IMPS07300 - Onward supply relief (OSR): UK law
Article 143(d) is implemented in the UK by The VAT Regulations 1995
(SI1995/2518), Regulation 123 which states:
123(1) Subject to such conditions as the Commissioners may impose, the VAT chargeable on the importation of goods from a place outside the member States shall not be payable where-
(a) a taxable person makes a supply of goods which is to be zero-rated in accordance with sub-paragraphs (a)(i) and (ii), and (b) of section 30(8) of the Act,
(b) the goods so imported are the subject of that supply, and
(c) the Commissioners are satisfied that-
(i) the importer intends to remove the goods to another member State, and
(ii) the importer is importing the goods in the course of a supply by him of those goods in accordance with the provisions of sub-paragraphs (a)(i) and (ii), and (b) of section 30(8) of the Act and any Regulations made thereunder.
123(2) As a condition of granting the relief afforded by paragraph (1) above the Commissioners may require the deposit of security, the amount of which shall not exceed the amount of VAT chargeable on the importation.
123(3) The relief afforded by paragraph (1) above shall continue to apply provided that the importer-
(a) removes the goods to another member State within one month of the date of importation or within such longer period as the Commissioners may allow, and
(b) supplies the goods in accordance with sub-paragraphs (a)(i) and (ii), and (b) of section 30(8) of the Act and any Regulations made thereunder.
These and the additional conditions the Commissioners have imposed - under the power given to them by Regulation 123(1) and which therefore have the force of law as tertiary legislation - are in Notice 702/7 Import VAT relief for goods supplied onward to another country in the European Community.