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Explanatory note

Original text. Later amendments are not shown.

(This note is not part of the Order)

The Value Added Tax (Input Tax) Order 1992 (S.I. 1992/3222) (“the 1992 Order”) restricts recovery of Value Added Tax (“VAT”) charged on certain goods and services. Article 5 of that Order restricts recovery of tax charged on any goods or services used for the purposes of business entertainment. This Order amends the 1992 Order.

Article 2(2) of this Order amends article 5(1) of the 1992 Order to allow recovery of VAT charged on business entertainment for an overseas customer when it is of a kind and on a scale which is reasonable in all the circumstances.

Article 2(3) of this Order inserts a new article 5(4) into the 1992 Order to provide a definition of overseas customer.

A Tax Information and Impact Note covering this instrument will be published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.