VTUPB6000 - Trade unions and professional bodies: Representational associations

Item 1(d), Group 9, Schedule 9, VATA 1994

Item 1(d) contains three main criteria that have to be satisfied by an association before exemption can be granted:

- a primary purpose to make representations;

- these representations being to the government and

- in the business or professional interests of its members.

Primary purpose... to make representations

You should apply the same tests to establish the association’s primary purpose that are used to establish the primary purpose when exemption is claimed under Item 1(c). The four key elements to be taken into account are:

1. the objects / objectives set out in the association’s memorandum and articles of association or constitution;
2. the powers and activities of the association;
3. what the association itself considers its primary purpose to be;
4. what the members of the association consider its primary purpose to be.

The procedure is the same as that described in VTUPB5400.

To the government

The representations should be to the UK government.

Business or professional interests of its members

The representations must relate to legislation or public matters affecting the members’ business or professional interests.

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Note (5) to Item 1, Group 9, Schedule 9, VATA 1994

Note (5) to the exemption group contains a further criterion that an association must satisfy before exemption can be permitted under Item 1(d): namely, that the member individuals and corporate bodies must be restricted wholly or mainly to those with professional or business interests directly connected with the purposes of the association. Unlike Items 1(b) and 1(c), members do not have to be to individuals. Again, you should use 75% as the benchmark for what constitutes wholly or mainly.

There has only been one tribunal decision concerned solely with exemption under Item 1(d), namely, European Tour Operators Association.

European Tour Operators Association (ETOA)

ETOA contended that it made representations to UK government and EU institutions. Whilst HMRC agreed that some representation was being made, it did not accept that this was the primary purpose. Its main aim was the provision of a facility for members to network with each other.

This decision is currently under appeal to the Upper Tribunal.