What power does section 82 of the Value Added Tax Act 1994 give HMRC regarding EU territories?

Section 82 gives HMRC the power to make regulations that include or exclude specific territories from the definition of the European Union or its member States for any VAT purpose. This means HMRC can treat a territory as inside or outside the EU for VAT regardless of its political status.

What happens when HMRC treats a territory as excluded from the EU under section 82?

When HMRC excludes a territory from the EU definition under section 82, it may extend customs and excise legislation to cover goods moving to or from that territory. This ensures appropriate import and export controls apply, with HMRC empowered to adapt provisions and make modifications to fit the particular circumstances.

What does customs and excise legislation cover under section 82 of VATA 1994?

Customs and excise legislation under section 82 covers any law relating to the importation or exportation of goods, or movements of goods between Northern Ireland and Great Britain. This includes matters classified as assigned matters under the Customs and Excise Management Act, the framework governing UK customs procedures.

How does section 82 affect a UK business shipping goods to a territory excluded from the EU VAT area?

Where HMRC has made regulations treating a territory as excluded from the EU for VAT purposes, supplies to that territory are treated similarly to exports outside the EU rather than intra-EU movements. Modified customs and excise rules govern declarations and any duties, ensuring appropriate controls despite the territory's unique status.

Value Added Tax Act 1994 section 82

Territories included in references to member States etc.

Section 82 gives HMRC the power to make regulations that adjust which territories are treated as being inside or outside the European Union and its member States for VAT purposes, and to apply customs and excise rules where territories are excluded.

HMRC may make regulations to include or exclude specific territories from the definition of the EU or its member States for any VAT purpose.
Where a territory is treated as excluded from the EU, HMRC may apply relevant customs and excise legislation with any necessary modifications.
Customs and excise legislation covers any laws relating to the importation or exportation of goods, or movements of goods between Northern Ireland and Great Britain.
The term "assigned matter" takes the same meaning as in the Customs and Excise Management Act.

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