Trading with sport events - VAT

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I got a prospect who trades with sport events, football tickets mainly.

When they buy from the Premier League they pay VAT on the tickets, but when they buy from FIFA, based in Switzerland, they don´t pay VAT, reverse charge applies. 

I have put him in contact with a VAT specialist (https://vatadvice.net/) to make sure he does things right. Not sure if they could use the Tour Operator Margin Scheme. In the meantime I would like to know for my own knowledge the basics of his business.

Q1 - They have bought some tickets from FIFA for matches that will be played in London. If he resells the tickets, does he have to charge VAT on them? 

Q2 - If the match is played in Turkey, does he have to charge VAT?

Q3 - Could Tour Operator Margin Scheme apply? 

Thank you.

 

Replies (5)

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VAT
By Jason Croke
08th Dec 2023 16:52

Agree with David, not TOMS.

Place of supply of services rules are in play here, your client is selling tickets to a live event, see section 9 https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a#...

That Notice should be enough to deal with most queries relating to services of any kind.

Thanks (1)
Replying to Jason Croke:
seneca
By Seneca
11th Dec 2023 14:23

Thank you for your message.
If I understand correctly, a UK business that has to charge VAT on any sporting event held within the UK may be at a competitive disadvantage compared to a business registered in a place where there are no sporting events. For instance, a business registered in Iceland can purchase tickets from both FIFA and Premier League without paying VAT and then sell them to consumers without charging VAT, making them more competitive in the market. Am I missing anything?

Thanks (0)
Replying to Seneca:
Ivor Windybottom
By Ivor Windybottom
11th Dec 2023 18:02

Think you've missed that the place of supply of event admission is where the event is. So any Premier League tickets have a place of supply in the UK and are subject to VAT, irrespective of the location of the supplier or customer.

The Premier League will charge VAT and an Icelandic business must charge UK VAT on the re-sale of those tickets.

Thanks (1)
Replying to Ivor Windybottom:
seneca
By Seneca
14th Dec 2023 08:02

Hi Ivor, sorry I missed to thank you and reply earlier.
I understand from your message that the Premier League will charge VAT to the Icelandic business even if it is a B2B transaction? I assumed Premier League wouldn't given the FIFA any tax when selling to a UK business.
How would the Icelandic business pay the VAT to UK HMRC if they sell those tickets?

Thanks (0)