View the related Tax Guidance about Intrastat
Margin scheme ― auctioneers
Margin scheme ― auctioneersThis guidance note provides an overview of a margin scheme that can be used by auctioneers. The auctioneers' scheme is a variation of the main VAT margin scheme used for secondhand goods (see the Margin schemes - overview guidance note for more detail). The margin scheme for auctioneers allows auctioneers to account for VAT based on the hammer price, rather than the sale price. The margin is calculated as follows:•adding to the hammer price the cost of the auctioneer's services charged to the buyer•deducting from the hammer price the cost of the auctioneer's services charged to the sellerVATA 1994, s 50A; VAT (Special Provisions) Order 1995, SI 1995/1268 (as amended); Value Added Tax (Cars) Order 1992, SI 1992/3122; VATA 1994, s 47(2A); De Voil Indirect Tax Service V3.533; VATMARG04000; VAT Notice 718/2This method of calculating the margin is generally appealing to auctioneers when compared with the usual VAT margin scheme, as it takes into account how auctioneers usually operate.This note should be read in conjunction with the following guidance notes:•Margin schemes - overview•Operating the margin scheme•Global Accounting margin scheme•Margin scheme ― agents and pawnbrokersAuctioneers’ margin scheme ― accounting for VATIf an auctioneer:•invoices in its own name•sells goods that are eligible to be sold under the margin scheme (see below for a definition of eligible goods)VATMARG04050then the auctioneer will be eligible to use the auctioneers margin scheme. The benefit of using the auctioneers’ margin scheme over other options, is
Brexit ― international movements of goods after the implementation period
Brexit ― international movements of goods after the implementation periodThis guidance note considers a number of issues associated with Brexit and the international movement of goods.For an overview of the impact of Brexit on VAT and customs more broadly, see the Brexit ― overview guidance note.Issues associated with Northern Ireland are covered in the Northern Ireland ― overview guidance note.For further in-depth commentary on the law, see De Voil Indirect Tax Service V1.301.What is the impact on customs and customs declarations?Under the terms of the Withdrawal Agreement agreed between the UK and the EU, Great Britain left the EU customs union.As Great Britain left the EU customs union, many businesses moving goods to or from the EU started to deal with customs declarations despite not being required to do so previously. Customs declarations are required irrespective of the fact that the UK negotiated tariff and quota-free trade with the EU for originating goods. As the completion of customs declarations can be complicated and requires a business to have compatible software, many businesses have chosen to appoint an agent to perform this for them. Declarations are generally required in respect of both goods entering the UK and goods leaving the UK. The situation is complicated for movements of goods involving Northern Ireland owing to its special status, for which see the Northern Ireland ― overview guidance note.Phased border controls and delaying declarationsBorder controls were phased in between 1 January 2021 and 31 December 2021 (extended from an original date of
Gold ― supplies of non-investment gold
Gold ― supplies of non-investment goldThis guidance note covers the VAT treatment of supplies of gold that are not covered in the Gold ― investment gold and gold coins guidance note. Businesses dealing in gold supplies that are not treated as investment gold firstly need to determine whether the supply is within the scope of UK VAT. The Flowchart ― is the supply of gold within the scope of UK VAT? should be used to determine whether the supply falls within the scope of UK VAT.What is the VAT treatment of supplies of non-investment gold?Supplies of non-investment gold are not exempt from VAT and if the supply is not zero-rated then it will be liable to VAT in the normal way. However, as an anti-avoidance measure to avoid VAT fraud, HMRC has introduced a special accounting scheme (gold scheme) to account for standard-rated supplies of gold. Under the scheme, where the relevant requirements are met, it is the customer rather than the supplier who is required to account for any VAT due on the supply. More details on the gold scheme are provided below.The VAT treatment of the most common supplies of non-investment gold are provided below.Zero-rated supplies of goldThe following supplies between central banks, and a central bank and a member of the London Bullion Market can be zero-rated:•gold, including investment gold, physically held in the UK•the right to acquire gold, including investment gold, physically held in the UK•the acquisition of part interest in gold,
