Hi there, a real quick one - I'm 99% certain there's VAT at standard rate on a VAT registered Members Association Football Club that's charging entry fees to watch football matches. Is anyone aware how this wouldn't be the case?
The club turnover has exceeded the VAT threshold and expects it to grow.
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All good. If it was run not for profit, would the various exemptions extend to gate receipts for will hell freeze over before that’s the case?
You'd need to convince HMRC that watching a game was a sport in itself. I can't see it on the lists published by Sport England and its counterparts in other parts of the UK. I suspect that you just need to up your admission prices by 20%.
On the positive side, sales of programmes are zero rated.
If they play <15 home games a year and it's not seen as 'semi-regular', they might be able to claim they are just a series of VAT exempt fundraising events. But the existence of a league or other organised pattern would probably rule that out...
So in theory if programmes are given on entry they could be justified as being part of the cost of entry? Therefore a partial exemption on the total gate? Or am I clutching?
Rochdale Hornets tried that back in 1975. They lost at Tribunal.
https://library.croneri.co.uk/cch_uk/bvc/1975-1-bvc-1032
And that was back in the days when it was actually illegal to charge for admission to sporting events on the Lord's Day.
Partial exemption ? No, that's something else. Zero Rated and Exempt are two very different things.
As noted above programmes would be zero rated, not exempt, so partial exemption would not apply.
If and when you invest in a substantial capital project, you’ll be pleased your receipts are taxable!
It depends on the income streams of the club, many similar clubs will actually be 2 separate clubs, one sporting and one social. This can result in the social club with bar takings being VAT registered, but perhaps the sporting club being below the VAT threshold.