Regulation 29
Attribution of input tax to taxable supplies
of Goods and Services Tax (General) Regulations 1993
Subregulation 1
Subject to regulation 30, the amount of input tax which a taxable person is entitled to deduct provisionally is that amount which is attributable to taxable supplies in accordance with this regulation.
Subregulation 2
In respect of each prescribed accounting period —
goods imported by and goods or services supplied to the taxable person in the period must be identified;
there must be attributed to taxable supplies the whole of the input tax on such of those goods or services as are used or to be used by the taxable person exclusively in making non‑specified taxable supplies;
no part of the input tax on such of those goods or services as are used or to be used by the taxable person exclusively in making exempt supplies, or in carrying on any activity other than the making of non‑specified taxable supplies, is to be attributed to taxable supplies; and
(i)subject to sub‑paragraph (ii), there must be attributed to taxable supplies such proportion of the input tax on such of those goods or services as are used or to be used by the taxable person in making both non‑specified taxable supplies and exempt supplies as bears the same ratio to the total of such input tax as the value of non‑specified taxable supplies made by the taxable person bears to the value of all supplies (other than specified supplies) made by the taxable person in the period; and
where input tax is incurred on goods or services in the development of land and construction of a building as is used or to be used by the taxable person in making both taxable and exempt supplies, there must be attributed to taxable supplies such proportion of the input tax as bears the same ratio determined in accordance with the formula:where Ais the floor area of the part of that building under development or construction for which the competent authority under the Planning Act 1998 has granted provisional or written planning permission for a purpose other than a residential purpose;Bis the fixed rate for the time being specified in Part 1 of the Second Schedule to the Land Betterment Charge (Table of Rates and Valuation Method) Regulations 2022 corresponding to the appropriate geographical sector of the building and the use group within which such purpose falls;Cis the floor area of the part of that building under development or construction for which the competent authority under the Planning Act 1998 has granted provisional or written planning permission for residential purposes;Dis the rate for use group B1 or B2 for the time being specified in Part 1 of the Second Schedule to the Land Betterment Charge (Table of Rates and Valuation Method) Regulations 2022, corresponding to the purpose of the building under development or construction.
Subregulation 3
In calculating the proportion under paragraph (2)(d), there must be excluded any sum receivable by the taxable person in respect of any exempt supply referred to in paragraph 1 of Part 1 of the Fourth Schedule to the Act that is made by the taxable person, where such supply is incidental to one or more of the taxable person’s business activities.
Subregulation 4
In calculating the proportion under paragraph (2)(d), there must be excluded from the taxable supplies made by the taxable person mentioned in that provision, any prescribed supply or relevant supply of goods or services that the taxable person is required under section 38 or 38A of the Act to account for and pay tax on as customer.
Subregulation 5
The ratio calculated for the purpose of paragraph (2)(d) must be expressed as a percentage and, if that percentage is not a whole number, it must be rounded off to the nearest whole number.
Subregulation 6
In this regulation, “appropriate geographical sector” and “floor area” have the meanings given by the Land Betterment Charge (Table of Rates and Valuation Method) Regulations 2022.
Subregulation 7
Where the development of land or construction of building involves more than one use group specified in the First Schedule to the Land Betterment Charge (Table of Rates and Valuation Method) Regulations 2022, the Comptroller may determine the method for the application of the formula mentioned in paragraph (2)(d)(ii) to the appropriate use group.