Commentary

RCB/18/20 VAT liability of school holiday clubs First-tier Tribunal decision

Part V16 Forms and other HMRC material

RCB/18/20 VAT liability of school holiday clubs First-tier Tribunal decision

RCB/18/20 VAT liability of school holiday clubs First-tier Tribunal decision

Revenue & Customs Brief, Issue 18. 17 November 2020

1 Purpose of this brief

This brief clarifies HMRC's policy concerning the VAT treatment of school holiday clubs following the First-tier Tribunal's (FTT) decision of 7 November 2019 in RSR Sports Limited (RSR) (Decision No TC07453).

In particular, it clarifies how other businesses providing similar supplies will be treated. It also invites anyone who considers that they have received an incorrect ruling prior to the decision in RSR to seek a corrected ruling and a refund of any tax incorrectly overpaid.

2 Who this applies to

Organisations that make supplies of school holiday club services and their advisers.

3 Background

RSR provided holiday camp services to parents and their children and argued that these services were exempt from VAT as the provision of welfare during the school holidays.

HMRC refused RSR's claim for repayment on the basis that holiday camps were activity based and the supply was not one of welfare.

Supplies of welfare services are exempt from VAT under Item 9 of Group 7 of Schedule 9 of Value Added Tax Act 1994. This exemption is subject to the following 2 conditions.

1. The supply is by:

  1.  

    •     a charity

  2.  

    •     a state-regulated private welfare institution or agency

  3.  

    •     a public body

2. The services are welfare services and goods supplied

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