VATGPB4140 - Section 33 bodies: refund arrangements: requests to use the scheme
Source: gov.uk (2025-01-28)


The January 2025 changes to this guidance are for clarification purposes. The eligibility criteria have not changed, but the guidance has been altered to enhance understanding of what each criteria requires and how applications are assessed.

Only those bodies which are listed in section 33 of the VAT Act 1994, sections 33(3)(a) to (j) (see VATGPB4120 (https://www.gov.uk/hmrc-internal-manuals/vat-government-and-public-bodies/vatgpb4120)), or which have been included by Treasury Order under section 33(3)(k)(see VATGPB4300 (https://www.gov.uk/hmrc-internal-manuals/vat-government-and-public-bodies/vatgpb4300)) are entitled to recover VAT under section 33(1).

Bodies can apply to be included by Treasury Order, but they are unlikely to succeed if they do not meet HM Treasury’s long-established criteria which require that they:
- undertake a function ordinarily carried on by local government, and
- have the power to draw funding directly from local taxation.
Undertake a function ordinarily carried on by local government

This means that a body is responsible for carrying out activities which have traditionally been performed by local government. For example, fire and rescue authorities, police authorities, water authorities, combined authorities.

Power to draw funding from local taxation

This means that the body must have one of the following:
- a statutory right to collect Council Tax
- a statutory precept over a portion of Council Tax receipts
- a statutory right to impose a levy on the local authority
It is accepted that the Scottish system of ‘requisitioning’ meets the funding criterion.

Any monies drawn from local taxation must be used for the purpose of undertaking the function ordinarily carried on by local government.

Who decides if a body can be admitted to the refund scheme?

HM Treasury decides whether to admit a body to the section 33 refund scheme.

Applications, including supporting evidence, are to be submitted to HMRC who will take an initial view on whether the above eligibility criteria have been met. Where further evidence is needed to fully understand whether an applicant may be eligible, HMRC will contact the applicant.

Where the evidence provided shows a reasonable chance of success of being deemed to have met the eligibility criteria, that application will be passed to HM Treasury which will decide whether to admit the body to the scheme under section 33(3)(k). It should be noted that the final decision of whether or not to admit a body to the scheme is always taken by HM Treasury.

Where the eligibility criteria have clearly not been met, the application will not be submitted to HM Treasury for further consideration. The application will be passed back to the applicant along with an explanation from the assessing Customer Compliance Manager (CCM) of their reasoning.

How do I apply?

A body wishing to be considered for inclusion under the section 33 refund scheme must submit their completed application form to their CCM (if they have one) via their usual dedicated mailbox.

Where they do not have a CCM, completed forms should be sent to:
- for Police and Fire related bodies: xxx@xxx.xx (mailto:xxx@xxx.xx)
- for Higher and Further Education bodies:xxx@xxx.xx (mailto:xxx@xxx.xx)
- for Housing Associations:xxx@xxx.xx (mailto:xxx@xxx.xx)
- for local authorities: xxx@xxx.xx (mailto:xxx@xxx.xx)
Application form

Please use the attached application form and checklist to ensure that you have provided all the required information to assess your application: Application Form (http://www.hmrc.gov.uk/gds/vatgpb/attachments/S33_Application_Form_April_2024.pdf)

What needs to be provided with an application?

HM Treasury will require the following information and any supporting evidence. This should be provided to HMRC at the time of application to enable the initial assessment to be completed:

To note, where an application is successful, VAT refunds can only be processed for purchases made from the date the Treasury Order takes effect and the body is admitted to the refund scheme under section 33(3)(k). Refunds cannot be claimed retrospectively.