The Value Added Tax (Enforcement Related to Distance Selling and Miscellaneous Amendments) Regulations 2022
| Jurisdiction | UK Non-devolved |
| Citation | SI 2022/226 |
| Year | 2022 |
2022 No. 226
Value Added Tax
The Value Added Tax (Enforcement Related to Distance Selling and Miscellaneous Amendments) Regulations 2022
Made 4th March 2022
Laid before the House of Commons 7th March 2022
Coming into force 1st April 2022
The Treasury, in exercise of the powers conferred by section 40A(7) of the Value Added Tax Act 19941(“VATA”) and section 51(1)(a) and (3) of the Taxation (Cross-border Trade) Act 20182(“TCTA”), make regulations 1 to 27 and 31 to 35.
The Commissioners for Her Majesty’s Revenue and Customs, in exercise of the powers conferred by section 16(3) of, and paragraph 1(6)(b) and (7) of Schedule 9ZB and paragraph 2(10)(b) and (c) of Schedule 11 to, VATA3, make regulations 1, 2 and 27 to 30.
In accordance with section 51(1)(a) of TCTA, the Treasury consider it appropriate in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the EU to make regulations 27 and 31 to 35 in relation to value added tax, including to make such provision as might be made by Act of Parliament.
Citation and commencement
1. These Regulations may be cited as the Value Added Tax (Enforcement Related to Distance Selling and Miscellaneous Amendments) Regulations 2022 and come into force on 1st April 2022.
Interpretation
2. In these Regulations, “VATA” means the Value Added Tax Act 1994.
PART 1
Amendments to VATA
Amendments to Schedule 9ZD to VATA
3. Schedule 9ZD to VATA4(distance selling of goods from Northern Ireland: special accounting scheme) is amended in accordance with regulations 4 to 15.
4. In Part 1 (introduction), in paragraph 1 (overview)—
(a) in paragraph (b), for “schemes in member States that correspond to the OSS scheme” substitute “a non-UK scheme”;
(b) in paragraph (c), for “non-UK VAT in relation to such corresponding schemes” substitute “UK VAT”.
5. In Part 3 (liability, returns, payment etc), after paragraph 15 insert—
“
Persons registered under the OSS scheme who are also registered under this Act
15A.—(1) A person (“P”) who—
(a)
(a) is registered under the OSS scheme, and
(b)
(b) is also registered, or required to be registered, under this Act,
is not required to discharge any obligation placed on them as a taxable person, to the extent that the obligation relates to a scheme supply treated as made in the United Kingdom.
(2) The reference in sub-paragraph (1) to an obligation placed on P as a taxable person is to an obligation—
(a)
(a) to which P is subject under or by virtue of this Act, and
(b)
(b) to which P would not be subject if P was neither registered nor required to be registered under this Act.
(3) This paragraph does not prevent P claiming, in reliance on section 25(2) (deduction of input tax from output tax by a taxable person), a credit for input tax incurred on scheme supplies treated as made in the United Kingdom.
6. Part 5 (collection of non-UK VAT) is amended in accordance with regulations 7 to 15.
In the heading omit “non-”.
7. In the heading omit “non-”.
8. In paragraph 22 (assessments: general modifications of section 73 of VATA), in sub-paragraph (1)—
(a) omit the “and” at the end of paragraph (a);
(b) after paragraph (b) insert—
“
, and
(c)
(c) references in that section to a VAT credit included a repayment to persons who are not taxable persons of an amount of VAT paid under and in accordance with this Schedule.
9.—(1) Paragraph 25 (deemed amendments of relevant non-UK returns) is amended as follows.
(2) In the heading omit “relevant non-UK”.
(3) In sub-paragraph (1)—
(a)
(a) after “made” insert “an OSS scheme return or”;
(b)
(b) omit “relevant non-UK” in the second place it occurs.
(4) In sub-paragraph (2)—
(a)
(a) after “made” insert “an OSS scheme return or”;
(b)
(b) for “paragraph 33(2)(b)” substitute “paragraph 33(2)”;
(c)
(c) omit “relevant non-UK” in the second place it occurs.
(5) In sub-paragraph (3)—
(a)
(a) after “made” insert “an OSS scheme return or”;
(b)
(b) omit the second set of words in brackets;
(c)
(c) omit “relevant non-UK” in the final place it occurs.
10.—(1) Paragraph 26 (interest on VAT: “reckonable date”) is amended as follows.
(2) In sub-paragraph (1), in paragraph (a), after “etc)” insert “in relation to an OSS scheme return or”.
(3) In sub-paragraph (3), after “(2)” insert “in relation to an OSS scheme return or”.
