Commentary

V3.464 Attribution in other circumstances

Part V3 Supplies, acquisitions and imports

V3.464 Attribution in other circumstances

V3.464 Attribution in other circumstances

“Out of country” rules

Regulations, commonly known as the “out of country rules”, made under VATA 1994 s 26(2) provide that input tax incurred in any prescribed accounting period on goods and services used or to be used wholly or partly in making the following supplies is attributed to taxable supplies to the extent that the goods or services are so used or to be used (expressed as a proportion of the whole use or intended use)1:

  1.  

    •     supplies outside the UK which, if made in the UK, would be taxable supplies2;

  2.  

    •     the following supplies (other than supplies of investment gold, for which see V3.464B)3:

  3.  
    1.  

      (a)     services supplied to a person who belongs outside the member states

    2.  

      (b)     services which are directly linked to the export of goods to a place outside the member states

    3.  

      (c)     intermediary services within the meaning of VATA 1994 Sch 9 Group 2 item 4 (insurance brokers and agents4, subject to restrictions from 1 March 2019 – see below) or VATA 1994 Group 9 Group 5 item 5 (intermediary services relating to finance5)

  4.  

    provided the supplies are exempt, or would have been exempt if made in the UK, under any item of VATA 1994 Sch 9 Group 2 (insurance) or VATA 1994 Sch 9 Group 5 items 1–6 and 8.

With effect from 1 March 2019, the out of country rules no longer apply to supplies which are, or would have been, exempt if made in the UK

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial