The Value Added Tax Regulations 1995

Interpretation of Part XIV and longer periods U.K.

99.  —

(1) In this Part—

[F1 (a) [F2 “exempt input tax” means input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him in so far as they are used by him or are to be used by him, or a successor of his, in making exempt supplies, or supplies outside the United Kingdom which would be exempt if made in the United Kingdom, other than any input tax which is allowable under regulation [F3 101,] [F4 102,] [F5 103, 103A or 103B];

and “successor” in this paragraph has the same meaning as in regulation 107D;]

(b) “prescribed accounting period” means—

(i) a prescribed accounting period such as is referred to in regulation 25, or

(ii) a special accounting period, where the first prescribed accounting period would otherwise be 6 months or longer, save that this paragraph shall not apply where the reference to the prescribed accounting period is used solely in order to identify a particular return;

(c) “special accounting period” means each of a succession of periods of the same length as the next prescribed accounting period which does not exceed 3 months, and—

(i) the last such period shall end on the day before the commencement of that next prescribed accounting period, and

(ii) the first such period shall commence on the effective date of registration determined in accordance with Schedule 1 [F6 , [F7 1A,] [F8 3A, Part 8 or 9 of Schedule 9ZA or Schedule 9ZC]] to the Act and end on the day before the commencement of the second such period;

(d) the “tax year” of a taxable person means—

(i) the first period of 12 calendar months commencing on the first day of April, May or June, according to the prescribed accounting periods allocated to him, next following his effective date of registration determined in accordance with Schedule 1 [F6 , [F9 1A,] [F10 3A, Part 8 or 9 of Schedule 9ZA or Schedule 9ZC]] to the Act, or

(ii) any subsequent period of 12 calendar months commencing on the day following the end of his first, or any subsequent, tax year,

save that the Commissioners may approve or direct that a tax year shall be a period of other than 12 calendar months or that it shall commence on a date other than that determined in accordance with paragraph (i) or (ii) above;

(e) the “registration period” of a taxable person means the period commencing on his effective date of registration determined in accordance with Schedule 1 [F6 , [F11 1A,] [F12 3A, Part 8 or 9 of Schedule 9ZA or Schedule 9ZC]] to the Act and ending on the day before the commencement of his first tax year.

[F13 (1A) In this Part “non-business VAT” has the meaning given in section 24(5)(b) of the Act.]

(2) In this Part, any reference to goods or services shall be construed as including a reference to anything which is supplied by way of a supply of goods or a supply of services respectively.

(3) The provisions of paragraphs (4), (5), (6) and (7) below shall be used for determining the longer period applicable to taxable persons under this Part.

(4) A taxable person who incurs exempt input tax during any tax year shall have applied to him a longer period which shall correspond with that tax year unless he did not incur exempt input tax during his immediately preceding tax year or registration period, in which case his longer period shall—

(a) begin on the first day of the first prescribed accounting period in which he incurs exempt input tax, and

(b) end on the last day of that tax year,

except where he incurs exempt input tax only in the last prescribed accounting period of his tax year, in which case no longer period shall be applied to him in respect of that tax year.

(5) A taxable person who incurs exempt input tax during his registration period shall have applied to him a longer period which shall begin on the first day on which he incurs exempt input tax and end on the day before the commencement of his first tax year.

(6) In the case of a taxable person ceasing to be taxable during a longer period applicable to him, that longer period shall end on the day when he ceases to be taxable.

(7) The Commissioners may approve in the case of a taxable person who incurs exempt input tax, or a class of such persons, that a longer period shall apply which need not correspond with a tax year.]

Textual Amendments

F1 Reg. 99(1)(a) substituted (1.1.2000) by The Value Added Tax (Amendment) (No. 4) Regulations 1999 (S.I. 1999/3114), regs. 1, 6

F2 Reg. 99(1)(a) and words substituted (18.4.2002 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him on or after that date) by The Value Added Tax (Amendment) Regulations 2002 (S.I. 2002/1074), regs. 1, 3

F3 Word in reg. 99(1)(a) inserted (1.4.2009 in relation to input tax incurred by a taxable person on goods imported or acquired by, or goods or services supplied to, him on or after that date) by The Value Added Tax (Amendment) (No. 2) Regulations 2009 (S.I. 2009/820), regs. 1(1), 3 (with reg. 1(2))

F4 Word in reg. 99(1)(a) inserted (1.4.2007) by The Value Added Tax (Amendment) (No.2) Regulations 2007 (S.I. 2007/768), regs. 1, 6

F5 Words in reg. 99(1)(a) substituted (3.12.2004) by The Value Added Tax (Amendment) (No. 4) Regulations 2004 (S.I. 2004/3140), regs. 2(3), 9

F6 Words in reg. 99(1)(c)-(e) inserted (22.3.2000) by The Value Added Tax (Amendment) (No. 3) Regulations 2000 (S.I. 2000/794), regs. 1, 6

F7 Word in reg. 99(1)(c)(ii) and comma inserted (15.10.2012) by The Value Added Tax (Amendment) (No. 2) Regulations 2012 (S.I. 2012/1899), regs. 2(2), 16(a)

F8 Words in reg. 99(1)(c)(ii) substituted (1.8.2021) by The Value Added Tax (Amendment) (EU Exit) Regulations 2021 (S.I. 2021/715), regs. 1, 35

F9 Word in reg. 99(1)(d)(i) and comma inserted (15.10.2012) by The Value Added Tax (Amendment) (No. 2) Regulations 2012 (S.I. 2012/1899), regs. 2(2), 16(b)

F10 Words in reg. 99(1)(d)(i) substituted (1.8.2021) by The Value Added Tax (Amendment) (EU Exit) Regulations 2021 (S.I. 2021/715), regs. 1, 35

F11 Word in reg. 99(1)(e) and comma inserted (15.10.2012) by The Value Added Tax (Amendment) (No. 2) Regulations 2012 (S.I. 2012/1899), regs. 2(2), 16(c)

F12 Words in reg. 99(1)(e) substituted (1.8.2021) by The Value Added Tax (Amendment) (EU Exit) Regulations 2021 (S.I. 2021/715), regs. 1, 35

F13 Reg. 99(1A) inserted (1.1.2011) by The Value Added Tax (Amendment) (No. 4) Regulations 2010 (S.I. 2010/3022), regs. 1(1), 5

Commencement Information

I1 Reg. 99 in force at 20.10.1995, see reg. 1