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HMRC internal manual

VAT Cost Sharing Exemption Manual

From
HM Revenue & Customs
Updated
, see all updates

How the conditions are to be interpreted: CSGs and VAT Groups: How do CSGs and VAT groups interact in practice?

A CSG as a member of a VAT group:

All supplies made by a CSG that is a member of a VAT group to members who are also members of the same VAT group will be outside the scope of the VAT system (they are not exempt or non-business supplies for VAT purposes).

All supplies from other VAT groups members to a CSG that is in the same VAT group, whether they are CSG members or not are also outside the scope of the VAT system (they are not exempt or non-business supplies for VAT purposes).

Supplies of qualifying services by a CSG that is a member of a VAT group to CSG members who are outside of that VAT group will fall within the exemption (subject to all the conditions being met) and will be form part of the VAT groups exempt supplies.