Amendment of the Value Added Tax Regulations 19955

In paragraph (1A) of regulation 102 (input tax and partial exemption: use of other methods)—

a

after sub-paragraph (b), omit “and”;

b

after sub-paragraph (c) insert—

d

may be based on sectors provided that the method reflects the use made of the goods and services in the business and each sector reflects—

i

the use made of the goods and services in that sector,

ii

the structure of the business, and

iii

the type of activity undertaken by that sector, and

e

must exclude the value of supplies made from an establishment situated outside the United Kingdom where the method is not based on sectors.