Citation and commencement

1. This Order may be cited as the Value Added Tax (Input Tax) (Amendment) Order 2011 and comes into force on 1st May 2011.

Amendment to the Value Added Tax (Input Tax) Order 1992

2. —(1)The Value Added Tax (Input Tax) Order 1992( 2 ) is amended as follows.

(2) In article 5(1) after the words “for the purposes of business entertainment” insert “unless the entertainment is provided for an overseas customer of the taxable person and is of a kind and on a scale which is reasonable, having regard to all the circumstances”.

(3) After article 5(3) insert—

“ (4) For the purposes of this article “overseas customer”, in relation to a taxable person, means—

(a) any person who is not ordinarily resident nor carrying on a business in the United Kingdom or the Isle of Man and avails himself or herself, or may be expected to avail himself or herself, in the course of a business carried on by that person outside the United Kingdom and the Isle of Man, of any goods or services the supply of which forms part of the taxable person’s business; and

(b) any person who is not ordinarily resident in the United Kingdom or the Isle of Man and is acting, in relation to such goods or services, on behalf of an overseas customer as defined in paragraph (a) above or on behalf of any government or public authority outside the United Kingdom and the Isle of Man. ” .