Value Added Tax Act 1994

[F1 PART 9 U.K. Registration in respect of distance sales from the EU to Northern Ireland

Textual Amendments

F1 Schs. 9ZA, 9ZB 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. 2 para. 2 (with s. 3(4), Sch. 2 para. 7(7)-(10)) (with savings and transitional provisions in S.I. 2020/1545, Pt. 4); S.I. 2020/1642, reg. 9

Liability to be registered U.K.

48 (1) A person who— U.K.

(a) is not registered under this Act, and

(b) is not liable to be registered under Schedule 1 or 1A,

becomes liable to be registered under this Part of this Schedule [F2 —

(i) in a case where sub-paragraph (1A) applies, on a day determined in accordance with sub-paragraph (1B), or

(ii) in a case where sub-paragraph (1A) does not apply, on any day when the person makes a relevant supply.]

[F3 (1A) This sub-paragraph applies where —

(a) the person has a single place of establishment, or (where the person does not have a place of establishment) a single place where the person has a permanent address or where the person usually resides, and

(b) that place is in a member State or Northern Ireland.

(1B) The person becomes liable to be registered on any day in a given year if—

(a) in the period beginning with 1 January of that year and ending with that day, the person makes a relevant supply, and

(b) in that period, or in the period beginning with 1 January and ending with 31 December of the year before the year in which that day falls, the person makes European supplies whose value exceeds £8,818.]

(2) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) becomes liable to be registered under this Part of this Schedule where—

(a) the person has exercised any option, in accordance with the law of any member State where the person is taxable, for treating relevant supplies made by that person as taking place outside that member State,

(b) the supplies to which the option relates involve the removal of goods from that member State and, apart from the exercise of the option, would be treated, in accordance with the law of that member State, as taking place in that member State, and

(c) the person makes a relevant supply at a time when the option is in force in relation to that person.

(3) A person who is not registered or liable to be registered as mentioned in sub-paragraph (1)(a) and (b) above becomes liable to be registered under this Part of this Schedule if the person makes a supply that—

(a) is a supply of goods subject to a duty of excise,

(b) involves the removal of the goods to Northern Ireland by or under the directions of the person making the supply,

(c) is a transaction in pursuance of which the goods are acquired in Northern Ireland from a member State by a person who is not a taxable person,

(d) is made in the course or furtherance of a business carried on by the supplier, and

(e) is not anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) of Schedule 4 or paragraph 30 of Schedule 9ZB.

(4) A person is treated as having become liable to be registered under this Part of this Schedule at any time when the person would have become so liable under the preceding provisions of this paragraph but for any registration which is subsequently cancelled under paragraph 43(3)or 53(5) of this Schedule, paragraph 13(3) of Schedule 1, paragraph 11 of Schedule 1A, or paragraph 6(2) of Schedule 3A.

(5) A person does not cease to be liable to be registered under this Part of this Schedule except in accordance with paragraph 49.

F4 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F6 (8) For the purposes of this paragraph, a supply of goods or services is a “European supply” if it is—

(a) a supply of services listed in Article 58(1) of the VAT Directive to a person who is not a taxable person and who is established, or (where the person does not have a place of establishment) who has a permanent address or who usually resides, in a member State or Northern Ireland and that is not the place mentioned in sub-paragraph (1A)(a) (that is, the place in which the person supplying the services is established etc), or

(b) a supply of goods that would be an “intra-Community distance sale of goods” within the meaning given by Article 14(4) of the VAT Directive if references in that Article to a “Member State” were read as if they included a reference to Northern Ireland F7 ... involving the removal of goods to a member State or Northern Ireland and that is not the place mentioned in sub-paragraph (1A)(a) (that is, the place in which the person supplying the goods is established etc).

(9) For the purposes of sub-paragraph (8)(a), a person is not a taxable person if they are not liable or entitled to register for VAT in accordance with the law of the place where the person to whom the services are supplied is established, has their permanent address or usually resides.

(10) In sub-paragraph (8), “the VAT Directive” means Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.]