Margin Scheme ― Northern Ireland and imports and exports
Margin Scheme ― Northern Ireland and imports and exportsThis guidance note sets out how the margin scheme should apply when a business operates in Northern Ireland, or there are cross-border movements of goods. This guidance note should be read in conjunction with the Operating the margin scheme guidance note.Northern IrelandEU transactionsFrom 1 January 2021 (IP completion day), the section below applies to goods acquired in Northern Ireland as it is still treated as a member of the EU in respect of supplies and movements of goods.All EU member states operate a margin scheme. Eligible goods sold under the scheme in any EU member state are taxable in the country of origin rather than of destination and are not subject to the normal distance selling rules. However, businesses acquiring goods in Northern Ireland can only use the margin scheme for the onward sale of the goods (excluding motor vehicles) in the following circumstances:Transaction TypeTreatmentMargin scheme treatmentGoods purchased from a private individual located in an EU member stateThe Norther Ireland purchaser does not need to account for any UK VAT on the purchase of the goods. The goods can be sold under the margin scheme if the conditions are satisfiedThe value of the goods should be converted into GBP and the transaction included in the purchaser’s margin scheme stock book. The resale should be treated as a margin scheme sale and no VAT should be chargedGoods purchased from an EU VAT-registered businessIf
Imports ― overview
Imports ― overviewThis guidance provides an overview of VAT and imports of goods into the UK.For information about the VAT rules in each EU country, please refer to the VAT in the EU guidance note.In-depth commentary on the legislation and case law on imports of goods can be found in De Voil Indirect Tax Service V3.301.What are the main VAT considerations when importing goods?There are a number of key VAT areas to consider when importing goods. The table below summarises many of these, and also links to more detailed guidance on each of these subjects:Area to considerDescriptionGuidancePlace of supply of goodsFor VAT purposes, it is very important to consider the ‘place of supply’ of a transaction, as only supplies made in the UK are subject to UK VAT (although note that import VAT can still be due in respect of non-UK supplies)Place of supply of goodsMeaning of importA business needs to know whether something is an import for VAT purposes or notImports ― meaning of import and VAT on importsImport VATIt will often be necessary to determine whether import VAT is due on goods brought into the UKImports ― meaning of import and VAT on importsPostponed accountingMost VAT-registered
A–Z of commonly used VAT terms
A–Z of commonly used VAT termsThe table below provides an A–Z list of commonly used VAT terms:VAT termDescriptionAcquisition taxBusinesses that are registered for VAT in the UK must account for acquisition tax on goods bought from VAT-registered suppliers in the EU if the goods are moved from the EU to Northern Ireland. See the Northern Ireland ― overview guidance noteAnti-avoidanceAnti-avoidance legislation is intended to address or prevent unfair VAT planning arrangements. See the Disclosure of tax avoidance schemes for VAT and other indirect taxes (DASVOIT) ― introduction guidance noteAssessmentsHMRC can issue an assessment if a VAT return is not submitted on time or if HMRC decides that there is an error in a VAT return. See the Assessments guidance noteAvoidanceAvoidance can refer to an arrangement that is intended to improve the VAT position of the business that participates in the arrangement, but which may be challenged by HMRC. See the Disclosure of tax avoidance schemes for VAT and other indirect taxes (DASVOIT) ― introduction guidance noteCapital goods scheme (CGS)The capital goods scheme is a mandatory method of adjusting the VAT recovered on certain assets. See the Capital goods scheme (CGS) ― overview guidance noteCapital goods scheme adjustment periodThe capital goods scheme adjustment period is the period of time during which the use of certain assets must be monitored. See the Capital goods scheme (CGS) ― intervals and adjustments guidance noteCapital itemCapital items are goods that are included within the scope of the
Northern Ireland ― Intrastat returns
