HMRC has made two sets of regulations which make various amendments to VAT legislation to address errors and omissions identified as a result of a review of the EU exit legislation.
1. The Value Added Tax (Miscellaneous Amendments and Repeals) (EU Exit) Regulations, SI 2021/714.
The regulations come into force on 1 July 2021 and amend VATA 1994 to ensure that the Ireland/Northern Ireland Protocol is correctly implemented into domestic law. Amendments include:
removing the inadvertent extension of a zero rate for supplies of transport, handling and storage of imported and exported goods to movements of goods between NI and GB;
introducing a zero-rate for movement of own goods from GB to NI, that are wholly or partly for non-business purposes;
ensuring the correct taxation of goods supplied from the EU to GB that are transported via NI;
miscellaneous textual amendments to correct minor errors; and
repealing legislation which is redundant following a change of policy between exit day and the end of the transition period (in relation to the entry of goods into the UK in a postal packet).
2. The Value Added Tax (Amendment) (EU Exit) Regulations, SI 2021/715.
The regulations come into force on 1 August 2021 and include amendments to:
adjust the scope of the zero rate for handling services supplied in relation to international trains;
transfer tertiary legislation (contained in a public notice published by HMRC) into Pt 16ZA of the VAT Regulations, SI 1995/2518 concerning the application of customs and excise legislation to import VAT in relation to NI;
clarify that the second-hand margin scheme is not available for imports covered by the overseas goods provisions for low-value consignments;
update cross references in VAT legislation to new Schs 9ZA and 9ZB to VATA 1994, introduced by Taxation (Post-transition Period) Act 2020; and
update the references in legislation to boxes and legends on the VAT return to reflect changes to the return itself and provide a power for HMRC to set out the VAT return requirements in a notice in future.
HMRC has made two sets of regulations which make various amendments to VAT legislation to address errors and omissions identified as a result of a review of the EU exit legislation.
1. The Value Added Tax (Miscellaneous Amendments and Repeals) (EU Exit) Regulations, SI 2021/714.
The regulations come into force on 1 July 2021 and amend VATA 1994 to ensure that the Ireland/Northern Ireland Protocol is correctly implemented into domestic law. Amendments include:
removing the inadvertent extension of a zero rate for supplies of transport, handling and storage of imported and exported goods to movements of goods between NI and GB;
introducing a zero-rate for movement of own goods from GB to NI, that are wholly or partly for non-business purposes;
ensuring the correct taxation of goods supplied from the EU to GB that are transported via NI;
miscellaneous textual amendments to correct minor errors; and
repealing legislation which is redundant following a change of policy between exit day and the end of the transition period (in relation to the entry of goods into the UK in a postal packet).
2. The Value Added Tax (Amendment) (EU Exit) Regulations, SI 2021/715.
The regulations come into force on 1 August 2021 and include amendments to:
adjust the scope of the zero rate for handling services supplied in relation to international trains;
transfer tertiary legislation (contained in a public notice published by HMRC) into Pt 16ZA of the VAT Regulations, SI 1995/2518 concerning the application of customs and excise legislation to import VAT in relation to NI;
clarify that the second-hand margin scheme is not available for imports covered by the overseas goods provisions for low-value consignments;
update cross references in VAT legislation to new Schs 9ZA and 9ZB to VATA 1994, introduced by Taxation (Post-transition Period) Act 2020; and
update the references in legislation to boxes and legends on the VAT return to reflect changes to the return itself and provide a power for HMRC to set out the VAT return requirements in a notice in future.
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