Value Added Tax Act 1994 section 41

Refund of UK VAT

Section 41 modifies the rules for VAT refunds so that they apply appropriately to participants in the special schemes for distance selling.

• The existing VAT refund rules in Part 21 of the VAT Regulations 1995 are extended to apply to participants in special schemes, treating them in the same way as traders.
• Repayments of VAT on imported goods are limited to goods that enter the United Kingdom specifically by virtue of their entry into Northern Ireland.
• Certain provisions relating to VAT representatives and the scope of persons covered by Part 21 are disapplied for special scheme participants.
• These modifications ensure that the refund framework works correctly within the context of the special scheme arrangements.