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Readers' forum : Sports club VAT

05 July 2016
Issue: 4557 / Categories: Forum & Feedback

The VAT exemption for fundraising events and ‘not for profit’ bodies.

I act for a local football club that has recently relocated to newly built facilities. The club is not a charity but is a ‘not for profit’ body. Income includes gate receipts bar and catering receipts room hire and advertising.

I am reasonably clear on the VAT treatment of most sources of income but I am uncertain as to the position for fundraising events. The VAT exemption on such events applies to ‘not for profit’ bodies whose principal purpose is the provision of facilities for persons to take part in sport and physical recreation.

At first sight it would seem that the primary purpose of a football club is for people to take part in sport. However I am wondering whether the fact that people pay to watch games and that there is significant non-sport income could mean that this is no longer the case.


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