Value Added Tax Act 1994, section 33

Refunds of VAT in certain cases

Part II Reliefs, exemptions and repayments

(1)Subject to the following provisions of this section, where—

[F223 (a)VAT is chargeable on the supply of goods or services to, or on the importation of goods by, a body to which this section applies, andF223]

(b)F224the supply... or importation is not for the purpose of any business carried on by the body,

the Commissioners shall, on a claim made by the body at such time and in such form and manner as the Commissioners may determine, refund to it the amount of the VAT so chargeable.

(2)F225,F225,F226Where goods or services so supplied to ... or imported by the body cannot be conveniently distinguished from goods or services supplied to ... or imported by it for the purpose of a business carried on by it, the amount to be refunded under this section shall be such amount as remains after deducting from the whole of the chargeable on any supply to ... or importation by the body such proportion thereof as appears to the Commissioners to be attributable to the carrying on of the business; but where—

(a)the VAT so attributable is or includes VAT attributable, in accordance with regulations under section 26, to exempt supplies by the body, and

(b)the VAT attributable to the exempt supplies is in the opinion of the Commissioners an insignificant proportion of the VAT so chargeable,

they may include it in the VAT refunded under this section.

(3)The bodies to which this section applies are—

(a)a local authority[F227 , a combined authority established by an order made under section 103(1) of the Local Democracy, Economic Development and Construction Act 2009 and a combined county authority established by regulations made under section 9(1) of the Levelling-up and Regeneration Act 2023;F227]

[F228 (aa)a fire and rescue authority under the Fire and Rescue Services Act 2004, if the authority does not fall within paragraph (a);

(ab)the Scottish Fire and Rescue Service;F228]

(b)M2,M3a river purification board established under section 135 of the Local Government (Scotland) Act 1973, and a water development board within the meaning of section 109 of the Water (Scotland) Act 1980;

(c)an internal drainage board;

(d)[F229 a passenger transport authority or executive within the meaning of Part II of the M4Transport Act 1968;F229]

[F229 an Integrated Transport Authority, Passenger Transport Authority or Passenger Transport Executive for the purposes of Part 2 of the Transport Act 1968;F229]

(e)M5,F230a port health authority within the meaning of the Public Health (Control of Disease) Act 1984, ...;

(f)F232[F231 a police and crime commissioner, the Mayor's Office for Policing and Crime andF231] ... the Receiver for the Metropolitan Police District;

[F233 (fa)the Scottish Police Authority;

(fb)the Police Service of Northern Ireland and the Northern Ireland Policing Board;F233]

(g)M6,M7,M8a development corporation within the meaning of the New Towns Act 1981 or the New Towns (Scotland) Act 1968, a new town commission within the meaning of the New Towns Act (Northern Ireland) 1965 and the Commission for the New Towns;

(h)a general lighthouse authority within the meaning of [F234Part VIII of the M9Merchant Shipping Act 1995F234] ;

(i)the British Broadcasting Corporation;

[F235 (ia)S4C;F235]

[F236 (j)the appointed news provider referred to in section 280 of the Communications Act 2003; andF236]

(k)any body specified for the purposes of this section by an order made by the Treasury.

(4)No VAT shall be refunded under this section to a general lighthouse authority which in the opinion of the Commissioners is attributable to activities other than those concerned with the provision, maintenance or management of lights or other navigational aids.

(5)M10No VAT shall be refunded under this section to [F237an appointedF237] news provider which in the opinion of the Commissioners is attributable to activities other than the provision of news programmes for broadcasting by holders of regional Channel 3 licences (within the meaning of Part I of the Broadcasting Act 1990).

(6)References in this section to VAT chargeable do not include any VAT which, by virtue of any order under section 25(7), is excluded from credit under that section.

Definitions used in section 33 9

VAT

“VAT” means value added tax charged in accordance with this Act;

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

(1) In this Act “business” includes any trade, profession or vocation.

