Section 41A | Supply of goods or services by public bodies ^F1

(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.^F2

(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—^F3

(a)telecommunications services,^F3

(b)supply of water, gas, electricity or thermal energy,^F3

(c)transport of goods,^F3

(d)port or airport services,^F3

(e)passenger transport,^F3

(f)supply of new goods manufactured for sale,^F3

(g)engaging in transactions in respect of agricultural products in the exercise of regulatory functions,^F3

(h)organisation of trade fairs or exhibitions,^F3

(i)warehousing,^F3

(j)activities of commercial publicity bodies,^F3

(k)activities of travel agents,^F3

(l)running of staff shops, cooperatives, industrial canteens, or similar institutions, or^F3

(m)activities carried out by radio and television bodies which are of a commercial nature.^F3

(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(4)Repealed^F4