Do you let out your Sports facilities? Do you charge VAT on the hiring fee?
You may be able to get it back!
Many Charities, such as community groups, clubs and schools let their sports facilities to members of the public and charge VAT on the hiring fee. did yuo know you can reclaim VAT on sports facilities?
There has been a case recently, actually in respect of a Golf Club in Dorset, where the European Court of Justice (ECJ) has ruled that the VAT treatment should have been the same for hirings to people who were not members of the Club as had been applied to hirings to members – in other words the hiring fee should have been exempt from VAT.
Clubs had generally been applying the UK law correctly, but the ECJ has ruled that UK law was not in line with the EU Directive, and now HMRC has agreed. It is now expected that UK law will be changed to make it conform to the EU Directive.
So many Charities supplying sporting services have probably overpaid VAT on these charges. You may be able to recover the VAT overpaid in the last 4 years from HMRC.
Need our help?
One or two caveats may come into play, but it is something that is worth looking into.