Defined in s.94(1) · see it in the full Act
the Commissioners

“the Commissioners” means the Commissioners of Customs and Excise;

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

(3) In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act ).

Defined in Sch.7A para.A1 · see it in the full Act

(3) In sub-paragraph (2), “supplied” is to be construed in accordance with Part 1 of the Electricity Act 1989 (see section 64(1) of that Act ).

Defined in Sch.8 para.3 · see it in the full Act
regulations

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

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

“local authority” has the meaning given by subsection (4) below;

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

(4) In this Act “local authority” means the council of a county, county borough, district, London borough, parish or group of parishes (or, in Wales, community or group of communities), the Common Council of the City of London, the Council of the Isles of Scilly, and any joint committee or joint board established by two or more of the foregoing and, in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994, any two or more such councils and any joint committee or joint board within the meaning of section 235(1) of the Local Government (Scotland) Act 1973 .

Defined in s.96(4) · see it in the full Act
ship

“ship” includes hovercraft;

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

(3) But where the person who provides the relevant goods or services (the “provider”) is not the person who issued the voucher (the “issuer”), for the purposes of this Act the provider is to be treated as having made a supply of those goods or services to the issuer.

Defined in Sch.10B para.5(3) · see it in the full Act
the credit

(4A) Subsection (3) above shall not require any such amount as is mentioned in paragraph (a) of that subsection (“the credit”) to be set against any such sum as is mentioned in paragraph (b) of that subsection (“the debit”) in any case where—

(a)an insolvency procedure has been applied to the person entitled to the credit;

(b)the credit became due after that procedure was so applied; and

(c)the liability to pay the debit either arose before that procedure was so applied or (having arisen afterwards) relates to, or to matters occurring in the course of, the carrying on of any business at times before the procedure was so applied.

Defined in s.81(4A) · see it in the full Act

Cases considering section 33 5

Cardiff City Council, R (on the application of) v Customs & Excise

[2003] EWCA Civ 1456 · 22 October 2003Defines

Creates the special local-authority refund regime for VAT on non-business supplies. The court held that claims made through the prescribed VAT return were initially section 33 claims, but that the claims had been discharged (see paras [9], [39]–[46]). Requires the Commissioners to refund VAT charged on supplies to a local authority where the supply was not for business purposes, on a claim made in the prescribed manner and time. The Council’s box 4 claims fell within this provision (see paras [9], [39]–[41]). Was referred to as identifying the other bodies eligible for the special section 33 regime. The court confined its analysis to local authorities (see paras [10]–[11]).

Greater Manchester Police, R (on the application of) v Commissioners of Customs and Excise

[2001] EWCA Civ 213 · 20 February 2001Limits

Provides refunds for VAT on supplies acquired by specified public bodies for non-business purposes. The court held that refunds under this subsection remain subject to exclusions applied through section 33(6). (see Aldous LJ; Robert Walker LJ; Hale LJ) Provides an apportionment mechanism for mixed public and business supplies and a limited concession for insignificant exempt-supply VAT. The court rejected the argument that section 33(6) was confined to this subsection. (see Aldous LJ; Robert Walker LJ; Hale LJ) Identifies a police authority as a body eligible for the section 33 refund scheme. The Authority therefore fell within the statutory class, subject to the section 33(6) exclusion. (see Aldous LJ; Robert Walker LJ) Excludes from the refund scheme VAT which is excluded from credit by an order under section 25(7). The reference is to a category of VAT, so the exclusion applies even where the claimant could not itself have claimed ordinary credit. (see Aldous LJ; Robert Walker LJ; Hale LJ)

The Company of Proprietors of Whitchurch Bridge, R (on the application of) v HM Treasury

[2012] EWHC 3579 (Admin) · 13 December 2012Limits

The court assumes, without deciding, that the Company is not excluded because the supplies are not treated as being for the purpose of a business. The issue was not argued and was unnecessary to the result (see para [18]). The judgment sets out the apportionment rule for mixed business and non-business supplies but does not apply it to the claim (see para [15]). The court notes that the claimant did not fall within the listed categories of bodies eligible for refunds. It therefore relied on the Treasury’s power under section 33(3)(k) (see paras [15]-[16]). The provision confers a discretion on the Treasury to specify additional bodies for the refund scheme. The refusal was upheld because the applicable criteria were matters of national financial policy, were unobjectionable, and the claimant failed the local-taxation or precept criterion (see paras [16]-[17], [35]-[36]).

