Most Gracious Sovereign WE, 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:—
Most Gracious Sovereign
Northern Ireland Protocol
After section 40 of TCTA 2018 insert—
Part 1 of TCTA 2018 is amended as follows.
In section 1 (charge to import duty)—
the existing text becomes subsection (1);
after that subsection insert—
In section 2 (chargeable goods)—
the existing text becomes subsection (1);
after that subsection insert—
After section 30 insert—
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.
In VATA 1994, before section 41 insert—
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).
Part 2 of that Schedule makes amendments to other legislation in connection with the amendments made by Part 1.
Where a provision inserted into VATA 1994 as a result of Schedule 2 re-enacts (with or without modifications) provision repealed by TCTA 2018 (or by that Schedule), unless the contrary intention appears—
any reference in any provision made by or under an enactment to the repealed provision is to be construed as a reference to the re-enacted provision;
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).
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.
Each of the following is a “relevant excise duty provision”—
section 47 of F(No.2) A 2023 (alcohol);
section 6 of HODA 1979 (hydrocarbon oil);
section 6AA of that Act (biodiesel);
section 6AB of that Act (bioblend);
section 6AD of that Act (bioethanol);
section 6AE of that Act (bioethanol blend);
section 6AG of that Act (aqua methanol);
section 6A of that Act (fuel substitutes);
section 8 of that Act (road fuel gas);
section 2 of TPDA 1979 (tobacco products).
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.
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—
sent out from the premises of a person producing or dealing in road fuel gas, or
set aside for use, or put to use, as fuel for a road vehicle (within the meaning of that Act) by any person.
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—
any reference in that Article to “excise goods” included any goods to which a relevant excise duty provision applies,
the references in point 8 of that Article to “the territory of the Community” and “the Community” were to Northern Ireland, and
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.
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.
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—
any reference to the importation of goods (however framed) were to their removal to Northern Ireland from Great Britain, and
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.
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.
A statutory instrument containing regulations made under subsection (2) is subject to annulment in pursuance of a resolution of the House of Commons.
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).
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.
For the purposes of subsection (5), a removal of goods commences—
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
in any other case, when the goods are dispatched from the place in Great Britain from which they are removed.
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
Schedule 3 makes provision for the purposes of value added tax in cases involving—
supplies of goods by persons established outside the United Kingdom that are facilitated by online marketplaces;
the importation into the United Kingdom of goods of a low value.
Insurance premium tax
In section 65 of FA 1994 (insurance premium tax: liability of insured in certain cases), for subsections (1A) and (1B) substitute—
Controlled foreign companies
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
In this Act the following abbreviations are references to the following Acts—
The following provisions come into force on the day on which this Act is passed—
section 10,
this section,
section 12, and
the remaining provisions of this Act so far as making provision for anything to be done by regulations or order.
Section 6 comes into force on 1 January 2021.
The remaining provisions of this Act come into force on such day as the Treasury may by regulations made by statutory instrument appoint.
The power of the Treasury to appoint a day under subsection (3) includes—
a power to appoint different days for different purposes or areas, and
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).
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.
Regulations under subsection (5) may make different provision for different purposes or areas.
This Act may be cited as the Taxation (Post-transition Period) Act 2020.
Customs duties etc: amendments relating to the Northern Ireland Protocol
Amendments of TCTA 2018
TCTA 2018 is amended in accordance with paragraphs 2 to 11.
In section 3 (obligation to declare goods for a customs procedure on import), in subsection (3)(a) for “the United Kingdom” substitute “ Great Britain ”.
In section 32 (regulations), in subsection (9)(a) after “Part” insert “ or under section 40A or 40B ”.
Section 33 (meaning of “domestic goods”) is amended as follows.
In subsection (2)—
omit the “or” after paragraph (a);
in paragraph (b) for “discharged.” substitute “ discharged, or ”;
after that paragraph insert—
In subsection (3)—
in paragraph (a), after “the United Kingdom” insert “ as a result of the removal of the goods from Great Britain ”;
in the words after paragraph (b), after “then” insert “ (subject to section 30A) ”.
In subsection (4), after “goods” insert “ resulting from the removal of the goods from Great Britain ”.
After that subsection insert—
In subsection (5), for “goods exported from the United Kingdom in accordance with the applicable export provisions” substitute “ relevant exported goods ”.