(4) In sub-paragraph (4), after “which” insert “the OSS scheme return or”.
11.—(1) Paragraph 27 (default surcharge: notice of special surcharge period) is amended as follows.
(2) In sub-paragraph (1), in the words before paragraph (a), after “make” insert “an OSS scheme return or”.
(3) In sub-paragraph (2)—
(a)
(a) in paragraph (a)—
(i) after “is that” insert “the Commissioners or”;
(ii) after “member State” insert “(as the case may be)”;
(b)
(b) in paragraph (b)—
(i) after “is that” insert “the Commissioners or”;
(ii) after “authorities” insert “(as the case may be)”;
(c)
(c) in paragraph (c)—
(i) after “return,” insert “the Commissioners or”;
(ii) after “authorities” insert “(as the case may be)”;
(d)
(d) in paragraph (d)—
(i) after “is that” insert “the Commissioners or”;
(ii) after “authorities” insert “(as the case may be)”.
12.—(1) Paragraph 28 (further default after service of notice) is amended as follows.
(2) For sub-paragraph (4) substitute—
“
4 “Special scheme VAT”, in relation to a person, means VAT that the person is liable to pay in respect of scheme supplies treated as made in the United Kingdom to—
(a) the Commissioners under this Schedule, or
(b) the tax authorities for the administering member State under a non-UK scheme.
(3) In sub-paragraph (5), after “submit” insert “an OSS scheme return or”.
13. In paragraph 29 (default surcharge: exceptions for reasonable excuse etc), in sub-paragraph (1), in paragraph (a)—
(a) at the beginning insert “the OSS scheme return or”;
(b) after “received by” insert “the Commissioners or”;
(c) after “member State” insert “(as the case may be)”.
14.—(1) Paragraph 30 (interest in certain cases of official error) is amended as follows.
(2) In sub-paragraph (1)—
(a)
(a) omit the “or” at the end of paragraph (a);
(b)
(b) after paragraph (b) insert—
“
, or
(c)
(c) a person has paid, in accordance with this Schedule, an amount by way of UK VAT that was not UK VAT due from the person and which the Commissioners are in consequence liable to repay to the person.
(3) For sub-paragraph (3) substitute—
“
3 In the application of section 78 as a result of this paragraph, section 78(12)(b) is to be read as providing that—
(a) in a case within sub-paragraph (1)(a) or (b), any reference in that section to a return is to a return required to be made under a non-UK scheme;
(b) in a case within sub-paragraph (1)(c), any reference in that section to a return is to a return required to be made under this Schedule.
15.—(1) Paragraph 33 (increase or decrease in consideration for a supply) is amended as follows.
(2) In the heading, at the end insert5“: cases outside Article 61 of the Implementing Regulation5”.
(3) In sub-paragraph (1)—
(a)
(a) in paragraph (a), after “makes” insert “an OSS scheme return or”;
(b)
(b) in paragraph (b), for “return has been made” substitute “end of the period during which the person is entitled under Article 61 of the Implementing Regulation to amend their return”.
(4) For sub-paragraph (2) substitute—
“
2 The person must, in the tax period in which the increase or decrease is accounted for in the person’s business accounts, notify the Commissioners of the adjustment needed to the figures in the OSS scheme return or non-UK return (as the case may be) because of the increase or decrease.
(5) In sub-paragraph (3), for the words before paragraph (a) substitute “Where the change to which a notice under sub-paragraph (2) relates is an increase in the consideration for a supply, the person must pay to the Commissioners the difference between—”.
(6) In sub-paragraph (4)—
(a)
(a) for “UK supply” substitute “supply”;
(b)
(b) before “VAT” in both places it occurs insert “UK”.
(7) In sub-paragraph (5)—
(a)
(a) in paragraph (a), for “sub-paragraph (2)(b)” substitute “sub-paragraph (2)”;
(b)
(b) in paragraph (b) omit “in a case within sub-paragraph (2)(b)”.
(8) Omit sub-paragraph (6).
Amendments to Schedule 9ZE to VATA
16. In Schedule 9ZE to VATA (distance selling of goods imported to Northern Ireland: special accounting scheme), Part 4 (collection etc of UK VAT) is amended in accordance with regulations 17 to 23.
17. In paragraph 16 (assessments: general modifications of section 73), in sub-paragraph (1)—
(a) omit the “and” at the end of paragraph (a);
(b) after paragraph (b) insert—
“
, and
(c)
(c) references in that section to a VAT credit included a repayment to persons who are not taxable persons of an amount of VAT paid under and in accordance with this Schedule.
18. In paragraph 19 (deemed amendments of relevant...
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