Regulation 6

Schedule 9ZF to VATA 1994 (modifications etc in connection with Schedules 9ZD and 9ZE) is amended as follows.

Omit paragraphs 3, 4 and 6.

In paragraph 11, in the inserted text—

After paragraph 11 insert—

“11A

Section 102^f10 (repayment interest on sums to be paid by HMRC) has effect as if after subsection (1) there were inserted—

“(1A)

This section also applies to an amount paid by a person to a person other than HMRC that is repaid by HMRC under—

(a)

paragraph 31(4) of Schedule 9ZD, or paragraph 25(4) of Schedule 9ZE, to VATA 1994;

(b)

section 36(2) of VATA 1994 by virtue of paragraph 34 of Schedule 9ZD, or paragraph 28 of Schedule 9ZE, to VATA 1994.”

11B

Part 2 of Schedule 54^f11 (repayment interest: special provision as to repayment interest start date) has effect as if after paragraph 12C there were inserted—

“Payments in connection with the OSS and IOSS schemes

12CA

(1)

This paragraph applies in the case of any payment (or repayment) under—

(a)

paragraph 31(4) of Schedule 9ZD, or paragraph 25(4) of Schedule 9ZE, to VATA 1994;

(b)

section 36(2) of VATA 1994 by virtue of paragraph 34 of Schedule 9ZD, or paragraph 28 of Schedule 9ZE, to VATA 1994.

(2)

The repayment interest start date is the later of—

(a)

the date (if any) on which the claim giving rise to the payment (or repayment) was required to be made, and

(b)

the date on which the claim was in fact made.”

11C

Part 2A of Schedule 54^f12 (repayment interest: VAT: special provision as to period for which amount carries interest) has effect as if—

(a)

at the beginning of paragraph 12D there were inserted “Subject to paragraph 12DA,”;

(b)

after paragraph 12D there were inserted—

“12DA

In this Part of this Schedule—

• “prescribed accounting period” also includes a tax period within the meanings of Schedules 9ZD and 9ZE to VATA 1994;

• “VAT credit” also includes a repayment to persons who are not taxable persons (within the meaning of VATA 1994) of an amount of VAT paid under and in accordance with Schedule 9ZD or 9ZE to that Act;

• “VAT return” also includes—

  1. (a)

     an OSS scheme return or a relevant non-UK return within the meaning of Schedule 9ZD to VATA 1994;

  2. (b)

     a relevant special scheme return within the meaning of Schedule 9ZE to VATA 1994.”

11D

Part 2 of Schedule 54A^f13 (further provision as to late payment interest and repayment interest: Value Added Tax) has effect as if—

(a)

at the beginning of paragraph 5 there were inserted “Subject to paragraph 5A”;

(b)

after paragraph 5 there were inserted—

“5A

In this Part of this Schedule—

• “prescribed accounting period” also includes a tax period within the meanings of Schedules 9ZD and 9ZE to VATA 1994;

• “VAT credit” also includes a repayment to persons who are not taxable persons (within the meaning of VATA 1994) of an amount of VAT paid under and in accordance with Schedule 9ZD or 9ZE to that Act.”.”.

Omit paragraph 12.

After paragraph 13 insert—

“Finance Act 2021^f14

13A

(1)

Schedule 26 to FA 2021 (penalties for failure to pay tax) has effect subject to the following modifications.

(2)

Paragraph 1(1)^f15 has effect as if in the table headed “Value added tax”, after item 1 there were inserted—

“

1A	Amount of UK VAT payable under paragraph 10(2) of Schedule 9ZD to VATA 1994	The date determined in accordance with paragraph 13(1) of Schedule 9ZD to VATA 1994 as the date by which the amount must be paid
1B	Amount of UK VAT payable under paragraph 10(2) of Schedule 9ZE to VATA 1994	The date determined in accordance with paragraph 13(1) of Schedule 9ZE to VATA 1994 as the date by which the amount must be paid
1C	Amount of UK VAT payable to the tax authorities for the administering member State f16 under a non-UK scheme in respect of scheme supplies treated as made in the United Kingdom	The date by which a non-UK return f17 relating to the amount must be submitted
1D	Amount of UK VAT payable to the tax authorities for the administering member State f18 under a special scheme in respect of qualifying supplies of goods treated as made in the United Kingdom	The date by which a special scheme return f19 relating to the amount must be submitted

”.

(3)

Paragraph 1(2) has effect as if—

(a)

the words from “annual” to the end became paragraph (a), and

(b)

after that paragraph there were inserted—

“(b)

terms used in entries 1A and 1C that are also used in Schedule 9ZD to VATA 1994 have the meanings given in that Schedule, and

(c)

terms used in entries 1B and 1D that are also used in Schedule 9ZE to VATA 1994 have the meanings given in that Schedule”.

(4)

Paragraph 3 has effect as if—

(a)

after sub-paragraph (2) there were inserted—

“(2A)

An assessment or determination is also made by HMRC in default of a return if it is made where—

(a)

a person is required to submit an OSS scheme return or a relevant non-UK return (within the meanings of Schedule 9ZD to VATA 1994) or a relevant special scheme return (within the meaning of Schedule 9ZE to VATA 1994),

(b)

that person fails to submit the return on or before the date by which it is required to be submitted, and

(c)

if the return had been submitted as required the return would have shown that an amount falling within item 1A, 1B, 1C or 1D of the table in paragraph 1 headed “Value added tax” was due and payable.”;

(b)

in sub-paragraph (3), after “(2)” there were inserted “or (2A)”.”.