Section 5B — Value Added Tax Act 1994: Supplies of goods in Northern Ireland facilitated by online marketplaces: deemed supply

Supplies of goods in Northern Ireland facilitated by online marketplaces: deemed supply 5B 1 This section applies where—

a a person (“P”) makes a taxable supply of goods in the course or furtherance of a business to another person (“R”),

b the supply is facilitated by an online marketplace, and c either the special scheme condition or the Union goods condition is met.

2 For the purposes of this Act—

a P is to be treated as having supplied the goods to the operator of the online marketplace, and b the operator is to be treated as having supplied the goods to R in the course or furtherance of a business carried on by the operator.

3 The special scheme condition is met where—

a R belongs in Northern Ireland and is not a taxable person, b the supply is a qualifying supply of goods within the meaning of Schedule 9ZE, and c the operator of the online marketplace is a participant in a special scheme within the meaning of that Schedule.

4 But the special scheme condition is not met where—

a P is established in the United Kingdom, and b the supply involves the removal of goods from Great Britain or the Isle of Man to Northern Ireland.

5 The Union goods condition is met where—

a P is not established in Northern Ireland or a member State, b R either—

i belongs in Northern Ireland and is not a taxable person, or ii belongs in a member State and is not liable or entitled to be registered for VAT in accordance with the law of that member State, and c the supply is a supply of Union goods that are located in Northern Ireland at the time they are supplied.

6 But the Union goods condition is not met where—

a P is established in Great Britain or the Isle of Man , and b R belongs in Northern Ireland.

7 In this section, “ Union goods ” has the same meaning as in Regulation (EU) 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (see Article 5(23) of that Regulation).