The Value Added Tax (General) (Amendment) (No. 5) Regulations 1993

8.  After regulation 36 there shall be inserted the following—

“36A.— (1) In this regulation and regulations 35 and 36 above—

(a) “exempt supplies” includes supplies outside the United Kingdom which would be exempt if made in the United Kingdom, other than supplies within sub-paragraph (b) below;

(b) “taxable supplies” includes the supplies referred to in regulation 32 above.

(2) Where—

(a) regulation 35 or 36 above applies;

(b) the use to which the goods or services concerned are put or to which they are intended to be put includes the making of any supplies outside the United Kingdom; and

(c) at the time when the taxable person was first required to attribute the input tax he was not required to use a method approved or directed under regulation 31 above or that method did not provide expressly for the attribution of input tax attributable to supplies outside the United Kingdom;

under regulation 35 or the amount which he is entitled to be paid under regulation 36, as the case may be, shall be calculated by reference to the extent to which the goods or services concerned are used or intended to be used in making taxable supplies, expressed as a proportion of the whole use or intended use.”.