VAT Trade Unions and Professional Bodies

VTUPB1300 - Trade unions and professional bodies: Background and law: UK law - history of the exemption group

Prior to 1 January 1978, the 바카라 사이트渄eemed business바카라 사이트� provision applicable to clubs and associations was to be found in 바카라 사이트渟ection 45바카라 사이트� of the 바카라 사이트淔inance Act 1972바카라 사이트�. Under 바카라 사이트渟ub-section (2)바카라 사이트� of that section there were

• exceptions for trade unions, that were outside the scope of VAT, and
• exceptions for trade / professional / vocational associations, which had the option of being treated as taxable or outside the scope.

When 바카라 사이트淎rticle 13.A.1(l) of the Sixth Directive바카라 사이트� (now 바카라 사이트淎rticle 132(1)(l) of Directive 2006/112바카라 사이트�, see VTUPB1100) was implemented on 1 January 1978, it was no longer possible to retain an option because the article provided for relief by way of exemption. A revised 바카라 사이트渟ection 45바카라 사이트�, which became 바카라 사이트渟ection 47바카라 사이트� of the 바카라 사이트淰AT Act 1983바카라 사이트� and is now 바카라 사이트渟ection 94바카라 사이트� of the 바카라 사이트淰AT Act 1994바카라 사이트�, applied VAT in principle to all clubs and associations, and had no provision taking trade unions outside the scope or giving trade unions an option. Instead, exemption was provided for these bodies in a new exemption group that is now 바카라 사이트淕roup 9바카라 사이트� of 바카라 사이트淪chedule 9바카라 사이트� to the 바카라 사이트淰AT Act 1994바카라 사이트�.

It had been anticipated that exemption would not extend to associations of employers and the self-employed because the majority of these had opted to be taxable prior to 1 January 1978. However, as a result of much lobbying and protest from these bodies, the exemption was extended to professional associations and learned societies where membership was directly or necessarily connected with the members바카라 사이트� professions or employments. This extension of the Group still excluded employers and some other influential interest associations, so 바카라 사이트淚tem (d)바카라 사이트� was added to the group. This provided exemption for representational bodies on the basis that such bodies performed functions comparable to those of trade unions proper.

The final content of 바카라 사이트淕roup 9바카라 사이트� was therefore:

• trade unions (바카라 사이트淚tem 1(a)바카라 사이트�),
• professional bodies (바카라 사이트淚tem 1(b)바카라 사이트�),
• learned societies (바카라 사이트淚tem 1(c)바카라 사이트�) and
• representational trade associations (바카라 사이트淚tem 1(d)바카라 사이트�).

The bodies defined within 바카라 사이트淚tems 1(b)바카라 사이트� to 바카라 사이트�1(d)바카라 사이트� are those of a 바카라 사이트渢rade union nature바카라 사이트�, for which 바카라 사이트淎rticle 13.A.1(l) of the 6th Directive바카라 사이트� (now 바카라 사이트淎rticle 132(1)(l) of Directive 2006/112바카라 사이트�) required exemption, but which are not 바카라 사이트渢rade unions바카라 사이트� proper as defined in 바카라 사이트淚tem 1(a)바카라 사이트�.