Value Added Tax Act 1994 section 22

Partnerships

Section 22 extends the existing VAT partnership rules to cover partnerships that acquire goods from an EU member state through non-business activities, and applies the same liability provisions for NI acquisition VAT as apply to VAT on supplies of goods or services.

• The partnership rules in section 45(1) of the VAT Act 1994, which normally apply to business partnerships, are extended to partnerships carrying on non-business activities where those activities involve acquiring goods from an EU member state.
• This means that the partnership itself, rather than the individual partners, is treated as the relevant entity for NI acquisition VAT purposes, just as it would be for a business partnership.
• The rules in section 45 on liability for VAT — including joint and several liability of partners and the nomination of a representative partner — apply equally to NI acquisition VAT as they do to ordinary VAT on supplies of goods or services.
• The effect is to ensure that partnerships engaged in non-business activities are subject to the same administrative and liability framework for NI acquisition VAT as commercial partnerships are for standard VAT.