Clubs and associations

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Clubs and associations
  • Business and non-business activities
  • Subscriptions
  • Raising capital
  • Supplies
  • Hospitality

This guidance note provides an overview of the main VAT treatment of supplies made by clubs and associations.

VBNB60000; HMRC Notice 701/5 ; 2006/112/EC , Articles 132(1)(f) and 132(1)(l); VATA 1994, Sch 9, Group 9, s 94(2); De Voil Indirect Tax Service V2.112, V4.156 (subscription sensitive)

Broadly speaking there are three types of ‘clubs and associations’ which are:

  • organisations that are non-profit making trade union, professional or representative bodies that make supplies to its members that are referable to its aims and available without payment other than a membership subscription
  • non-profit making bodies with objects which are in the public domain and are of a political, religious, patriotic, philosophical or philanthropic nature
  • club, association or organisation that provides facilities or advantages to its members in return for a subscription or other consideration

The VAT treatment of supplies made by these organisations is outlined below.

Business and non-business activities

Most clubs and associations make business and non-business supplies as part of their overall activities. This section provides an overview of the typical types of activities (these lists are not exhaustive).

Business activities

These include:

  • providing specified benefits to members in exchange for the membership subscription
  • providing additional benefits in exchange for payment
  • providing supplies to non-members in exchange for payment
  • charging admission to premises / events
  • provision of catering, social and other facilities to members / non-members in exchange for payment

VATA 1994, s 94(2)(a); VBNB24000; VBNB60410
Non-business activities

These are usually activities that are provided free of charge or payments received for which nothing is offered

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