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Treasury

Answer

Mr. Reed: To ask the Chancellor of the Exchequer what representations he has received about the VAT liabilities of national governing bodies of sports; and if he will make a statement. [197432] Dawn Primarolo: In the last year a small number of letters from hon. Members have been received by Treasury Ministers about the liability of affiliation fees paid by sports clubs to their governing body. Supplies of services closely linked with, and essential to sport are exempt from VAT where these services are supplied by a non-profit making body to individuals. Subject to these same conditions, VAT exemption also applies to sports governing bodies and the services they supply in return for the affiliation fees they charge to their members. Where membership of a sports governing body consists of sports clubs, affiliation fees are exempt where the individual sportsman or woman is the most direct beneficiary of the affiliation, and where this is reflected in the basis on which the affiliation fee is calculated by the governing body. When this is not the case the affiliation fee is taxable at the standard rate of VAT.

Secondary information

Type

Written question

Reference

426 c1269W;426 c1273W; 197432

Session

2003-04

Subjects

Fees and charges Governing bodies Membership Tax allowances Sports VAT

Link

View this Written question on www.publications.parliament.uk