Value Added Tax Act 1994 Schedule 9ZA paragraph 14

Input tax and output tax

Paragraph 14 explains how Northern Ireland acquisition VAT is treated for the purposes of input tax and output tax, and applies the general rules from section 24 of the Act.

• NI acquisition VAT counts as input tax for the person acquiring the goods, provided those goods are used or intended for use in their business.
• NI acquisition VAT also counts as output tax for the person acquiring the goods, even where it simultaneously qualifies as input tax.
• The dual treatment as both input and output tax means the acquiring person must account for the VAT as output tax on their return but can recover it as input tax, subject to the normal rules.
• The general input tax and output tax provisions in section 24(5) to (6A) of the Act apply equally to NI acquisition VAT as they do to VAT on supplies or importations of goods.