# The Value Added Tax (Input Tax) (Person Supplied) Order 1991

S.I. 1991/2306 · made 17 October 1991

This Order, which comes into force on 1st December 1991, gives statutory effect to a long-standing administrative practice. The Order provides for road fuel bought by employees to be treated as being supplied to the employer where the employee is reimbursed by means of a mileage allowance or the actual amount paid. It will permit the same recovery of input tax in these cases as has previously been allowed under the arrangements of paragraph 16 of Appendix C of the VAT Guide.

Made under: Value Added Tax Act 1983 (repealed 1.9.1994) (Section 14)

## Introductory text

VALUE ADDED TAX
Made 17th October 1991
Laid before the House of Commons 24th October 1991
Coming into force 1st December 1991
The Treasury, in exercise of the powers conferred on them by section 14(3B) of the Value Added Tax Act 1983 and of all other powers enabling them in that behalf, hereby make the following Order:

## 1 

This Order may be cited as the Value Added Tax (Input Tax) (Person Supplied) Order 1991 and shall come into force on 1st December 1991.

## 2 

Article 3 below shall apply where road fuel is supplied to a person who is not a taxable person and a taxable person pays to him—
(a) the actual cost to him of the fuel; or
(b) an amount, the whole or part of which approximates to and is paid in order to reimburse him for the cost of the fuel, determined by reference to—
(i) the total distances travelled by the vehicle in which the fuel is used (whether or not including distances travelled otherwise than for the purposes of the business of the taxable person), and
(ii) the cylinder capacity of the vehicle, whether or not the taxable person makes any payment in order to reimburse him for any other cost.

## 3 

Where this article applies, the fuel shall be treated for the purpose of section 14(3) of the Value Added Tax Act 1983 as having been supplied to the taxable person for the purpose of a business carried on by him and for a consideration equal to the amount paid by him under article 2(a) or (b) above, as the case may be (excluding any reimbursement of any cost other than the cost of the fuel).

## Signature

Irvine Patnick
Gregory Knight
Two of the Lords Commissioners of Her Majesty’s Treasury
17th October 1991

## Explanatory note

(This note is not part of the Order)
This Order, which comes into force on 1st December 1991, gives statutory effect to a long-standing administrative practice. The Order provides for road fuel bought by employees to be treated as being supplied to the employer where the employee is reimbursed by means of a mileage allowance or the actual amount paid. It will permit the same recovery of input tax in these cases as has previously been allowed under the arrangements of paragraph 16 of Appendix C of the VAT Guide.

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Source: https://www.legislation.gov.uk/uksi/1991/2306 (the official version)
Page: https://openlegislation.uk/value-added-tax-input-tax-person-supplied-order-1991
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.