[F1PART VIIAU.K.FLAT-RATE SCHEME FOR SMALL BUSINESSES

Textual Amendments

Relevant supplies and purchasesU.K.

55C.—(1) Subject to paragraphs (3) [F2, (5) and (6)], any—

(a)supply of any goods or services to,

(b)acquisition of any goods from another member State by, or

(c)importation of any goods F3... by,

a flat-rate trader is a relevant purchase of his.

(2) Subject to the following provisions of this regulation, any supply made by a person when he is not a flat-rate trader is not a relevant supply of his.

(3) Subject to [F4paragraphs (4) and (6)] below, where—

(a)a supply is made to, or made by, a person at a time when he is not a flat-rate trader, and

(b)the operative date for VAT accounting purposes is, by virtue of regulation 57 (cash accounting scheme), a date when he is a flat-rate trader,

that supply is a relevant supply or a relevant purchase of his, as the case may be, if otherwise it would not be by virtue of paragraph (2) above.

(4) Where a person—

(a)is entitled to any credit for input tax in respect of the supply to, or acquisition or importation by, him of capital expenditure goods,

(b)claims any such credit, and

(c)makes a supply of those capital expenditure goods,

the supply made by him is not a relevant supply of his, if otherwise it would be.

(5) Where by virtue of any provision of, or made under, the Act a supply is treated as made by a flat-rate trader, whether to himself or otherwise, that supply is neither a relevant supply nor a relevant purchase of his.

[F5(6) Where a supply of goods [F6or services] to which section 55A(6) of the Act applies (customers to account for tax on supplies of goods [F6or services] of a kind used in missing trader F7... fraud) is made to, or made by, a flat rate trader, that supply is neither a relevant purchase nor a relevant supply of his.]]

Textual Amendments