Measure
Pending a relevant agreement with the EU, the government will legislate for the continuing use of the VAT margin scheme on sales of motor vehicles in Northern Ireland sourced from Great Britain, until such date that the second-hand motor vehicle export refund scheme is implemented.
Businesses buying motor vehicles for resale in Northern Ireland sourced in Great Britain that were first registered in the United Kingdom prior to 1 January 2021.
The measure will come into effect on a date to be appointed by HM Treasury, once the relevant agreement with the EU has been reached. This will have retrospective effect to the end of the transition period (11 p.m. on 31 December 2021).
We expect that this measure could mitigate the potential negative impacts on businesses trading second-hand vehicles in Northern Ireland by remedying changes to the VAT treatment of vehicles sourced from Great Britain. This measure should ensure that their liability for VAT is determined in the same way as it was before the end of the transition period.