The Value Added Tax (Input Tax) (Specified Supplies) Order 1999

Explanatory Note

(This note is not part of the Order)

This Order, which comes into force on 1st January 2000, replaces the Value Added Tax (Input Tax) (Specified Supplies) Order 1992 (S.I. 1992/3123). The Order is made under powers laid to the Treasury under Section 26(2)(c) of the Value Added Tax Act 1994. This 1999 Order updates the 1992 Order (which referred to the Value Added Tax Act 1983) and introduces new specified supplies in respect of investment gold.

The Order implements the right of deduction of input tax required by Article 17(3)(c) of Council Directive 77/388/EEC and the limited right of deduction required by Council Directive 98/80/EC, 12th October 1998—Special scheme for investment gold—amending Council Directive 77/388/EEC.

Article 2 specifies the supplies described in Articles 3 and 4 of the Order as supplies for which input tax credit is allowable for the purposes of Section 26(2)(c) of the Value Added Tax Act 1994.

Articles 3 and 4 set out the supplies to which the right to deduct input tax applies.

Article 3 covers supplies of services exempted under either Group 2 (Insurance) or items 1–6 and 8 of Group 5 (Finance) of Schedule 9 to the Value Added Tax Act 1994 when the supplies are made to persons belonging outside the member States or when they are directly linked to an export of goods to a place outside the member States.

Article 4 covers supplies falling within item 1 or 2 of Group 15 (investment gold) of Schedule 9 to the Value Added Tax Act 1994.

Article 5 revokes the Value Added Tax (Input Tax) (Specified Supplies) Order 1992 (S.I. 1992/3123).