Value Added Tax Act 1994 section 40A

Northern Ireland Protocol

Section 40A introduces a series of schedules that deal with how VAT applies to the movement of goods involving Northern Ireland following the UK's departure from the European Union, reflecting the special arrangements under the Northern Ireland Protocol.

• Six schedules (9ZA to 9ZF) set out detailed rules for VAT on goods moving between Northern Ireland and EU member states, between Northern Ireland and Great Britain, and on goods imported into the UK through Northern Ireland.
• Two special accounting schemes are established: the OSS scheme for distance sales from Northern Ireland to EU member states, and the IOSS scheme for supplies of imported goods to Northern Ireland or into the EU.
• Specific provisions address goods supplied by overseas sellers through online marketplaces and the importation of low-value goods, in line with the Ireland/Northern Ireland Protocol.
• The Treasury and HMRC are given regulation-making powers to amend the schedules relating to the special accounting schemes and to make further provision for the administration, collection and enforcement of VAT under those schemes.

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