{
  "url": "https://openlegislation.uk/value-added-tax-general-amendment-no-2-regulations-1987/note",
  "json_url": "https://openlegislation.uk/value-added-tax-general-amendment-no-2-regulations-1987/note.json",
  "legislation": "uksi/1987/510",
  "legislation_title": "The Value Added Tax (General) (Amendment) (No. 2) Regulations 1987",
  "legislation_url": "https://openlegislation.uk/value-added-tax-general-amendment-no-2-regulations-1987",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations delete Part V of the Value Added Tax (General) Regulations 1985 (the “principal Regulations”), and substitute a new Part V. The provisions reflect the requirements of Title XI of Council Directive No. 77/388/EEC (O.J. No. L145, 17.5.77, pp. 13—16).\nUnder regulation 1 these Regulations become effective on 1st April 1987.\nRegulation 2 amends Part V of the principal Regulations. This Part deals with the allowance of input tax and the rules governing partial exemption. The main amendments are:\nthe new regulation 29 defines the terms “exempt input tax” and “tax year”. The terms “first tax year” and “registration period” are introduced in order to define accurately the longer period in which newly registered persons may be required to make input tax adjustments;\nthe new regulation 30 prescribes the rules under which all taxable persons are required to attribute input tax to taxable supplies and in particular:\nregulation 30(1) prescribes the only method of attribution which may be used by taxable persons without the prior approval of the Commissioners\nregulation 30(2) allows the Commissioners to authorise the use by taxable persons of a pro rata calculation based on output values to determine the deductible proportion of their non-attributable input tax\nregulation 30(3) imposes conditions on the use of the pro rata calculation under regulation 30(2)\nregulation 30(4) authorises the Commissioners to direct the manner in which use of importations and supplies is to be ascertained in determining the deductible proportion of non-attributable input tax under the method described in regulation 30(1)\nregulation 30(5) authorises the Commissioners to permit the use of special methods for determining the deductible proportion of input tax;\nthe new regulation 30A provides for input tax which is attributable to certain supplies made outside the United Kingdon and supplies of goods in warehouse to be treated as attributable to taxable supplies;\nthe new regulation 31(1) lists certain exempt supplies to which input tax may be attributed as if they were taxable supplies;\nthe new regulation 31(2) lists businesses which cannot benefit from the provisions of regulation 31(1);\nthe new regulation 32 introduces new input tax based de minimis rules;\nthe new regulation 33 provides for adjustment of provisionally attributed input tax;\nthe new regulations 34 and 35 provide for adjustments where input tax has been attributed to a future taxable supply that is replaced by an exempt supply or vice versa;\nthe new regulation 36 covers the duration of use of a method and empowers the Commissioners to terminate methods or approvals from a specified future date;\nthe new regulation 37 provides for exceptional claims for tax relief.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1987/510/note",
    "retrieved_at": "2026-10-29T16:29:14.751186+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}