{
  "url": "https://openlegislation.uk/value-added-tax-act-1994/schedule-8/part-II/chapter-22/paragraph-1",
  "json_url": "https://openlegislation.uk/value-added-tax-act-1994/schedule-8/part-II/chapter-22/paragraph-1.json",
  "legislation": "ukpga/1994/23",
  "legislation_title": "Value Added Tax Act 1994",
  "legislation_url": "https://openlegislation.uk/value-added-tax-act-1994",
  "path": "schedule/8/part/II/chapter/22/paragraph/1",
  "kind": "paragraph",
  "number": "1",
  "heading": null,
  "text": "The supply by one free zone business (“A”) to another free zone business (“B”) of—\n(a) free zone procedure goods, if—\n(i) the supply of the goods would (apart from this provision) be taxable but not zero-rated, and\n(ii) A was authorised to make the supply;\n(b) a service wholly performed in the free zone on or in relation to free zone procedure goods by a person authorised to do so, if—\n(i) the supply of the service would (apart from this provision) be taxable but not zero-rated, and\n(ii) before a VAT invoice is issued in respect of the supply, B notifies A in writing that this provision applies to the supply.\nNOTES\n(1) “Free zone business” means a person who is—\n(a) authorised to declare goods for a free zone procedure or to carry out a free zone activity, and\n(b) registered under this Act or exempted from registration under paragraph 13 of Schedule 1A to this Act.\n(2) References to a person authorised to do a thing are references to a person authorised in accordance with the Special Procedures Regulations to do that thing.\n(3) “Special Procedures Regulations” means the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018.\n(4) “Free zone activity” and “free zone procedure” have the meanings given by the Special Procedures Regulations.\n(5) Goods are “free zone procedure goods” if they—\n(a) are subject to a free zone procedure, or\n(b) comprise goods within paragraph (a) that have been combined with domestic goods by a person authorised to do so.\n(6) “Domestic goods” has the meaning given by section 33 of the Taxation (Cross-border Trade) Act 2018.\n(7) “Free zone” means an area in the United Kingdom designated as a special area for customs purposes under section 100A of the Management Act.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. 8 Pt. 2 Group 9 item 1 substituted (6.4.2013) by Finance Act 2012 (c. 14), Sch. 26 paras. 4(2), 7(2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Sch. 8 Pt. 2 Group 19 Note (1)(d) inserted (1.1.2024) by The Value Added Tax (Women’s Sanitary Products: Reusable Underwear) Order 2023 (S.I. 2023/1341), arts. 1, 2"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Sch. 8 Pt. 2 Group 22 inserted (8.11.2021) by The Free Zones (Customs, Excise and Value Added Tax) Regulations 2021 (S.I. 2021/1156), regs. 1, 8(3)"
    }
  ],
  "outstanding_effects": [
    {
      "type": "words omitted",
      "affecting": "ukpga/2012/7",
      "affecting_title": "Health and Social Care Act 2012"
    },
    {
      "type": "words repealed",
      "affecting": "ukpga/2012/5",
      "affecting_title": "Welfare Reform Act 2012"
    },
    {
      "type": "words substituted",
      "affecting": "ukpga/2012/7",
      "affecting_title": "Health and Social Care Act 2012"
    },
    {
      "type": "words repealed",
      "affecting": "nisi/2015/2006",
      "affecting_title": "The Welfare Reform (Northern Ireland) Order 2015"
    },
    {
      "type": "substituted",
      "affecting": "uksi/2019/73",
      "affecting_title": "The Value Added Tax (Tour Operators) (Amendment) (EU Exit) Regulations 2019"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1994/23/schedule/8/part/II/chapter/22/paragraph/1",
    "retrieved_at": "2026-10-29T09:33:58.510022+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}