VBURC2100 - Background and law: Background

When the coverage of VAT was first determined in 1973, it was decided that burials and cremations should be exempt, but that the exemption should be limited to those services normally provided by an undertaker or crematorium in connection with a burial or cremation. The services of, for example, florists or monumental masons, were not covered by the relief. The scope of the burials and cremations exemption has not changed since VAT was first introduced in 1973. This was because while the UK was in the EU it was allowed to retain the exemption, but was not permitted to extend its scope. Further information is below.