VATGPB9310 | Government departments and health authorities: VAT law: UK law

Government Departments and health authorities, in common with section 33(3) bodies (see VATGPB4000), are bodies governed by public law (see VATGPB2000). As a result they are covered by the same UK law. This means that under Section 41A (see VATGPB2100) they are treated as non-taxable persons when they engage in activities as public authorities.

In situations where non-taxable treatment of activities would result in a significant distortion of competition they are treated as carried on by way of business (see VATGPB9330). Similarly non-taxable treatment is not available for those activities undertaken which are included in Section 41A(3) (see VATGPB3400).