ukpga/2020/26 — Taxation (Post-transition Period) Act 2020

Taxation (Post-transition Period) Act 2020 2020 c. 26 An Act to make provision (including the imposition and regulation of new duties of customs) in connection with goods in Northern Ireland and their movement into or out of Northern Ireland; to make provision amending certain enactments relating to value added tax, excise duty or insurance premium tax; to make provision in connection with the recovery of unlawful state aid in relation to controlled foreign companies; and for connected purposes. [17th December 2020] Most Gracious Sovereign W E, Your Majesty's most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty's public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:— Northern Ireland Protocol Duty on goods removed to Northern Ireland 1 After section 40 of TCTA 2018 insert— Removal to Northern Ireland of at risk goods etc 40A 1 A duty of customs is charged on the removal of goods to Northern Ireland from Great Britain if the goods— a are not domestic goods, or b are at risk of subsequently being moved into the European Union. 2 For the purposes of this section “ at risk of subsequently being moved into the European Union ” has the meaning given by regulations made by the Treasury. 3 Duty under this section is charged in accordance with Union customs legislation as if the goods subject to the charge were brought into the customs territory of the European Union. Duty under section 40A: supplementary 40B 1 The Treasury may by regulations provide that, in relation to goods of a specified description, the following matters are to be determined in accordance with provision made by or under this Act (instead of in accordance with Union customs legislation)— a whether goods in particular circumstances are chargeable to duty under section 40A; b the amount of duty charged under that section; c such other matters relating to the charging of duty under section 40A as may be specified. 2 The Treasury may by regulations make provision generally for the purposes of duty under section 40A. 3 The following are examples of provision that regulations under subsection (2) may make for the purposes of that duty— a that section 40A(1) does not apply to goods of a specified description; b provision about reliefs, repayment and remission (including provision for the recovery of amounts where any condition in connection with any relief, repayment or remission is not met); c provision about (including provision modifying) the application of provision made by or under the customs and excise Acts (including provision made by or under this Act) to duty under section 40A or to goods removed to Northern Ireland from Great Britain; d provision supplementing or modifying provisions of Union customs legislation that apply to that duty or to those goods; e provision imposing checks, controls or administrative processes in connection with the removal of goods to Northern Ireland from Great Britain; f provision regulating the unloading, landing, movement and removal of goods on their removal to Northern Ireland from Great Britain (including provision restricting the places in which such goods may enter Northern Ireland). 4 Regulations under this section that specify a description of goods may do so by reference to any matter or circumstance (including, for example, any matter or circumstance relating to any person concerned with the removal of such goods). 5 Section 40 (regulations) applies to regulations under this section and section 40A as it applies to regulations under section 39 other than the first regulations under that section. 6 In this section and in section 40A, reference to “Great Britain” is to be treated as including the territorial sea of the United Kingdom. 7 Expressions used in provision made by or under this section or section 40A that are defined for the purposes of Part 1 have the same meaning they have in that Part. Duty on goods imported into or removed from Northern Ireland 2 1 Part 1 of TCTA 2018 is amended as follows. 2 In section 1 (charge to import duty)— a the existing text becomes subsection (1); b after that subsection insert— 2 Sections 30A and 30B make provision about the application of this Part to goods imported into the United Kingdom as a result of their entry into Northern Ireland. 3 In section 2 (chargeable goods)— a the existing text becomes subsection (1); b after that subsection insert— 2 But subsection (1) is subject to section 30A(4) (importation of goods: Northern Ireland). 4 After section 30 insert— Northern Ireland Importation of goods: Northern Ireland 30A 1 Union goods imported into the United Kingdom as a result of their entry into Northern Ireland are to be treated for the purposes of this Part as if they were domestic goods. 2 Accordingly, such goods are not chargeable to import duty (but see section 30C). 3 Other goods imported into the United Kingdom as a result of their entry into Northern Ireland are not chargeable to import duty, but are chargeable to duty under this subsection. 4 Except as may be provided for by regulations made by the Treasury, such goods are not chargeable goods for the purposes of this Part. 5 Duty under subsection (3) is chargeable in accordance with Union customs legislation as if the goods subject to the charge were brought into the customs territory of the European Union. 6 Duty under subsection (3) is a duty of customs, and accordingly the revenues of that duty (as with import duty) are revenues of customs that HMRC Commissioners are responsible for collecting and managing. Duty under section 30A(3): supplementary 30B 1 The Treasury may by regulations provide that, in relation to goods of a specified description, the following matters are to be determined in accordance with provision made by or under this Act (instead of in accordance with Union customs legislation)— a whether goods in particular circumstances are chargeable to duty under section 30A(3); b the amount of duty charged under that subsection; c such other matters relating to the charging of duty under that subsection as may be specified. 2 Regulations under subsection (1) may specify a description of goods by reference to any matter or circumstance (including, for example, any matter or circumstance relating to any person concerned with the importation of such goods). 3 The Treasury may by regulations make provision generally for the purposes of duty under section 30A(3). 4 The following are examples of provision that regulations under subsection (3) may make for the purposes of that duty— a provision about reliefs, repayment and remission in relation to duty under section 30A(3) (including provision for the recovery of amounts where any condition in connection with any relief, repayment or remission is not met); b provision about (including provision modifying) the application of provision made by or under the customs and excise Acts (including provision made by or under this Act) to duty under section 30A(3) or to goods imported into the United Kingdom as a result of their entry into the Northern Ireland; c provision supplementing or modifying provisions of Union customs legislation that apply to that duty or to those goods. Duty on potentially imported goods 30C 1 A duty of customs is charged on the removal of goods to Great Britain from Northern Ireland if the goods are not qualifying Northern Ireland goods. 