Textual Amendments

F2 Words in Sch. 9ZA para. 48(1) substituted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 2(2); S.I. 2021/770, reg. 3

F3 Sch. 9ZA para. 48(1A)(1B) inserted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 2(3); S.I. 2021/770, reg. 3

F4 Sch. 9ZA para. 48(6) omitted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by virtue of Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 2(4); S.I. 2021/770, reg. 3

F5 Sch. 9ZA para. 48(7) omitted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by virtue of Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 2(4); S.I. 2021/770, reg. 3

F6 Sch. 9ZA para. 48(8)-(10) inserted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 2(5); S.I. 2021/770, reg. 3

F7 Words in Sch. 9ZA para. 48(8)(b) omitted (1.12.2021) by virtue of The Value Added Tax (Distance Selling and Miscellaneous Amendments No. 2) Regulations 2021 (S.I. 2021/1165), regs. 1, 5

49 (1) A person who has become liable to be registered under this Part of this Schedule [F8 by virtue of paragraph 48(1)(i)] ceases to be so liable if at any time— U.K.

(a) [F9 European supplies] made by the person in the year ending with 31 December last before that time did not have a value exceeding [F10 £8,818] and did not include any supply in relation to which the conditions mentioned in paragraph 48(3) were satisfied, and

(b) the Commissioners are satisfied that the value of the person's [F11 European supplies] in the year immediately following that year will not exceed [F12 £8,818] and that those supplies will not include a supply in relation to which those conditions are satisfied.

[F13 (1A) A person who has become liable to be registered under this Part of this Schedule by virtue of paragraph 48(1)(ii) ceases to be so liable by virtue of that paragraph if at any time paragraph 48(1A) applies in relation to that person.

(1B) A person who has become liable to be registered under this Part of this Schedule by virtue of paragraph 48(3) ceases to be so liable by virtue of that paragraph if at any time the Commissioners are satisfied that the person—

(a) has ceased to make supplies as mentioned in that paragraph, and

(b) will not make such supplies within the period of one year beginning with the day on which the Commissioners are notified or otherwise become aware that the person has ceased to make them.]

(2) But [F14 —

(a) the fact that a person ceases to be liable to be registered under this Part of this Schedule by virtue of one provision does not prevent the person being liable to be registered under this Part of this Schedule by virtue of another provision, and

(b)] a person does not cease to be liable to be registered under this Part of this Schedule at any time when such an option as is mentioned in paragraph 48(2) above is in force in relation to that person.

[F15 (3) Sub-paragraphs (8) to (10) of paragraph 48 apply for the purposes of this paragraph as they apply for the purposes of that paragraph.]

Textual Amendments

F8 Words in Sch. 9ZA para. 49(1) inserted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 3(2)(a); S.I. 2021/770, reg. 3

F9 Words in Sch. 9ZA para. 49(1)(a) substituted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 3(2)(b); S.I. 2021/770, reg. 3

F10 Sum in Sch. 9ZA para. 49(1)(a) substituted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 3(2)(d); S.I. 2021/770, reg. 3

F11 Words in Sch. 9ZA para. 49(1)(b) substituted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 3(2)(c); S.I. 2021/770, reg. 3

F12 Sum in Sch. 9ZA para. 49(1)(b) substituted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 3(2)(d); S.I. 2021/770, reg. 3

F13 Sch. 9ZA para. 49(1A)(1B) inserted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 3(3); S.I. 2021/770, reg. 3

F14 Words in Sch. 9ZA para. 49(2) inserted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 3(4); S.I. 2021/770, reg. 3

F15 Sch. 9ZA para. 49(3) inserted (10.6.2021 for specified purposes, 1.7.2021 in so far as not already in force) by Finance Act 2021 (c. 26), s. 95(6)(a), Sch. 18 para. 3(5); S.I. 2021/770, reg. 3

Notification of liability and registration U.K.

50 (1) A person who becomes liable to be registered under this Part of this Schedule must notify the Commissioners of the liability within the period of 30 days after the day on which the liability arises. U.K.

(2) The Commissioners must register any such person (whether or not the person has notified them) with effect from the day on which the liability arose or from such earlier time as may be agreed between the Commissioners and the person.

Request to be registered U.K.

51 (1) Where a person who is not liable to be registered under this Act and is not already so registered— U.K.

(a) satisfies the Commissioners that the person intends—

(i) to exercise an option such as is mentioned in paragraph 48(2) and, from a specified date, to make relevant supplies to which that option will relate,

(ii) from a specified date to make relevant supplies to which any such option that the person has exercised will relate, or

(iii) from a specified date to make supplies in relation to which the conditions mentioned in paragraph 48(3) will be satisfied, and

(b) requests to be registered under this Part of this Schedule,

the Commissioners may, subject to such conditions as they think fit to impose, register the person with effect from such date as may be agreed between the Commissioners and the person.

(2) Conditions imposed under sub-paragraph (1) may—

(a) be imposed wholly or partly by reference to, or without reference to, any conditions prescribed for the purposes of this paragraph, and

(b) be subsequently varied by the Commissioners (whenever the conditions were imposed).