After that subsection insert—
In section 36 (outward processing procedure), in subsection (2)—
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 ”;
in paragraph (b), after “the United Kingdom” insert “ and removed to Great Britain (whether in the course of that importation or otherwise) ”.
In section 37 (minor definitions), in subsection (1), at the appropriate places insert—;;;.
In section 38 (table of definitions), in the table, at the appropriate places insert—;;;.
Schedule 1 (customs declarations) is amended as follows.
In paragraph 1(4)—
in paragraph (a), after “United Kingdom” insert “ , or removed to Northern Ireland, ”;
in paragraph (b), before “the export” insert “ in the case of goods exported from the United Kingdom, ”.
In paragraph 2(2)—
in paragraph (a), for the words from “in the United Kingdom” to the end substitute “ in, or outside, a specified place ”;
in paragraph (b)—
after “have” insert “ , or do not have, ”;
for “the United Kingdom or to a specified place outside the United Kingdom” substitute “ a specified place ”.
Schedule 2 (special customs procedures) is amended as follows.
In paragraph 1(2)(a) for the words from “in the United Kingdom” to the end substitute “ in, or outside, a specified place ”.
In paragraph 5(1), for “the United Kingdom”, in each place it occurs, substitute “ Great Britain ”.
In paragraph 9—
in sub-paragraph (1)(a), for “there” substitute “ in Great Britain ”;
in sub-paragraph (5)—
after “provisions” insert “ , or removed to Northern Ireland, ”;
for “the United Kingdom” substitute “ Great Britain ”;
in sub-paragraph (6)(a), for “the United Kingdom” substitute “ Great Britain ”.
In paragraph 11—
in paragraph (a), for “the United Kingdom, or” substitute “ Great Britain, ”;
after that paragraph insert—.
In paragraph 15, in paragraph (b), after “provisions” insert “ or are removed to Northern Ireland ”.
In paragraph 19, in sub-paragraph (3)(a) after “provisions” insert “ or are removed to Northern Ireland ”.
Schedule 7 (import duty: consequential amendments) is amended as follows.
In paragraph 114, after “Part 1” insert “ or section 40A or 40B ”.
In paragraph 146—
the existing text becomes sub-paragraph (1);
after that sub-paragraph insert—
In paragraph 150(3)(a)—
after “Part 1” insert “ and sections 40A and 40B ”;
for “it applies” substitute “ they apply ”.
In paragraph 156—
for sub-paragraph (2) substitute—;
in sub-paragraph (3)(b), after “Part 1” insert “ and sections 40A and 40B ”;
for sub-paragraph (4) substitute—
After paragraph 157 insert—
In Schedule 9 (excise duty amendments connected with withdrawal from EU), after paragraph 9 insert—
Isle of Man Act 1979
The Isle of Man Act 1979 is amended as follows.
In section 8 (removal of goods from Isle of Man to United Kingdom), in subsection (2), before paragraph (a) insert—.
In section 9 (removal of goods from United Kingdom to Isle of Man), after subsection (1) insert—
Finance (No.2) Act 1992
Section 4 of F(No.2)A 1992 is amended as follows.
In subsection (1)—
for “the United Kingdom” substitute “ Northern Ireland ”;
for “different” substitute “ Northern Ireland and a member State or between ”.
In subsection (1A), for “different” substitute “ Northern Ireland and a member State or between ”.
In subsection (2)—
in paragraph (a)—
omit “EU” in the first place it occurs;
for “EU legislation” substitute “Union customs legislation (within the meaning of Part 1 of the Taxation (Cross-border Trade) Act 2018);
in paragraph (b), for “EU legislation” substitute “ provision of Union customs legislation ”.
In subsection (5), omit the definition of “EU customs duty”.
Value added tax: amendments relating to the Northern Ireland Protocol etc
Amendments of VATA 1994
VATA 1994 is amended as follows.
New Schedules: VAT in Northern Ireland
After Schedule 9 insert—
Other amendments of VATA 1994
In section 3 (taxable persons)—
in subsection (2), after “registration” insert “ (and see also Parts 8 and 9 of Schedule 9ZA which contain further provisions about registration) ”;
in subsection (3)—
after “Schedules”, in the first place it occurs, insert “ and Part 8 and 9 of Schedule 9ZA ”;
after “Schedules”, in the second place it occurs, insert “ or those Parts ”.
In section 5 (meaning of supply), after subsection (3) insert—
Section 9A (reverse charge on gas, electricity, heat or cooling supplied by persons outside the United Kingdom) is amended as follows.
