Value Added Tax Act 1994 section 36

Set-offs

Section 36 of Schedule 9ZD establishes that UK VAT owed by participants in non-UK schemes to overseas tax authorities is treated as payable to HMRC for the purposes of set-off.

• Applies to participants registered under a non-UK VAT scheme
• Covers situations where UK VAT is payable to the tax authorities of the administering member state
• The UK VAT is treated as if it were payable directly to HMRC (the Commissioners)
• This treatment enables HMRC to exercise set-off rights under section 130(6) of the Finance Act 2008