Value Added Tax Act 1994 section 50B

Margin schemes and export or removal of goods

Section 50B allows the Treasury to create a scheme under which businesses can claim a VAT-related payment when they buy goods in Great Britain or the Isle of Man and then remove them to Northern Ireland or export them, in circumstances where a margin scheme would have applied had the goods been resold domestically.

• The Treasury may, by order, entitle a person to claim a VAT-related payment when goods acquired in Great Britain or the Isle of Man are subsequently removed to Northern Ireland or exported, provided the person intended to resell them outside Great Britain and the Isle of Man as part of their business.
• The claim is available only where, had the goods not been removed or exported and had instead been resold in Great Britain, the person would have been eligible to use a margin scheme under section 50A — essentially replicating the VAT benefit that would have arisen on a domestic margin scheme sale.
• The VAT-related payment is calculated as the amount of VAT that would have been due had VAT been chargeable on the value of the supply at the time the goods were removed or exported, though the Treasury may set the payment at a lower amount.
• The Treasury's order may impose conditions on eligibility, set out claims procedures (including treating claims as VAT returns), require the use of UK-based agents, provide for interest payments, and apply existing VAT penalties and offences — and may make different rules for different situations, such as goods sent to different destinations.