PART 7Value added tax
197Exempt supplies
1
In Part 1 of Schedule 9 to VATA 1994 (index to exempt supplies of goods and services), at the appropriate place in the table insert—
Supplies of services by groups involving cost sharing
Group 16
2
In Part 2 of that Schedule (the groups), at the end insert—
GROUP 16 — SUPPLIES OF SERVICES BY GROUPS INVOLVING COST SHARING
1Item No
The supply of services by an independent group of persons where each of the following conditions is satisfied—
a
each of those persons is a person who is carrying on an activity (“the relevant activity”) which is exempt from VAT or in relation to which the person is not a taxable person within the meaning of Article 9 of Council Directive 2006/112/EC,
b
the supply of services is made for the purpose of rendering the members of the group the services directly necessary for the exercise of the relevant activity,
c
the group merely claims from its members exact reimbursement of their share of the joint expenses, and
d
the exemption of the supply is not likely to cause distortion of competition.
3
In section 31 of that Act (exempt supplies and acquisitions), after subsection (2) insert—
3
The Treasury may by regulations make an exemption of a group 16 supply of a description specified in the regulations subject to conditions.
4
Regulations under subsection (3) may—
a
make different provision for different cases, and
b
make consequential or transitional provision (including provision amending this Act).
5
In subsection (3) “group 16 supply” means a supply falling within Group 16 of Schedule 9.