Value Added Tax Act 1994 Schedule 9ZA paragraph 20

Crown application

Paragraph 20 extends the existing rules on how VAT applies to the Crown (government departments and bodies) so that they also cover Northern Ireland acquisition VAT.

• The Crown is not exempt from Northern Ireland acquisition VAT — the same rules that apply to VAT on supplies of goods also apply here.
• Section 41(3) and (4) of the VAT Act 1994, which set out how VAT obligations bind the Crown, are extended to NI acquisition VAT.
• This ensures government departments acquiring goods in Northern Ireland are treated consistently with other taxable persons for VAT purposes.
• The provision prevents any argument that Crown immunity could be used to avoid VAT on acquisitions of goods in Northern Ireland.