7.32 Public sector bodies have varying VAT treatments, depending on whether, e.g., they are central departments or NDPBs. These treatments will not apply to a JV, regardless of whether it is classified to the public or private sector.
7.33 The JV may need to register for VAT in its own right or through, e.g., a General Partner in the case of a Limited Partnership. Other issues for the JV that need to be considered are:
● the VAT liability of supplies made;
● VAT recovery on expenditure; and
● the impact of any JV agreement on the partial exemption calculation of the public sector shareholder/partner.
7.34 The VAT treatment of transfers to a JV should also be considered. The transfers may constitute supplies for VAT purposes or may qualify as VAT-free transfers of a going concern (TOGC) depending upon the precise nature of what is being transferred.