The Taxation Cross-border Trade (Northern Ireland) (EU Exit) (Amendment) Regulations 2021

• Citation: S.I. 2021/483
• Sections: 3

Section 1 Citation and commencement

(1) These Regulations may be cited as the Taxation Cross-border Trade (Northern Ireland) (EU Exit) (Amendment) Regulations 2021.

(2) These Regulations come into force on the day after the day on which these Regulations are laid before the House of Commons.

Section 2 Amendment of the Customs (Northern Ireland) (EU Exit) Regulations 2020

(1) The Customs (Northern Ireland) (EU Exit) Regulations 2020 are amended as follows.

(2) In regulation 18 (goods to which section 30C(1) duty does not apply)—

(a) in paragraph (1) for “or (3)” substitute “, (3) or (3A)”;

(b) after paragraph (3) insert—

(3A) This paragraph applies to goods which—

(a) were removed to Northern Ireland from Great Britain and remain outside Great Britain for a temporary period (“the relevant period”);

(b) were domestic goods at the time of the removal to Northern Ireland from Great Britain;

(c) were not removed from the United Kingdom during the relevant period other than to enter the Isle of Man; and

(d) have not undergone any substantive changes during the relevant period.

(3B) For the purposes of paragraph (3A)(d) goods do not undergo a substantive change where any change is the result of any of the following—

(a) normal depreciation;

(b) repair, including overhaul;

(c) maintenance, including adjustments or measures to preserve the goods or ensure compliance with technical requirements for their use.

(c) in paragraph (4) for “or (3)” substitute “, (3) or (3A)”.

Section 3 Amendment of the Value Added Tax (Northern Ireland) (EU Exit) Regulations 2020

(1) The Value Added Tax (Northern Ireland) (EU Exit) Regulations 2020 are amended as follows.

(2) After regulation 34 insert—

VAT relief in respect of goods returning to Great Britain from Northern Ireland

(35)

(1) No VAT is payable under paragraph 3(2) of Schedule 9ZB to VATA (VAT charged on goods removed from Northern Ireland to Great Britain) on goods to which regulation 18(3A) of the Customs (Northern Ireland) (EU Exit) Regulations 2020, when read with the relevant modification, applies.

(2) The relevant modification referred to in paragraph (1) is that regulation 18(3A)(d) is to be read as if it said—

(d) have not undergone any substantive changes during the relevant period other than those which result from services performed whilst the goods were in Northern Ireland and which are treated for the purposes of VAT as supplied in the United Kingdom.