VAT: Sports

Treasury written question – answered on 15th May 2008.

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Photo of David Gauke David Gauke Shadow Minister (Treasury)

To ask the Chancellor of the Exchequer what his policy is on the VAT treatment of sports and leisure trusts; and if he will make a statement.

Photo of Jane Kennedy Jane Kennedy Financial Secretary, HM Treasury

As provided for by our European VAT agreements, the supply of sporting services is exempt from VAT when supplied by non-profit making organisations such as sports and leisure trusts.

However this VAT exemption applies only to sporting services and cannot extend to the use of saunas, steam rooms, or to season tickets which entitle customers to use both sports and other, non-sporting, facilities. Such supplies have been subject to VAT since 1973 when the tax was introduced.

HM Revenue and Customs is aware that a number of organisations have been applying the VAT rules in this area incorrectly, and published Revenue and Customs Brief 50/07 in July 2007 to clarify the matter. However, this brief did not change any of the VAT rules, nor did it impose VAT on supplies that were properly exempt from VAT.

I refer the hon. Member to the answer I gave on 14 March 2008, Hansard, column 722W, to my hon. Friend Clive Efford.

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