How does Schedule 9ZC Part 1 affect goods entering the UK through Northern Ireland for VAT purposes?

Paragraph 1 provides that goods entering the United Kingdom through Northern Ireland, or moved from Northern Ireland to Great Britain, are not treated as imported for the purposes of the imported consignment condition, place of supply rules, and reverse charge rules. An exception applies where goods are supplied from an EU member state to Great Britain via Northern Ireland under Schedule 9ZB.

When is an online marketplace operator treated as the deemed supplier under section 5B for Northern Ireland?

Under section 5B introduced by paragraph 1B, when a person makes a taxable supply through an online marketplace and either the special scheme condition or the Union goods condition is met, the marketplace operator is treated as the supplier to the customer. The operator must then account for VAT on the transaction, with the time of supply being when payment is accepted.

Who is treated as the importer for low-value consignments entering Northern Ireland?

Paragraph 4 provides that for consignments with an intrinsic value of £135 or less entering Northern Ireland that do not contain excise goods, the online marketplace operator is treated as the importer where the supply is facilitated through a marketplace. Otherwise, the overseas supplier is treated as the importer. The recipient must not be VAT-registered or must not have provided their registration number.

What happens when an overseas seller moves goods between Northern Ireland and Great Britain through an online marketplace?

Under paragraph 4A, the marketplace operator is treated as the importer when goods move between Northern Ireland and Great Britain as part of a supply by a person established outside the United Kingdom facilitated through a marketplace. However, this does not apply if the recipient is VAT-registered, provides their number to the operator, and the operator passes details to the overseas supplier within seven days.

Value Added Tax Act 1994 Schedule 9ZC

Part 1 — Modification of this Act (paragraphs 1–4A)

Schedule 9ZC, Part 1 modifies various provisions of the VAT Act to address the special VAT treatment of goods entering or moving through Northern Ireland, including rules on when goods are treated as imports, deemed supplies through online marketplaces, record-keeping obligations, and who is treated as the importer in specific circumstances.

Goods entering Northern Ireland or moving from Northern Ireland to Great Britain are generally excluded from being treated as "imported" for certain VAT purposes, such as the imported consignment condition, place of supply rules, and the reverse charge on goods supplied from abroad
A new deemed supply provision (section 5B) treats online marketplace operators as the supplier where goods in Northern Ireland are supplied to non-taxable persons, provided either a special scheme condition or a Union goods condition is met
For low-value consignments (up to £135) imported into the UK via Northern Ireland, the online marketplace operator (where involved) or the overseas supplier is treated as the importer, subject to conditions about registration status and the nature of the goods
Where goods move between Northern Ireland and Great Britain as part of a supply by an overseas person facilitated by an online marketplace, the marketplace operator is generally treated as the importer unless the recipient is VAT-registered and shares their registration number within seven days

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