Northern Ireland ― Intrastat returnsThis guidance note looks at Intrastat returns and when these need to be completed.For importing goods from outside the UK generally, see the Imports ― overview (rules from 1 January 2021) guidance note. For exports, see the Exporting goods from 1 January 2021 ― overview guidance note. For movements of goods and Northern Ireland, see the Northern Ireland ― overview guidance note.In-depth commentary on the legislation and case law can be found in De Voil Indirect Tax Service V5.276.What is Intrastat?Intrastat is (broadly) the system that is used to collect statistics on the trading of goods (not services) between countries that are members of the EU. Although the UK is no longer a member state of the EU, Intrastat obligations still continue in certain circumstances when goods are moved between the EU member states and Norther Ireland (see further below in this guidance note for the circumstances). Businesses breaching certain thresholds must record physical movements of goods between the UK and the EU on an Intrastat ‘Supplementary Declaration’ (SD). The supply of services is excluded from Intrastat. What are the Intrastat thresholds?Where ‘dispatches’ of goods to EU member states from Northern Ireland or ‘arrivals’ of goods from EU member states to Northern Ireland exceed a legally set threshold then there is a requirement to submit additional information in the form of a SD. The thresholds from 1 January 2022 are set out in the table below:Type of physical
Brexit ― other considerations for the end of the implementation period
Brexit ― other considerations for the end of the implementation periodThis guidance note considers a number of miscellaneous changes to VAT rules which arose at the end of the Brexit implementation period.Specifically it looks at:•cross-border refunds•statistical submissions like ESLs and Intrastat•tax representatives•changes to VAT liability of suppliesFor an overview of Brexit more broadly, see the Brexit ― overview guidance note.For further in-depth commentary on the law, see De Voil Indirect Tax Service V1.301.Impact on cross-border VAT refundsPrior to the end of the implementation period, the UK was part of an EU-wide cross-border refund scheme which allowed businesses to use their HMRC portal in order to claims VAT refunds of VAT incurred in EU member states. This is no longer an option for EU VAT incurred from 1 January 2021 and the portal is no longer available for UK businesses from 1 April 2021. Where the cross-border refund scheme is no longer available to UK businesses, they may nonetheless be able to claim a refund of VAT via the paper based 13th Directive Refund system (a similar scheme allowing businesses not established in the EU to make refund claims for VAT incurred in the member states). For details of this scheme, see the European Commission website. For EU traders seeking to claim refunds of UK VAT incurred after 1 January 2021, it is necessary to make a paper application (generally using form VAT 65A). In certain circumstances, businesses operating in Northern Ireland are still able to
Northern Ireland ― moving goods between NI and the rest of the world
Northern Ireland ― moving goods between NI and the rest of the worldThis guidance note looks at movements of goods between Northern Ireland and the rest of the world, including the EU.For an overview of the VAT status of Northern Ireland generally, see the Northern Ireland ― overview guidance note. For information about the VAT rules in each EU country please refer to the VAT in the EU guidance note.Further in-depth commentary on the law can be found in De Voil Indirect Tax Service V1.301 and V3.360.Northern Ireland is given special status under the terms of the Withdrawal Agreement under the Protocol on Ireland / Northern Ireland as described in the Northern Ireland ― overview guidance note.Moving goods from outside the UK and EU into Northern IrelandImports into Northern Ireland from outside the UK and the EU are in most cases treated the same from a VAT perspective as imports into Great Britain. Imports into Great Britain are covered in the Imports ― overview (rules from 1 January 2021) guidance note. Postponed accounting is available for these imports in much the same way it will be for goods imported by VAT registered businesses into Great Britain (see the Imports ― postponed accounting for import VAT guidance note). Special rules for imports in consignments of £135 or less apply to imports from outside the EU and UK into Northern Ireland (where the goods are located outside the UK at the point of sale). These rules are covered for Great Britain
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