Value Added Tax (Distance Selling and Miscellaneous Amendments No. 2) Regulations 2021 Customs Tariff (Establishment and Suspension of Import Duty) (EU Exit) (Amendment) (No. 2) Regulations 2021

James Murray Excerpts

Thursday 18th November 2021 General Committees

[James Murray (Ealing North) (Lab/Co-op)]

Thank you, Ms Rees, for the opportunity to respond on behalf of the Opposition as we consider the two statutory instruments.

The Value Added Tax (Distance Selling and Miscellaneous Amendments No. 2) Regulations 2021 amends certain provisions in the Value Added Tax Act 1994 relating to the application of VAT on goods in Northern Ireland, pursuant to the United Kingdom’s obligations under the Northern Ireland-EU protocol. The Opposition can see that this SI makes a minor correction and goes on to make amendments to provisions set out in the Finance Act 2021 relating to the application of two new VAT schemes in Northern Ireland.

The intra-community distance-selling OSS scheme and the IOSS scheme seek to simplify VAT accounting for the sale of goods direct to consumers by suppliers based in the EU and by suppliers who import goods into the EU for sale. Other amendments to the 1994 Act involve the rectification of minor errors, the removal of superfluous wording and edits to bring about consistency in terminology across the relevant schedules.

Finally, we see that this instrument makes amendments to confirm that certain references to Great Britain are also applicable to the Isle of Man. This addresses the issue and risk of double taxation of goods moved between the Isle of Man and Northern Ireland. The Opposition will, of course, not oppose this instrument, as it is important that regulations are clear, and it is right that these errors are corrected through the SI. For the sake of clarity, however, can the Financial Secretary set out what, if any, negative impact the legislation has had in its unamended state?

The Customs Tariff (Establishment and Suspension of Import Duty) (EU Exit) (Amendment) (No. 2) Regulations 2021 are made in relation to part 1 of the Taxation (Cross-border Trade) Act 2018 and seeks to amend the Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020 and the Customs Tariff (Establishment) (EU Exit) Regulations 2020. This second instrument we consider today amends the definition of

“Suspensions of Import Duty Rates Document”

in the Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020 to refer to a revised document: the “Tariff Suspension Document”.

The Customs Tariff (Establishment and Suspension of Import Duty) (EU Exit) (Amendment) (No. 2) Regulations 2021 goes on to amend a typographical error and revise the definition of

“Tariff of the United Kingdom”

to refer to another separately published document, which contained a number of errors and inconsistencies. We will not oppose this instrument, as it is important that tariffs are applied accurately and fairly and that the law concerning those tariffs is unambiguous and that its language is appropriate and accurate.

I have sat in Committees considering statutory instruments that sought to amend errors, and I dare say that I may again. Impact notes routinely describe a negligible impact arising from such amendments, but I am concerned that errors keep piling up. I would be grateful if the Financial Secretary could consider committing to a cumulative impact study of all these errors, perhaps to be reported when we inevitably next sit in this Committee room to correct further errors.