Exemption ― sport and physical recreation ― commercial influence

Produced by Tolley
Exemption ― sport and physical recreation ― commercial influence

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

  • Exemption ― sport and physical recreation ― commercial influence
  • Step 1 ― relevant period
  • Step 2 ― relevant supply
  • Step 3 ― emolument
  • Step 4 ― agreements
  • Step 5 ― commercial influence
  • Step 6 ― person associated
  • Ex-gratia (Honorarium) payment
  • Use of a committee member to perform routine services

The following steps will assist the organisation with determining whether a supply of sport or physical recreation services is the subject of commercial influence for VAT purposes.

Step 1 ― relevant period

What is the relevant period?

This must be determined every time the organisation charges for an initial or renewed playing subscription, or provides other sport of physical recreation services.

A relevant period is defined as follows:

  1. if the sports supply was made from 1 January 2003 onwards, the relevant period runs for the three years leading up to the period of the sports supply

  2. if the sports supply was made between 1 January 2000 and 31 December 2002, the relevant period runs from 14 January 1999 to the time of the sports supply

Step 2 ― relevant supply

Did the organisation receive a ‘relevant supply’ during the ‘relevant period’?

A relevant supply is as defined as follows:

  1. a grant of either:

    1. any interest in, right over land, or licence to occupy any land which at any time during the relevant period was, or was expected to become, sports land, or

    2. the use

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