Value Added Tax Act 1994

17 Free zone regulations. U.K.

(1) This section applies in relation to VAT chargeable on the importation of goods F1 ...; and in this section “free zone” has the meaning given by section 100A(2) of the Management Act.

F2 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The Commissioners may by regulations (“free zone regulations”) make provision with respect to the movement of goods into, and the removal of goods from, any free zone and the keeping, securing and treatment of goods which are within a free zone, and subject to any provision of the regulations, “free zone goods” means goods which are within a free zone.

(4) Without prejudice to the generality of subsection (3), free zone regulations may make provision—

(a) for enabling the Commissioners to allow goods to be removed from a free zone without payment of VAT in such circumstances and subject to such conditions as they may determine;

(b) for determining where any VAT becomes payable in respect of goods which cease to be free zone goods—

(i) the rates of any VAT applicable; and

(ii) the time at which those goods cease to be free zone goods;

(c) for determining for the purpose of enabling VAT to be charged in respect of free zone goods in a case where a person wishes to pay that VAT notwithstanding that the goods will continue to be free zone goods, the rate of VAT to be applied; and

(d) permitting free zone goods to be destroyed without payment of VAT in such circumstances and subject to such conditions as the Commissioners may determine.

(5) The Commissioners, with respect to free zone goods or the movement of goods into any free zone, may by regulations make provision—

(a) for relief from the whole or part of any VAT chargeable on the importation of goods F3 ... in such circumstances as they may determine;

(b) in place of, or in addition to, any provision made by section 6 or any other enactment, for determining the time when a supply of goods which are or have been free zone goods is to be treated as taking place for the purposes of the charge to VAT; and

(c) as to the treatment, for the purposes of VAT, of goods which are manufactured or produced within a free zone from other goods or which have other goods incorporated in them while they are free zone goods.

Textual Amendments

F1 Words in s. 17(1) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 15(2) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F2 S. 17(2) omitted (with effect in accordance with Sch. 15 para. 8 of the amending Act) by virtue of Finance Act 2022 (c. 3), Sch. 15 para. 5

F3 Words in s. 17(5)(a) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 15(4) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)