2019 No. 408
The Value Added Tax (Input Tax) (Specified Supplies) (EU Exit) (No. 2) Regulations 2019
Made
Laid before the House of Commons
Coming into force in accordance with regulation 1
The Treasury make the following Regulations in exercise of the powers conferred by sections 51(1)(a) and 52(2) of the Taxation (Cross-border Trade) Act 20181.
In accordance with section 51(1)(a) of the Taxation (Cross-border Trade) Act 2018, the Treasury consider it appropriate in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the EU to make the following provisions in relation to value added tax.
The Treasury consider it appropriate in consequence of, or otherwise in connection with, the withdrawal of the United Kingdom from the EU for the following Regulations to come into force on such day or days as the Treasury may by regulations under section 52 of the Taxation (Cross-border Trade) 2018 Act appoint.
Citation, commencement and effect1
1
These Regulations may be cited as the Value Added Tax (Input Tax) (Specified Supplies) (EU Exit) (No. 2) Regulations 2019 and come into force on such day or days as the Treasury may by regulations under section 52 of the Taxation (Cross-border Trade) Act 2018 appoint.
2
The amendments made by these Regulations have effect in relation to supplies of services made on or after the day on which they come into force.
Amendment of the Value Added Tax Regulations 1995
2
Part 14 (input tax and partial exemption) of the Value Added Tax Regulations 19952 is amended as follows.
3
In regulation 102 (use of other methods), after paragraph (2) insert—
2A
Notwithstanding any provision of any method approved or directed to be used under this regulation which purports to have the contrary effect, where the method attributes input tax to exempt supplies specified by the Treasury in an order made under section 26(2)(c) of the Act—
a
no attribution is to be made in relation to any supplies that are made within the United Kingdom unless—
i
the supply is directly linked to the export of goods and the recipient of the goods is located outside the United Kingdom, or
ii
the supply is between a United Kingdom based intermediary and a United Kingdom based service provider and the recipient of any supply being arranged by the intermediary is located outside the United Kingdom, and
b
attribution may be made in relation to any supplies that are made within the European Union.
4
In regulation 103B (attribution of input tax incurred on services and related goods used to make financial supplies), in paragraph (3)(a) omit “and any supply of the same description which is made in another member State”.
Amendment of the Value Added Tax (Input Tax) (Specified Supplies) Order 1999
5
The Value Added Tax (Input Tax) (Specified Supplies) Order 19993 is amended as follows.
6
In article 3, in paragraphs (a) and (b) for “member States” substitute “United Kingdom”.
(This note is not part of the Regulations)