Part III Application of Act in particular cases
41AF1Supply of goods or services by public bodies
1
This section applies where goods or services are supplied by a F3public authority in the course of activities or transactions in which it is engaged as a public authority.
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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.
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