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Exemption ― supplies of goods where input tax cannot be recovered


Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Exemption ― supplies of goods where input tax cannot be recovered


Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
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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:

  1. a)

    the person making the supply (‘the relevant supplier’), or any predecessor of his

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  • 25 Aug 2023 10:30

Home/ Tolley Tax Guidance/ Value Added Tax / Determining VAT liability

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