The Value Added Tax (Distance Selling and Miscellaneous Amendments) Regulations 2021
| Jurisdiction | UK Non-devolved |
2021 No. 1164
Value Added Tax
The Value Added Tax (Distance Selling and Miscellaneous Amendments) Regulations 2021
Made 25th October 2021
Laid before the House of Commons 25th October 2021
Coming into force 1st December 2021
The Treasury make these Regulations in exercise of the powers conferred by section 40A(7) and (9) of the Value Added Tax Act 19941, section 51(1)(a) of the Taxation (Cross-border Trade) Act 20182and section 96(1)(a) of the Finance Act 20213.
In accordance with section 51(1)(a) of the Taxation (Cross-border Trade) Act 2018, the Treasury consider it appropriate to make provision in regulations 23 to 30 and 32 to 34 relating to value added tax in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the EU.
In accordance with section 96(1)(a) of the Finance Act 2021, the Treasury consider it appropriate in relation to the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement4to make provision in regulations 27, 31, 35 and 36 relating to value added tax for the purpose of, or in connection with, giving effect to Council Directive (EU) 2017/24555of 5 December 2017 amending Directive 2006/112/EC6and Directive 2009/132/EC7as regards certain value added tax obligations for supplies of services and distance sales of goods.
Citation and Commencement
1. These Regulations may be cited as the Value Added Tax (Distance Selling and Miscellaneous Amendments) Regulations 2021 and come into force on 1st December 2021.
PART 1
Amendments to the Value Added Tax Act 1994
Amendments to Schedule 9ZD to the Value Added Tax Act 1994
2. Schedule 9ZD to the Value Added Tax Act 19948(distance selling of goods from Northern Ireland: special accounting scheme) is amended as follows.
3. In paragraph 2 (“scheme supply”) omit “(and references to a “third country” and “third territory” were read accordingly as including Great Britain)”.
4. In paragraph 4(3) (persons who may be registered) omit “otherwise”.
5.—(1) Paragraph 10 (liability to pay non-UK VAT to Commissioners) is amended as follows.
(2) In the heading omit “non-UK”.
(3) For sub-paragraph (3), substitute—
“3 The gross amount of VAT on the supply is determined in accordance with sub-paragraphs (4) and (5), without any deduction of VAT pursuant to Article 168 of the VAT Directive9.
4 If the supply is treated as made in the United Kingdom, the amount is the amount of VAT that would be charged on the supply on the assumption for all purposes of this Act relating to the determination of—
(a) whether or not VAT is chargeable under this Act on the supply,
(b) how much VAT is chargeable under this Act on the supply, and
(c) any other matter that the Commissioners may specify by regulations,
that P is registered under this Act.
5 If the supply is treated as made in a member State, the amount is the amount of VAT charged on the supply in accordance with the law of that member State.”.
6.—(1) Paragraph 14 (availability of records) is amended as follows.
(2) In sub-paragraph (1)—
(a)
(a) after “must” insert “keep and”;
(b)
(b) omit “any”;
(c)
(c) omit the words from “P is keeping” to the end.
(3) In sub-paragraph (3), for the words from “kept in accordance” to the end substitute “, of transactions entered into by P covered by the scheme, containing the information referred to in Article 63c(1) of the Implementing Regulation10.”.
7. In Part 4 (persons registered under non-UK special accounting schemes), after paragraph 21 insert—
“Availability of records
21A.—(1) A person (“P”) who is a participant in a non-UK special scheme must keep and make available to the Commissioners, on request, obligatory records.
(2) The records must be made available by electronic means.
(3) In sub-paragraph (1) “obligatory records” means records, of transactions entered into by P covered by the scheme, containing the information referred to in Article 63c(1) of the Implementing Regulation.”.
Amendments to Schedule 9ZE to the Value Added Tax Act 1994
8. Schedule 9ZE to the Value Added Tax Act 1994 (distance selling of goods imported to Northern Ireland: special accounting scheme) is amended as follows.
9. In paragraph 10 (liability to pay VAT to Commissioners) omit sub-paragraph (5).
10.—(1) Paragraph 14 (availability of records) is amended as follows.
(2) In the heading, at the end insert “: persons registered under the IOSS scheme”.
(3) In sub-paragraph (1)—
(a)
(a) after “must” insert “keep and”;
(b)
(b) omit “any”;
(c)
(c) omit the words from “P is keeping” to the end.
(4) In sub-paragraph (3), for the words from “kept in accordance” to the end substitute “, of transactions entered into by P covered by the scheme, containing the information referred to in Article 63c(2) of the Implementing Regulation11.”.
11. In Part 4 (collection etc of UK VAT), after paragraph 30 insert—
“Availability of records: participants in a special scheme (other than the IOSS scheme)
30A.—(1) A person (“P”) who is a participant in a special scheme (other than the IOSS scheme) must keep and make available to the Commissioners, on request, obligatory records.
(2) The records must be made available by electronic means.
(3) In sub-paragraph (1) “obligatory records” means records, of transactions entered into by P covered by the scheme, containing the information referred to in Article 63c(2) of the Implementing Regulation.”.
12. In paragraph 34(3) (registration under this Act)—
(a) for the words before paragraph (a) substitute “A supply made by a participant in a special scheme is a “relevant supply” if—”;
(b) in paragraph (a), for “supplies” substitute “supply”;
(c) in paragraph (b), for “supplies are” substitute “supply is”.
13. 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.”.
14.—(1) Paragraph 37 (no import VAT chargeable on qualifying supplies of goods) is amended as follows.
(2) The existing text becomes sub-paragraph (1).
(3) In the opening words of that sub-paragraph, after “Great Britain” insert “or the Isle of Man”.
(4) In paragraph (a) of that sub-paragraph, after “that importation” insert “or removal”.
(5) In paragraph (b) of that sub-paragraph, for “registered under the IOSS scheme” substitute “a participant in a special scheme”.
(6) After that sub-paragraph insert—
“2 The Commissioners may by means of a notice published by them make provision about the procedures that must be followed or the conditions that must be complied with to satisfy them that an importation or removal falls within sub-paragraph (1)12.”.
15. In paragraph 38(2)(c) (time and place of supply of goods) for “registered under the IOSS scheme” substitute “a participant in a special scheme”.
16.—(1) Paragraph 39 (place of supply of goods: supplies facilitated by online marketplaces) is amended as follows.
(2) Omit sub-paragraphs (1) and (2).
(3) In sub-paragraphs (3) and (5), in each place it occurs, for “registered under the IOSS scheme” substitute “a participant in a special scheme”.
17. In paragraph 41(1) (refund of UK VAT), for “person registered under the IOSS scheme” substitute “participant in a special scheme”.
18. In paragraph 43(1) (interpretation), in the definition of “special scheme”, for paragraph (a) substitute—
“(a)
“(a) the IOSS scheme, or”.
Amendments to Schedule 9ZF to the Value Added Tax Act 1994
19. Schedule 9ZF to the Value Added Tax Act 1994 (modifications etc in connection with Schedules 9ZD and 9ZE) is amended as follows.
20. After paragraph 1 insert—
“1A Section 3 (taxable persons and registration) has effect as if, after subsection (4), there were inserted—
“(5) A person is not to be treated as being registered under this Act merely by virtue of the person being registered under the OSS scheme (within the meaning of Schedule 9ZD) or the IOSS scheme (within the meaning of Schedule 9ZE).”.”.
Omit paragraph 2.
21. Omit...
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