The Value Added Tax (Section 55A) (Specified Goods and Services and Excepted Supplies) (Amendment) Order 2021

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the Value Added Tax (Section 55A) (Specified Goods and Services and Excepted Supplies) Order 2010 (S.I. 2010/2239) (“the 2010 Order”), which applies a reverse charge to specified goods and services of a kind used in missing trader fraud.

Article 3 of this Order amends the definition of “allowance” in article 3 of the 2010 Order to include an allowance created under the Greenhouse Gas Emissions Trading Scheme Order 2020 (S.I. 2020/1265) (“the 2020 Order”). The 2020 Order established a new UK Emissions Trading Scheme (“UK ETS”) as a successor (in the UK) to the European Union greenhouse gas emission allowance trading scheme established by Directive 2003/87/EC (“EU ETS”), in consequence of the United Kingdom’s exit from the European Union.

Article 3 also omits the definitions for “certified emission reduction”, “emission reduction unit” and “operator”, which are no longer needed in consequence of the changes which article 4 of this Order makes to article 6 of the 2010 Order.

Article 4 of this Order substitutes a new article 6 into the 2010 Order, removing the transfer of an emission reduction unit and the transfer of a certified emission reduction from the reverse charge and leaving a transfer of an allowance (whether under UK ETS or EU ETS) as the only services to which article 4 of the 2010 Order applies.

This Order comes into force on 1st May 2021 and has effect for supplies made on or after that date.

A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.