Value Added Tax Act 1994

Imports, overseas businesses etc U.K.

37 [F1 Relief from VAT on importation of goods.][F1 VAT on importation of goods: reliefs etc] U.K.

[F2 (A1) No VAT is chargeable on the importation of goods to which section 7(5B) applies.]

(1) The Treasury may by order make provision for giving relief from the whole or part of the VAT chargeable on the importation of goods from places outside the member States, subject to such conditions (including conditions prohibiting or restricting the disposal of or dealing with the goods) as may be imposed by or under the order, if and so far as the relief appears to the Treasury to be necessary or expedient, having regard to any international agreement or arrangements.

(2) In any case where—

(a) it is proposed that goods which have been imported from a place outside the member States by any person (“the original importer”) with the benefit of relief under subsection (1) above shall be transferred to another person (“the transferee”), and

(b) on an application made by the transferee, the Commissioners direct that this subsection shall apply,

this Act shall have effect as if, on the date of the transfer of the goods (and in place of the transfer), the goods were exported by the original importer and imported by the transferee and, accordingly, where appropriate, provision made under subsection (1) above shall have effect in relation to the VAT chargeable on the importation of the goods by the transferee.

(3) The Commissioners may by regulations make provision for remitting or repaying, if they think fit, the whole or part of the VAT chargeable on the importation of any goods from places outside the member States which are shown to their satisfaction to have been previously exported from the United Kingdom or removed from any member State.

(4) The Commissioners may by regulations make provision for remitting or repaying the whole or part of the VAT chargeable on the importation of any goods from places outside the member States if they are satisfied that the goods have been or are to be re-exported or otherwise removed from the United Kingdom and they think fit to do so in all the circumstances and having regard—

(a) to the VAT chargeable on the supply of like goods in the United Kingdom;

(b) to any VAT which may have become chargeable in another member State in respect of the goods.

Textual Amendments

F1 S. 37 heading substituted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 3 para. 7(2) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

F2 S. 37(A1) inserted (17.12.2020 for specified purposes, 31.12.2020 in so far as not already in force) by Taxation (Post-transition Period) Act 2020 (c. 26), s. 11(1)(e), Sch. 3 para. 7(3) (with Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 9

Modifications etc. (not altering text)

C1 S. 37(1) extended (27.7.1999) by 1999 c. 16, s. 13(3)

38 Importation of goods by taxable persons. U.K.

The Commissioners may by regulations make provision for enabling goods imported from a place outside the member States by a taxable person in the course or furtherance of any business carried on by him to be delivered or removed, subject to such conditions or restrictions as the Commissioners may impose for the protection of the revenue, without payment of the VAT chargeable on the importation, and for that VAT to be accounted for together with the VAT chargeable on the supply of goods or services by him or on the acquisition of goods by him from other member States.

39 Repayment of VAT to those in business overseas. U.K.

(1) The Commissioners may, by means of a scheme embodied in regulations, provide for the repayment, to persons to whom this section applies, of VAT on supplies to them in the United Kingdom or on the importation of goods by them from places outside the member States which would be input tax of theirs if they were taxable persons in the United Kingdom.

(2) This section—

(a) applies to persons carrying on business in another member State, and

(b) shall apply also to persons carrying on business in other countries, if, pursuant to any [F3 EU] Directive, rules are adopted by the Council of the [F4 European Union] about refunds of VAT to persons established elsewhere than in the member States,

but does not apply to persons carrying on business in the United Kingdom.

(3) Repayment shall be made in such cases [F5 and to such extent] only, and subject to such conditions, as the scheme may prescribe (being conditions specified in the regulations or imposed by the Commissioners either generally or in particular cases); and the scheme may provide—

[F6 (za) for claims to be made in such form and manner as may be specified in the scheme or by the Commissioners in accordance with the scheme;]

(a) for claims and repayments to be made only through agents in the United Kingdom;

(b) either generally or for specified purposes—

(i) for the agents to be treated under this Act as if they were taxable persons; and

(ii) for treating claims as if they were returns under this Act [F7 in respect of such period as may be prescribed] and repayments as if they were repayments of input tax; F8 ...

[F9 (ba) for and in connection with the payment of interest to or by the Commissioners (including in relation to the repayment of interest wrongly paid), and]

[F10 (c) for generally regulating—

(i) the time by which claims must be made, and

(ii) the methods by which the amount of any repayment is to be determined and the repayment is to be made.]

Textual Amendments

F3 Word in Act substituted (22.4.2011) by The Treaty of Lisbon (Changes in Terminology) Order 2011 (S.I. 2011/1043), arts. 2, 3, 6 (with arts. 3(2)(3), 4(2), 6(4)(5))

F4 Words in Act substituted (22.4.2011) by The Treaty of Lisbon (Changes in Terminology) Order 2011 (S.I. 2011/1043), arts. 2, 3, 4 (with arts. 3(2)(3), 4(2), 6(4)(5))

F5 Words in s. 39(3) inserted (21.7.2009) by Finance Act 2009 (c. 10), s. 77(2)(a)

F6 S. 39(3)(za) inserted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 29 para. 5(2)

F7 Words in s. 39(3)(b)(ii) inserted (21.7.2009) by Finance Act 2009 (c. 10), s. 77(2)(b)

F8 Word in s. 39(3)(b)(ii) omitted (21.7.2009) by virtue of Finance Act 2009 (c. 10), s. 77(2)(b)

F9 S. 39(3)(ba) inserted (21.7.2009) by Finance Act 2009 (c. 10), s. 77(2)(c)

F10 S. 39(3)(c) substituted (17.7.2012) by Finance Act 2012 (c. 14), Sch. 29 para. 5(3)

[F11 39A Applications for forwarding of VAT repayment claims to other member States U.K.

The Commissioners must make arrangements for dealing with applications made to the Commissioners by taxable persons, in accordance with Council Directive 2008/9/EC, for the forwarding to the tax authorities of another member State of claims for refunds of VAT on—

(a) supplies to them in that member State, or

(b) the importation of goods by them into that member State from places outside the member States.]

Textual Amendments

F11 S. 39A inserted (21.7.2009) by Finance Act 2009 (c. 10), s. 77(3)

40 Refunds in relation to new means of transport supplied to other member States. U.K.

(1) Subject to subsection (2) below, where a person who is not a taxable person makes such a supply of goods consisting in a new means of transport as involves the removal of the goods to another member State, the Commissioners shall, on a claim made in that behalf, refund to that person, as the case may be—

(a) the amount of any VAT on the supply of that means of transport to that person, or

(b) the amount of any VAT paid by that person on the acquisition of that means of transport from another member State or on its importation from a place outside the member States.

(2) The amount of VAT refunded under this section shall not exceed the amount that would have been payable on the supply involving the removal if it had been a taxable supply by a taxable person and had not been zero-rated.

(3) The Commissioners shall not be entitled to entertain a claim for refund of VAT under this section unless the claim—

(a) is made within such time and in such form and manner;

(b) contains such information; and

(c) is accompanied by such documents, whether by way of evidence or otherwise,

as the Commissioners may by regulations prescribe.