The Finance Act 2021, Section 95 and Schedule 18 (Distance Selling: Northern Ireland) (Appointed Day No. 1 and Transitory Provision) Regulations 2021

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations bring into force on 1st July 2021 the bulk of the provisions of Schedule 18 to the Finance Act 2021 (c. 26) (“FA 2021”) related to value added tax and distance selling, which implement Council Directive (EU) 2017/2455 so far as relevant to the United Kingdom’s obligations under the Protocol on Ireland/Northern Ireland in the EU Withdrawal Agreement(1) (“the Protocol”). These are the first appointed day Regulations made under s.95 of FA 2021.

Regulation 3 brings into force section 95(1) and Schedule 18 of FA 2021 to the extent that those provisions are not already in force and subject to the exceptions and restrictions in regulation 4.

Regulation 4 sets out the provisions in section 95(1) and Schedule 18 of FA 2021 that are not being brought into force by these Regulations, and those which are being brought into force to a limited extent.

Regulations 5 and 6 make transitory provisions to modify references related to Import One Stop Shop (IOSS). Regulation 7 provides that these temporary measures will only have effect until 31st December 2021 or, if earlier, the date when the modifications are made by way of amendment or modification to the Value Added Tax Act 1994 (c. 23).

Regulation 8 provides a power for the Commissioners for Her Majesty’s Revenue and Customs to make transitory provision in a public notice relating to interim procedures and conditions for establishing whether a supply qualifies for relief from import VAT under paragraph 37 of Schedule 9ZE. Any such notice will cease to have effect on 1st April 2022, and no notice may be made under regulation 8 on or after that date. A public notice made under regulation 8 will be made available on the www.gov.uk website as described in that link. Free of charge hard copies will be available on request from the HMRC helpline on 0300 200 3700 ([phone] for outside the UK requests) or by writing to HM Revenue and Customs – VAT Written Enquiries Team, 123 St. Vincent Street, Glasgow City, Glasgow G2 5EA, United Kingdom.

A Tax Information and Impact Note has not been prepared for these Regulations as they give effect to previously announced policy.

(1)

See the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community 2019/C 384 1/01 at https://www.legislation.gov.uk/eut/withdrawal-agreement/contents/adopted. A hard copy is available for inspection free of charge at the offices of HMRC at 100 Parliament Street, London, SW1A 2BQ.