2 A duty of customs is charged on the removal of other goods to Great Britain from Northern Ireland if the main purpose, or one of the main purposes, of the removal is to— a avoid any other duty chargeable as a result of this Act, or b avoid any obligation in connection with such a duty. 3 The relevant import duty provisions apply for the purposes of duty charged under this section as if— a any reference to chargeable goods were to goods removed to Great Britain from Northern Ireland, b any reference to the importation of goods were to their removal to Great Britain from Northern Ireland, c in section 6(2), for “the United Kingdom” there were substituted “ Great Britain ” , and d in section 16(2), for “export to the United Kingdom” there were substituted “ removal to Great Britain ” . 4 A provision is a “relevant import duty provision” if it is provision made by or under any of sections 3 to 28 and 34 and Schedules 1 to 6. 5 The Treasury may by regulations make provision generally for the purposes of duty under this section. 6 The following are examples of provision that regulations under subsection (5) may make for the purposes of that duty— a that subsection (1) does not to apply to goods of a specified description (and if it does not, whether such goods are to be treated as “ other goods ” for the purposes of subsection (2)); b that subsection (3) does not apply, to such extent as may be specified, to goods of a specified description; c that any reference in this Part to Great Britain is to be treated as including the territorial sea, or any specified area of the territorial sea, of the United Kingdom; d provision about (including provision modifying) the application of provision made by or under the customs and excise Acts (including provision made by or under this Act) to duty under this section or to goods removed from Northern Ireland to Great Britain; e provision imposing checks, controls or administrative processes in connection with the removal of goods to Great Britain from Northern Ireland (and such checks, controls and processes may be imposed for any purpose in connection with duty under this section despite any provision of any enactment whenever passed); f provision regulating the unloading, landing, movement and removal of goods on their removal to Great Britain from Northern Ireland (including provision restricting the places in which such goods may enter Great Britain). 7 Regulations under this section that specify a description of goods may do so by reference to any matter or circumstance (including, for example, any matter or circumstance relating to any person concerned with the removal of such goods). 5 Schedule 1 contains amendments to TCTA 2018 and other Acts in connection with the provisions of the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement that concern tax. Value added tax in Northern Ireland 3 1 In VATA 1994, before section 41 insert— Northern Ireland Protocol 40A 1 Schedule 9ZA— a makes provision about a charge to VAT on acquisitions of goods in Northern Ireland from a member State, and b contains modifications of the other provisions of this Act in connection with the movement of goods between Northern Ireland and member States. 2 Schedule 9ZB— a makes provision about VAT charged on goods imported into the United Kingdom as a result of their entry into Northern Ireland, b makes provision about the treatment, for the purposes of VAT, of goods that are removed from Northern Ireland to Great Britain and goods that are removed from Great Britain to Northern Ireland, and c contains other provision relevant to the application of this Act in Northern Ireland. 2 Part 1 of Schedule 2 inserts the Schedules referred to in the amendment made by subsection (1) into VATA 1994 and contains further amendments of that Act (as amended by TCTA 2018). 3 Part 2 of that Schedule makes amendments to other legislation in connection with the amendments made by Part 1. 4 Where a provision inserted into VATA 1994 as a result of Schedule 2 re-enacts (with or without modifications) provision repealed by TCTA 2018 (or by that Schedule), unless the contrary intention appears— a any reference in any provision made by or under an enactment to the repealed provision is to be construed as a reference to the re-enacted provision; b any order or regulations that would otherwise cease to have effect as a result of the repeal continues to have effect as if made under the re-enacted provision (subject to any modifications made to that provision, and with such modifications to that order or those regulations as may be necessary). Excise duty on the removal of goods to Northern Ireland 4 1 Where goods to which a relevant excise duty provision applies are removed to Northern Ireland from Great Britain, excise duty is charged on those goods under that provision. 2 Each of the following is a “relevant excise duty provision”— a section 47 of F(No.2) A 2023 (alcohol); g section 6 of HODA 1979 (hydrocarbon oil); h section 6AA of that Act (biodiesel); i section 6AB of that Act (bioblend); j section 6AD of that Act (bioethanol); k section 6AE of that Act (bioethanol blend); l section 6AG of that Act (aqua methanol); m section 6A of that Act (fuel substitutes); n section 8 of that Act (road fuel gas); o section 2 of TPDA 1979 (tobacco products). 3 Subsection (1) does not apply to a removal of goods to which a relevant excise duty provision mentioned in paragraph (h), (j), (l) or (m) applies unless, prior to their removal, the goods were set aside for, or put to, a chargeable use (within the meaning of the relevant excise duty provision in question) by any person. 4 Subsection (1) does not apply to a removal of road fuel gas (within the meaning given by section 5 of HODA 1979) unless, prior to its removal from Great Britain the gas was— a sent out from the premises of a person producing or dealing in road fuel gas, or b set aside for use, or put to use, as fuel for a road vehicle (within the meaning of that Act) by any person. 5 Goods are removed to Northern Ireland when their entry in Northern Ireland would amount to an importation of excise goods within the meaning of Article 4 of the Union excise directive if— a any reference in that Article to “excise goods” included any goods to which a relevant excise duty provision applies, b the references in point 8 of that Article to “the territory of the Community” and “the Community” were to Northern Ireland, and c the reference in point 6 of that Article to “special procedures as provided for under Regulation (EEC) No 2913/92 ” were to the procedures under Union customs legislation that correspond to those procedures. 6 In subsection (5)— “ the Union excise directive ” means Council Directive 2008/118/EC of 16 December 2008 concerning the general arrangements for excise duty and repealing Directive 92/12/EEC ; “ Union customs legislation ” means provisions contained in “customs legislation” within the meaning of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (see Article 5(2) of that Regulation), as they have effect as a result of section 7A of the European Union (Withdrawal) Act 2018. Duty under section 4: supplementary 5 1 Any provision made by or under the customs and excise Acts that applies to, or in connection with, duty under a relevant excise duty provision by reference to the importation of goods applies to duty charged as a result of section 4(1) as if— a any reference to the importation of goods (however framed) were to their removal to Northern Ireland from Great Britain, and b any reference to the entry of any person or vehicle into the United Kingdom (however framed) were to the arrival of that person or vehicle in Northern Ireland. 