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.