Finance Act 2022

70 Margin schemes and removal or export of goods: VAT-related payments

In VATA 1994, after section 50A (margin schemes) insert—

“50B Margin schemes and export or removal of goods

(1) The Treasury may by order provide that, on making a claim, a person is entitled to a VAT-related payment in respect of relevant supplies or of a description of relevant supply specified in the order.

(2) “Relevant supply”, in relation to a person making a claim, means a supply of goods to the person where—

(a) the person took possession of the goods in Great Britain or the Isle of Man in the course of carrying on a business,

(b) the goods were then removed to Northern Ireland or exported,

(c) at the time of the removal or export (“the relevant time”), the person intended to resell the goods outside Great Britain and the Isle of Man in the course of carrying on the business, and

(d) if the circumstances of, and following, the supply to the person had been altered as described in subsection (3), the person would have been entitled to exercise an option under an order made under section 50A in respect of the resale of the goods.

(3) The alterations mentioned in subsection (2)(d) are—

(a) that (if it was not in fact so) the person was a taxable person,

(b) that the goods were not removed to Northern Ireland or exported (and VAT was charged on the supply of the goods to the person on that basis), and

(c) that the person resold the goods in Great Britain at the relevant time in the course of carrying on the business.

(4) “VAT-related payment”, in respect of a supply of goods, means a payment of an amount equal to so much of the consideration for the supply as would have constituted VAT if—

(a) the supply had taken place at the relevant time, and

(b) VAT had been chargeable on the value of the supply,

subject to any provision made in reliance on subsection (5).

(5) An order under this section may make provision for the amount of a VAT-related payment to be less than the amount described in subsection (4).

(6) An order under this section may, among other things—

(a) make entitlement to a VAT-related payment subject to conditions;

(b) make provision about the making of claims under the order;

(c) make provision for claims to be treated as if they were returns under this Act in respect of a particular period;

(d) make provision about the calculation of VAT-related payments, including provision about the calculation of the consideration for, or value of, a supply;

(e) make provision about how VAT-related payments are to be paid;

(f) make provision for VAT-related payments to be treated as if they were repayments of input tax;

(g) make provision requiring claims and payments to be made through agents in the United Kingdom;

(h) make provision for agents dealing with claims and payments under the order to be treated under this Act as if they were taxable persons;

(i) make provision for and in connection with the payment of interest to or by the Commissioners, including provision about interest wrongly paid.

(7) An order under this section may, among other things—

(a) confer power on the Commissioners to make provision in a direction or notice;

(b) make provision, or enable the Commissioners to make provision, generally or for particular purposes;

(c) make provision applying a provision of or made under this Act or another enactment, with or without modifications, including provision relating to penalties and offences;

(d) make different provision for different purposes, including different provision in relation to persons carrying on business in different places or in relation to the removal or export of goods to different places;

(e) make consequential, incidental, supplementary, transitional, transitory or saving provision.

(8) The provision that may be made under subsection (7)(e) includes provision amending an enactment or subordinate legislation.

(9) References in this section to carrying on a business are to doing so in the United Kingdom or elsewhere.”