In the heading, omit “supplied by persons outside the United Kingdom”.
After subsection (1) insert—
In subsection (5)—
in paragraph (a), for “the United Kingdom”, in both places it occurs, substitute “ Great Britain ”,
after that paragraph insert—.
In subsection (6), after “United Kingdom” insert “ , in Great Britain or in Northern Ireland ”.
In section 18A (fiscal warehousing)—
in subsection (4), omit the words after paragraph (f);
after that subsection insert—
Omit section 14A and Schedule 4B (call-off stock arrangements).
In section 69 (breaches of regulatory provisions)—
in subsection (1)(a) for “, paragraph 5 of Schedule 3A or paragraph 9(1) or (2)(a) of Schedule 4B” substitute “ or paragraph 5 of Schedule 3A ”;
in subsection (2) omit “paragraph 8 or 9(2)(b) of Schedule 4B or”.
In section 97 (orders, rule and regulations), in subsection (4), in paragraph (a) for “or 28” substitute “ , 28 or 40A ”.
In Schedule 6 (valuation of supplies: special cases), in paragraph 6(1) omit paragraph (d) (and the “or” before it).
In consequence of the amendment made by sub-paragraph (1), the Value Added Tax Regulations 1995 (S.I. 1995/2518) are amended as follows—
in regulation 21 (interpretation of Part 4), omit paragraph (2);
omit regulation 22ZA;
in regulation 22B (EC sales statements: supplementary)—
in paragraph (1), for “more than one statement is to be submitted under regulations 22 to” substitute “ statements are to be submitted under regulation 22 and 22A ”;
in paragraphs (2) and (3) omit “, 22ZA”.
Schedule 4B continues to have effect in relation to goods to which Schedule 4B applied (see paragraph 1 of that Schedule) immediately before its repeal.
Any other provision repealed, revoked or amended by or under this Act or TCTA 2018 at the same time as, or after, the repeal of Schedule 4B continues to have effect in relation to any deemed acquisition or supply of such goods arising as a result of that Schedule (as saved by paragraph (6)) as if the provision had not been so repealed, revoked or amended.
The savings in sub-paragraphs (6) and (7) do not apply to the provisions mentioned in sub-paragraph (9) in relation to goods to which Schedule 4B applied as a result of their removal from Great Britain for the purpose of being taken to a place in a member State.
Those provisions are—
paragraph 7(2)(c) of that Schedule;
the provisions of Part 4 of the Value Added Tax Regulations 1994 (S.I. 1994/2518) (EC sales statements).
Part 10 of Schedule 9ZA of VATA 1994 (as inserted by this Schedule) does not apply to goods in respect of which the savings in sub-paragraph (6) and (7) apply.
In Schedule 8 (zero-rating), in Group 18, in Note (2), in paragraph (a), for “a member State” substitute “ the United Kingdom, a member State or an associated country (within the meaning given by Article 2(c) of that Regulation) ”.
Amendments of other legislation
F(No.2)A 2017
In section 48 of F(No.2)A 2017 (carrying on an imported goods fulfilment business)—
in subsection (4) (as amended by TCTA 2018), after “section 15” insert “ and paragraph 1 of Schedule 9ZB ”;
after that subsection insert—
TCTA 2018
Schedule 8 to TCTA 2018 (VAT amendments connected with withdrawal from EU) is amended as follows.
In paragraph 64(3)—
at the end of paragraph (a) insert “ and ”;
omit paragraph (c) (and the “and” before it).
In paragraph 94, omit sub-paragraphs (2) and (9).
In paragraph 114, in sub-paragraph (2)—
in paragraph (a), for “second” substitute “ third ”;
in paragraph (b), for “third” substitute “ fourth ”;
in paragraph (c), for “fifth” substitute “ sixth ”.
In paragraph 132, omit paragraph (k).
Value Added Tax (Place of Supply of Goods) Order 2004
The Value Added Tax (Place of Supply of Goods) Order 2004 (S.I. 2004/3148) is amended as follows.
In article 9, in the definition of “relevant goods”—
in paragraph (i), after “within” insert “ Northern Ireland or ”;
after that paragraph insert—.
