Exempt ― sport and physical recreation ― commercial influence

By Tolley
Exempt ― sport and physical recreation ― commercial influence

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

  • Exempt ― 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

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?

VAT Notice 701/45: sport 

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:

  • 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
  • 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:

    More on Exempt supplies: