Value Added Tax Act 1994 section 36A

No VAT chargeable on supplies by special scheme participants not registered for VAT

Section 36A (Schedule 9ZE, paragraph 36A) removes the obligation to charge UK VAT on certain supplies of goods made by businesses that participate in a special scheme and are not registered (or required to be registered) for UK VAT.

• Applies to a person who has a business establishment or other fixed establishment in the UK or the Isle of Man.
• The person must make a qualifying supply of goods that is treated as made in the UK.
• The person must be a participant in a special scheme at the time the supply is made.
• If the person is not registered, and is not liable to be registered, under Schedule 1, no UK VAT is chargeable on the supply.