HMRC have made SI 2023/68 – The Value Added Tax (Margin Schemes and Removal or Export of Goods: VAT-related Payments) Order 2023.
The instrument introduces a VAT-related payment scheme (“the scheme”) which will apply to second-hand motor vehicles and which will come into effect from 1 May 2023.
Under the Northern Ireland Protocol, the VAT second-hand margin schemes are not available for sales of goods in Northern Ireland if they were purchased in Great Britain or the Isle of Man. Consequently, motor vehicle dealers in Northern Ireland must account for VAT on the full value of sales of these vehicles rather than only on the profit margin.
The scheme enables businesses removing or exporting used motor vehicles from Great Britain or the Isle of Man to Northern Ireland or the European Union (EU) for resale to claim a VAT-related payment from HMRC, generally equivalent to VAT on the price they paid for the vehicle or the value of the vehicle at the time of removal or export. It therefore puts affected Northern Ireland dealers in a comparable financial position to their counterparts in the rest of the UK.
https://www.legislation.gov.uk/uksi/2023/68/contents/made
Related content from Claritax Books
Value Added Tax, written by Ciaran McGee MA (Oxon), FCA, CTA, is an extensive volume (over 1,000 pages), written primarily for non-VAT specialist accountants and tax advisers.
