VAT Trade Unions and Professional Bodies

VTUPB1200 - Trade unions and professional bodies: Background and law: Trade union nature in EU law

This is particularly relevant for periods up to the UK leaving the EU and also explains how the UK continues to view these transactions.

Organisations or their representatives occasionally argued for exemption in reliance upon 바카라 사이트淎rticle 132(1)(l) of Directive 2006/112바카라 사이트� (formerly 바카라 사이트淎rticle 13.A.1(l)바카라 사이트� of the 바카라 사이트淪ixth VAT Directive바카라 사이트�, see VTUPB1100). They claimed the UK바카라 사이트檚 definition of a 바카라 사이트渢rade union바카라 사이트� was too narrow and that the article was intended to provide exemption for organisations that were similar to trade unions proper but which failed to meet the UK바카라 사이트檚 narrow definition of a trade union, for example because the members were employers rather than employees. The French text version of the article was cited in support of their contention because it used the term 바카라 사이트渟yndicale바카라 사이트�, which covers a much wider variety of organisations than trade unions as recognised in the UK.

You should reject this contention using the following reasoning:

• Although the UK is no longer part of the EU, we acknowledge that 바카라 사이트渟yndicale바카라 사이트� has a broader interpretation than the term 바카라 사이트渢rade union바카라 사이트�.
• 바카라 사이트淭rade unions바카라 사이트�바카라 사이트� functions are essentially to look after their members바카라 사이트� interests insofar as these are connected with their employments. They are therefore concerned with negotiating pay and other conditions of employment, representing their members바카라 사이트� interests in discussions with employers or the government, assisting members involved in legal disputes arising from their employment and similar matters.
• We therefore accepted that organisations that perform comparable functions but which are not 바카라 사이트渢rade unions바카라 사이트� proper were also entitled to exemption under the article and continue to be eligible to exemption under UK legislation.
• Prior to the UK leaving the EU we had implemented the article fully in respect of bodies of a 바카라 사이트渢rade union nature바카라 사이트� in 바카라 사이트淕roup 9바카라 사이트� because, although only 바카라 사이트渢rade unions바카라 사이트� proper are covered in 바카라 사이트淚tem 1(a)바카라 사이트�, 바카라 사이트淚tems 1(b)바카라 사이트� to 바카라 사이트�1(d)바카라 사이트� provide for exemption for other organisations which we considered perform functions broadly comparable to those of 바카라 사이트渢rade unions바카라 사이트� and were therefore meant to receive exemption under the article.

British Tenpin Bowling Association

A tribunal considered the scope of 바카라 사이트渢rade union nature바카라 사이트� / 바카라 사이트渟yndicale바카라 사이트� and the intention of 바카라 사이트淎rticle 13.A.1(l)바카라 사이트� in the case of 바카라 사이트淏ritish Tenpin Bowling Association (LON/87/404)바카라 사이트�.

The British Tenpin Bowling Association (BTBA) appealed against compulsory registration. BTBA was a non-profit-making organisation that had been established to promote and improve the sport of tenpin bowling. It received much of its income in the form of subscriptions from its members and Sports Council grants. Its first ground of appeal, that it was not caught by the 바카라 사이트渄eemed business바카라 사이트� provision in 바카라 사이트渟ection 47(2)(a)바카라 사이트� of the 바카라 사이트淰AT Act 1983바카라 사이트� (now section 바카라 사이트�94(2)(a)바카라 사이트� of the 바카라 사이트淰AT Act 1994바카라 사이트�) because it made no supplies to members, was rejected by the tribunal. However, BTBA argued in the alternative that its supplies were exempt because 바카라 사이트淎rticle 13.A.1(l)바카라 사이트� required exemption that the UK had failed to provide for in either 바카라 사이트淕roup 9바카라 사이트� or 바카라 사이트渟ection 47(3)바카라 사이트� of the 1983 Act (now 바카라 사이트渟ection 94(3)바카라 사이트� of the 바카라 사이트淰AT Act 1994바카라 사이트�).

바카라 사이트� Mr Kelsey drew our attention to the English translation of the text of that article and submitted that the concept of 바카라 사이트楾rade Union바카라 사이트� was too narrow a translation of the French 바카라 사이트榮yndicale바카라 사이트� which was wide enough to embrace the wider concept of Trade Associations such as Employers Associations and other Associations run on a non-profit-making basis.

The tribunal바카라 사이트檚 initial view was that it could not resolve the question without submitting the matter to the European Court for a preliminary opinion. However, the parties were given the opportunity to make further submissions before it made any such referral.

At the reconvened hearing, HMRC (previously Customs and Excise) gave evidence on the meaning of the text of the article in the French, German, Dutch, Danish, Italian, Spanish, Portuguese and Greek versions. We submitted that all the versions had to be considered and interpreted by reference to the purpose and general scheme of the 바카라 사이트淪ixth Directive바카라 사이트�. The tribunal concluded that this was the correct approach and that, when this approach was applied, the aim of the Directive was clearly not to exempt every organisation that acted in the collective interest of its members.

This Tribunal considers that the correct approach is to examine all the versions of Article 13.A.1(l) and to interpret them by reference to the purpose and the general scheme of the Sixth Directive. Adopting this approach we conclude that to limit the relevant part of the exemption to 바카라 사이트榯rade union바카라 사이트� ad (sic) defined by Section 28(1) of the Trade Union Labour Relations Act 1974 is too narrow in that it would appear to exclude other non profit making bodies acting in the collective interest of their members. We note however, that the provisions of item 1 of Group 9 of Schedule 6 to the Value Added Tax Act 1983 do in fact include other professional associations, although they are couched in terms too narrow to include the B.T.B.A.

This decision was used in support of our view that we had fully implemented 바카라 사이트淎rticle 13.A.1(l)바카라 사이트�, insofar as it related to bodies of a 바카라 사이트渢rade union nature바카라 사이트�, in 바카라 사이트淕roup 9바카라 사이트� of 바카라 사이트淪chedule 9바카라 사이트� to the 바카라 사이트淰AT Act 1994바카라 사이트�. Two additional passages of the tribunal바카라 사이트檚 decision that you may find of assistance are included in the summary of the BTBA case on the computerised tribunal index.

Institute of the Motor Industry

In 바카라 사이트淭he Institute of the Motor Industry (LON/96/224)바카라 사이트�, the Tribunal referred the question of the meaning of 바카라 사이트渢rade union nature바카라 사이트� to the European Court of Justice. The ECJ, in its judgement of 12 November 1998, ruled that an organisation of a trade union nature is 바카라 사이트�바카라 사이트� an organisation whose main object is to defend the collective interests of its members - whether they are workers, employers, independent professionals or traders carrying on a particular economic activity - and to represent them vis-a-vis the appropriate third parties, including the public authorities.바카라 사이트