The Value Added Tax (Subscriptions to Trade Unions, Professional and Other Public Interest Bodies) Order 1999

Explanatory Note

(This note is not part of the Order)

This Order introduces exemption from value added tax for supplies received for payment of membership subscriptions to non-profit making organisations with aims of a political, religious, patriotic, philosophical, philanthropic or civic nature with effect from 1st December 1999. It does this by amending Group 9 of Schedule 9 to the Value Added Tax Act 1994 (c. 23).

The amendments implement Article 13A.1(1) of Council Directive 77/388/EEC (O.J. L.145, 13.6.1977, P. 1) following the repeal of section 94(3) of the Act on 1st December 1999 by section 20 of the Finance Act 1999 (c. 16). Section 20 of the Finance Act 1999 will be brought into force by the Finance Act 1999, section 20, (Appointed Day) Order 1999 (S.I. 1999/2769 (C.68).

Article 3 of the Order amends the index to exempt supplies of goods and services contained in Part I of Schedule 9. This is by amendment to the description of Group 9 made by Article 4 of this Order and insertion of a description relating to Group 13 (Cultural Services) which was added to Schedule 9 by the VAT (Cultural Services) Order 1996 (S.I. 1996/1256).

Article 4 amends the description of Group 9 and item 1 of the Group so as to exempt the supplies mentioned in the first paragraph of this explanatory note.

Article 5 makes a consequential amendment to Group 12 of Schedule 9, which exempts fund-raising events by charities and other qualifying bodies including non-profit making organisations in Group 9. The amendment omits Note (3)(a) which refers to section 94(3) of the Act.