2 The Treasury may by regulations made by statutory instrument make provision, for the purposes of duty charged as a result of section 4(1), about (including provision modifying) the application of the customs and excise Acts (including this section and section 4) to that duty or to goods that are, or may be, subject to that duty. 3 A statutory instrument containing regulations made under subsection (2) is subject to annulment in pursuance of a resolution of the House of Commons. 4 In this section— “ the customs and excise Acts ” has the meaning it has in CEMA 1979 (see section 1(1) of that Act); “ relevant excise duty provision ” is to be construed in accordance with section 4(2). 5 This section and section 4 have effect in relation to any removal of goods to Northern Ireland from Great Britain that commences on or after IP completion day. 6 For the purposes of subsection (5), a removal of goods commences— a in the case of goods carried by (which for these purposes includes where the goods constitute, or are within, accompanying baggage of) a person travelling from Great Britain to Northern Ireland on an aircraft or vessel, when the aircraft or vessel is scheduled to depart from the airport or port in Great Britain from which it departs, and b in any other case, when the goods are dispatched from the place in Great Britain from which they are removed. Rate of fuel duty on aviation gasoline 6 In section 6(1A)(aa) of HODA 1979 (rate of fuel duty on aviation gasoline), for “£0.3770” substitute “ £0.3820 ” . Other provision about value added tax Online sales by overseas persons and low value importations 7 Schedule 3 makes provision for the purposes of value added tax in cases involving— a supplies of goods by persons established outside the United Kingdom that are facilitated by online marketplaces; b the importation into the United Kingdom of goods of a low value. Insurance premium tax Liability of insured in certain cases 8 In section 65 of FA 1994 (insurance premium tax: liability of insured in certain cases), for subsections (1A) and (1B) substitute— 1A The condition mentioned in subsection (1)(b) above is that there are no arrangements in relation to the country or territory relating to insurance premium tax which— a have effect by virtue of an Order in Council under section 173 of the Finance Act 2006, and b contain provision of a kind mentioned in subsection (2)(a) and (b) of that section. Controlled foreign companies Recovery of unlawful state aid 9 Schedule 4 makes provision in connection with the charging of amounts under Part 9A of TIOPA 2010 (the CFC charge in relation to controlled foreign companies) as if one of the exemptions in Chapter 9 of that Part (exemptions for profits from qualifying loan relationships) had not applied, in order to comply with Commission Decision (EU) 2019/1352 of 2 April 2019 on the state aid SA.44896 implemented by the United Kingdom concerning the CFC Group Financing Exemption (referred to in that Schedule as “the Commission Decision”). Final provisions Interpretation 10 In this Act the following abbreviations are references to the following Acts— ALDA 1979 Alcoholic Liquor Duties Act 1979 CEMA 1979 Customs and Excise Management Act 1979 FA, followed by a year Finance Act of that year F(No.2)A, followed by a year Finance (No.2) Act of that year HODA 1979 Hydrocarbon Oil Duties Act 1979 TCTA 2018 Taxation (Cross-border Trade) Act 2018 TIOPA 2010 Taxation (International and Other Provisions) Act 2010 TPDA 1979 Tobacco Products Duty Act 1979 VATA 1994 Value Added Tax Act 1994 Commencement 11 1 The following provisions come into force on the day on which this Act is passed— a section 9 and Schedule 4, b section 10, c this section, d section 12, and e the remaining provisions of this Act so far as making provision for anything to be done by regulations or order. 2 Section 6 comes into force on 1 January 2021. 3 The remaining provisions of this Act come into force on such day as the Treasury may by regulations made by statutory instrument appoint. 4 The power of the Treasury to appoint a day under subsection (3) includes— a a power to appoint different days for different purposes or areas, and b a power to appoint a time on a day if the Treasury consider it appropriate to do so (including a time that has effect by reference to the coming into force of any other enactment). 5 The Treasury may by regulations made by statutory instrument make such consequential, supplementary, incidental, transitional, transitory or saving provision as the Treasury consider appropriate in connection with the coming into force of any provision of this Act. 6 Regulations under subsection (5) may make different provision for different purposes or areas. Short title 12 This Act may be cited as the Taxation (Post-transition Period) Act 2020. SCHEDULES SCHEDULE 1 Customs duties etc: amendments relating to the Northern Ireland Protocol Section 2 Amendments of TCTA 2018 1 TCTA 2018 is amended in accordance with paragraphs 2 to 11. 2 In section 3 (obligation to declare goods for a customs procedure on import), in subsection (3)(a) for “the United Kingdom” substitute “ Great Britain ” . 3 In section 32 (regulations), in subsection (9)(a) after “Part” insert “ or under section 40A or 40B ” . 4 1 Section 33 (meaning of “domestic goods”) is amended as follows. 2 In subsection (2)— a omit the “or” after paragraph (a); b in paragraph (b) for “discharged.” substitute “ discharged, or ” ; c after that paragraph insert— c the goods— i are not Union goods and were removed to Northern Ireland (in the course of their importation into the United Kingdom or otherwise), and ii were declared, in accordance with Union customs legislation, for a procedure corresponding to the free-circulation procedure or the authorised use procedure and that corresponding procedure has been discharged, while the goods were in Northern Ireland, in accordance with that legislation. 3 In subsection (3)— a in paragraph (a), after “the United Kingdom” insert “ as a result of the removal of the goods from Great Britain ” ; b in the words after paragraph (b), after “then” insert “ (subject to section 30A) ” . 4 In subsection (4), after “goods” insert “ resulting from the removal of the goods from Great Britain ” . 5 After that subsection insert— 4A Goods also cease to be domestic goods if they— a are exported from the United Kingdom as a result of their removal from Northern Ireland, and b are not of a description specified in regulations made by the Treasury, and the goods are then (subject to section 30A) chargeable goods until such time (if any) as they are next subject to a chargeable Customs procedure. 4B Regulations under subsection (4A)(b) may specify a description of goods by reference to any matter or circumstance (including, for example, any matter or circumstance relating to any person concerned with the export of such goods). 