Value Added Tax Act 1994 section 36

Scheme participants who are also registered under this Act

Section 36 explains how obligations are managed for businesses that are both participants in a special VAT scheme and registered (or required to be registered) for VAT in the United Kingdom.

• A person who participates in a special scheme and is also UK VAT-registered does not need to fulfil normal taxable-person obligations in respect of relevant supplies, except for input tax obligations
• Relevant supplies are those whose value must be reported in the special scheme return and which are treated as made in the United Kingdom
• VAT that a person is liable to pay under a special scheme to the administering member state is excluded from the output tax figure used in the normal UK VAT return calculation
• Input tax obligations — meaning those relating to claiming input tax deductions or receiving VAT credit payments — still apply in full despite participation in the special scheme