Value Added Tax Act 1994 section 34

Capital goods

Section 34 gives the Treasury the power to provide VAT relief on machinery or plant purchased or imported for business use, where the VAT cannot be recovered through the normal input tax credit mechanism.

• The Treasury may make orders granting relief from VAT on machinery or plant supplied or imported for business purposes
• Relief applies where the VAT paid cannot be credited as input tax under the normal rules in section 25
• The order may specify conditions, exceptions, and the extent of relief available
• Relief can be given by deduction or refund, and the order may set rules for aggregating or separating the value of similar goods supplied or imported together