value Added Tax Act 1994

2.The Value Added Tax Act 1994 is amended by regulations 3 to 7 as follows.

Refund of NI acquisition VAT to persons constructing certain buildings

3. —(1)Schedule 9ZA (VAT on acquisitions in Northern Ireland from member States) is amended as follows.

(2) After paragraph 18 insert—

“ Refund of NI acquisition VAT to persons constructing certain buildings

18A. —(1) Where—

(a) a person carries out works to which this paragraph applies, and

(b) the carrying out of the work by the person is lawful and otherwise than in the course or furtherance of any business, and

(c) NI acquisition VAT is chargeable on the acquisition from a member State of any goods used by the person for the purposes of the works,

the Commissioners must, on a claim made in that behalf, refund to that person the amount of NI acquisition VAT so chargeable.

(2) Where—

(a) a person carries out works to which this paragraph applies,

(b) the carrying out of the work by the person is lawful and otherwise than in the course or furtherance of any business, and

(c) VAT is chargeable in accordance with the law of a member State (see paragraph 80) on the supply of any goods used by the person for the purposes of the works,

the Commissioners must, on a claim made in that behalf, pay to that person an amount equal to that VAT so chargeable.

(3) The works to which this paragraph applies are—

(a) the construction of a building in Northern Ireland designed as a dwelling or a number of dwellings;

(b) the construction of a building in Northern Ireland for use solely for a relevant residential purpose or relevant charitable purpose;

(c) a residential conversion of a building, or a part of a building, in Northern Ireland.

(4) Subsections (1B) and (1D) of section 35 (refund of VAT to persons constructing certain buildings) apply for the purposes of this paragraph as they apply for the purposes of that section.

(5) Subsection (2) of that section applies to a refund under subparagraph (1) or (2) as it applies to a refund of VAT under that section.

(6) Subsections (4) and (4A) of that section apply for the purpose of construing this paragraph.

(7) Subsection (5) of that section has effect as if in paragraphs (a) and (b), after “this section” there were inserted “ or paragraph 18A of Schedule 9ZA ” .

(8) The provisions made by or under this Act or any other enactment (whenever passed or made) that apply to a refund under section 35 apply to a refund under sub-paragraph (2) as if references in those provisions (however framed)—

(a) to VAT chargeable on the supply of goods were to VAT chargeable under the law of a member State;

(b) to refunding VAT to a person were to paying a person in accordance with that sub-paragraph. ” .

(3) In paragraph 28—

(a) in sub-paragraph (1)(a), after “paragraph”, in the second place it occurs, insert “ 18A or ” ;

(b) in sub-paragraph (2), after “paragraph”, in the second place it occurs, insert “ 18A or ” .

(4) In paragraph 34(1)(d), after “paragraph” insert “ 18A or ” .

(5) In paragraph 36(3), after “paragraph” insert “ 18A or ” .

Taxation under the laws of member States

4. In paragraph 81 of Schedule 9ZA, after subsection (5) insert—

“ (6) Without prejudice to the generality of any of the powers of the Commissioners under the relevant information provisions, those powers are, for the purpose of facilitating compliance with any obligation of the United Kingdom under the EU withdrawal agreement, exercisable with respect to matters that are relevant to a charge to VAT under the law of a member State, as they are exercisable with respect to matters that are relevant for any of the purposes of this Act.

(7) The reference in subsection (6) to the relevant information provisions is a reference to the provisions of section 73(7) and Schedule 11 (see also paragraph 73 which contains provision treated as if contained within that Schedule) relating to—

(a) the keeping of accounts;

(b) the making of returns and the submission of other documents to the Commissioners;

(c) the production, use and contents of invoices;

(d) the keeping and preservation of records;

(e) the furnishing of information and the production of documents. ” .

Amendment of Schedule 9ZB

5. In Schedule 9ZB (goods removed to or from Northern Ireland and supply rules), in paragraph 6 (relief for qualifying Northern Ireland goods)—

(a) in sub-paragraph (2), the words from “the last supply” to the end become paragraph (a);

(b) in that paragraph, for “that removal” substitute “ that removal, or ” ;

(c) after that paragraph insert—

“ (b) duty under section 30C of TCTA 2018 is charged on that removal as a result of subsection (2) of that section (duty on goods removed for an avoidance purpose). ” ;

(d) in sub-paragraph (3), for “(2)” substitute “ (2)(a) ” .

6. In that Schedule, after paragraph 31 insert—

“ Partially exempt supplies

31A. —(1) A removal of goods from Great Britain to Northern Ireland to which this sub-paragraph applies is to be treated as a taxable supply of goods made in the course or furtherance of a business carried on by the person who removes the goods.

(2) Sub-paragraph (1) applies to a removal of goods if—

(a) the removal is not (ignoring sub-paragraph (1)) made in the course of a taxable supply,

(b) before the removal the goods were supplied to, or were imported by, the person who removed them (“P”),

(c) P is, at the time of that supply or importation and at the time of the removal, a taxable person,

(d) P has incurred VAT on that supply or importation,

(e) the removal takes place within 12 months of P becoming liable to that VAT,

(f) some, or all, of the VAT incurred on the supply or importation has not been credited as input tax in relation to P because it has, before the removal, been attributed to—

(i) both taxable and exempt supplies, or

(ii) exempt supplies, and

(g) either—

(i) P has not used the goods before their removal, or

(ii) P meets the condition in sub-paragraph (3).

(3) That condition is that P uses the goods, after their removal, exclusively for the purpose of making—

(a) in a case falling within sub-paragraph (2)(f)(i), both taxable and exempt supplies, or

(b) in a case falling within sub-paragraph (2)(f)(ii), exempt supplies.

(4) A supply of goods which is treated as arising under sub-paragraph (1) is zero-rated.

(5) VAT incurred by P on the removal of the goods from Great Britain to Northern Ireland (see paragraph 3(4)) is not to be treated as attributable (for the purposes of section 26) to the supply treated as arising under sub-paragraph (1). ” .

7. In paragraph 12 of that Schedule, in sub-paragraph (2), after “3(1)” insert “ or 31A(3) ” .

Revocation of the Finance Act 2011, Schedule 23 (Data-gathering Powers) (Amendment) (EU Exit) Regulations 2019

8.The Finance Act 2011, Schedule 23 (Data-gathering Powers) (Amendment) (EU Exit) Regulations 2019 are revoked.