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VAT racing

06 May 2014
Issue: 4450 / Categories: Forum & Feedback , VAT

A Brazilian client is establishing a Formula 2 team in the UK. It is hoped income will be generated from sponsorship, hire fees and prize monies

I have a commercial client based in Brazil and the company’s aim is to form a UK company buy a racing car and compete in Formula 2 races.

The car will be based at a UK site and the company will employ two people in the UK to deal with the safety issues and the mechanical condition of the car. Most races will be in other EU countries as well as in the UK and there will be three sources of income.

  • Sponsorship from the parent company of the client in Brazil; its name and logo will be clearly promoted on the side and rear of the vehicle.
  • Fee income from hiring the car to racing enthusiasts. This will take place mainly in the UK but potentially in other EU countries after races. The hirers will be private individuals and vehicle...

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