6 In subsection (5), for “goods exported from the United Kingdom in accordance with the applicable export provisions” substitute “ relevant exported goods ” . 7 After that subsection insert— 5A For the purposes of subsection (5), exported goods are “relevant” if— a they were exported as a result of their removal from Northern Ireland, or b they were exported as a result of their removal from Great Britain and were so exported in accordance with the applicable export provisions. 5 In section 36 (outward processing procedure), in subsection (2)— a in paragraph (a), after “the United Kingdom”, in the first place it occurs, insert “ as a result of the removal of the goods from Great Britain ” ; b in paragraph (b), after “the United Kingdom” insert “ and removed to Great Britain (whether in the course of that importation or otherwise) ” . 6 In section 37 (minor definitions), in subsection (1), at the appropriate places insert— “ the customs and excise Acts ” has the meaning it has in CEMA 1979 (see section 1(1) of that Act); ; “ qualifying Northern Ireland goods ” has the meaning it has in the European Union (Withdrawal) Act 2018 (see section 8C(6) of that Act); ; “ Union customs legislation ” means provisions contained in “customs legislation” within the meaning of Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (see Article 5(2) of that Regulation), as they have effect as a result of section 7A of the European Union (Withdrawal) Act 2018; ; “ Union goods ” has the meaning it has in that Regulation; . 7 In section 38 (table of definitions), in the table, at the appropriate places insert— the customs and excise Acts section 37(1) ; qualifying Northern Ireland goods section 37(1) ; Union goods section 37(1) ; Union customs legislation section 37(1) . 8 1 Schedule 1 (customs declarations) is amended as follows. 2 In paragraph 1(4)— a in paragraph (a), after “United Kingdom” insert “ , or removed to Northern Ireland, ” ; b in paragraph (b), before “the export” insert “ in the case of goods exported from the United Kingdom, ” . 3 In paragraph 2(2)— a in paragraph (a), for the words from “in the United Kingdom” to the end substitute “ in, or outside, a specified place ” ; b in paragraph (b)— i after “have” insert “ , or do not have, ” ; ii for “the United Kingdom or to a specified place outside the United Kingdom” substitute “ a specified place ” . 9 1 Schedule 2 (special customs procedures) is amended as follows. 2 In paragraph 1(2)(a) for the words from “in the United Kingdom” to the end substitute “ in, or outside, a specified place ” . 3 In paragraph 5(1), for “the United Kingdom”, in each place it occurs, substitute “ Great Britain ” . 4 In paragraph 9— a in sub-paragraph (1)(a), for “there” substitute “ in Great Britain ” ; b in sub-paragraph (5)— i after “provisions” insert “ , or removed to Northern Ireland, ” ; ii for “the United Kingdom” substitute “ Great Britain ” ; c in sub-paragraph (6)(a), for “the United Kingdom” substitute “ Great Britain ” . 5 In paragraph 11— a in paragraph (a), for “the United Kingdom, or” substitute “ Great Britain, ” ; b after that paragraph insert— aa that the goods are to be subject to any operation designed to secure that they comply with requirements that must be met before the goods can lawfully be released in accordance with Union customs legislation to a procedure corresponding to the free-circulation procedure, or . 6 In paragraph 15, in paragraph (b), after “provisions” insert “ or are removed to Northern Ireland ” . 7 In paragraph 19, in sub-paragraph (3)(a) after “provisions” insert “ or are removed to Northern Ireland ” . 10 1 Schedule 7 (import duty: consequential amendments) is amended as follows. 2 In paragraph 114, after “Part 1” insert “ or section 40A or 40B ” . 3 In paragraph 146— a the existing text becomes sub-paragraph (1); b after that sub-paragraph insert— 2 Where the provisions of CEMA 1979 relating to transit sheds continue to have effect for any purpose (see paragraph 158), the provision amended by sub-paragraph (1) continues to have effect, for that purpose, as if the amendments made by that sub-paragraph were not made. 4 In paragraph 150(3)(a)— a after “Part 1” insert “ and sections 40A and 40B ” ; b for “it applies” substitute “ they apply ” . 5 In paragraph 156— a for sub-paragraph (2) substitute— 2 In subsection (2)— a in paragraph (b), for “of Council Regulation (EC) No 384/96 , as amended from time to time” substitute “ it has in Union customs legislation ” ; b in paragraph (c) for “of Council Regulation (EC) No 2026/97 , as amended from time to time” substitute “ it has in Union customs legislation ” . ; b in sub-paragraph (3)(b), after “Part 1” insert “ and sections 40A and 40B ” ; c for sub-paragraph (4) substitute— 4 In subsection (9), in paragraph (c), for “EU law” substitute “ retained EU law, or Union customs legislation, ” . 5 After that subsection insert— 10 In this section “ Union customs legislation ” has the meaning it has in Part 1 of the Taxation (Cross-border Trade) Act 2018. 6 After paragraph 157 insert— PART 4 Savings and modifications in relation to Northern Ireland Application of CEMA 1979 etc 158 1 CEMA 1979— a continues to have effect, for any purpose in connection with duty under section 30A(3), as if the amendments made by Part 2 of this Schedule, other than the amendments made by paragraphs 4(4), 93 and 114, were not made, and b applies for any such purpose as if— i references to an exportation of goods (however framed) included the exit of goods from Northern Ireland that are being removed to Great Britain, ii references to the departure (however framed) of any goods, person or vehicle from the United Kingdom included a departure of those goods or that person or vehicle from Northern Ireland that is not also a departure from the United Kingdom, iii references to “the customs territory of the European Union”, other than the reference in section 21(2), were to “Northern Ireland or the customs territory of the European Union”, iv references to “EU customs duties” were to “duty under section 30A(3) of the Taxation (Cross-border Trade) Act 2018”, v in section 63(1) and (2), after “place outside” there were inserted “ Northern Ireland and ” (and the reference to “those States” in section 63(1) included Northern Ireland), vi in section 78(1B)— a in the words before paragraph (a), for “another” there were substituted “ a ” , and b in paragraphs (a) and (b)(ii) after “place outside” there were inserted “ Northern Ireland and ” , vii in section 92(4)(a) and (b), before “member States” there were inserted “Northern Ireland or the”, viii in section 125(1), for “an EU customs duty” there were substituted “ a duty of customs ” , ix in subsection (1A) and (2)(a) of section 157, the words “other than the United Kingdom” were omitted, x the following references to the United Kingdom were to Northern Ireland— a the references in the definitions of “Community transit goods” and “transit or transhipment” in section 1(1); b the references in sections 36(1), 55(4)(a), 63(2) to (4), 74, 78(1)(a) and (b), 96(4) and 134(2); c the reference in the words after paragraph (b) of section 58C(3); d the second reference in sections 67(1) and 78(2A); e the first reference in sections 69(1) and 70(3), and xi the following were omitted— a sections 21(8), 35(9), 61(9), 63(7), 70(5), 74(5) and 78(1A); b the words after paragraph (b) of the definition of “Community transit goods” in section 1; c the words “and the Isle of Man” in sections 34(1), 36(1), 53(1), 64(1) and 66(1)(a) and (d); d the words “or the Isle of Man” in section 43(5); e the words “or between a place in the United Kingdom and a place in the Isle of Man” in section 69(1) and (3); f the words “subject to subsection (1A) above,” in section 78(2A). 