Value Added Tax Act 1994 section 31B

Movement of own goods from Great Britain to Northern Ireland for non-business purposes

Section 31B treats certain movements of a person's own goods from Great Britain to Northern Ireland for non-business purposes as zero-rated taxable supplies, enabling the person to recover VAT that was previously blocked as non-business input tax.

• When a VAT-registered person moves goods from Great Britain to Northern Ireland for non-business (or mixed business and non-business) use, the movement is treated as a taxable supply made in the course of business — even though it is not genuinely a business transaction.
• The deemed supply is zero-rated, meaning no output VAT is due on it, but the person can potentially reclaim VAT previously incurred on the original purchase or importation of those goods that was blocked because it related to non-business activities.
• The provision only applies where the person was VAT-registered both when the goods were originally obtained and when they are moved, VAT was incurred on the original supply or importation, and the movement takes place within 12 months of the VAT liability arising.
• The rule does not apply where the movement already falls within paragraph 31A (business transfers to Northern Ireland) or where a charity's export qualifies for zero-rating under section 30(5).