What does paragraph 23 of Schedule 9ZB of the Value Added Tax Act 1994 do?

Paragraph 23 extends the existing rules on deficiencies in fiscally warehoused goods under Section 18E of the VAT Act 1994 to goods held in a Northern Ireland fiscal warehousing regime. It ensures the same VAT obligations and liabilities apply when goods are found to be missing or deficient in a Northern Ireland fiscal warehouse.

How is a Northern Ireland fiscal warehousekeeper treated under the deficiency rules?

A Northern Ireland fiscal warehousekeeper is treated in the same way as a fiscal warehousekeeper under the main provisions of Sections 18A to 18F. If goods go missing from a Northern Ireland fiscal warehouse, the warehousekeeper faces the same obligations and may become liable for the VAT on the deficient goods.

What happens if goods are found deficient in a Northern Ireland fiscal warehouse?

If goods stored under VAT suspension in a Northern Ireland fiscal warehouse are found to be deficient with no satisfactory explanation, the warehousekeeper may become liable for the VAT on the missing goods. The same consequences apply as for deficiencies in a standard fiscal warehouse elsewhere in the United Kingdom.

Where is the term fiscal warehousekeeper defined for the purposes of this provision?

The term fiscal warehousekeeper is defined in Section 18F of the Value Added Tax Act 1994, which provides supplementary definitions for the fiscal warehousing provisions found in Sections 18A to 18F. Paragraph 23 of Schedule 9ZB applies this same definition to Northern Ireland fiscal warehousekeepers.

Value Added Tax Act 1994 section 23

Deficiency in Northern Ireland fiscally warehoused goods

Section 23 of Schedule 9ZB extends the rules on deficiencies in fiscally warehoused goods to goods held under a Northern Ireland fiscal warehousing regime and to Northern Ireland fiscal warehousekeepers.

The existing rules in Section 18E dealing with deficiencies in fiscally warehoused goods are extended to cover goods held under a Northern Ireland fiscal warehousing regime.
A Northern Ireland fiscal warehousekeeper is treated in the same way as a fiscal warehousekeeper under the existing provisions.
Where goods held in a Northern Ireland fiscal warehouse are found to be deficient, the same consequences and obligations apply as for goods in a standard fiscal warehouse.
The definition of "fiscal warehousekeeper" is drawn from Sections 18A to 18F of the Value Added Tax Act 1994.

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