Commentary

V3.614 Supplies of goods in Northern Ireland facilitated by online marketplace

Part V3 Supplies, acquisitions and imports

V3.614 Supplies of goods in Northern Ireland facilitated by online marketplace

V3.614 Supplies of goods in Northern Ireland facilitated by online marketplace

General rules

Under the general rule contained in VATA 1994, s 5A, there is a deemed supply of the goods from the supplier to the online marketplace and then a further deemed supply of the same goods by the online marketplace to the customer. These deemed supplies ensure that VAT is collected in the UK on supplies of goods that take place in the UK by a business that is not established in the UK.

The rule is subject to a number of conditions:

  1.  

    •     the supplier must make a taxable supply of the goods in the course or furtherance of a business to a customer

  2.  

    •     the supply must be facilitated by an online marketplace and

  3.  

    •     either:

  4.  
    1.  

      –     the 'imported consignment' condition is met or

    2.  

      –     the supply of the goods to the customer does not involve the goods being imported but the supplier is established outside the UK

The 'imported consignment' condition is met where:

  1.  

    •     the supply of the goods to the customer involves their importation

  2.  

    •     the intrinsic value of the consignment is not more than £135

  3.  

    •     the consignment does not contain excepted goods (goods subject to a duty of excise) and

  4.  

    •     is not a consignment in relation to which a postal operator established outside the UK has an obligation under an agreement with HMRC to pay any import VAT that is chargeable on the importation

However, there is no deemed supply of the

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