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'Out of country' rules/specified supplies

Regulations, sometimes known as the 'out of country rules', made under VATA 1994, s 26(2) provide that input tax incurred in any prescribed accounting period on goods and services used, or to be used, wholly or partly in making the following supplies is attributed to taxable supplies to the extent that the goods or services are used, or to be used, in that way (expressed as a proportion of the whole use or intended use)¹:

1. Ìý

   •ÌýÌýÌýÌý supplies outside the UK which, if made in the UK, would be taxable supplies²

2. Ìý

   •ÌýÌýÌýÌý provided the supplies are exempt, or would have been exempt, if made in the UK, under any item of VATA 1994, Sch 9, Group 2 (insurance) or VATA 1994, Sch 9, Group 5 (finance), Items 1–6 and 8, the following supplies (other than supplies of investment gold (see V3.464B)³:

3. Ìý
   1. Ìý

      –ÌýÌýÌýÌý services supplied to a person who belongs outside the UK

   2. Ìý

      –ÌýÌýÌýÌý services which are directly linked