Exemption ― supplies of goods where input tax cannot be recovered

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides an overview of the VAT treatment of sales of goods on whose purchase input tax was non-deductible.

VAT treatment

The supply of goods in relation to which input tax was non-deductible is exempt.

This provision came into effect from 1 March 2000 as a result of an CJEU ruling in EC Commission v Italian Republic.

The relevant legislation (see above link) states that a supply of goods in relation to which the following conditions are satisfied, is exempt:

a)
the person making the supply (‘the relevant supplier’), or any predecessor of his (ie where there has been a prior transfer of a going concern, or more than one such transfer), has incurred input tax on the goods

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Corporation Tax

What are connected companies for loan relationship purposes ― practical approach

What are connected companies for loan relationship purposes ― practical approachBrief overview of the rulesThe loan relationships legislation applies to any ‘money debt’ arising from the lending of money entered into by a company, either as a lender or borrower. The rules are contained in CTA 2009,

20 Apr 2021 16:00 | Produced by Tolley Read more

Value Added Tax

Exemption ― burial and cremation

Exemption ― burial and cremationThis guidance note provides an overview of the VAT treatment of services that are provided in connection with the burial or cremation of human remains.VAT treatmentThe following services are exempt from VAT:•the disposal of the remains of the dead•making arrangements

14 Jul 2020 11:38 | Produced by Tolley Read more

Corporation Tax

Temporary differences

Temporary differencesCalculation of temporary differencesThe temporary difference arising in respect of an asset or liability is calculated by comparing the carrying value of that asset or liability with its tax base.IAS 12 uses the concept of taxable or deductible temporary differences. Whether a

14 Jul 2020 13:49 | Produced by Tolley in association with Malcolm Greenbaum Read more

��Ƶ