(3) Where a person who is entitled to be registered under paragraph 9 or 10 of Schedule 1 requests registration under this paragraph, the person is to be registered under that Schedule, and not under this Part of this Schedule.

Notification of matters affecting continuance of registration U.K.

52 (1) Any person registered under this Part of this Schedule who ceases to be registrable under this Act must notify the Commissioners of that fact within 30 days of the day on which the person ceases to be registrable. U.K.

(2) A person registered under paragraph 51 by reference to any intention to exercise any option or to make supplies of any description must notify the Commissioners within 30 days of exercising that option or, as the case may be, of the first occasion after registration when the person makes such a supply, that the person has exercised the option or made such a supply.

(3) A person who has exercised an option mentioned in paragraph 48(2) which, as a consequence of the option's revocation or otherwise, ceases to have effect in relation to any relevant supplies by the person must notify the Commissioners, within 30 days of the option⿿s ceasing so to have effect, that it has done so.

(4) For the purposes of this paragraph, a person ceases to be registrable under this Act where—

(a) the person ceases to be a person who would be liable or entitled to be registered under this Act if the person's registration and any enactment preventing a person from being liable to be registered under different provisions at the same time were disregarded, or

(b) in the case of a person who (having been registered under paragraph 51) has not been such a person during the period of the person's registration, the person ceases to have any such intention as is mentioned in sub-paragraph (1)(a) of that paragraph.

Cancellation of registration U.K.

53 (1) Where a person registered under this Part of this Schedule satisfies the Commissioners that the person is not liable to be so registered, the Commissioners must, if the person so requests, cancel that registration with effect from the day on which the request is made or from such later date as may be agreed between the Commissioners and the person. U.K.

(2) Where the Commissioners are satisfied that a person who has been registered under paragraph 51 and is not for the time being liable to be registered under this Part of this Schedule—

(a) has not, by the date specified in the person's request to be registered, begun to make relevant supplies, exercised the option in question or, as the case may be, begun to make supplies in relation to which the conditions mentioned in paragraph 48(3) are satisfied, or

(b) has contravened any condition of the person's registration,

the Commissioners may cancel the person's registration with effect from the date so specified or, as the case may be, the date of the contravention or from such later date as may be agreed between the Commissioners and the person.

(3) But the Commissioners may not, under sub-paragraph (1) or (2), cancel a person⿿s registration with effect from any time unless the Commissioners are satisfied that it is not a time when that person would be subject to a requirement, or in a case falling under sub-paragraph (2) a requirement or entitlement, to be registered under this Act.

(4) In determining for the purposes of sub-paragraph (3) whether a person would be subject to a requirement, or would be entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when the person is already registered or when the person is so liable under any other provision is to be disregarded.

(5) Where the Commissioners are satisfied that, on the day on which a person was registered under this Part of this Schedule, the person—

(a) was not liable to be registered under this Part of this Schedule, and

(b) in the case of a person registered under paragraph 51, did not have the intention by reference to which the person was registered,

the Commissioners may cancel that registration with effect from that day.

(6) The registration of a person who has exercised an option mentioned in paragraph 48(2) may not be cancelled with effect from any time before the 1 January which is, or next follows, the second anniversary of the date on which the person's registration took effect.

Power to vary specified sums by regulations U.K.

54 U.K. The Treasury may by regulations substitute for any of the sums for the time being specified in this Part of this Schedule such greater sums as the Treasury consider appropriate.

Notifications U.K.

55 U.K. Any notification required under this Part of this Schedule must be made in such form and manner and must contain such particulars as may be specified in regulations or by the Commissioners in accordance with regulations.

Meaning of relevant supply U.K.

56 U.K. For the purposes of this Part of this Schedule “relevant supply” means a supply of goods that—

(a) involves the removal of the goods to Northern Ireland from a place outside the United Kingdom by or under the directions of the person making the supply,

(b) does not involve the installation or assembly of the goods at a place in Northern Ireland,

(c) is a transaction in pursuance of which goods are acquired in Northern Ireland from a member State by a person who is not a taxable person,

(d) is made in the course or furtherance of a business carried on by the supplier, and

(e) is neither an exempt supply nor a supply of goods which are subject to a duty of excise or consist in a new means of transport and is not anything which is treated as a supply for the purposes of this Act by virtue only of paragraph 5(1) of Schedule 4 or paragraph 30 of Schedule 9ZB.]