§ Mr. Hayhoe
asked the Chancellor of the Exchequer whether the United Kingdom practice of charging VAT on the lodging charges paid by workers living in hostels run by charities is in accordance with that followed in other member countries of the EEC.
§ Mr. Robert Sheldon
Practice currently varies between EEC member countries. The EEC Sixth Directive on VAT recognises the need to tax services provided by charitable organisations where this would otherwise lead to distortions of competition with similar services provided by non-charitable organisations.