2 CEMA 1979 applies, for any purpose in connection with duty under section 30C, as if— a references to an importation of goods (however framed) included the entry of goods in Great Britain in the course of a removal of those goods to Great Britain from Northern Ireland, b references to an exportation of goods (however framed) included the exit of goods from Great Britain that are being removed to Northern Ireland, c references to the departure (however framed) of any goods, person or vehicle from the United Kingdom included a departure of those goods or that person or vehicle from Great Britain that is not also a departure from the United Kingdom, and d references to the arrival of any goods, person or vehicle from a place outside the United Kingdom (however framed) included the arrival of those goods or that person or vehicle in Great Britain. 3 CEMA 1979— a continues to have effect, for any purpose in connection with duty under section 40A, as if the amendments made by Part 2 of this Schedule, other than the amendments made by paragraphs 4(4), 93 and 114, were not made, and b applies for any such purpose as if— i references to an importation of goods (however framed) included the entry of goods in Northern Ireland in the course of a removal of those goods to Northern Ireland from Great Britain, ii references to an exportation of goods (however framed) included the exit of goods from Northern Ireland that are being removed to Great Britain, iii references to the departure (however framed) of any goods, person or vehicle from the United Kingdom included a departure of those goods or that person or vehicle from Northern Ireland that is not also a departure from the United Kingdom, iv references to the arrival of any goods, person or vehicle from a place outside the United Kingdom (however framed), except in section 78(2A), were to the arrival of those goods or that person or vehicle in Northern Ireland, v references to “the customs territory of the European Union”, other than the reference in section 21(2), were to “Northern Ireland or the Customs territory of the European Union”, vi references to “EU customs duties” were to “duty under section 40A of the Taxation (Cross-border Trade) Act 2018”, vii in section 63(1) and (2), after “place outside” there were inserted “ Northern Ireland and ” (and the reference to “those States” in section 63(1) included Northern Ireland), viii in section 78(1B)— a in the words before paragraph (a), for “another” there were substituted “ a ” , and b in paragraphs (a) and (b)(ii) after “place outside” there were inserted “ Northern Ireland and ” , ix in section 92(4)(a) and (b), before “member States” there were inserted “Northern Ireland or the”, x in section 125(1), for “an EU customs duty” there were substituted “ a duty of customs ” , xi in subsection (1A) and (2)(a) of section 157, the words “other than the United Kingdom” were omitted, xii the following references to “the United Kingdom” were to “Northern Ireland”— a the references in the definitions of “Community transit goods” and “transit or transhipment” in section 1(1); b the references in sections 36(1), 55(4)(a), 63(2) to (4), 74, 78(1)(a) and (b), 96(4) and 134(2); c the reference in the words after paragraph (b) of section 58C(3); d the second reference in sections 67(1) and 78(2A); e the first reference in sections 69(1) and 70(3), and xiii the following were omitted— a sections 21(8), 35(9), 61(9), 63(7), 70(5), 74(5) and 78(1A); b the words after paragraph (b) of the definition of “Community transit goods” in section 1; c the words “and the Isle of Man” in sections 34(1), 36(1), 53(1), 64(1) and 66(1)(a) and (d); d the words “or the Isle of Man” in section 43(5); e the words “or between a place in the United Kingdom and a place in the Isle of Man” in section 69(1) and (3); f the words “subject to subsection (1A) above,” in section 78(2A). 4 The Customs and Excise Duties (General Reliefs) Act 1979— a continues to have effect, for any purpose in connection with duty under section 30A(3) or 40A, as if the amendments made by Part 3 of this Schedule, other than the amendments made by paragraphs 123, 135 and 138(3)(b), were not made, and b applies for any such purpose as if— i references to an EU instrument or an EU obligation were to the provisions of Union customs legislation, ii references to an importation of goods (however framed) included the entry of those goods in Northern Ireland in the course of a removal of those goods to Northern Ireland from Great Britain, iii references to an exportation of goods (however framed) included the exit of goods from Northern Ireland that are being removed to Great Britain, iv references to the entry of any person or vehicle into the United Kingdom (however framed) included the arrival of that person or vehicle in Northern Ireland, and v in section 2 (reliefs from customs duty referable to Community practices), for “other” there were substituted “ the ” . 5 Part 1 of the Finance Act 1994— a continues to have effect, for any purpose in connection with duty under section 30A(3) or 40A, as if the amendments made by Part 3 of this Schedule, other than the amendments made by paragraphs 144(b) and 145(3)(d), (f) and (i), were not made, b applies for any such purpose as if— i references to an importation of goods (however framed) included the entry of goods in Northern Ireland in the course of a removal of those goods to Northern Ireland from Great Britain, ii references to an exportation of goods (however framed) included the exit of goods from Northern Ireland that are being removed to Great Britain, iii any reference to the Community Customs Code were to Union customs legislation, and iv in section 12B(2)(a) (relevant time in case of assessment under section 61 of CEMA 1979) the reference to the United Kingdom were to Northern Ireland, and c applies for any purpose in connection with duty under section 30C as if— i references to an importation of goods (however framed) included the entry of goods in Great Britain in the course of a removal of those goods to Great Britain from Northern Ireland, and ii references to an exportation of goods (however framed) included the exit of goods from Great Britain that are being removed to Northern Ireland. 6 Item 6 of Group 8 of Schedule 8 to the Value Added Tax Act 1994 has effect as if the reference to a temporary storage facility included a transit shed (within the meaning of CEMA 1979 as it has effect as a result of sub-paragraphs (1) and (3)). 7 Part 3 of the Finance Act 2003 continues to have effect, for any purpose in connection with duty under section 30A(3) or 40A, as if— a the amendments made by Part 3 of this Schedule, other than the amendments made by paragraphs 148(2) and (3), 149, 150(3)(a) and 152, were not made, and b in section 26(8)(c), the words “Union export duty or Union import duty,” were omitted. 