What each judgment says about section 33 is in the case-law panel in the full Act.

Amendments and notes

27 notes from legislation.gov.uk

Amendments

  1. F223S. 33(1)(a) substituted (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 31(2)(a) (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. F224Word in s. 33(1)(b) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 31(2)(b) (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. F225Words in s. 33(2) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 31(3)(a) (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.
  4. F226Words in s. 33(2) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 31(3)(b) (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.
  5. F227Words in s. 33(3)(a) substituted (with effect in accordance with s. 84(2) of the amending Act) by Finance Act 2026 (c. 11), s. 84
  6. F228S. 33(3)(aa)(ab) inserted (with effect in accordance with s. 39(6) of the amending Act) by Finance Act 2018 (c. 3), s. 39(3)
  7. F229S. 33(3)(d) substituted (E.W.) (9.2.2009) by Local Transport Act 2008 (c. 26), s. 134(4), Sch. 4 para. 59(2); S.I. 2009/107, art. 2(1), Sch. 1 Pt. 1
  8. F230Words in s. 33(3)(e) repealed (S) (1.10.2009) by Public Health etc. (Scotland) Act 2008 (asp 5), s. 128(2), sch. 3 pt. 1 (with s. 127); S.S.I. 2009/319, art. 2(a), sch. 1
  9. F232Words in s. 33(3)(f) omitted (with effect in accordance with s. 39(6) of the amending Act) by virtue of Finance Act 2018 (c. 3), s. 39(4)
  10. F231Words in s. 33(3)(f) inserted (16.1.2012) by Police Reform and Social Responsibility Act 2011 (c. 13), s. 157(1), Sch. 16 para. 217; S.I. 2011/3019, art. 3, Sch. 1
  11. F233S. 33(3)(fa)(fb) inserted (with effect in accordance with s. 39(6) of the amending Act) by Finance Act 2018 (c. 3), s. 39(5)
  12. F234Words in s. 33(3)(h) substituted (1.1.1996) by 1995 c. 21, ss. 314(2), 316(2), Sch. 13 para. 95 (with s. 312(1))
  13. F235S. 33(3)(ia) inserted (with effect in accordance with s. 100(2) of the amending Act) by Finance Act 2021 (c. 26), s. 100(1)
  14. F236S. 33(3)(j) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 17 para. 129(2)(a) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)
  15. F237Words in s. 33(5) substituted (29.12.2003) by Communications Act 2003 (c. 21), s. 411(2), Sch. 17 para. 129(2)(b) (with Sch. 18); S.I. 2003/3142, art. 3(1), Sch. 1 (with art. 11)

Modifications

  1. C29S. 33 applied (15.8.1995) (temp. until 1.4.1996) by S.I. 1995/1878, art. 4
  2. C30S. 33 excluded (8.5.2017) by The Greater Manchester Combined Authority (Transfer of Police and Crime Commissioner Functions to the Mayor) Order 2017 (S.I. 2017/470), art. 1(2), Sch. 2 para. 16
  3. C31S. 33 excluded (29.6.2026) by 2011 c. 13, Sch. 10A para. 56 (as inserted by English Devolution and Community Empowerment Act 2026 (c. 23), s. 108(5), Sch. 24 (with s. 102))

Marginal citations

  1. M21973 c. 65.
  2. M31980 c. 45.
  3. M41968 c. 73.
  4. M51984 c. 22.
  5. M61981 c. 64.
  6. M71968 c. 16.
  7. M81965 c. 60.
  8. M91995 c. 21.
  9. M101990 c. 42.