Value Added Tax Act 1994 Schedule 3BA

Part 3 Union scheme: liability, returns, payment etc.

Schedule 3BA Part 3 sets out the obligations of businesses registered under the Union scheme regarding their liability to account for VAT charged on supplies made in other EU member states, including how to submit returns, make payments, and keep records.

• A business registered under the Union scheme must pay to HMRC the full amount of VAT due under the law of whichever member state the supply is made in.
• Quarterly returns must be submitted electronically in sterling within 20 days of the end of each quarter, using European Central Bank exchange rates from the last day of the reporting period for any currency conversion.
• Payment of the VAT due must be made by the same deadline as the return, and records must be kept for ten years and made available electronically.
• Any VAT collected by HMRC that is owed to another member state is ring-fenced and does not have to be paid into the UK Consolidated Fund.