Revenue has published a new Tax and Duty Manual to provide guidance on the VAT treatment of certain independent groups of persons commonly referred to as Cost Sharing Groups (CSG). In certain circumstances, an exemption from VAT applies to the supplies by a CSG that would otherwise be taxable.
The exemption applies when two or more persons with exempt and/or non-business activities who operate in the public interest join on a co-operative basis to form a separate, independent group of persons to supply themselves with certain services at cost and exempt from VAT. It is designed to help businesses to collaborate and to share resources without being deterred by the cost of VAT on any recharges. The exemption does not apply to the supply of goods or to the supply of VAT exempt activities not in the public interest, such as insurance or financial services.
The VAT treatment on the Exemption for Certain Activities in the Public Interest TDM has been marked as no longer relevant.