VAT Services for Sports and Leisure Clubs
The division of goods/services that are VAT exempt when provided by sports and leisure clubs, from those that are subject to VAT can be difficult to navigate. For starters, only certain clubs will be eligible for tax exemption on qualifying supplies - specifically clubs that do not make a profit and are not subject to commercial influence - and beyond this, the specifics of how the rules are applied can be equally confusing. For example, while the hire of sporting equipment is exempt from VAT, the sale of the same goods is not. Renting out a venue for sporting purposes is exempt, but doing so for social functions (like parties) is not, and these examples show that ambiguities can easily arise.
If you operate a sports club, you may already be familiar with the tricky matter of understanding and meeting your VAT obligations. This can become more complicated when your supplies are sold as a package where the individual supplies are taxed differently; in such cases, a judgement needs to be made about whether or not it is possible to split the supplies or whether they function as a single supply. Professional advice on how to determine this is recommended.
At The VAT People, we have years of experience in helping sports club owners fulfil their VAT obligations. We will review your circumstances with meticulous attention to detail to determine how best you can meet VAT regulations, and also identify any areas where you might be able to claim back VAT, benefit from reductions or apply other regulations to get the best possible outcome for your business.
We have worked alongside many sports and leisure clubs to advise them on their obligations and which of the goods and services they provide should be exempt. For tailored advice and practical guidance, call The VAT People on 0330 3114 275, or fill out an online enquiry form to request a call back at your convenience.
How we can help you
Thanks to our experience in this area and our knowledge of the relevant legislation, we can provide bespoke and practical advice that is easy to follow and will remain up-to-date with any changes to the law. We have worked with many sports and leisure clubs to support them with VAT registration, ensure they paid any VAT they owed, and did not overpay on supplies that are exempt.
For example, in a recent ruling, HMRC accepted that when non-profit members’ sports clubs supply sporting services, whether to members or to non-members, this can be regarded as an exempt supply for VAT purposes. However, this only applies to eligible businesses, so it is important as the operator of a sports or leisure club to understand these regulations and your responsibilities in detail. You may be able to submit a claim to HMRC if you operate this type of sports club, and we would be happy to provide advice to any businesses in this position.
Complying with VAT regulations can be especially difficult for sports and leisure clubs, because of the ambiguous differences between services that qualify for exemption and those that do not.
Our team of experienced VAT professionals have the knowledge you need. To learn more about them and how they can help you, visit our team page.
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