RCB/50/07 VAT—Court confirms HMRC's policy on all-inclusive leisure facilities schemesRevenue & Customs Brief, Issue 50. 13 July 2007Unlimited access to all leisure facilities in a leisure centre, typically in return for a monthly or annual payment, is liable to VAT at the standard rate. The Court of Session confirmed HMRC's long-standing policy that an all-inclusive scheme is a single supply of the right to use the facilities. The fee paid cannot be apportioned between supplies merely because one or more of them would be at a different VAT rate if charged for separately.We understand that, for instance, local authorities and leisure trusts sometimes attempt to apportion fees between VAT rates; an example is a local authority apportioning between standard-rated sauna facilities and exempt swimming tuition. However, the different VAT rates only apply if there are separate charges for individual supplies of
Revenue & Customs Brief, Issue 50. 13 July 2007
Unlimited access to all leisure facilities in a leisure centre, typically in return for a monthly or annual payment, is liable to VAT at the standard rate. The Court of Session confirmed HMRC's long-standing policy that an all-inclusive scheme is a single supply of the right to use the facilities. The fee paid cannot be apportioned between supplies merely because one or more of them would be at a different VAT rate if charged for separately.
We understand that, for instance, local authorities and leisure trusts sometimes attempt to apportion fees between VAT rates; an example is a local authority apportioning between standard-rated sauna facilities and exempt swimming tuition. However, the different VAT rates only apply if there are separate charges for individual supplies of
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