VATGPB3600 | Non-business activities: flowchart

Deciding if activities are business or non-business under S41A

Step 1

Is the supply from one Government Department to another? See list 1 from taxing direction

• If yes, go to step 2

• If no, go to step 3

Step 2

Is the supply included within list 2 of the taxing direction?

• If yes, it is a business supply

• If no, go to step 3

Step 3

Consider VBNB30200 to determine if the supply is business or non-business under the normal business test.

• If business, go to step 4

• If non-business then the following steps do not apply

Step 4

Is the person making the supply a ‘body governed by public law’? (See VATGPB2300)

• If yes, go to step 5

• If no, then the supply is business

Step 5

Is the activity engaged in as a ‘public authority’? (See VATGPB3200)

• If yes, go to step 6

• If no, then the supply is business

Step 6

Would non-business treatment lead to a significant distortion of competition? (See VATGPB3300)

• If yes, then the supply is business

• If no, go to step 7

Step 7

Is the activity included in Section 41A(2)? (See VATGPB3400)

• If yes, go to step 8

• If no, the supply is non-business under S41A

Step 8

Is the activity carried out on a negligible scale? (See VATGPB3330)

• If yes, the supply is non-business under S41A

• If no, then the supply is business