{
  "url": "https://openlegislation.uk/finance-act-2012/section-198",
  "json_url": "https://openlegislation.uk/finance-act-2012/section-198.json",
  "legislation": "ukpga/2012/14",
  "legislation_title": "Finance Act 2012",
  "legislation_url": "https://openlegislation.uk/finance-act-2012",
  "path": "section/198",
  "kind": "section",
  "number": "198",
  "heading": "Supply of goods or services by public bodies",
  "text": "(1) VATA 1994 is amended as follows.\n(2) In section 41 (application to the Crown)—\n(a) omit subsection (2), and\n(b) in subsection (3)(b) for “a direction under subsection (2) above,” substitute “ section 41A, ”.\n(3) After that section insert—\nSupply of goods or services by public bodies\n41A (1) This section applies where goods or services are supplied by a body mentioned in Article 13(1) of the VAT Directive (status of public bodies as taxable persons) in the course of activities or transactions in which it is engaged as a public authority.\n(2) If the supply is in respect of an activity listed in Annex I to the VAT Directive (activities in respect of which public bodies are to be taxable persons), it is to be treated for the purposes of this Act as a supply in the course or furtherance of a business unless it is on such a small scale as to be negligible.\n(3) If the supply is not in respect of such an activity, it is to be treated for the purposes of this Act as a supply in the course or furtherance of a business if (and only if) not charging VAT on the supply would lead to a significant distortion of competition.\n(4) In this section “the VAT Directive” means Council Directive 2006/112/EC on the common system of value added tax.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2012/14/section/198",
    "retrieved_at": "2026-10-28T17:02:47.774506+00:00",
    "licence": "OGL-UK-3.0",
    "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
    "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
  }
}