VAT treatment

The following services are exempt from VAT:

1. •

   the disposal of the remains of the dead

2. •

   making arrangements connected with the disposal of the dead

3. •

   services of one undertaker to another in connection with a specific funeral or cremation

VATA 1994, s 31; VATA 1994, Sch 9, Pt II, Group 8, items 1 and 2; VBURC1000; De Voil Indirect Tax Service V4.151; HMRC Notice 701/32

The VAT exemption only applies to the disposal of human remains. Disposal includes, burial, cremation or disposal at sea. This was confirmed in the tribunal case UFD Ltd.

The burial or cremation of an animal is liable to VAT at the standard rate.

The exemption under VATA 1994, Sch 9, Pt II, Group 1 (land) applies to the provision of grave space and the right to place an urn in a niche, etc.

Funeral directors and