Sports Club, claiming input VAT on expenses.

Members Sports Club, registered for VAT but expense often paid by members and refunded by club .

Didn't find your answer?

The problem is purchase & expenses invoices often not in name of club. VAT invoices provided but:

On line purchases in name of committe member

Shop purchases not in any name

Recharge by business not registered for VAT, with invoice to the business

What would be the approach by your practice?

 

Replies (10)

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By Paul Crowley
30th Nov 2022 13:52

Explain the rules
Claim at club's risk
Stop the errors for the future

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Replying to Paul Crowley:
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By CJaneH
30th Nov 2022 14:00

Thanks for response.

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VAT
By Jason Croke
30th Nov 2022 14:44

Are these costs being put through as expenses? If I was a committee member and I bought something for the club from say Amazon using my personal Amazon account....how do I get my money back?

If a committee member were to put an expense claim form into the club, then they would be formally reimbursed for that cost and the club now has an expense claim clearly showing that it (the club) has purchased the goods from a committee member (by reimbursing them). If a committee member was just giving you their Amazon receipt then that isn't recoverable as it's not a supply made to the Club.

Shop purchases, advise committee members that no receipt, no refund. Where a receipt is given, if that is going through petty cash then that should be alright as the club would not pay out petty cash unless it was for a business purpose. Presumably these purchases are legitimate purchases for the Club, not the committee member?

If there is a recharge by a business not registered for VAT...If you mean the Club has received a purchase invoice from a non-VAT registered supplier and the Club is then onward recharging that to someone else, then the recharge would usually be plus VAT (but depends on what is being recharged, in which case the recharge might be exempt).

Sports clubs are often partially exempt and so any input tax incurred should be subject to partial exemption calculations, which is a different subject to the questions asked but they fit into each other nicely.

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Replying to Jason Croke:
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By CJaneH
30th Nov 2022 15:15

Thanks for confirming my knowledge & thoughts. All expenses are legitimate. This is a members club with no paid staff.

As regards the un-registered business. A Coach purchased assorted equipment for the club in his name and issued invoice to recover the costs. So input VAT lost.

I know what should happen, but in this age of online purchases and payment it is always in the name of person on the keyboard.

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Replying to CJaneH:
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By Paul Crowley
30th Nov 2022 16:20

His invoice confirms no VAT

Explain the rules
VAT invoice in club name

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Replying to CJaneH:
RLI
By lionofludesch
01st Dec 2022 08:03

CJaneH wrote:

Thanks for confirming my knowledge & thoughts. All expenses are legitimate. This is a members club with no paid staff.

As regards the un-registered business. A Coach purchased assorted equipment for the club in his name and issued invoice to recover the costs. So input VAT lost.

Was it an invoice? Or an expense claim?

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Replying to Jason Croke:
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By CJaneH
30th Nov 2022 15:16

Thanks for confirming my knowledge & thoughts. All expenses are legitimate. This is a members club with no paid staff.

As regards the un-registered business. A Coach purchased assorted equipment for the club in his name and issued invoice to recover the costs. So input VAT lost.

I know what should happen, but in this age of online purchases and payment it is always in the name of person on the keyboard.

Thanks (0)
Replying to CJaneH:
VAT
By Jason Croke
30th Nov 2022 15:30

Yes, the Coach invoice, no VAT for cub to reclaim because the VAT was incurred by the Coach and the Coach has recharged this without VAT (as presumably they are not VAT registered themselves) and so yes, the VAT is lost.

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Replying to Jason Croke:
By Charlie Carne
02nd Dec 2022 14:32

I think that the question should really have been phrased along the lines that a non-VAT registered coach has incurred costs that are legitimately for the club's business but the VAT invoice from the supplier shows the coach's name as the customer, rather than the name of the club.

If the coach invoices the club, the VAT will be lost, as the coach's invoice (which cannot include VAT as he/she is not registered for VAT) is the basis for the supply to the club. However, if the coach submitted an expense claim instead, along with a copy of the disbursement (i.e. the invoice made out to the coach, which included VAT), could the club reclaim the VAT charged by the original supplier?

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Replying to charliecarne:
RLI
By lionofludesch
02nd Dec 2022 14:46

Yes. Hence my (as yet) unanswered query of 8.03 yesterday morning.

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