In article 14—
the existing text becomes paragraph (1);
after that paragraph insert—
Value Added Tax (Relief for European Research Infrastructure Consortia) Order 2012
In article 2 of the Value Added Tax (Relief for European Research Infrastructure Consortia) Order 2012 (S.I. 2012/2907)—
in paragraph (1)—
omit “from a place outside the member States”;
for “another” substitute “ a ”;
in paragraph (2)(a) for “a member State” substitute “ the United Kingdom, a member State or an associated country (within the meaning given by Article 2(c) of that Regulation) ”.
Value Added Tax (Miscellaneous Amendments, Revocation and Transitional Provisions) (EU Exit) Regulations 2019
In the Value Added Tax (Miscellaneous Amendments, Revocation and Transitional Provisions) (EU Exit) Regulations 2019 (S.I. 2019/513), omit regulation 7.
Online sales by overseas persons and low value importations
Main amendments
Amendments to the Value Added Tax Act 1994
VATA 1994 is amended as follows.
After section 5 insert—
Section 5A (supplies of goods facilitated by online marketplaces: deemed supply) (inserted by paragraph 2 of this Schedule) is amended as follows.
In subsection (1), for paragraph (c) substitute—
After subsection (1) insert—
In subsection (5), after “regulations” insert.
After subsection (5) insert—
Section 7 (place of supply of goods) is amended as follows.
Before subsection (6) insert—
After subsection (9) insert—
After section 7 insert—
In section 16A(1) (postal packets) omit “(within the meaning of the Postal Services Act 2000)”.
Section 37 (relief from VAT on importation of goods) is amended as follows.
For the heading, substitute “ VAT on importation of goods: reliefs etc ”.
Before subsection (1) insert—
In section 77B (joint and several liability: sellers identified as non-compliant by the Commissioners) omit subsections (9) and (12).
In section 77BA (joint and several liability: non-UK sellers in breach of Schedule 1A registration requirement) omit subsection (8).
In section 77C (joint and several liability under section 77B or 77BA: assessments) omit subsection (9).
In section 77D (joint and several liability under section 77B or 77BA: interest) omit subsection (8).
In section 77E (display of VAT registration numbers), in subsection (9) omit the definition of “online marketplace” and “operator”.
After section 77E insert—
Before section 96 insert—
In section 96(1) (other interpretative provisions), at the appropriate places insert—;.
Schedule 8 (zero-rating) is amended as follows.
In Part 1 (index to zero-rated supplies of goods and services), at the appropriate place insert—.
In Part 2 (the groups), after Group 20 insert—
In Schedule 11 (administration, collection and enforcement), paragraph 6 (record keeping) is amended as follows.
Before sub-paragraph (5) insert—
In sub-paragraph (5), after “may by regulations make” insert “ further ”.
Amendment to the Value Added Tax (Imported Goods) Relief Order 1984
In Schedule 2 to the Value Added Tax (Imported Goods) Relief Order 1984 (S.I. 1984/746) (reliefs for goods of certain descriptions), omit Item 8 and Notes (2) and (3) in Group 8 (low value consignment relief).
Amendments to the Value Added Tax Regulations 1995
The Value Added Tax Regulations 1995 (S.I. 1995/2518) are amended as follows.
In regulation 13(1) (obligation to supply a VAT invoice), before sub-paragraph (2) insert—
Regulation 13A (electronic invoicing) is amended as follows.
In paragraph (1) for “goods or services” substitute “ services or relevant goods ”.
After paragraph (4) insert—
Regulation 15 (change of rate, credit notes) is amended as follows.
The existing text becomes paragraph (1).
In that paragraph, after “relates to a” insert “ relevant ”.
After that paragraph insert—
Regulation 15C (changes in consideration: debit notes and credit notes) is amended as follows.
In paragraph (1), at the end insert “ , subject to paragraph (1A) ”.
After paragraph (1) insert—
After regulation 16A insert—
Amendments and modifications relating to the Northern Ireland Protocol
Amendments to the Value Added Tax Act 1994
VATA 1994 is amended as follows.
In section 40A (Northern Ireland Protocol) (inserted by section 3 of this Act), after subsection (2) insert—
Schedule 9ZB (inserted by paragraph 2 of Schedule 2 to this Act) is amended as follows.
After paragraph 1(8) insert—;
After paragraph 4(10) insert—
After that Schedule insert—
Part 1 of Schedule 9ZC (inserted by paragraph 28) is amended as follows.
After paragraph 1 insert—
After paragraph 4 insert—
Recovery of unlawful state aid
TIOPA 2010 has effect as if—
after Chapter 21 of Part 9A there were inserted—, and
after Schedule 7 there were inserted—