V2.108 Central and local government
This paragraph examines provisions which provide that central and local government bodies are generally not to be treated as taxable persons for VAT purposes.
Central and local government as taxable persons
VATA 1994, s 41A provides that where goods or services are supplied by a public authority, the supply will not be treated as a supply in the course or furtherance of business for VAT purposes where all of the following apply:
- Ìý
•ÌýÌýÌýÌý the public authority supplies the goods or services in the course of activities or transactions in which it is engaged as a public authority
- Ìý
•ÌýÌýÌýÌý not charging VAT on the supply would not lead to a significant distortion of competition
- Ìý
•ÌýÌýÌýÌý the activity does not fall within a specified class of activities (or it does but is on such small scale as to be negligible)
The UK legislation was derived from Archived Directive 2006/112/EC, art 13 which similarly provided that states, regional and local government authorities, and other bodies governed
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