Commentary

BB/4C/03 VAT—whether supplies of nursery and crèche facilities can be considered to be a business activity for VAT purposes

Part V16 Forms and other HMRC material

BB/4C/03 VAT—whether supplies of nursery and crèche facilities can be considered to be a business activity for VAT purposes

BB/4C/03 VAT—whether supplies of nursery and crèche facilities can be considered to be a business activity for VAT purposes

Business Brief, Issue 4. 27 May 2003

This article is issued to clarify Customs position on the business status of supplies of nursery and creche facilities, where those supplies are made by a charity. This issue has arisen as a result of the recent High Court case, Yarburgh Children's Trust (Part V10). Customs would like to make it clear that their current policy on what constitutes a business activity for VAT purposes has not altered as a result of the Yarburgh case. Customs shall continue to apply their established business test to the facts of a particular case and determine the business status of the supplies accordingly.

Yarburgh Children's Trust

The Yarburgh Children's Trust (“the Trust”) case concerned, in part, supplies of nursery facilities made by a community-based charity, Yarburgh Community Playgroup (“the Playgroup”). The Playgroup required new premises, and with the help of National Lottery funding, their current landlord (the Trust) undertook construction of a new nursery building. Such a supply is normally subject to VAT, however, there are provisions in UK law which allow

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