BB/11F/03 VAT—schools run by local authoritiesBusiness Brief, Issue 11. 25 July 2003The VAT and Duties Tribunal has found in the case of The City of London Corporation (LON/98/913) that the Corporation is not in business when running three fee-paying schools. This Business Brief article explains Customs' position following that decision.BackgroundLocal government bodies do not act in a business capacity when they engage in activities as public authorities, provided that this does not lead to any significant distortion of competition. Such activities, which can include the provision of education, are outside the scope of VAT.Local authorities recover the VAT incurred
Business Brief, Issue 11. 25 July 2003
The VAT and Duties Tribunal has found in the case of The City of London Corporation (LON/98/913) that the Corporation is not in business when running three fee-paying schools. This Business Brief article explains Customs' position following that decision.
Local government bodies do not act in a business capacity when they engage in activities as public authorities, provided that this does not lead to any significant distortion of competition. Such activities, which can include the provision of education, are outside the scope of VAT.
Local authorities recover the VAT incurred
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