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HMRC internal manual

VAT Government and Public Bodies

HM Revenue & Customs
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Government departments and health authorities: supplies to departments and authorities

Supplies to government departments and health authorities are subject to the normal VAT rules and so are generally treated the same as a supply to any other customer.

There are certain exceptions for supplies made in connection with International Collaboration Defence Projects (ICDPs). Further information about the VAT treatment of ICDPs can be found in theLiability (Imports and exports) manual (V1-7)(Word 52KB) at Part B. Annex B of the guidance contains a list of all current ICDPs and the scope of recovery. This list is updated periodically following consultation with the MOD.

Historically there were special arrangement for exports on behalf of the MoD which were excluded from zero rating. However, this ended officially on 31 December 2004 and any residual questions about this should be referred to VAT Supply Team (see VATGPB1600).