Value Added Tax Act 1994 Schedule 3B

Part 2 Non-union scheme: liability, returns, payment etc.

Schedule 3B Part 2 sets out the rules for VAT liability, accounting returns, payment obligations and record-keeping requirements for businesses registered under the non-union VAT scheme.

• A person registered under the non-union scheme is liable to pay VAT on qualifying supplies, with no right to deduct input VAT, and must submit quarterly special accounting returns in sterling within 20 days of the period end
• Currency conversions must use the European Central Bank exchange rates published for the last day of the reporting period, and all returns must be submitted electronically
• Records of qualifying supply transactions must be kept for ten years, made available electronically on request to the relevant tax authorities or HMRC, and be sufficiently detailed to verify the accuracy of returns
• HMRC may request electronic records from a person making qualifying supplies in the UK who is identified under equivalent non-union scheme provisions in another EU member state, and any VAT receipts that must be forwarded to another member state are exempt from the normal requirement to pay into the Consolidated Fund