Value Added Tax Act 1994 section 31

Exempt supplies

Section 31 defines what constitutes an exempt supply for VAT purposes and gives the Treasury power to amend the list of exemptions and impose conditions on certain categories of exempt supply.

• A supply of goods or services is exempt from VAT if it falls within a description listed in Part 2 of Schedule 9, provided it is not of a description specified in Part 3 of that Schedule
• The Treasury has the power to vary Schedule 9 by adding, removing or amending descriptions of exempt supplies, including by reference to how goods have been used rather than their inherent characteristics
• The Treasury may make the exemption for Group 16 supplies subject to conditions set out in regulations, which may differ for different cases
• Regulations concerning Group 16 supplies may include consequential or transitional provisions, including amendments to the VAT Act itself