Value Added Tax Act 1994 Schedule 9ZA paragraph 16

Reduced rate

Schedule 9ZA paragraph 16 sets out the circumstances in which VAT on Northern Ireland acquisitions is charged at the reduced rate of 5% instead of the standard rate.

• NI acquisition VAT is charged at 5% instead of the standard rate where the goods acquired are of a type listed in Schedule 7A (reduced-rate supplies) or where the acquisition is of a type specified in Treasury regulations.
• Treasury regulations may disapply the reduced rate for certain categories of supply that would otherwise qualify under Schedule 7A.
• When defining which acquisitions qualify under Treasury regulations, the description may refer to factors unrelated to the physical characteristics of the goods themselves, such as the identity of the acquirer or the purpose of the acquisition.
• The combined effect is to give the Treasury flexible powers to align or adjust the scope of the 5% reduced rate for NI acquisitions, both by reference to existing Schedule 7A categories and by making bespoke regulations.