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VBNB11000 | VAT Business and Non-Business Basics: Introduction

From HM Revenue & Customs · VAT Business/Non-Business Manual

HMRC books of guidance such as the Business and non-business manual are the main reference material for people in the Department. All HMRC formal procedures and work systems are outlined in these books and they provide managers and staff with the department’s rules and guidelines and general advice on interpreting them.

The manual provides information and guidance to enable you to determine if an activity is business or non-business for VAT purposes and it covers the following areas:

  • business and non-business activities for VAT purposes

  • the relevant UK law

  • the relevant cases of law

  • the general approach in determining business and non-business activities

  • factors to consider when determining if an activity is business or not

  • methods of apportionment and approval of apportionment

Other Relevant Guidance

A broad understanding of the principles of VAT will help you to get the best from this manual. This guidance should be read together with:

Related public notices:

There may be other notices of relevance. All HMRC notices are on GOV.UK website.

Roles and responsibilities

Deductions and Financial Services Team is responsible for policy on business and non-business activities and for this manual.

How to get Advice

If you are seeking policy advice on a particular case you should submit either a General Advice Request (GAR) or a Technical Advice Request (TAR). Please go to our Getting Advice(link is external) pages for more information.

For people outside of HMRC that will like to get advice on their tax affairs please refer to the link below:

Also, if you feel that this guidance doesn’t explain how the law will apply to a specific situation, you can ask for a ‘clearance’. For more information, please click on the link below: