Law8 mins ago
If You Join A Sports Club Does Your Subscription Include Vat On It
6 Answers
or are the subscriptions vat free
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jesus the VATman's advice on this is not exactly short...
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Where VAT's concerned, nothing is ever simple!
If you join a sports club primarily to participate in the relevant sport then (because your subscription is offered to to you in order for you to access sporting facilities) the subscription is exempt from VAT.
However if a club offers 'social membership' (whereby a subscription allows the member to use the club bar or restaurant but doesn't provide access to sporting facilities) then there is no VAT exemption.
Further, if a club offers 'social membership', it's possible that HMRC might consider that 'full membership' constitutes 'multiple supply', with the part of a 'full' subscription which gives access to sports facilities being exempt from VAT but the 'social' element being subject to VAT.
Further, VAT exemptions only apply when the club is an 'eligible body', which requires it to have a constitution declaring it to be non-profit making and that its income will solely be used for furthering the activities of the club. (So a club which gives part of its profits to local charities risks losing the VAT exemptions which would normally apply)
Notices 701/45
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and 701/5 apply
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If you join a sports club primarily to participate in the relevant sport then (because your subscription is offered to to you in order for you to access sporting facilities) the subscription is exempt from VAT.
However if a club offers 'social membership' (whereby a subscription allows the member to use the club bar or restaurant but doesn't provide access to sporting facilities) then there is no VAT exemption.
Further, if a club offers 'social membership', it's possible that HMRC might consider that 'full membership' constitutes 'multiple supply', with the part of a 'full' subscription which gives access to sports facilities being exempt from VAT but the 'social' element being subject to VAT.
Further, VAT exemptions only apply when the club is an 'eligible body', which requires it to have a constitution declaring it to be non-profit making and that its income will solely be used for furthering the activities of the club. (So a club which gives part of its profits to local charities risks losing the VAT exemptions which would normally apply)
Notices 701/45
https:/
and 701/5 apply
https:/
VAT - depends on the tax status and size of the club. If club literature shows a VAT registration number, fee is probably VATable. If it shows charitable status, probably not. Best to ask a club official about this.
Leaving fee - This would be covered by the club rules or conditions of membership. Seems unlikely as it would be difficult to enforce.
Leaving fee - This would be covered by the club rules or conditions of membership. Seems unlikely as it would be difficult to enforce.
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