8 This paragraph is subject to any provision made by regulations under section 30B(3), 30C(5) or 40B(2) about the application of the customs and excise Acts (which may, for example, include provision for the application of provisions of the customs and excise Acts either as amended or unamended by Parts 2 and 3 of this Schedule). 11 In Schedule 9 (excise duty amendments connected with withdrawal from EU), after paragraph 9 insert— Savings in relation to Northern Ireland 10 The provisions amended by this Schedule continue to have effect— a for any purpose in connection with duty charged as a result of section 4(1) of the Taxation (Post-transition Period) Act 2020, and b in relation to goods in Northern Ireland, as if those provisions were not so amended. Isle of Man Act 1979 12 1 The Isle of Man Act 1979 is amended as follows. 2 In section 8 (removal of goods from Isle of Man to United Kingdom), in subsection (2), before paragraph (a) insert— za goods removed to Northern Ireland from the Isle of Man; . 3 In section 9 (removal of goods from United Kingdom to Isle of Man), after subsection (1) insert— 1A Subsection (1) does not apply to goods removed from Northern Ireland to the Isle of Man. Finance (No.2) Act 1992 13 1 Section 4 of F(No.2)A 1992 is amended as follows. 2 In subsection (1)— a for “the United Kingdom” substitute “ Northern Ireland ” ; b for “different” substitute “ Northern Ireland and a member State or between ” . 3 In subsection (1A), for “different” substitute “ Northern Ireland and a member State or between ” . 4 In subsection (2)— a in paragraph (a)— i omit “EU” in the first place it occurs; ii for “EU legislation” substitute “Union customs legislation (within the meaning of Part 1 of the Taxation (Cross-border Trade) Act 2018); b in paragraph (b), for “EU legislation” substitute “ provision of Union customs legislation ” . 5 In subsection (5), omit the definition of “EU customs duty”. SCHEDULE 2 Value added tax: amendments relating to the Northern Ireland Protocol etc Section 3 PART 1 Amendments of VATA 1994 1 VATA 1994 is amended as follows. New Schedules: VAT in Northern Ireland 2 After Schedule 9 insert— SCHEDULE 9ZA VAT on acquisitions in Northern Ireland from member States Section 40A(1) PART 1 Charge to VAT for acquisitions in Northern Ireland from member States Charge to VAT 1 1 VAT is charged, in accordance with this Schedule, on the acquisition in Northern Ireland of goods from a member State— a by reference to the value of the acquisition as determined under Part 2 of this Schedule, and b subject to paragraph 16, at the rate of VAT for the time being in force under section 2. 2 VAT charged on the acquisition of goods in Northern Ireland from a member State is a liability of the person who acquires the goods and (subject to provisions about accounting and payment) becomes due at the time of acquisition. 3 VAT charged on the acquisition of goods in Northern Ireland from a member State in accordance with this Schedule is referred to in this Schedule as “ NI acquisition VAT ”. 4 References to VAT (without more) in this Act include NI acquisition VAT. 5 The Commissioners may by regulations make provision about (including provision modifying) the application of provision that applies to value added tax made by or under any enactment (including provision made by or under this Act) to NI acquisition VAT or to goods acquired in Northern Ireland from a member State. Scope of NI acquisition VAT 2 1 NI acquisition VAT is charged on any acquisition from a member State of any goods where— a the acquisition is a taxable acquisition, b it takes place in Northern Ireland, c it is not in pursuance of a taxable supply (see section 4(2)), and d the person who makes it is a taxable person or the goods acquired are subject to a duty of excise or consist in a new means of transport. 2 In this Act, a “ taxable acquisition ” means an acquisition of goods from a member State that— a is not an exempt acquisition (see paragraph 17(5)), and b falls within sub-paragraph (3) or is an acquisition of goods consisting in a new means of transport. 3 An acquisition of goods from a member State falls within this sub-paragraph if— a the goods are acquired in the course or furtherance of— i any business carried on by any person, or ii any activities carried on otherwise than by way of business by any body corporate or by any club, association, organisation or other unincorporated body, b it is the person who carries on that business or those activities who acquires the goods, and c the supplier— i is taxable in a member State at the time of the transaction in pursuance of which the goods are acquired, and ii in participating in that transaction, acts in the course or furtherance of a business carried on by the supplier. Meaning of acquisition of goods from a member State 3 1 References in this Act to the acquisition of goods from a member State are to an acquisition of goods in pursuance of a transaction that— a is a supply of goods (including anything treated for the purposes of this Act as a supply of goods), and b involves the removal of the goods from a member State (whether by or under the direction of the supplier, the person who acquires the goods or any other person), and references in this Act, in relation to such an acquisition, to the supplier are to be construed accordingly. 2 Where the person with the property in any goods does not change in consequence of anything which is treated for the purposes of this Act as a supply of goods, that supply is to be treated for the purposes of this Act as a transaction in pursuance of which there is an acquisition by the person making the supply. 3 The Treasury may by regulations make provision about the circumstances in which an acquisition of goods is not to be treated as an acquisition of goods from a member State. Time of acquisition 4 1 For the purposes of this Act, the normal rule for determining the time that goods were acquired from a member State is that they are treated as being acquired on the earlier of— a the 15th day of the month after the month in which the first removal of the goods occurs, and b the day a relevant invoice is issued in respect of the transaction in pursuance of which the goods were acquired. 2 But— a different rules apply to acquisitions to which Part 4 of Schedule 9ZB applies (warehouses), and b the Commissioners may by regulations provide for different rules to apply in any case described in those regulations. 3 Regulations under sub-paragraph (2)(b) may include provision treating an acquisition as a series of acquisitions taking place at different times. 4 In sub-paragraph (1) “ relevant invoice ” means an invoice of a description prescribed by regulations made by the Commissioners. 5 For the purposes of this Act “ first removal ”, in relation to goods acquired, means the first removal of the goods in the course of the transaction in pursuance of which they are acquired. Place of acquisition 5 1 For the purposes of this Act, the normal rule for determining whether goods are acquired in Northern Ireland is that they are treated as being acquired in Northern Ireland if— a they are acquired in pursuance of a transaction which involves their removal from a member State to Northern Ireland and which does not involve their removal from Northern Ireland, or b they are acquired by a person who, for the purposes of their acquisition, makes use of a number assigned to the person for the purposes of VAT in the United Kingdom along with an NI VAT identifier (see paragraph 7). 