The Value Added Tax Regulations 1995

Claims by taxable persons for amounts to be treated as credits for input tax

209.  —

(1) The amount referred to in section 54(4) of the Act and included in the consideration for any taxable supply which is made—

(a) in the course or furtherance of the relevant part of his business by a person who is for the time being certified under this part,

(b) at a time when that person is not a taxable person, and

(c) to a taxable person,

shall be treated, for the purpose of determining the entitlement of the person supplied to credit under sections 25 and 26 of the Act, as VAT on a supply to that person.

(2) Subject to paragraph (3) below and save as the Commissioners may otherwise allow or direct generally or specially, a taxable person claiming entitlement to a credit of an amount as is mentioned in paragraph (1) above shall do so on the return made by him for the prescribed accounting period in which the invoice specified in paragraph (3) below is issued by a certified person.

(3) A taxable person shall not be entitled to credit as is mentioned in paragraph (1) above unless there has been issued an invoice containing the following particulars—

(a) an identifying number,

(b) the name, address and certificate number of the certified person by whom the invoice is issued,

(c) the name and address of the person to whom the goods or services are supplied,

(d) the time of the supply,

(e) a description of the goods or services supplied,

(f) the consideration for the supply or, in the case of any increase or decrease in the consideration, the amount of that increase or decrease excluding the amount as is mentioned in paragraph (1) above, and

(g) the amount as is mentioned in paragraph (1) above which amount shall be entitled “Flat-rate Addition” or “FRA”.