Article 4 Relevant business activities

(1)

A business activity is a relevant business activity if it involves making one or more supplies of goods or services to one or more members of the group and—

(a)

those supplies are not incidental to that business activity;

(b)

at least one of those supplies is or would be chargeable to VAT at a rate other than zero; and

(c)

the representative member is not or would not be entitled to credit for the whole of the VAT on such supplies as fall within sub-paragraph (b) as input tax.

(2)

In determining for the purposes of paragraph (1) whether—

(a)

a body corporate makes any supplies to any members of the group;

(b)

a supply would be chargeable to VAT at a rate other than zero;

(c)

the representative member would not be entitled to credit for the whole of the VAT on the supply as input tax,

a body corporate that is a member of the group shall be deemed not to be a member.