
1 
These Regulations may be cited as the Value Added Tax (Miscellaneous Amendments and Repeals) (EU Exit) Regulations 2021 and come into force on  1st August 2021.
2 
In these Regulations—
 “Schedule 9ZB” means Schedule 9ZB to VATA (goods removed to or from Northern Ireland and supply rules) ;
 “Schedule 9ZC” means Schedule 9ZC to VATA (online sales by overseas persons and low value importations: modifications relating to the Northern Ireland Protocol) ;
 “VATA” means the Value Added Tax Act 1994 .
3 

(1) Group 8 of Schedule 8  to VATA (zero rating: transport) is amended as follows.
(2) For Item 5  substitute—“
5 
The transport of goods—
(a) in the course of an importation from a place outside to a place within the United Kingdom, or
(b) in the course of an exportation from a place within to a place outside the United Kingdom.”.
(3) In Item 11 , in paragraph (a)—
(a) in sub-paragraph (i)—
(i) in paragraph (a), after  “exported” insert “
                        to a place outside the United Kingdom
                      ”;
(ii) in paragraph (b), after  “imported” insert “
                        from a place outside the United Kingdom
                      ”;
(b) in sub-paragraph (ii), for  “that place” substitute “
                    the place from which the goods are to be so exported, or the place to which they have been so imported
                  ”.
4 

(1) Schedule 9ZB is amended as follows.
(2) After paragraph 31A  insert—“
31B 

(1) A removal of goods from Great Britain to Northern Ireland to which this sub-paragraph applies is to be treated as a taxable supply of goods made in the course or furtherance of a business carried on by the person who removes the goods.
(2) Subject to sub-paragraph (4), sub-paragraph (1) applies to a removal of goods if—
(a) the removal is not (ignoring sub-paragraph (1)) made in the course or furtherance of a business,
(b) before the removal the goods were supplied to, or imported by, the person who removed them (“P”),
(c) P is, at the time of that supply or importation and at the time of the removal, a taxable person,
(d) P has incurred VAT on that supply or importation,
(e) the removal takes place within 12 months of P becoming liable to that VAT,
(f) some, or all, of the VAT incurred on the supply or importation has not been credited as input tax in relation to P because it has, before the removal, been attributed to—
(i) both business and non-business VAT , or
(ii) non-business VAT, and
(g) P meets the condition in sub-paragraph (3).
(3) That condition is that P uses the goods, after their removal, exclusively for—
(a) in a case falling within sub-paragraph (2)(f)(i), both business and non-business purposes, or
(b) in a case falling within sub-paragraph (2)(f)(ii), non-business purposes.
(4) Sub-paragraph (1) does not apply in relation to—
(a) a removal of goods to which paragraph 31A of this Schedule applies, or
(b) an export by a charity to which section 30(5)  (as applied by paragraph 8 of this Schedule) applies.
(5) A supply of goods which is treated as arising under sub-paragraph (1) is zero-rated.
(6) VAT incurred by P on the removal of goods from Great Britain to Northern Ireland (see paragraph 3(4) of Schedule 9ZB) is not to be treated as attributable (for the purposes of section 26 ) to the supply treated as arising under sub-paragraph (1).”.
5 

(1) Schedule 9ZB is amended as follows.
(2) In paragraph 4 (liability for VAT on movements between Great Britain and Northern Ireland)—
(a) after sub-paragraph (3) insert—“
(3A) Where the removal is a removal to which paragraph 6(3A) (certain supplies from a member State to Great Britain via Northern Ireland) applies, the person who supplies the goods is the person who is treated as having imported the goods.”;
(b) in sub-paragraph (11), after  “(3)” insert “
                    , (3A)
                  ”.
(3) In paragraph 6 (relief for qualifying Northern Ireland goods) —
(a) in sub-paragraph 2—
(i) at the end of paragraph (a) omit  “or”;
(ii) at the end of paragraph (b) omit the full-stop and insert—“, or
(c) sub-paragraph (3A) applies to the removal.”;
(b) after sub-paragraph (3) insert—“
(3A) This sub-paragraph applies to a removal if—
(a) the removal is in the course of a supply, and
(b) the goods are qualifying Northern Ireland goods as a result of having been removed from a member State to Northern Ireland in the course of that supply.”.
(4) After paragraph 35 insert—“
PART 7
36 

(1) Part 3 of Schedule 9ZC (liability to be registered of persons treated as having imported goods under Part 1 of that Schedule) applies in relation to a person treated as having imported goods under paragraph 4(3A) of this Schedule as it applies to a person treated as having imported goods under Part 1 of that Schedule.
(2) But sub-paragraph (1) does not apply in relation to a person who is treated as having imported goods under Part 1 of Schedule 9ZC.
(3) For the purposes of sub-paragraph (1), Schedule 9ZC has effect as if—
(a) in paragraph 13 (meaning of relevant supply) the reference to Part 1 of that Schedule were to paragraph 4(3A) of this Schedule, and
(b) references to facilitating a relevant supply were ignored.”.
6 

(1) Schedule 9ZC is amended as follows.
(2) In paragraph 1 (certain references to goods being imported not to include goods treated as imported into the United Kingdom as a result of their being removed from Northern Ireland to Great Britain), at the beginning insert “
                Except in relation to a removal to which paragraph 6(3A) of Schedule 9ZB (certain supplies from a member State to Great Britain via Northern Ireland) applies,
              ”.
(3) In paragraph 4A (modification of paragraph 4 of Schedule 9ZB in relation to certain supplies facilitated by an online marketplace), after  “4(3)” insert “
                , (3A)
              ”.
7 

(1) Schedule 9ZA to VATA (VAT on acquisitions in Northern Ireland from member States)  is amended as follows.
(2) In the italic heading before paragraph 47, for  “supply” substitute “
                acquisition
              ”.
(3) In paragraph 69—
(a) in sub-paragraph (1)(b)(i), omit  “by”;
(b) in sub-paragraph (2), for  “In paragraph 6(1) of that Schedule—” substitute “
                    Paragraph 6(1) of that Schedule has effect as if—
                  ”.
(4) In paragraph 70, in sub-paragraph (a), for  “member State” substitute “
                member State or
              ”.
(5) In paragraph 71, in each place it occurs, for  “supply to” substitute “
                supply to,
              ”.
(6) In paragraph 81, in sub-paragraph (7), for  “subsection” substitute “
                sub-paragraph
              ”.
8 

(1) Schedule 9ZB is amended as follows.
(2) In paragraph 26, in sub-paragraph (1), for paragraph (a) substitute—“
(a) in sub-paragraph (1)(a)(ii), before  “agricultural levy” there were inserted  “customs duty or”;”.
9 
In VATA omit section 16A .
10 
In the Taxation (Cross-border Trade) Act 2018, in Schedule 8 omit paragraph 14 .
James Morris
Michael Tomlinson

Two of the Lords Commissioners of Her Majesty's Treasury
