Commentary

V4.150 Exemption for health and welfare—welfare

Part V4 Exemption, zero-rating and reduced rates

V4.150 Exemption for health and welfare—welfare

V4.150 Exemption for health and welfare—welfare

VATA 1994, Sch 9, Group 7, item 9 (welfare services)

Services, and goods supplied in connection with those services, which are directly connected with the following matters are exempt1 when made by a 'specified body' (see 'Specified bodies' below):

  1.  

    •     providing care, treatment or instruction designed to promote the physical or mental welfare of elderly, sick, distressed or disabled persons2

  2.  

    •     providing care and protecting children and young persons3.

  3.  

    •     spiritual welfare provided by a religious institution as part of a course of instruction or retreat which, in either case, is not designed primarily to provide recreation or a holiday4

Exemption also extends to goods supplied in connection with welfare services. However it does not extend to the supply of accommodation or catering except where it is ancillary to the provision of care, treatment or instruction5.

Care, treatment or instruction for the elderly, sick, distressed or disabled persons

The tribunal has held that a charitable body providing a high quality of service, akin to that provided in a conventional hotel for cancer sufferers and their carers, fell within item 9. Exempt welfare services may extend to accommodation and catering6. The tribunal has also held that where a housing association, which was accepted as being a charity, supplied 'home help' services to 90 elderly clients under a contract with the local District Council, the relevant supplies qualified for exemption7. However, the provision of hostels for the homeless on a commercial basis was held not to fall within the

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