Treasury written question – answered at on 20 March 2007.
To ask the Chancellor of the Exchequer
(1) what the legislative mechanisms are for making public bodies exempt from the payment of value added tax; and if he will make a statement;
(2) which public bodies have an exemption from the payment of value added tax; and if he will make a statement.
Public bodies pay VAT on their purchases in the same way as any other consumer or business. Under the principles of public funding, irrecoverable VAT costs, like other running costs, are taken into account when determining the funding allocated to those bodies. This is the way the VAT system has worked in relation to public bodies since its introduction in 1973.
Yes1 person thinks so
No0 people think not
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