The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance note provides an overview of the main VAT rules relating to supplies of sport and physical recreation.
The VAT exemption covers:
the provision of sport and physical recreation by an eligible body
entry to eligible sport and physical recreation competitions (see the Exemption ― sport ― VAT treatment of various sporting services guidance note)
An eligible body is an organisation that meets all of the following criteria:
it is a non-profit making organisation
the organisation’s constitution includes a non-distribution clause or limits the distribution of any profits / reserves to:
another non-profit making club
its members if the organisation is either wound up or dissolved
the organisation uses all profits / surpluses from its playing activities to maintain or improve the related facilities or for the overall activities of the non-profit making organisation
the organisation is not subject to any commercial influences or part of a wider commercial organisation (see the Exemption ― sport and physical recreation ― commercial influence guidance note)
VSPORT2010, VSPORT1030; Value Added Tax (Sport, Sports Competitions and Physical Education) Order 1999, SI 1999/1994
The constitution should outline the main purpose of the organisation and whether the organisation has the ability to distribute profits or surplus income. The organisation should have a non-distribution clause in its constitution. There is no prescribed format for one of these types of clauses. However, some sample clauses are included in the attached
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