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

Statutory Instruments

1999 No. 3121

VALUE ADDED TAX

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

Made

19th November 1999

Laid before the House of Commons

22nd November 1999

Coming into force

1st January 2000

The Treasury, in exercise of the powers conferred on them by section 26(2)(c) of the Value Added Tax Act 1994M1 and of all other powers enabling them in that behalf, hereby make the following Order:

Marginal Citations

M1 1994 c. 23.

1.  This Order may be cited as the Value Added Tax (Input Tax) (Specified Supplies) Order 1999 and shall come into force on 1st January 2000 and shall have effect in relation to supplies made on or after that date.

2.  The supplies described in articles 3 [F1 , 3A] and 4 below are hereby specified for the purposes of section 26(2)(c) of the Value Added Tax Act 1994.

Textual Amendments

F1 Word in art. 2 inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Input Tax) (Specified Supplies) (Amendment) Order 2018 (S.I. 2018/1328), arts. 1(1), 3

3.  Services–

(a) which are supplied to a person who belongs outside the [F2 United Kingdom];

(b) which are directly linked to the export of goods to a place outside the [F3 United Kingdom]; or

(c) which consist of the provision of intermediary services within the meaning of item 4 of Group 2, or item 5 of Group 5, of Schedule 9 to the Value Added Tax Act 1994 in relation to any transaction specified in paragraph (a) or (b) above,

provided the supply is exempt, or would have been exempt if made in the United Kingdom, by virtue of any item of Group 2, or any of items 1 to 6 and item 8 of Group 5, of Schedule 9 to the Value Added Tax Act 1994.

Textual Amendments

F2 Words in art. 3(a) substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments, Northern Ireland Protocol and Savings and Transitional Provisions) (EU Exit) Regulations 2020 (S.I. 2020/1545), regs. 1, 92 (with regs. 109-131); S.I. 2020/1641, reg. 2, Sch.

F3 Words in art. 3(b) substituted (31.12.2020) by The Value Added Tax (Miscellaneous Amendments, Northern Ireland Protocol and Savings and Transitional Provisions) (EU Exit) Regulations 2020 (S.I. 2020/1545), regs. 1, 92 (with regs. 109-131); S.I. 2020/1641, reg. 2, Sch.

[F4 3A.   Any services that are included within article 3 above by virtue of the fact that the supply is exempt, or would have been exempt if made in the United Kingdom, by virtue of item 4 of Group 2 of Schedule 9 to the Value Added Tax Act 1994 must be related to an insurance transaction or a reinsurance transaction where the party to be insured under the contract of insurance or reinsurance (whether or not a contract of insurance or reinsurance is finally concluded) is a person who belongs outside the United Kingdom.]

Textual Amendments

F4 Art. 3A inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Value Added Tax (Input Tax) (Specified Supplies) (Amendment) Order 2018 (S.I. 2018/1328), arts. 1(1), 4

4.  Supplies made either in or outside the United Kingdom which fall, or would fall, within item 1 or 2 of Group 15 of Schedule 9 to the Value Added Tax Act 1994 (investment gold).

5.  The Value Added Tax (Input Tax) (Specified Supplies) Order 1992 M2 is hereby revoked.

Marginal Citations

M2 S.I. 1992/3123.

Bob Ainsworth

David Jamieson

Two of the Lords Commissioners of Her Majesty’s Treasury

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).