Value Added Tax 1 These Regulations may be cited as the Value Added Tax (Amendment) Regulations 2010 and come into force on 1st April 2010. 2 The Value Added Tax Regulations 1995 are amended as follows. 3 In regulation 25A(12) (making of returns)— a in sub-paragraph (a) for “proved” substitute “presumed”, and b in sub-paragraph (b) omit “conclusively”. 4 In regulation 101(1) (attribution of input tax to taxable supplies), for “regulation 102 and 103A” substitute “regulations 102, 103A, 105A and 106ZA”. 5 In regulation 102(1) (use of other methods), for “and 103B” substitute “, 103B, 105A and 106ZA”. 6 Immediately before regulation 106, insert— 105A 1 Subject to regulation 106ZA(1), where, in relation to a taxable person, total input tax incurred less any input tax incurred on goods or services used or to be used exclusively in making taxable supplies— a in any prescribed accounting period, or b in any applicable longer period, does not amount to more than £625 per month on average, all input tax incurred in that period shall be treated as attributable to taxable supplies provided that the value of exempt supplies does not exceed one half of the value of all supplies. 2 In the application of paragraph (1) above to a longer period— a any treatment of input tax as attributable to taxable supplies in any prescribed accounting period shall be disregarded, and b the amount of input tax incurred on goods or services used or to be used exclusively in making taxable supplies must reflect any changes in use or intention during that period. 3 In this regulation— a “taxable supplies” includes supplies of a description falling within regulation 103, and b “exempt supplies” means any supplies that are not taxable supplies. . 7 In regulation 106(1) (treatment of input tax attributable to exempt supplies as being attributable to taxable supplies) for “Subject to regulation 106A” substitute “Where regulation 105A does not apply then, subject to regulations 106A and 106ZA(1)”. 8 After regulation 106, insert— 106ZA 1 A taxable person who— a was entitled to attribute his input tax to taxable supplies under regulation 105A(1)(b) or regulation 106(1)(b) in his immediately preceding longer period, and b does not expect to incur more than £1,000,000 input tax in his current longer period, may treat input tax incurred in each prescribed accounting period within his current longer period as attributable to taxable supplies, provided that he does so for all of the prescribed accounting periods that fall within that longer period. 2 For the purposes of this regulation in relation to a taxable person, “immediately preceding longer period” means the longer period applicable to that person which ends immediately before the longer period in which the prescribed accounting period in respect of which he is making the attribution under paragraph (1) above falls. . 9 In regulation 107(1) (adjustment of attribution)— a at the beginning, insert “Subject to regulation 105A(1)(b),”, b after “in accordance with a method”, insert “or treated an amount of input tax as attributable to taxable supplies under regulation 105A(1)(a) or regulation 106ZA(1)”, c in sub-paragraph (a), for “subparagraphs (b), (c) and (d) below” substitute “sub-paragraphs (b), (c), (d) and (da) below”, d after sub-paragraph (d), insert— da shall, where he has treated an amount of input tax as attributable to taxable supplies under regulation 105A(1)(a) or regulation 106ZA(1), determine for the longer period the amount of input tax that is attributable to taxable supplies in accordance with sub-paragraphs (a) to (d) above as appropriate, . Melanie Dawes Bernadette Kenny Two of the Commissioners for Her Majesty’s Revenue and Customs 2nd March 2010