Value Added Tax Act 1994, section 94

Meaning of “business” etc

Part VI Supplementary provisions

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

(2)Without prejudice to the generality of anything else in this Act, the following are deemed to be the carrying on of a business—

(a)the provision by a club, association or organisation (for a subscription or other consideration) of the facilities or advantages available to its members; and

(b)the admission, for a consideration, of persons to any premises.

F855(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)Where a person, in the course or furtherance of a trade, profession or vocation, accepts any office, services supplied by him as the holder of that office are treated as supplied in the course or furtherance of the trade, profession or vocation.

(5)Anything done in connection with the termination or intended termination of a business is treated as being done in the course or furtherance of that business.

(6)The disposition of a business[F856 , or part of a business,F856] as a going concern, or of [F857the assets or liabilities of the business or part of the businessF857] (whether or not in connection with its reorganisation or winding up), is a supply made in the course or furtherance of the business.

Definitions used in section 94 1

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

Cases considering section 94 7

Eastbourne Town Radio Cars Association v. Commissioners of Customs & Excise

[2001] UKHL 19 · 4 April 2001Interprets

The provision of facilities or advantages by an association to its members for a subscription or other consideration was deemed to be the carrying on of a business. It also confirmed that an association could be treated as a person supplying its members (see paras [18]–[19]; [29]–[30]).

Riverside Housing Association Ltd v Revenue and Customs

[2006] EWHC 2383 (Ch) · 3 October 2006Interprets

Interprets business, which includes any trade, profession or vocation, consistently with the wide Sixth Directive concept of economic activity. Profit-making is not an essential attribute (see paras [7]; [44]-[48]; [68]-[73]). Cited in defining the statutory breadth of business. The judgment did not make separate operative use of this deeming provision in deciding the appeal (see paras [7]; [44]-[48]).

University of Southampton v Revenue & Customs

[2006] EWHC 528 (Ch) · 17 March 2006Defines

Defines the statutory concept of business by including trade, profession and vocation. The judgment explains that VAT business has the narrower Directive meaning of economic activity (see para [9]). Defines business as including any trade, profession or vocation. The judgment distinguishes that ordinary statutory description from the narrower VAT concept of economic activity (see para [9]).

1 more judgment, and what each says about section 94, are in the case-law panel in the full Act.

Amendments and notes

3 notes from legislation.gov.uk

Amendments

  1. F855S. 94(3) repealed (1.12.1999) by 1999 c. 16, ss. 20, 139, Sch. 20 Pt. II(2), Note; S.I. 1999/2769, art. 2
  2. F856Words in s. 94(6) inserted (with effect in accordance with s. 100(10) of the amending Act) by Finance Act 2007 (c. 11), s. 100(7)(a)
  3. F857Words in s. 94(6) substituted (with effect in accordance with s. 100(10) of the amending Act) by Finance Act 2007 (c. 11), s. 100(7)(b)