VATGPB3600 - Non-business activities: flowchart

Deciding if activities are business or non-business

Step 1

Is the person making the supply a ‘body governed by public law’? (See VATGPB2100)

  • If yes, go to step 2
  • If no, activity is probably treated as business but see the VAT Business/Non-Business manual (outcome)

Step 2

Is the activity included in Annex 1? (See VATGPB3500)

  • If yes, go to step 3
  • If no, go to step 4

Step 3

Is the activity carried out on a negligible scale?

  • If yes, go to step 4
  • If no, activity is probably treated as business but see the VAT Business/Non-Business manual (outcome)

Step 4

Is the activity engaged in as a ‘public authority’? (See VATGPB3200)

  • If yes, go to step 5
  • If no, activity is probably treated as business but see the VAT Business/Non-Business manual (outcome)

Step 5

Would non-business treatment lead to a significant distortion of competition? (See VATGPB3400)

  • If yes, activity is probably treated as business but see the VAT Business/Non-Business manual (outcome)
  • If no, go to step 6

Step 6

Is the body a Government department or health authority? (See VATGPB9000)

  • If yes, go to step 7
  • If no, activity is treated as non-business (outcome)

Step 7

Is the activity subject to a Treasury direction? (See VATGPB9330)

  • If no, activity is treated as non-business (outcome)
  • If yes, activity is probably treated as business but see the VAT Business/Non-Business manual (outcome)

Link to the VAT Business/Non-Business Manual (VBNB). External users can find the guidance at http://www.hmrc.gov.uk/manuals/vbnbmanual/index.htm.