HMRC has published a notice under the secondary legislation (SI 2023/68) which establishes the VAT second-hand motor vehicle payment scheme for Northern Ireland with effect from 1 May 2023. Under the scheme, a VAT payment may be due to a business where it has bought second-hand vehicles in the UK and moved them to either Northern Ireland or the EU for resale – broadly mirroring the effect of the margin scheme that applies elsewhere in the UK.
For claims under the scheme by businesses that do not have an establishment in the UK (article 8 claims), the notice, which has the force of law, sets out the following:
the first prescribed period for claims will be for the 14 months from 1 May 2023 to 30 June 2024 inclusive and a maximum of five claims will be permitted during this period. Prescribed periods will subsequently be for 12 months, beginning on 1 July of each calendar year; and
the various details and documentation that will be required to accompany applications for appointing payment representatives, for making claims and for correcting overstated entitlements (ie amounts of VAT-related payments incorrectly claimed).
The notice also prescribes records which must be kept to substantiate claims both by businesses with an establishment in the UK (Article 7 claims, made via the VAT return) and other businesses (Article 8). Stock books, invoices, and documents that provide evidence of removal/export should be retained for a period of six years from the date of the claim to which they relate – although HMRC ‘may allow some records to be kept for a shorter period’.
HMRC has published a notice under the secondary legislation (SI 2023/68) which establishes the VAT second-hand motor vehicle payment scheme for Northern Ireland with effect from 1 May 2023. Under the scheme, a VAT payment may be due to a business where it has bought second-hand vehicles in the UK and moved them to either Northern Ireland or the EU for resale – broadly mirroring the effect of the margin scheme that applies elsewhere in the UK.
For claims under the scheme by businesses that do not have an establishment in the UK (article 8 claims), the notice, which has the force of law, sets out the following:
the first prescribed period for claims will be for the 14 months from 1 May 2023 to 30 June 2024 inclusive and a maximum of five claims will be permitted during this period. Prescribed periods will subsequently be for 12 months, beginning on 1 July of each calendar year; and
the various details and documentation that will be required to accompany applications for appointing payment representatives, for making claims and for correcting overstated entitlements (ie amounts of VAT-related payments incorrectly claimed).
The notice also prescribes records which must be kept to substantiate claims both by businesses with an establishment in the UK (Article 7 claims, made via the VAT return) and other businesses (Article 8). Stock books, invoices, and documents that provide evidence of removal/export should be retained for a period of six years from the date of the claim to which they relate – although HMRC ‘may allow some records to be kept for a shorter period’.
