Commentary

V6.363 VAT recovery and other practical points for sports bodies

Part V6 Business by business

V6.363 VAT recovery and other practical points for sports bodies

V6.363 VAT recovery and other practical points for sports bodies

VAT recovery for sports bodies

The liability of supplies and status of activities undertaken by sports bodies is described at V6.362. It will be clear from that discussion that depending on the body concerned it may have taxable, exempt or non-business activities. It may also have a mixture of these activities.

A commercial sports body is likely to make mainly taxable supplies and, if registered for VAT in respect of its business activities, should usually be able to reclaim as input tax most of the VAT which is charged to it, provided that it holds the necessary evidence. This is usually a valid tax invoice although other documents are also acceptable.

To the extent that a sports body only has exempt (or non-business) activities it will not be entitled to recover VAT on costs (or indeed register for VAT).

The recovery position for bodies which have a mixture of activities is more complex and is described further below.

Non-deductible input tax

Certain types of expenditure will be excluded from VAT recovery by their nature. For details of input tax which is excluded from credit see V3.440–V3.450. Included within this bracket is VAT on business entertainment (see V3.446) and most cars (see V3.443).

In the context of sports bodies it is worth noting in particular the case of Celtic Football & Athletic Club Ltd v C & E Comrs [1983] STC 470 (see also V3.446) where a sports club was obliged, under the rules

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