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VAT has been designed as a broad-based tax on consumption, and the twenty per cent
standard rate applies to most goods and services. Whilst there are exceptions to the
standard rate, these have always been strictly limited by both legal and fiscal considerations.<p>
</p><p>Welfare services provided by local authorities and similar bodies and charities
are exempt from VAT, meaning no VAT is charged to the final consumer.</p><p>Welfare
services provided by state regulated private welfare institutions are also exempt
from VAT. State regulated suppliers are those that are registered with the Care Quality
Commission, and are eligible for the VAT exemption where they are providing services
that are state regulated.</p><p>The regulation requirement ensures that VAT relief
is limited to providers certified as offering safe and high-quality welfare services.
This is a long-standing requirement, and there are no plans to make changes to these
rules.</p>
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