Yoga for Health Foundation v Commissioners of Customs and Excise
| Jurisdiction | UK Non-devolved |
| Judgment Date | 23 December 1983 |
| Date | 23 December 1983 |
| Court | Value Added Tax Tribunal |
VAT Tribunal
Business - Provision of residential accommodation relating to the practice and study of yoga for health - Whether supplies made by the appellant taxable or exempt - Whether, if taxable, the supplies were made in the course or furtherance of any business carried on by the appellant - section 1 section 2 section 47Value Added Tax Act 1983, sec. 1, 2 and 47, EC Sixth Directive, Art. 13A1.
The appellant was a registered charity which ran a residential centre for treating by yoga methods people who suffered chronic ill health. There were also research and training courses for those who wished to study yoga and a club to which members paid an annual subscription. The appellant was not registered as a nursing home.
The Commissioners raised an assessment on the ground that the appellant was making taxable supplies of services in the course of a business carried on by it. The appellant contended that the supplies which it made were not chargeable to tax, because its activities did not constitute a business and therefore the supplies were not made in the course or furtherance of any business carried on by it.
Before the Tribunal the appellant argued that the supplies which it made were not taxable supplies but were exempt under Art. 13A1 as being "closely linked to welfare and social security work".
Held, dismissing the taxpayer's appeal:
1. The services supplied did not constitute welfare or social security and nor were they closely akin to either welfare or social security.
2. The supplies made by the appellant were taxable supplies and not exempt supplies.
3. The appellant's activities did amount to carrying on of a business and therefore the supplies of residential accommodation and courses of instruction were supplies chargeable to tax at the standard rate.
[The Tribunal set out the facts summarised above and continued as follows.]
In our judgment the Foundation has with integrity carried out the objects set out in cl. 3 of the Trust Deed dated 28 May 1976. In acquiring and running Ickwell Bury as its principal centre it has concentrated on the practice of therapeutic yoga and has thereby not only carried out research into the mental and physical benefits to be derived therefrom, but has also assisted many people to combat their illnesses. In addition, however, there are many comparatively healthy people who come to stay at Ickwell Bury out of curiosity and other motives. Some of those people will remain sceptical and decide "yoga is not for me", but others will become and remain serious yoga practitioners. It is our view none the less that the majority of those who attend the centre are suffering from some degree of ill health although this may not be obvious, and that yoga may give them considerable assistance by way of preventive medicine, and may benefit a considerable number of people by preventing them from actually falling ill. We cannot, however, in any way quantify this aspect. We accept that yoga can have a dramatic effect on some people's health and can give a fundamental change in some people's lives.
We have reached the unanimous conclusion that research into and the practice of therapeutic yoga is not carried out on a commercial basis or with a view to making a profit. None the less we are in no doubt that that the centre at Ickwell Bury is run in a business-like way so far as concerns its day to day running and the care of persons staying there, whether for longer or shorter periods.
Although we can make no finding of fact as to the real meaning and effect of the research carried out by Professor Andreasen, we have no doubt as to the bona fides of such...
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