VATGPB3400 | Non-business activities: Section 41A (3) of the VAT Act 1994

Section 41A(3) of the VAT Act 1994 lists the activities that will always be taxable when carried out by bodies governed by public law unless carried out on a negligible scale.

(1) Telecommunications;

(2) supply of water, gas, electricity and thermal energy;

(3) transport of goods;

(4) port and airport services;

(5) passenger transport

(6) supply of new goods manufactured for sale;

(7) transactions in respect of agricultural products, carried out by agricultural intervention agencies pursuant to Regulations on the common organisation of the market in those products;

(8) organisation of trade fairs and exhibitions;

(9) warehousing;

(10) activities of commercial publicity bodies;

(11) activities of travel agencies;

(12) running of staff shops, cooperatives and industrial canteens and similar institutions;

(13) activities carried out by radio and television bodies in so far as these are not exempt pursuant to Article 132(1)(q).

In reality, this restriction on has little practical effect as most public bodies do not generally engage in these activities anymore. Where they do, they are making supplies within the scope of VAT unless the scale of the activity is negligible.