Value Added Tax Act 1994

[F1 41A Supply of goods or services by public bodies U.K.

(1) This section applies where goods or services are supplied by a [F2 public authority] in the course of activities or transactions in which it is engaged as a public authority.

[F3 (2) Unless the supply is on such a small scale as to be negligible, it is to be treated for the purposes of this Act as a supply in the course or furtherance of a business if it is in respect of any of the following activities—

(a) telecommunications services,

(b) supply of water, gas, electricity or thermal energy,

(c) transport of goods,

(d) port or airport services,

(e) passenger transport,

(f) supply of new goods manufactured for sale,

(g) engaging in transactions in respect of agricultural products in the exercise of regulatory functions,

(h) organisation of trade fairs or exhibitions,

(i) warehousing,

(j) activities of commercial publicity bodies,

(k) activities of travel agents,

(l) running of staff shops, cooperatives, industrial canteens, or similar institutions, or

(m) activities carried out by radio and television bodies which are of a commercial nature.]

(3) If the supply is not in respect of such an activity, it is to be treated for the purposes of this Act as a supply in the course or furtherance of a business if (and only if) not charging VAT on the supply would lead to a significant distortion of competition.

F4 (4)] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 S. 41A inserted (17.7.2012) by Finance Act 2012 (c. 14), s. 198(3)

F2 Words in s. 41A(1) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 45(2) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F3 S. 41A(2) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 45(3) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

F4 S. 41A(4) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 45(4) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)