Introduction: What is the new Group 16 to Schedule 9 of the VAT Act 1994
Group 16 - supplies of services by groups involving cost sharing
- The supply of services by an independent group of persons where each of the following conditions is satisfied:
- each of those persons is a person who is carrying on an activity (‘the relevant activity’) which is exempt from VAT or in relation to which the person is not a taxable person within the meaning of Article 9 of Council Directive 2006/112/EC,
- the supply of services is made for the purpose of rendering the members of the group the services directly necessary for the exercise of the relevant activity,
- the group merely claims from its members exact reimbursement of their share of the joint expenses, and
- the exemption of the supply is not likely to cause distortion of competition.