Local authorities and similar bodies (VAT Notice 749)
Decide which activities are business or non-business for VAT purposes if you're a local authority or other public body.
Official website: gov.uk00
How to use the service
You can treat an activity as non-business provided you’re sure that nobody else could carry out the same activity: in the same way the public body has to carry it out in similar conditions in achieving the same results the public body has to achieve The test relates to the same activity in question rather than to, for example, local or geographical trading situations. This will normally be the case when: customers or other recipients of the supplies in question, could not obtain the goods or services equally as well from some other supplier non-business treatment would not act as a disincentive to a private trader capable of going into business in direct competition If you have any doubt whether special treatment will lead to significant distortions of competition you should seek our advice. You can also get help from professional bodies. Find more information on the Chartered Institute of Public Finance and Accountancy website.
Requirements
For bodies other than local authorities, the usual VAT registration requirements apply, as explained in Who should register for VAT (VAT Notice 700/1) . These requirements also apply to bodies: that are legally separate from a local authority that are not a joint board or joint committee where the value of your taxable supplies exceeds the threshold for registration If the value of your taxable turnover is below the registration threshold limits, you can apply for voluntary registration.
Official source
Local authorities and similar bodies (VAT Notice 749)
retrieved: