Cultural events

The taxpayer union was a charity registered for VAT. Day-to-day management was organised by the executive committee which included nine sabbatical officers – usually graduates – who had contracts and were paid a salary of about two-thirds of what might be considered a graduate’s starting earnings.

The committee organised the freshers’ and graduation balls the main attraction of which would be a well-known act. Students had to pay to attend and the events made money.

The taxpayer claimed repayment of VAT of the output tax on the admission charges which the union stated should be exempt under VATA 1994 schedule 9 group 13 item 2(b) as supplies of a right to admission to entertainment events.

The union also said the supply was in connection with an exempt fund-raising event under article 13A(1)(o) of the Sixth Directive.

HMRC refused the claim and the First-tier Tribunal dismissed...