Article 132(1) of the Principal VAT Directive 2006/112 on the common system of value-added tax (VAT) requires member states to exempt, inter alia, the supply by non-profit making organisations with aims of a political, trade union, religious, patriotic, philosophical, philanthropic or civic nature of services and goods closely linked thereto to their members. The United Grand Lodge of England appealed against HMRC's decision not to exempt from VAT its supplies to its members in return for their subscriptions. The Grand Lodge contended that its aims were of a philosophical, philanthropic or civic nature – but at the request of the Tribunal both parties also made written submissions after the oral hearing had been concluded as to whether or not the Grand Lodge's aims might also be religious.

On further consideration, however, the Tribunal concluded that the Grand Lodge did not have any significant aims of a religious nature. The Masons' Grand Principles of integrity, brotherly love and charity were intelligible and concerned important matters; but when tested against the criteria of belief in a supernatural being and the acceptance of conduct to give effect to that belief, Freemasonry fell short. Each Mason might have a different understanding of the nature of the ‘supernatural being’; and the canons of conduct promoted by Freemasonry were free-standing rather than adopted to give effect to the belief. Overall, the appeal failed because the Tribunal concluded that the Grand Lodge had a variety of different aims, some of which came within Article 132 of Directive 2006/112 and some of which did not. [Frank Cranmer]