The government is extending the VAT reverse charge to cover supplies of emissions allowances made under the UK emissions trading scheme that replaced the EU scheme in Great Britain on 1 January 2021. The Value Added Tax (Section 55A) (Specified Goods and Services and Excepted Supplies) (Amendment) Order, SI 2021/369, amends the VAT reverse charge legislation (SI 2010/2239) introduced to prevent missing-trader fraud by requiring the recipient rather than the supplier of certain emissions allowances and other units to account for VAT. Northern Ireland remains under the EU emissions trading scheme by virtue of the Northern Ireland Protocol. The Order comes into force on 1 May 2021.
The government is extending the VAT reverse charge to cover supplies of emissions allowances made under the UK emissions trading scheme that replaced the EU scheme in Great Britain on 1 January 2021. The Value Added Tax (Section 55A) (Specified Goods and Services and Excepted Supplies) (Amendment) Order, SI 2021/369, amends the VAT reverse charge legislation (SI 2010/2239) introduced to prevent missing-trader fraud by requiring the recipient rather than the supplier of certain emissions allowances and other units to account for VAT. Northern Ireland remains under the EU emissions trading scheme by virtue of the Northern Ireland Protocol. The Order comes into force on 1 May 2021.
