On 27th September 1997 Customs and Excise published Guidelines, agreed with the Institute of British Organbuilding, which explain the position. There has been no change in the law whatsoever.

The Guidelines provide a broad outline of the principles involved, and include easy to read flow charts and a clear summary table of what VAT is chargeable.

Generally, the supply and installation of, or work to, organs, whether pipe or electronic, is chargeable to VAT at the standard rate. There are just three exceptions:-

   (1) Subject to certain conditions, new organs supplied and installed as fittings in new churches are zero-rated.
   (2) Subject to certain conditions, new organs supplied and installed as fittings in the course of an approved alteration to the fabric of a listed church are zero-rated.
   (3) Work to an existing organ in a listed church in the course of an approved alteration to the fabric of the building may, in certain circumstances, be zero-rated.

The legal definitions of "fittings", "approved alterations" and "fabric" are explained in the Guidelines. "Fabric" or "structure" includes walls, roof, floor, ceiling, etc. It is not sufficient to make a slight or insignificant alteration. Merely screwing or bolting speakers to walls, for example, is not an alteration to the fabric. Generally, most work on existing organs will be standard-rated including all repairs, relocation of the console, rebuilding, restoration, re-voicing, new stops, etc., unless the work involves an approved alteration to the structure or fabric of the listed church in which it is housed.

The Guidelines became effective on 6th October 1997.

Queries should be raised with the appropriate VAT Business Advice Centre (normally the office dealing with the organ builder) for a ruling. Full details (these can be in layman's terms) of the works involved should be provided so that a decision can be given.

The Guidelines have been issued to all Business members of the Institute of British Organbuilding and members of the Incorporated Society of Organbuilders. Makers and suppliers of electronic 'organs' have also been provided with copies, as have Diocesan and other organ advisers.

Copies of the Guidelines are available free of charge from Barry & June Williams: 0181 395 7949. (Please telephone between 7.00pm and l0.00pm.)

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