Commentary

V6.294 VAT recovery and other practical points for the leisure sector

Part V6 Business by business

V6.294 VAT recovery and other practical points for the leisure sector

V6.294 VAT recovery and other practical points for the leisure sector

VAT recovery in the leisure sector

The VAT status of a number of supplies and activities in the leisure sector is covered at V6.293. In general, the activities of many leisure providers will be taxable. However, some activities may qualify for exemption (such as betting and gambling or certain other leisure activities provided by specific types of organisation). Equally some leisure activities may be regarded as non-business (such as the provision of admission to a museum or similar premises if no charge is made). Normally businesses and organisations in the sector will only be able to recover VAT on costs to the extent that they are used for taxable business activities.

Non-business expenditure and VAT recovery

VAT cannot generally be recovered on expenditure which is used for a leisure provider's non-business activities (to the extent that such activities exist); it is only VAT incurred for business purposes that can be 'input tax'. However, the question of whether expenditure is used for business purposes will not always be easy to answer. For consideration of a business purpose in the context of input tax recovery, see V3.405A–V3.410. Some expenditure may be used for both business and non-business purposes and it will be necessary to apportion between the two. Principles of apportionment are described at V3.408.

In limited circumstances it may be

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