The Value Added Tax Regulations 1995

• (1) The application of Title III, Chapter 2 (guarantee for a potential or existing customs debt) of the Union Customs Code in relation to any VAT chargeable on the importation of goods into Northern Ireland from places outside the member States (but not including Great Britain) is subject to the following prescribed adaptations.

• (2) In Article 89(9) (general provisions), regard “guarantee” as being “appropriate guarantee (which may be nil if there is no risk to the payment)”.

• (3) In Article 110 (deferment of payment), regard there being a second subparagraph as follows—

Provided that the amount in question may exceed that of the guarantee in the case where a nil guarantee or no guarantee is required.

133AG

The application of the Customs Duties (Deferred Payment) Regulations 1976 in relation to any VAT chargeable on the importation of goods into Northern Ireland from places outside the member States (but not including Great Britain) is subject to the following prescribed adaptation, namely before “and” at the end of regulation 8(a) (deemed payment for certain purposes at time deferment granted) regard there as being—

(aa) Article 195 of the Union Customs Code (release dependent upon payment of the amount of import or export duty corresponding to the customs debt or provision of a guarantee);

133AH

• (1) The application of the Union Customs Code in relation to any VAT chargeable on the importation of goods into Northern Ireland from places outside the member States (but not including Great Britain) is subject to the following adaptations.

• (2) But the adaptation in paragraph (3) only applies to the extent that the Commissioners grant deferment of payment of the relevant VAT with nil security.

• (3) Regard Article 89 (general provisions) as not being subject to Article 90 (compulsory guarantee).

• (4) In the second sub-paragraph of Article 105(1) (single entry in the accounts), after “guaranteed” regard there as being “if required”.

• (5) In Article 110 (deferment of payment), after “upon provision of a guarantee” regard there as being “(but the customs authorities may waive this requirement if there is no risk to the payment)”.

133AI

• (1) The application of the Union Customs Code, the Commission Implementing Regulation and the Commission Delegated Regulation in relation to any VAT chargeable on the importation of goods into Northern Ireland from places outside the member States (but not including Great Britain) is subject to the following prescribed adaptations.

• (2) But the adaptations in paragraphs (3) and (4) only apply to the extent that the Commissioners grant deferment of payment of the relevant VAT with nil security.

• (3) Regard the following as providing that the provision of security is at the discretion of the customs authorities—

• (a) Articles 45 (suspension of implementation), 97 (additional or replacement guarantee) and 195 (release dependent upon payment of the amount of import or export duty corresponding to the customs debt or provision of a guarantee) of the Union Customs Code;

• (b) Article 244 (provision of a guarantee) of the Commission Implementing Regulation;

• (c) Articles 89 (suspension of the time-limit for payment in case of application for remission) and 91(2) (suspension of the time limit for payment in the case of customs debts incurred through non-compliance to be conditional in specific situations) of the Commission Delegated Regulation.

• (4) Regard Articles 45, 97 and 195 of the Union Customs Code, Article 244 of the Commission Implementing Regulation and Articles 89 and 91(2) of the Commission Delegated Regulation as not being subject to Article 90 of the Union Customs Code.

Adaptations and exceptions for the application of returned goods relief in Northern Ireland

133AJ

• (1) The application of the Union Customs Code, the Commission Implementing Regulation and the Commission Delegated Regulation in relation to any VAT chargeable on the importation of goods into the United Kingdom as a result of their entry into Northern Ireland is subject to the following modifications and exceptions.

• (2) Regard Articles 203 to 207 (returned goods) of the Union Customs Code, Articles 253 to 256 of the Commission Implementing Regulation and Articles 158 to 160 of the Commission Delegated Regulation as requiring that the goods are re-imported into Northern Ireland by the same person who originally exported or re-exported the goods from the VAT territory.

• (3) Regard the amount of relief mentioned in Article 203(5) of the Union Customs Code as reduced by the amount of any unpaid VAT.

• (4) Regard the amount of import duty mentioned in Article 205 of the Union Customs Code as reduced by the amount of any paid VAT.

• (5) For the purposes of paragraphs (3) and (4)—

• (a) “VAT” includes value added tax charged in accordance with the law of a member State as follows:

• (i) references to the law of that member State shall be construed as confined to so much of the law of that member State as for the time being has effect for the purposes of any EU instrument relating to VAT;

• (ii) references to a person being taxable in a member State shall be construed by reference to the law of the United Kingdom as to whether a person is a taxable person;

• (iii) references to goods being acquired by a person in a member State shall be construed by reference to the law of the United Kingdom for treating goods as acquired in the United Kingdom from a member State;

• (b) “unpaid” refers to any part of the VAT charged and due on—

• (i) a supply or acquisition of the goods in a member State before the reimportation, or

• (ii) an importation of the goods into the United Kingdom from outside the member States before the reimportation,

but repaid, remitted or otherwise not paid;

• (c) “paid” refers to any part of the VAT charged, due and paid on—

• (i) a supply or acquisition of the goods in a member State before the reimportation, or

• (ii) an importation of the goods into the United Kingdom from outside the member States before the reimportation,

and without any actual, or prospect of, repayment or remission;

• (d) a sum for which there is or was under the law of a member State an entitlement or right to a deduction or refund under articles 167 to 172 of Council Directive 2006/112/EC of 28 November 2006 is neither “unpaid” nor “paid”.

• (6) In the circumstances described in paragraph (7) or (8), Articles 203 to 207 of the Union Customs Code, Articles 253 to 256 of the Commission Implementing Regulation and Articles 158 to 160 of the Commission Delegated Regulation are excepted from the Union customs legislation which is to apply as mentioned in section 16(1) of the Act (application of customs enactments).

• (7) The circumstances are that—

• (a) the re-importer contemplated by those articles makes a supply of or concerning the goods whilst under the inward processing procedure or in the course of or after the relevant exportation, re-exportation or reimportation,

• (b) the place of that supply for the purposes of VAT is determined by or under section 7of the Act (place of supply) as being outside the United Kingdom, and

• (c) the goods nevertheless are or may be stored or physically used in Northern Ireland by or under the direction of that re-importer or the person to whom that supply is made (“recipient”),

and for these purposes “re-importer” and “recipient” include someone connected with either person or both persons as determined in accordance with sections 1122 and 1123 of the Corporation Tax Act 2010.

• (8) The circumstances are that the goods in question were supplied at any time to any person pursuant to regulations 133C to 133E (supplies to persons departing from the relevant States).

• (9) For the purposes of the legislation referred to in paragraph (2)—

• (a) regard the description of the customs territory of the Community in Article 4 of the Union Customs Code as being substituted with a description of the VAT territory;

• (b) regard the following references as including a reference to the completion of the formalities referred to in Articles 274 and 275 of Council Directive 2006/112/EC of 28 November 2006 (formalities relating to entry of goods into VAT territory from territory considered a third territory)—

• (i) “released for free circulation” in both the definition of “Union goods” in Article 5(23) and in Article 203 of the Union Customs Code;

• (ii) “declared for release for free circulation” in or for the purposes of Article 159(1)(c) of the Commission Delegated Regulation and Articles 253 and 254 of the Commission Implementing Regulation;

• (c) regard the following references as including a reference to the completion of the formalities referred to in Articles 278 and 279 of Council Directive 2006/112/EC of 28 November 2006 (formalities relating to dispatch or transport of goods from member State to territory considered a third territory)—

• (i) “export” in Article 204 of the Union Customs Code;

• (ii) “customs formalities relating to their export” in Article 159(1)(c) of the Commission Delegated Regulation;

• (iii) “re-export declaration” in Article 253 of the Commission Implementing Regulation;

• (iv) “completion of formalities” in Article 254 of the Commission Implementing Regulation;

• (v) “export formalities” in Article 255(2) and (3) of the Commission Implementing Regulation;

• (d) regard—

• (i) the definition of “import duty” in Article 5(20) of the Union Customs Code as reading “VAT charged on the importation of goods”;

• (ii) the references to “import duty” and “duty” in Articles 203(1), (3), (5) and (6) and 205 of the Union Customs Code as references to VAT charged on the importation of goods;

• (e) where the context requires, regard references to “Union goods” as referring to goods located in Northern Ireland that are subject to Union customs legislation by virtue of the Northern Ireland Protocol.

• (10) In this regulation—

• (a) “the VAT territory” is the territorial application set out in Article 4 of the Union Customs Code and the territory of Northern Ireland;

• (b) “the Northern Ireland Protocol” means 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.

Temporary importations into Northern Ireland

133AK

• (1) Subject to such conditions as the Commissioners may impose, the VAT chargeable on the importation of goods shall not be payable where—

• (a) a taxable person makes a supply of goods which is to be zero-rated in accordance with the relevant provisions of the Act,

• (b) the goods so imported are the subject of that supply, and

• (c) the Commissioners are satisfied that the importer—

• (i) intends to remove the goods to a member State, and

• (ii) is importing the goods in the course of a supply by the importer of those goods in accordance with the relevant provisions of the Act and any regulations made thereunder.

• (2) As a condition of granting the relief afforded by paragraph (1), the Commissioners may require the deposit of security the amount of which shall not exceed the amount of VAT chargeable on the importation.

• (3) The relief afforded by paragraph (1) above shall continue to apply provided that the importer—

• (a) removes the goods to a member State within one month of the date of importation or within such longer period as the Commissioners may allow, and

• (b) supplies the goods in accordance with the relevant provisions of the Act and any regulations made thereunder.

• (4) In this regulation, the “relevant provisions of the Act” are the provisions in sub-paragraphs (a)(i) and (ii) and (b) of section 30(8) of the Act to be read as if the changes made by paragraph 29(5) of Schedule 8 to the Taxation (Cross-border Trade) Act 2018 had not been made and “Northern Ireland” is substituted for “United Kingdom”.

Northern Ireland: re-importation of goods exported for treatment or process

133AL

• (1) Subject to such conditions as the Commissioners may impose, VAT chargeable on the NI importation of goods which have been temporarily exported and are re-imported after having undergone repair, process or adaptation abroad, or after having been made up or reworked abroad, shall be payable as if such treatment or process had been carried out in Northern Ireland, if the Commissioners are satisfied that—

• (a) at the time of exportation, the goods were intended to be re-imported after completion of the treatment or process abroad, and

• (b) the ownership in the goods was not transferred to any other person at exportation or during the time they were abroad.

• (2) In this regulation—

• (a) “abroad” means outside Northern Ireland and the European Union;

• (b) “exportation”, in relation to the goods mentioned in paragraph (1), means the exportation of goods from the United Kingdom as a result of their removal from Northern Ireland to a place outside the European Union and “exported” is to be interpreted accordingly;

• (c) “VAT chargeable on the NI importation of goods” means VAT chargeable in accordance with paragraph 1(3) of Schedule 9ZB to the Act (VAT on the importation of non-Union goods into the United Kingdom as a result of their entry into Northern Ireland).

Export of freight containers from Northern Ireland

133AM

Where the Commissioners are satisfied that a container is to be exported, its supply, subject to such conditions as they may impose, shall be zero-rated.

Supplies to persons outside the relevant states

VAT Retail Export Scheme

Supplies to persons departing from the relevant states

Supplies to persons taxable in a member State

Additional provision in relation to importations, exportations and removals in respect of Northern Ireland

Supplies of goods subject to excise duty to persons who are not taxable in a member state

133I

Where the Commissioners are satisfied that—

• (a) a supply by a taxable person of goods subject to excise duty involves their removal from Northern Ireland to a member State,

• (b) that supply is other than to a person taxable in a member State and the place of supply is not, by virtue of paragraph 29(2) of Schedule 9ZB to the Act, treated as outside the United Kingdom,

• (c) the goods have been removed to a member State in accordance with the provisions of the Excise Goods (Holding, Movement and Duty Point) Regulations 2010, and

• (d) the goods are not goods in relation to whose supply the taxable person has opted, pursuant to section 50A of the Act, for VAT to be charged by reference to the profit margin on the supply,

the supply, subject to such conditions as the Commissioners may impose, shall be zero rated.

Scope of territories

133J

• (1) For the purposes of the Act, the following territories shall be treated as excluded from the territory of the European Union—

• (a) Andorra;

• (b) San Marino;

• (c) the Aland Islands.

• (2) For the purposes of the Act, the following territories shall be treated as excluded from the territory of the member States and the territory of the European Union—

• (a) the Canary Islands (Kingdom of Spain);

• (b) Guadeloupe, French Guiana, Martinique, Mayotte, Réunion and Saint-Martin (French Republic);

• (c) Mount Athos (Hellenic Republic).

• (3) For the purposes of the Act, the Principality of Monaco (French Republic) shall be treated as included in the territory of the member States and the territory of the European Union.

Entry and exit formalities and use of the internal Community transit procedure in Northern Ireland

133K

• (1) Where goods enter Northern Ireland from the territories specified in regulation 133J(1) or (2) (territories treated as excluded from the territory of the European Union or member States), the formalities relating to the entry of goods into the customs territory of the European Union contained in the Union Customs Code and the Commission Implementing Regulation shall be completed.

• (2) Where goods are exported from Northern Ireland to the territories specified in regulation 133J(1) or (2) (territories treated as excluded from the territory of the European Union and member States), the formalities relating to the export of goods to a place outside the customs territory of the European Union contained in Union Customs Code and the Commission Implementing Regulation shall be completed.

• (3) Where goods enter the United Kingdom by reason of their entry into Northern Ireland from the territories specified in regulation 133J(1) or (2) and the goods are intended for a member State, transport of the goods to which destination involves their passage through a member State, the internal Community transit procedure described in the Union Customs Code and Article 227 of the Commission Implementing Regulation shall apply.

Customs and excise legislation to be applied in Northern Ireland

133L

Subject to regulation 133N, where goods are imported into the United Kingdom by reason of their entry into Northern Ireland from the territories specified in regulation 133J(1) and (2), the customs and excise legislation referred to in regulations 133AB, 133AC, 133AD and 133AE shall apply (so far as relevant) in relation to any VAT chargeable upon such importation with the same exceptions and adaptations as are specified in those regulations in relation to the application of section 16(1) of the Act.

133M

• (1) Where goods are imported into the United Kingdom by reason of their entry into Northern Ireland from the territories specified in regulation 133J(2), section 4 of the Finance (No. 2) Act 1992 (enforcement powers) shall apply in relation to any VAT chargeable upon such importation as if references in that section to “member States” excluded the territories specified in regulation 133J(2).

• (2) Where goods are exported from Northern Ireland to the territories specified in regulation 133J(1) and (2), the provisions relating to the export of goods to a place outside the customs territory of the European Union contained in the Union Customs Code and the Commission Implementing Regulation shall apply for the purpose of ensuring the correct application of the zero rate of VAT to such goods.

133N

• (1) Subject to paragraph (2), where goods are exported from Northern Ireland to the territories specified in regulation 133J(1) and (2), the provisions made by or under the Customs and Excise Management Act 1979 in relation to the exportation of goods to places outside the member States shall apply (so far as relevant) for the purpose of ensuring the correct application of the zero rate of VAT to such goods.

• (2) Where goods are being exported from Northern Ireland to the territories specified in regulation 133J(2), section 4 of the Finance (No. 2) Act 1992 (enforcement powers) shall apply to such goods as if references in that section to “member States” excluded the territories specified in regulation 133J(2).

Supplies to persons taxable in another member State

Supplies of goods subject to excise duty to persons who are not taxable in another member State

Territories to be treated as excluded from or included in the territory of the European Union and of the member States

Entry and exit formalities

Use of the internal Union transit procedure

Customs and excise legislation to be applied

Repayment of import VAT to certain taxable persons

121E

• (1) This regulation applies where—

• (a) a taxable person (“P”) has paid to the Commissioners an amount in respect of import VAT (“the import VAT”) and P is entitled to repayment of that amount because—

• (i) the import VAT was not due when it was paid;

• (ii) a reduced duty case within the meaning of Chapter 2 of Part 7 of the Customs (Import Duty) (EU Exit) Regulations 2018 applies; or

• (iii) all or part of the import duty which was included (by virtue of section 21(2)(a) of the Act) in the value of the imported goods has been remitted or repaid; and

• (b) P did not account for the import VAT in accordance with regulation 4 of the Value Added Tax (Accounting Procedures for Import VAT for VAT Registered Persons and Amendment) (EU Exit) Regulations 2019.

• (2) P may make a negative entry for the import VAT in the VAT payable portion of P’s VAT account.

• (3) Where P has deducted an amount of input tax in respect of the import VAT and makes the entry under paragraph (2), P must also make a negative entry in the VAT allowable portion of P’s VAT account for that input tax.

• (4) The entries under paragraphs (2) and (3) may be made in the part of P’s VAT account which relates to the prescribed accounting period in which P becomes aware of P’s entitlement to repayment or a later prescribed accounting period.

• (5) The entry under paragraph (2) may not be made more than 4 years after the end of the prescribed accounting period in which the importation of the goods took place.

• (6) Except as provided by this regulation, no claim for repayment or credit in relation to the import VAT may be made (and, accordingly, section 16(2) of the Act does not have effect to the extent that it would apply a different provision about the way in which a claim for repayment or credit in relation to the import VAT may be made).

• (7) For the purposes of this regulation—

• “import VAT” means VAT chargeable by virtue of section 1(1)(c) of the Act as a result of the entry of goods into Great Britain;

• “negative entry”, “VAT account”, “VAT allowable portion” and “VAT payable portion” have the same meanings as they do in regulation 24.

Postal importations by registered persons in the course of business

Temporary importations

Reimportation of certain goods by non-taxable persons

Reimportation of certain goods by taxable persons

Reimportation of goods exported for treatment or process

Supplies to export houses

Export of freight containers

Supplies to overseas persons

...

Supplies to persons departing from Great Britain

Repayments of import VAT to certain persons

133AN

• (1) For the purposes of this regulation and regulations 133AO and 133AP, “import VAT” means VAT chargeable by virtue of section 1(1)(c) of the Act as a result of the entry of goods into Northern Ireland.

• (2) Regulations 133AO and 133AP apply where a person (“P”) has paid an amount to the Commissioners in respect of import VAT (“the import VAT”) and P is entitled to repayment of that amount because—

• (a) the import VAT was not due when it was paid;

• (b) the import VAT is liable to be repaid under Union customs legislation; or

• (c) all or part of the relevant NI import duty, which was included (by virtue of section 21(2)(a) of the Act) in the value of the imported goods, has been remitted or repaid.

133AO

• (1) This regulation applies where P—

• (a) is not a taxable person; or

• (b) has paid the import VAT on behalf of a person who is not a taxable person.

• (2) P may make an application for the repayment of the import VAT as if P’s case were a reduced duty case under Chapter 2 of Part 7 of the Customs (Import Duty) (EU Exit) Regulations 2018 and as if the import VAT was paid in respect of a liability to import duty.

• (3) Except as provided by this regulation, no claim for repayment in relation to the import VAT may be made (and, accordingly, paragraph 1(4) of Schedule 9ZB to the Act does not have effect to the extent that it would apply a different provision about the way in which a claim for repayment in relation to the import VAT may be made).

133AP

• (1) This regulation applies where—

• (a) P is a taxable person; and

• (b) P did not account for the import VAT in accordance with regulation 4 of the Value Added Tax (Accounting Procedures for Import VAT for VAT Registered Persons and Amendment) (EU Exit) Regulations 2019.

• (2) P may make a negative entry for the import VAT in the VAT payable portion of P’s VAT account.

• (3) Where P has deducted an amount of input tax in respect of the import VAT and makes the entry under paragraph (2), P must also make a negative entry in the VAT allowable portion of P’s VAT account for that input tax.

• (4) The entries under paragraphs (2) and (3) may be made in the part of P’s VAT account which relates to the prescribed accounting period in which P becomes aware of P’s entitlement to repayment or a later prescribed accounting period.

• (5) The entry under paragraph (2) may not be made more than 4 years after the end of the prescribed accounting period in which the importation of the goods took place.

• (6) Except as provided by this regulation, no claim for repayment or credit in relation to the import VAT may be made (and, accordingly, paragraph 1(4) of Schedule 9ZB to the Act does not have effect to the extent that it would apply a different provision about the way in which a claim for repayment or credit in relation to the import VAT may be made).

• (7) For the purposes of this regulation, “negative entry”, “VAT account”, “VAT allowable portion” and “VAT payable portion” have the same meanings as they do in regulation 24.

Supplies to persons outside the relevant states

VAT Retail Export Scheme

Supplies to persons departing from the relevant states

Supplies to persons taxable in a member State

Additional provision in relation to importations, exportations and removals in respect of Northern Ireland

Supplies of goods subject to excise duty to persons who are not taxable in a member state

Scope of territories

Entry and exit formalities and use of the internal Community transit procedure in Northern Ireland

Customs and excise legislation to be applied in Northern Ireland

Supplies to persons taxable in another member State

Supplies of goods subject to excise duty to persons who are not taxable in another member State

Territories to be treated as excluded from or included in the territory of the European Union and of the member States

Entry and exit formalities

Use of the internal Union transit procedure

Customs and excise legislation to be applied

184KA

In regulation 173W(3), for “section 78 of the Act” read “section 102(3) of the Finance Act 2009”.

184KB

For regulation 173X read—

(173X) (1) Where— (a) any amount has been paid to any person by way of interest under regulation 173W, but (b) that person was not entitled to that amount under that regulation, the amount to which the person was not entitled shall be treated as if it were an amount of repayment interest recoverable as late payment interest under paragraph 6 of Schedule 54A to the Finance Act 2009 (certain amounts of repayment interest recoverable as late payment interest). (2) For the purpose of this regulation the requirement to meet Conditions A to C in paragraph 7 of Schedule 54A is to be treated as met.