The Value Added Tax (Margin Schemes and Removal or Export of Goods: VAT-related Payments) Order, SI 2023/68, introduces a new scheme for second-hand motor vehicles bought in Great Britain and removed to NI (or exported to the EU) for resale.
The scheme is designed to replicate the effect of the second-hand margin scheme for used cars that applies across the rest of the UK (which was prevented from covering NI under the terms of the NI Protocol). The new scheme will have effect for goods removed to Northern Ireland or exported to the EU on or after 1 May 2023.
In order for claims to account for VAT on the profit margin to operate as intended, zero-rating will no longer be available for supplies under the scheme. The Finance Act 2022, Section 71 (Margin Schemes and Removal or Export of Goods: Zero-rating) (Appointed Day and Transitional Provision) Regulations, SI 2023/69, bring FA 2022 s 71 into force on 1 May 2023 to effect the disapplication of zero-rating, putting suppliers in the position they were in before the end of the Brexit transition period.
HMRC has published a Tax Information and Impact Noteto explain the measures, together with the following new guidance pages:
Claim a VAT-related payment if you buy second-hand motor vehicles in Great Britain and move them to Northern Ireland for resale.
Check which motor vehicles are eligible for the second-hand motor vehicle payment scheme.
How to work out the value of a vehicle for the second-hand motor vehicle payment scheme.
Claim a VAT-related payment if you buy second-hand motor vehicles in Great Britain and export them to the EU for resale.
Check which records to keep for second-hand vehicles you export to the EU for resale and Check which records to keep for second-hand vehicles you move to Northern Ireland for resale.
The Value Added Tax (Margin Schemes and Removal or Export of Goods: VAT-related Payments) Order, SI 2023/68, introduces a new scheme for second-hand motor vehicles bought in Great Britain and removed to NI (or exported to the EU) for resale.
The scheme is designed to replicate the effect of the second-hand margin scheme for used cars that applies across the rest of the UK (which was prevented from covering NI under the terms of the NI Protocol). The new scheme will have effect for goods removed to Northern Ireland or exported to the EU on or after 1 May 2023.
In order for claims to account for VAT on the profit margin to operate as intended, zero-rating will no longer be available for supplies under the scheme. The Finance Act 2022, Section 71 (Margin Schemes and Removal or Export of Goods: Zero-rating) (Appointed Day and Transitional Provision) Regulations, SI 2023/69, bring FA 2022 s 71 into force on 1 May 2023 to effect the disapplication of zero-rating, putting suppliers in the position they were in before the end of the Brexit transition period.
HMRC has published a Tax Information and Impact Noteto explain the measures, together with the following new guidance pages:
Claim a VAT-related payment if you buy second-hand motor vehicles in Great Britain and move them to Northern Ireland for resale.
Check which motor vehicles are eligible for the second-hand motor vehicle payment scheme.
How to work out the value of a vehicle for the second-hand motor vehicle payment scheme.
Claim a VAT-related payment if you buy second-hand motor vehicles in Great Britain and export them to the EU for resale.
Check which records to keep for second-hand vehicles you export to the EU for resale and Check which records to keep for second-hand vehicles you move to Northern Ireland for resale.
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