Part III Application of Act in particular cases

41AF1Supply of goods or services by public bodies

1

This section applies where goods or services are supplied by a F2public authority in the course of activities or transactions in which it is engaged as a public authority.

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Unless the supply is on such a small scale as to be negligible, it is to be treated for the purposes of this Act as a supply in the course or furtherance of a business if it is in respect of any of the following activities—

a

telecommunications services,

b

supply of water, gas, electricity or thermal energy,

c

transport of goods,

d

port or airport services,

e

passenger transport,

f

supply of new goods manufactured for sale,

g

engaging in transactions in respect of agricultural products in the exercise of regulatory functions,

h

organisation of trade fairs or exhibitions,

i

warehousing,

j

activities of commercial publicity bodies,

k

activities of travel agents,

l

running of staff shops, cooperatives, industrial canteens, or similar institutions, or

m

activities carried out by radio and television bodies which are of a commercial nature.

3

If the supply is not in respect of such an activity, it is to be treated for the purposes of this Act as a supply in the course or furtherance of a business if (and only if) not charging VAT on the supply would lead to a significant distortion of competition.

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