Commentary

V6.362 Liability of supplies and activities of sports bodies

Part V6 Business by business

V6.362 Liability of supplies and activities of sports bodies

Sports bodies

V6.362 Liability of supplies and activities of sports bodies

Introduction to sports bodies

This paragraph and V6.363 examine VAT issues of particular relevance to sports bodies. In common with other clubs and associations (see V6.189–V6.190) many sports bodies are faced with complex VAT issues. This paragraph considers the liability of supplies and activities of sports bodies including when they are acting in the course or furtherance of business, the status of grants, the VAT treatment of common supplies and the issue of single and multiple supplies. V6.363 looks at VAT recovery and other practical points for sports bodies, including challenges associated with land and property, relief on construction services and various VAT planning strategies employed by sports bodies. It should be noted that this section does not include detailed discussion of sporting services provided by local authorities (for which see V6.305–V6.309).

Business/non-business activities and grants vs consideration for sports bodies

VAT in the UK is due only on taxable supplies made by a taxable person in the course or furtherance of a business. Consequently an activity that does not amount to a business does not give rise to any taxable supplies.

A sports body that is run as a commercial enterprise is clearly in business. But there are other circumstances where the position may not be so clear cut.

The concept of 'business' and the related European concept of 'economic activity' are complex and much litigated, they are addressed in Division V2.2.

Sports bodies should, in particular, consider the provisions

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