Paragraph 1 F1
In this Schedule “NI acquisition VAT” means VAT charged by paragraph 1(3) of Schedule 9ZA to the Act.
NI acquisition VAT charged on the acquisition in Northern Ireland of such goods from a member State as are described in sub-paragraph (3) which are acquired by a taxable person in the circumstances described in sub-paragraph (4) is excluded from any credit under section 25 of the Act.
The goods referred to in sub-paragraph (2) are—
works of art, antiques and collectors' items, and
second-hand goods.
The circumstances of the acquisition from a member State referred to in sub-paragraph (2) are where—
the goods are acquired in connection with a supply which, by virtue of the law of the member State in which the supply took place, VAT was chargeable on the profit margin; and
if the goods are a work of art, they are acquired from a member State from its creator or the creator's successor in title.
Sub-paragraph (2) only excludes from credit NI acquisition VAT on an acquisition of goods by a taxable person in the circumstances set out in sub-paragraph (4)(b) if the taxable person—
has opted to account for VAT chargeable on the supplies of such goods on the profit margin in accordance with the provisions of an Order made under section 50A of the Act; and
has not elected, in accordance with such an Order, to account for VAT chargeable on the supply of the goods by reference to its value.