Consultation on the VAT cost sharing exemption: the ‘missing’ VAT exemption

When the EU 6th Directive was enacted in 1977 Member States were required to implement the Directive into their respective domestic VAT laws.

One of the mandatory provisions (among others) within the Directive was subject to various conditions the need for all Member States to exempt from VAT the supply of services by independent groups of persons to their Members.

Although this exemption was a mandatory provision of the Directive the UK has failed to implement the provision into domestic law.

The UK consultation is the first step in rectifying this and hopefully we will finally see the introduction of the so called 'missing' VAT exemption in Finance Act 2012.

Whilst at first sight the provision to be...