6.—(1) “Annual turnover” means the amounts derived from the provision of goods and services falling within the distributor’s ordinary activities, after deduction of—
(a)trade discounts,
(b)value added tax, and
(c)any other taxes based on the amounts so derived.
(2) “Financial year” means the period of twelve months for which the income of the distributor is computed for the purposes of the tax legislation that applies to it.
(3) “Preceding financial year” means the financial year immediately preceding the distributor’s current financial year.
(4) References to an amount in euros includes references to an equivalent amount in sterling, and the equivalent amount in sterling is calculated using the London closing exchange rate for sterling and the euro on the last day of the distributor’s preceding financial year.
(5) Paragraphs 2 to 5 and this paragraph apply in relation to the interpretation of the exemption in paragraph 1.