Value Added Tax Act 1994 section Sch 9ZF para 13

Taxation (Cross-border Trade) Act 2018

Section Sch 9ZF para 13 disapplies the reciprocity requirement in the Taxation (Cross-border Trade) Act 2018 for VAT collected by HMRC under the overseas goods and services arrangements.

• Section 54 of the Taxation (Cross-border Trade) Act 2018 normally prevents HMRC from collecting taxes or duties on behalf of another country unless that country offers the same treatment in return.
• This reciprocity restriction does not apply to VAT collected by HMRC under Schedule 9ZD (goods) or Schedule 9ZE (services), meaning HMRC can collect such VAT without needing a reciprocal arrangement.
• This carve-out does not imply that HMRC would or would not otherwise have had the authority to collect VAT under those Schedules — it is neutral on that question.
• The provision ensures that cross-border VAT collection mechanisms operate without being blocked by the general prohibition on non-reciprocal tax collection.