Section 116G — Value Added Tax Regulations 1995: Later increase in the full cost of goods

Later increase in the full cost of goods 116G Where a a supply of goods or services is made to a person or any of his predecessors in respect of any goods held or used for the purposes of a business (whether or not the goods have an economic life in relation to that person at that time);

b VAT is chargeable on that supply which is eligible (in whole or part) for credit under sections 25 and 26 of the Act or repayment under section 39 of the Act ;

and c by virtue of that supply, the full cost of the goods is greater than their full cost immediately before that supply, a new economic life shall, without prejudice to any other economic life having effect in relation to those goods, be treated as commencing in respect of them in accordance with regulation 116C as if they had been supplied, acquired or imported at the time when the supply of goods or services is made.