Value Added Tax Act 1994 section Schedule 9ZE paragraph 15

Amounts required to be paid to member States

Section Schedule 9ZE paragraph 15 deals with the treatment of VAT receipts that must be forwarded to EU member States, exempting them from the normal requirement to pay government revenue into the Consolidated Fund.

• Under normal rules, HMRC must pay all tax receipts into the Consolidated Fund (the UK government's general bank account).
• This paragraph creates an exception for VAT money that must be passed on to an EU member State.
• The obligation to forward VAT to another member State arises under Article 46 of EU Council Regulation No 904/2010, which governs administrative cooperation between EU countries on VAT matters.
• The effect is that HMRC can pay these VAT amounts directly to the relevant member State without first routing them through the Consolidated Fund.