2 But— a goods are not treated as being acquired in Northern Ireland by virtue of sub-paragraph (1)(b) where it is established in accordance with regulations made by the Commissioners that VAT— i has been paid in a member State on the acquisition of those goods, and ii fell to be paid by virtue of provisions of the law of that member State corresponding, in relation to that member State, to the provision made by sub-paragraph (1)(a), and b different rules apply to acquisitions to which paragraph 16 or 17 of Schedule 9ZB applies. 3 If an acquisition of goods is not treated, for the purposes of this Act, as taking place in Northern Ireland it is treated for those purposes as an acquisition taking place outside Northern Ireland. 4 The Commissioners may by regulations make provision— a about the circumstances in which a person is to be treated as having made use of a number assigned to the person for the purposes of VAT in the United Kingdom along with an NI VAT identifier for the purposes of the acquisition of any goods, and b for the refund, in prescribed circumstances, of NI acquisition VAT paid on acquisitions of goods in relation to which the conditions in sub-paragraph (2)(a)(i) and (ii) are met. Acquisitions from persons belonging in member States 6 1 Sub-paragraph (2) applies where— a a person (“the original supplier”) makes a supply of goods to a person who belongs in a member State (“the intermediate supplier”), b that supply involves the removal of the goods from a member State and their removal to Northern Ireland but does not involve the removal of the goods from Northern Ireland, c both that supply and the removal of the goods to Northern Ireland are for the purposes of the making of a supply by the intermediate supplier to another person (“ the customer ”) who is registered under this Act, d neither of those supplies involves the removal of the goods from a member State in which the intermediate supplier is taxable at the time of the removal without also involving the previous removal of the goods to that member State, and e there would be a taxable acquisition by the customer if the supply to the customer involved the removal of goods from a member State to Northern Ireland. 2 Where this sub-paragraph applies— a the supply by the original supplier to the intermediate supplier is ignored for the purposes of this Act, and b the supply by the intermediate supplier to the customer is treated for the purposes of this Act, other than for the purposes of Part 8 of this Schedule, as if it did involve the removal of the goods from a member State to Northern Ireland. 3 For the purposes of this Act, other than for the purposes of Part 8 of this Schedule, a supply of goods is treated as involving their removal from a member State to Northern Ireland, and is treated as not being a taxable supply if— a the supply is made by a person belonging in a member State to a person who is registered under this Act, b the supply involves the installation or assembly of the goods at a place in Northern Ireland to which they are removed, and c were the supply to be treated as described in the words before paragraph (a), there would be a taxable acquisition by the registered person. 4 But neither sub-paragraph (2) nor sub-paragraph (3) applies in relation to a supply unless— a in the case of sub-paragraph (2), the intermediate supplier, or b in the case of sub-paragraph (3), the person making the supply, complies with such requirements to provide information to the Commissioners or to the person supplied as may be specified in regulations made by the Commissioners. 5 The requirements to provide information that may be specified in regulations include— a requirements to provide documents (for example, invoices); b requirements to provide information or documents before a supply is made (as well as after); c requirements as to the content and form of information or documents to be provided; d requirements as to the manner in which information or documents are to be provided. 6 Where a taxable acquisition is treated as having been made by virtue of this paragraph, that acquisition is treated as taking place at the time referred to in paragraph 4(1)(b) (day on which invoice issued). 7 For the purposes of this paragraph a person belongs in a member State if— a the person is taxable in a member State, b the person does not have any business establishment or other fixed establishment in Northern Ireland, c the person's usual place of residence is not in Northern Ireland, d the person is not identified for the purposes of VAT in Northern Ireland and is not required, as a result of regulations under paragraph 7, to make a request to be so identified, and e the person does not have a VAT representative who is identified for the purposes of VAT in Northern Ireland in connection with acting on the person's behalf, and is not for the time being required to appoint one who would be identified for those purposes. 8 In determining, for the purposes of sub-paragraph (7)(d), whether a person is required to be registered under this Act, ignore any supplies made by the person that would be ignored for the purposes of this Act if the person belonged in a member State and complied with the information requirements that would apply by virtue of sub-paragraph (4). 9 Where— a any goods are acquired from a member State in a case which corresponds, in relation to another member State, to the case described in sub-paragraph (1) in relation to Northern Ireland, and b the person who acquires the goods is registered under this Act, is identified for the purposes of VAT in Northern Ireland and would be the intermediate supplier in relation to that corresponding case, the supply to that person of those goods and the supply by that person of those goods to the person who would be the customer in that corresponding case are to be ignored for the purposes of this Act. 10 References in this paragraph to a person being taxable in a member State do not include references to a person who is so taxable by virtue only of provisions of the law of that member State corresponding to the provisions of this Act by virtue of which a person who is not registered under this Act is a taxable person if the person is required to be so registered. Identification of persons for the purposes of VAT in Northern Ireland 7 1 The Commissioners may by regulations make provision for the identification of persons for the purposes of VAT in Northern Ireland. 2 In this Act “ identified for the purposes of VAT in Northern Ireland ” means identified in accordance with regulations under this paragraph. 3 A person may only be identified for the purposes of VAT in Northern Ireland if— a the person is registered under this Act, or b the person acts on behalf of a person in relation to VAT in Northern Ireland as a VAT representative. 