This section describes when sporting and physical education services are exempt from VAT.

We’ll send you a link to a feedback form. The following table applies the meanings of terms used in paragraphs 3.3 and 3.4 to show the VAT liability of various services when supplied by eligible bodies. Miller represented former NFL running back Ricky Williams when he was drafted by the New Orleans Saints , however the deal was rated the worst contract for a player in NFL History by ESPN . If you’re unhappy with HMRC’s service, contact the person or office you’ve been dealing with and they’ll try to put things right. You can exempt affiliation fees, but only where the fees are for services closely linked and essential to sport that they are supplied by non-profit making organisations, and that the true beneficiaries are individuals taking part in sport. of sports land and was made in return for a nominal amount. These are services that are specifically excluded from exemption, supplies of: To qualify for exemption, you must be an eligible body, see section 4 and supply your services to individuals taking part in the activity. But such coaching may fall within the scope of VAT exemption for education. Read Your Charter to find out what you can expect from HMRC and what we expect from you.

From 1 April 2018, the above concession is withdrawn.

You may incur VAT on goods or services you will use wholly for the purpose of a non-business activity (see Clubs and associations’ VAT responsibilities (VAT Notice 701/5)). The subscription is a type of payment received in return for supplies of sporting services. If your subscription is consideration for a multiple supply under the terms of that notice and the separate elements have different liabilities you must apportion your subscription between those different elements. Paragraph 2.5 explains that you might not be able to reclaim all or any of the VAT you incur. But if your organisation is a company limited by shares and formed before 1 October 2009, you will need to be familiar with the Companies Act 1985 and in particular: We have accepted that the non-distribution condition will be satisfied by the passing of a resolution by the club to: We have also accepted that adoption of Article 117 on winding up fulfils the winding-up criterion. Brief guidance on how to apportion is shown in Clubs and associations’ VAT responsibilities (VAT Notice 701/5). A non-distribution clause in the constitution of an organisation does not, in itself, answer this question. This covers sports and physical education listed at paragraph 3.2 and physical recreation activities such as greyhound or pigeon racing and clay pigeon shooting. Your organisation is an eligible body when: The rest of the section explains how your organisation may meet the first 3 conditions and qualify as an eligible body. You will need to determine the liability of the relevant supplies in accordance with this notice and attribute the costs correspondingly. If you do wish to apportion, for example, subscriptions to cover separate benefits such as zero-rated printed matter, you must apportion all types and elements of subscriptions on a fair and reasonable basis, in other words you cannot pick and choose elements, and retrospective apportionment is not allowed. We are Baltimore’s premier retail health & fitness facility. If you also supply zero-rated benefits (for example, a magazine for members) and exempt benefits (for example, use of sporting facilities such as pool or snooker tables) in return for your subscription, you must consider the correct treatment of your supply under the terms of sub-paragraph 3.5.9. You are entitled to deduct the input tax incurred on costs that you use or intend to use in making taxable supplies. For more information see the section on sports facilities and physical recreation in Land and property (VAT Notice 742). If the supply you are making is exempt the value of that exempt supply is normally the full amount of the entry fees received.

But in most cases there is one principal benefit or reason for joining. Joining fees qualify for exemption where the benefits you supply in return are the same as for the subscription and the subscription is itself exempt. Even if you are a charitable body that is also an eligible body, your club will be charged VAT on most goods and services you buy in, including building work such as the construction of pavilions, clubhouses and facilities for playing sport.