Section 55C — Value Added Tax Regulations 1995: Relevant supplies and purchases

Relevant supplies and purchases 55C 1 Subject to paragraphs (3) , (5) and (6) , any—

a supply of any goods or services to, b acquisition of any goods from another member State by, or c importation of any goods ... by, a flat-rate trader is a relevant purchase of his.

2 Subject to the following provisions of this regulation, any supply made by a person when he is not a flat-rate trader is not a relevant supply of his.

3 Subject to paragraphs (4) and (6) below, where—

a a supply is made to, or made by, a person at a time when he is not a flat-rate trader, and b the operative date for VAT accounting purposes is, by virtue of regulation 57 (cash accounting scheme), a date when he is a flat-rate trader, that supply is a relevant supply or a relevant purchase of his, as the case may be, if otherwise it would not be by virtue of paragraph (2) above.

4 Where a person—

a is entitled to any credit for input tax in respect of the supply to, or acquisition or importation by, him of capital expenditure goods, b claims any such credit, and c makes a supply of those capital expenditure goods, the supply made by him is not a relevant supply of his, if otherwise it would be.

5 Where by virtue of any provision of, or made under, the Act a supply is treated as made by a flat-rate trader, whether to himself or otherwise, that supply is neither a relevant supply nor a relevant purchase of his.

6 Where a supply of goods or services to which section 55A(6) of the Act applies (customers to account for tax on supplies of goods or services of a kind used in missing trader ... fraud) is made to, or made by, a flat rate trader, that supply is neither a relevant purchase nor a relevant supply of his.