Value Added Tax Act 1994 Schedule 9ZF Part 1

Modifications of this Act (paragraphs 1–8A)

Schedule 9ZF Part 1 sets out how certain provisions of the VAT Act 1994 are modified to accommodate the One Stop Shop (OSS) scheme and the Import One Stop Shop (IOSS) scheme, ensuring that registration, assessments, penalties, overpayment claims, appeals and enforcement provisions work correctly for participants in these special accounting schemes.

• Being registered under the OSS or IOSS scheme does not, by itself, make a person a "taxable person" or count as being registered under the main VAT Act — so scheme-only registrants are kept separate from standard VAT-registered businesses.
• HMRC's powers to assess surcharges, penalties and interest are extended to cover defaults arising under the OSS and IOSS schemes, with references to "prescribed accounting periods" read as including the special "tax periods" defined in those schemes.
• Overpayment and repayment rules under section 80 are broadened so that UK VAT paid through the OSS or IOSS scheme can be credited or repaid, even where the person is not otherwise a taxable person, and HMRC may require security before making such repayments.
• VAT registration thresholds and cancellation rules are adjusted: for UK-established IOSS participants, qualifying goods treated as supplied in the UK count towards the registration threshold, and non-UK-established persons seeking OSS or IOSS registration may have their existing Schedule 1A registration cancelled.

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