Finance (No. 2) Act 1992

Credit for input tax against output tax

15 (1) In subsection (1) of section 14 (credit for input tax against output tax), after “him” there shall be inserted “and in respect of the acquisition by him from other member States of any goods”.

(2) In subsection (3) of that section (meaning of “input tax” and “output tax”)—

(a) after paragraph (a) there shall be inserted the following paragraph—

“(aa) tax on the acquisition by him from another member State of any goods; and”;

(b) in paragraph (b), after “goods” there shall be inserted “from a place outside the member States”;

(c) for “either” there shall be substituted “each”; and

(d) at the end there shall be inserted “or on the acquisition by him from another member State of goods (including tax which is also to be counted as input tax by virtue of paragraph (aa) above).”

(3) In subsection (3A) of that section (goods used by company for domestic purposes of a director etc.), for the words “supplied to, or imported by, a company” there shall be substituted “are supplied to a company, goods are acquired by a company from another member State or goods are imported by a company from a place outside the member States and the goods or services which are so supplied, acquired or imported”.

(4) In subsection (4) of that section (apportionment of tax to input tax)—

(a) for “or goods imported by him” there shall be substituted “goods acquired by a taxable person from another member State or goods imported by a taxable person from a place outside the member States”; and

(b) after “supplies” there shall be inserted “acquisitions”.

(5) In subsection (9) of that section (regulations as to credits for input tax)—

(a) in paragraph (a), for “or paid or payable by him on the importation of goods” there shall be substituted “tax on the acquisition of goods by a taxable person from other member States and tax paid or payable by a taxable person on the importation of goods from places outside the member States”;

(b) in paragraph (b)—

(i) for “or paid by him on the importation of goods” there shall be substituted “or on the acquisition of goods by him from another member State or paid by him on the importation of goods from places outside the member States”; and

(ii) after the word “supply”, in the second place where it occurs, there shall be inserted “acquisition”;

and

(c) in paragraph (c), for “or importation of goods acquired for it before its incorporation” there shall be substituted “acquisition or importation of goods before the company’s incorporation for appropriation to the company or its business”.

(6) In subsection (10) of that section (exclusions by Treasury order)—

(a) after “supplies” there shall be inserted “acquisitions”;

(b) in paragraph (a), after the word “goods”, in the second place where it occurs, there shall be inserted “acquired or”; and

(c) after the word “supplied”, in the second and fourth places where it occurs in that paragraph, there shall be inserted “acquired”.

16 (1) In subsection (1) of section 15 (input tax allowable as a credit), after the word “supplies”, in the first place where it occurs, there shall be inserted “acquisitions”.

(2) In subsection (2) of that section, after paragraph (b) there shall be inserted the following paragraph—

“(ba) such other supplies outside the United Kingdom and such exempt supplies as the Treasury may by order specify for the purposes of this subsection.”