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HMRC internal manual

VAT Government and Public Bodies

From
HM Revenue & Customs
Updated
, see all updates

Government departments and health authorities: Contracted Out Services (COS) Headings: COS Heading 47 - Passenger transport services

The hire or lease of a vehicle without a driver would not be covered under this Heading, but may be eligible for a refund under Heading 26.

Includes

  • Taxi firms that supply taxis to staff on request provided the government department or health authority has entered into a contract with the firm and receives a tax invoice, e.g. late night car services
  • Chauffeur driven cars provided the government department or health authority has entered into a contract with the firm and receives a tax invoice
  • Services of an outside contractor to transport passengers/patients
  • Where a hospital hires or leases a vehicle with a driver for transporting in-patients, outpatients, hospital staff or other individuals (e.g. private specialists/consultants), providing it is in connection with the non-business activity of the provision of NHS health care

Excludes

  • Public transport costs - these are already zero-rated
  • Road tax
  • Passenger insurance
  • Staff members hailing cabs in the street or picking up a taxi from a taxi rank
  • Passenger transport services used for the transport of private patients or for a consultant providing health care to a private patient would not be eligible for a refund as it would be in connection with an exempt business activity and the normal VAT rules would apply