Value Added Tax Act 1994 section 71

Exempt supplies (Schedule 9)

Section 71 modifies the VAT exemption rules for supplies of goods where input tax cannot be recovered, by extending those rules to cover acquisitions as well as supplies.

• Group 14 of Schedule 9 exempts from VAT certain supplies of goods on which input tax was not recoverable.
• This section extends the scope of that exemption so that it applies not only to supplies but also to acquisitions of goods.
• The modification affects the main exemption item, as well as several of the interpretive notes that define how the exemption operates.
• The practical effect is that where goods were acquired (not just supplied) without the right to recover input tax, any onward supply of those goods can also qualify for exemption under Group 14.