Exempt ― sport and physical recreation ― commercial influence

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Exempt ― sport and physical recreation ― commercial influence
  • Step 1 ― relevant period
  • Step 2 ― relevant supply
  • Step 3 ― emolument
  • Step 4 ― agreements
  • Step 5 ― commercial influence
  • Step 6 ― person associated

The following steps will assist the organisation with determining whether a supply of sport or physical recreation services is the subject of commercial influence for VAT purposes.

Step 1 ― relevant period

What is the relevant period?

VAT Notice 701/45: sport 

This must be determined every time the organisation charges for an initial or renewed playing subscription, or provides other sport of physical recreation services.

A relevant period is defined as follows:

  • if the sports supply was made from 1 January 2003 onwards, the relevant period runs for the three years leading up to the period of the sports supply
  • if the sports supply was made between 1 January 2000 and 31 December 2002, the relevant period runs from 14 January 1999 to the time of the sports supply
Step 2 ― relevant supply

Did the organisation receive a ‘relevant supply’ during the ‘relevant period’?

A relevant supply is as defined as follows:

  • A grant of either:

    HMRC states that ―

    “Grant includes an assignment or surrender. Sports land in relation to any body, means any land used or held for use for or in connection with the provision by that body of facilities for use for or in connection with sport or physical recreation, or both.”

More on Exempt supplies: