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/specified supplies

Regulations, sometimes 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 used, or to be used, in that way (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.  

    •     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 (finance), items 1–6 and 8, the following supplies (other than supplies of investment gold (see V3.464B)3:

  3.  
    1.  

      –     services supplied to a person who belongs outside the UK

    2.  

      –     services which are directly linked to the export of goods to a place outside the UK

    3.  

      –     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)

From 1 March 2019, the out of country rules ceased to apply to supplies which are, or would have been, exempt if made in the UK under VATA 1994,

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