The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the main VAT treatment of supplies made by clubs and associations.
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.
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).
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
These are usually activities that are provided free of charge or payments received for which nothing is offered in return. They include:
free admission provided to non-members
lobbying for public and / or charitable good causes or spreading political or religious beliefs. Please note that lobbying for members would be regarded as a business activity.
providing free literature to non-members
receiving donations that are given freely and the organisation provides nothing in return for the payment
Details of some relevant VAT case law on the VAT treatment of supplies made by clubs and associations can be found at VBNB75920.
Members often receive a number of different supplies when they pay their subscription to an organisation. If the organisation provides members with a 'substantive' benefit (see below) it will
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