Finance Act 2021

Amendments to Part 9 of Schedule 9ZA to VATA 1994

2 (1) Paragraph 48 (liability to be registered) is amended as follows.

(2) In sub-paragraph (1), in the words after paragraph (b), for “on any day” to the end substitute “—

(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.”

(3) After that sub-paragraph insert—

“(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.”

(4) Omit sub-paragraphs (6) and (7).

(5) At the end insert—

“(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 (and references to a “third country” and “third territory” were read accordingly as including Great Britain) 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.”