4 Regulations may make provision— a about the circumstances in which a person may request to be identified for the purposes of VAT in Northern Ireland; b for a person to be required to request to be identified for the purposes of Northern Ireland VAT; c about the circumstances in which the Commissioners may determine that a person is identified for the purposes of VAT in Northern Ireland otherwise than at the person's request; d requiring a person to notify the Commissioners of such matters as may be specified for the purpose of allowing the Commissioners to ascertain whether a person should be identified for the purposes VAT in Northern Ireland; e about the circumstances in which a person is to be treated, for such purposes as may be specified, as if they were identified for the purposes of VAT in Northern Ireland (and which may include circumstances where the person is neither registered under this Act nor acting as a VAT representative); f about the circumstances in which a person ceases to be identified for the purposes of VAT in Northern Ireland. 5 Regulations may also make provision— a about a specified means of communicating the fact of a person's identification for the purposes of VAT in Northern Ireland (and that means is referred to in this Act as an “NI VAT identifier”); b about the circumstances in which a person may use, or is required to use, an NI VAT identifier (for example, in connection with the making of a transaction or return). 6 In this paragraph “ specified ” means specified in regulations. PART 2 Valuation of acquisitions Valuation of acquisitions from member States 8 1 For the purposes of this Act the value of any acquisition of goods from a member State is taken to be the value of the transaction in pursuance of which they are acquired. 2 Where goods are acquired from a member State otherwise than in pursuance of a taxable supply, the value of the transaction in pursuance of which they are acquired is to be determined for the purposes of sub-paragraph (1) in accordance with this Part, and for those purposes— a sub-paragraphs (3) to (5) have effect subject to paragraphs 9 to 13, and b section 19 and Schedule 6 do not apply in relation to the transaction. 3 If the transaction is for a consideration in money, its value is taken to be such amount as is equal to the consideration. 4 If the transaction is for a consideration not consisting or not wholly consisting of money, its value is taken to be such amount in money as is equivalent to the consideration. 5 Where a transaction in pursuance of which goods are acquired from a member State is not the only matter to which a consideration in money relates, the transaction is deemed to be for such part of the consideration as is properly attributable to it. Transactions below market value 9 1 Where, in the case of the acquisition of any goods from a member State— a the relevant transaction (see paragraph 13) is for a consideration in money, b the value of the relevant transaction is (apart from this paragraph) less than the transaction⿿s open market value, c the supplier and the person who acquires the goods are connected, and d that person is not entitled under sections 25 and 26 to credit for all the VAT on the acquisition, the Commissioners may direct that the value of the relevant transaction is taken to be its open market value. 2 A direction under this paragraph must be given— a by notice in writing to the person by whom the acquisition in question is made, and b within the period of 3 years commencing with the relevant time (see paragraph 13). 3 A direction given to a person under this paragraph in respect of a transaction may include a direction that the value of any transaction— a in pursuance of which goods are acquired by the person from a member State after the giving of the notice, or after such later date as may be specified in the notice, and b as to which the conditions in paragraphs (a) to (d) of sub-paragraph (1) are satisfied, is be taken to be its open market value. 4 For the purposes of this paragraph, the open market value of a transaction in pursuance of which goods are acquired from a member State is to be taken to be the amount which would fall to be taken as its value under paragraph 8(3) if it were for such consideration in money as would be payable by a person standing in no such relationship with any person as would affect that consideration. 5 Section 1122 of the Corporation Tax Act 2010 (“connected” persons) applies for the purpose of determining whether a person is connected with another for the purposes of this paragraph. 6 A direction under this paragraph may be varied or withdrawn by the Commissioners by a further direction given by notice in writing. Value where goods subject to excise duty etc 10 1 This paragraph applies, in such cases as the Commissioners may by regulations prescribe, to an acquisition— a of goods acquired in Northern Ireland from a member State, b where those goods are charged with a relevant duty, and c that is not an acquisition that is treated, by virtue of paragraph 16(7) of Schedule 9ZB, as taking place before the time which is the duty point (within the meaning given by paragraph 16(11) of that Schedule). 2 The value of the relevant transaction in relation to an acquisition to which this paragraph applies is the sum of the value of that transaction (apart from this paragraph) and the total amount of relevant duty charged that is not already reflected in the value of that transaction. 3 In this paragraph “ relevant duty ” in relation to an acquisition means— a a duty of excise charged in connection with the removal of goods to Northern Ireland; b any EU customs duty or agricultural levy of the European Union charged on that removal in accordance with any provision for the time being having effect for transitional purposes in connection with the accession of any State to the European Union. Transfer or disposal for no consideration 11 1 Where goods are acquired from a member State in pursuance of anything which is treated as a supply for the purposes of this Act as a result of paragraph 5(1) of Schedule 4 or paragraph 30 of Schedule 9ZB and there is no consideration, sub-paragraph (3) applies for determining the value of the relevant transaction. 2 Sub-paragraph (3) also applies for determining the value of the relevant transaction in the case of an acquisition by a supplier that is deemed to take place as a result of paragraph 60(2)(c) or 61(2)(c). 3 The value of the relevant transaction is taken to be— a such consideration in money as would be payable by the supplier if the supplier were, at the time of the acquisition, to purchase goods identical in every respect (including age and condition) to the goods concerned, b where the value cannot be ascertained in accordance with paragraph (a), such consideration in money as would be payable by the supplier if the supplier were, at that time, to purchase goods similar to, and of the same age and condition as, the goods concerned, or c where the value cannot be ascertained in accordance with paragraph (a) or (b), the cost of producing the goods concerned if they were produced at that time. 4 For the purposes of sub-paragraph (3), the amount of consideration in money that would be payable by any person if the person were to purchase any goods is taken to be the amount that would be so payable after the deduction of any amount included in the purchase price in respect of VAT on the supply of the goods to that person. Foreign currency transactions 12 1 Sub