Value Added Tax

HC Deb 08 November 1983 vol 48 cc91-2W

Mr. McCrindle

asked the Chancellor of the Exchequer if it is his intention to terminate the facility whereby

national tourist offices of foreign countries operating in the United Kingdom can reclaim value added tax; and if he will make a statement.

Mr. Hayhoe

Yes, in so far as such tourist offices operate in the United Kingdom without being in business here. Hitherto, registration for VAT has been allowed in such cases under the special provisions of zero rate schedule group 15 item 2 of the Value Added Tax Act 1983. In view of clear legal advice that such registrations are incorrect, the facility is being withdrawn from 1 January 1984. Tourist offices which make taxable supplies in the United Kingdom may of course continue to register for VAT normally, and reclaim the input tax which is attributable to those supplies.