Value Added Tax Act 1994 section 33

Refunds of VAT in certain cases

Section 33 provides for VAT refunds to specified public bodies and other organisations on purchases and imports that are not related to any business activity they carry on.

• Specified public bodies (such as local authorities, police bodies, fire and rescue services, and the BBC) can claim refunds of VAT incurred on goods and services that are not for business purposes
• Where business and non-business use cannot be easily separated, the refund is reduced by the proportion of VAT that HMRC considers attributable to the business activity
• If the VAT attributable to exempt business supplies is insignificant in HMRC's opinion, it may still be included in the refund rather than being excluded
• Certain bodies face additional restrictions — for example, lighthouse authorities can only claim refunds for activities related to navigational aids, and the appointed news provider can only claim for news programme provision