Value Added Tax Act 1994 section 70

Zero-rating (Schedule 8)

Section 70 modifies the zero-rating rules for drugs, medicines, and certain motor vehicles (Group 12 of Schedule 8) so that they apply to goods acquired from EU member states under the Northern Ireland Protocol, in the same way as they apply to imports.

• The zero-rating provisions for drugs and related goods are extended to cover acquisitions from EU member states, not just imports from outside the UK.
• References to zero-rated supplies of eligible motor vehicles are widened to include "reckonable zero-rated acquisitions" from member states.
• A new defined term — "reckonable zero-rated acquisition" — is introduced, meaning an acquisition of a motor vehicle from a member state where Northern Ireland acquisition VAT is not chargeable because the vehicle qualifies for zero-rating.
• These changes ensure that the existing zero-rating reliefs for drugs and adapted motor vehicles work correctly for goods moving into Northern Ireland from the EU under the Windsor Framework arrangements.