Which bodies provide exempt welfare services?: brief background to the law
Prior to March 2002 Item 9 read as follows:
The supply, otherwise than for profit, by a charity or public body of welfare services and of goods supplied in connection therewith.
This meant that, before 2002, only a charity or a public body operating otherwise than for profit could exempt the supply of welfare services.
With effect from 21 March 2002, Item 9 was amended by Statutory Instrument 2002/762 to include state-regulated private welfare institutions within the description of specified providers. At the same time the condition that services must be provided otherwise than for profit was removed.
A further amendment was made in 2003, by Statutory Instrument 2003/24, which inserted the word agency to Item 9(b). This extended the exemption to state-regulated private welfare agencies such as domiciliary care agencies and fostering agencies. (See VATWELF2080 for further detail about state regulation).