Value Added Tax Act 1994, section 31

Exempt supplies

Part II Reliefs, exemptions and repayments

(1)F220A supply of goods or services is an exempt supply if it is of a description for the time being specified in [F219Part 2 of Schedule 9 and it is not of a description specified in Part 3 of that ScheduleF219] ....

(2)The Treasury may by order vary that Schedule by adding to or deleting from it any description of supply or by varying any description of supply for the time being specified in it, and the Schedule may be varied so as to describe a supply of goods by reference to the use which has been made of them or to other matters unrelated to the characteristics of the goods themselves.

[F221 (3)The Treasury may by regulations make an exemption of a group 16 supply of a description specified in the regulations subject to conditions.

(4)Regulations under subsection (3) may—

(a)make different provision for different cases, and

(b)make consequential or transitional provision (including provision amending this Act).

(5) In subsection (3) “group 16 supply” means a supply falling within Group 16 of Schedule 9. F221]

Definitions used in section 31 1

regulations

“regulations” means regulations made by the Commissioners under this Act;

Defined in s.96(1) · see it in the full Act

Cases considering section 31 48

College of Estate Management (Respondents) v. Her Majesty's Commissioners of Customs and Excise (Appellants)

[2005] UKHL 62 · 20 October 2005

The provision, read with Group 6 of Schedule 9, exempted the College’s single supply of education. The transaction was not to be divided into education and a separate supply of printed materials. (See Lord Rodger’s speech.)

Commissioners of Customs and Excise v. Sinclair Collis Limited

[2001] UKHL 30 · 7 June 2001Interprets

A service is exempt if it falls within a description in Schedule 9. The provision implemented the Directive’s exemption regime and required a conforming Community law construction (see paras [6]; [11]–[13]).

WTGIL Limited v The Commissioners for HMRC

[2025] EWCA Civ 399 · 11 April 2025

The court applied Section 31(1) as the domestic gateway for exemption where a supply falls within a description specified in Schedule 9. (see paras [42]-[44], [73])

28 more judgments, and what each says about section 31, are in the case-law panel in the full Act.

Amendments and notes

5 notes from legislation.gov.uk

Amendments

  1. F218Words in s. 31 heading omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 30(3) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.
  2. F220Words in s. 31(1) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 30(2) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.
  3. F219Words in s. 31(1) substituted (with effect in accordance with s. 49 of the amending Act) by Finance Act 2025 (c. 8), ss. 47(3), 49
  4. F221S. 31(3)-(5) inserted (17.7.2012) by Finance Act 2012 (c. 14), s. 197(3)

Modifications

  1. C28S. 31(2) extended (27.7.1999) by 1999 c. 16, s. 13(2)