HC Deb 09 July 1992 vol 211 cc291-2W
Mr. Barry Field

To ask the Chancellor of the Exchequer if he will list those EC member states where local government, or its equivalent, can recoup VAT.

Sir John Cope

Article 4(5) of the EC sixth VAT directive allows member states not to treat local authorities as taxable persons in respect of those activities in which they engage as public authorities.

There are special provisions in United Kingdom law that permit local authorities to reclaim VAT on activities which they perform as public authorities.

I have no information on how other member states implement this provision.