Section 41A — Value Added Tax Act 1994: Supply of goods or services by public bodies

Supply of goods or services by public bodies 41A 1 This section applies where goods or services are supplied by a public authority in the course of activities or transactions in which it is engaged as a public authority.

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. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .