VAT Services for Sports and Leisure Clubs

If you operate a sports club, you may already be familiar with understanding and meeting your VAT obligations. This can become more complicated when your supplies are sold as a package where the individual supplies are taxed differently; in such cases, a judgement needs to be made about whether or not it is possible to split the supplies or whether they function as a single supply. Professional advice on how to determine this is recommended.

At The VAT People, we have years of experience in helping sports club owners fulfil their VAT obligations. We will thoroughly review your circumstances to determine how you can best meet VAT regulations, identify any areas where you might be able to claim back VAT, benefit from reductions or apply other regulations to get the best possible outcome for your business.

We have worked alongside many sports and leisure clubs to advise them on their obligations and which of the goods and services they provide should be exempt. For tailored advice and practical guidance, call The VAT People on 0161 477 6600, or fill out an online enquiry form to request a call back at your convenience.

Are sports and leisure clubs VAT exempt?

Sports and leisure clubs can benefit from VAT exemptions, but this is subject to strict conditions set by HMRC. These exemptions typically apply to non-profit-making organisations that qualify as eligible bodies. To be considered an eligible body, the organisation must operate on a non-commercial basis, meaning that any profits are reinvested into the organisation rather than distributed to members or shareholders.

The VAT exemption applies to certain sport and physical recreation services provided by these eligible bodies. For example, if a non-profit sports club provides facilities or coaching that is closely linked and essential to sport or physical education, they may be considered VAT exempt. However, the exemption is not automatic; the club must meet specific criteria set out by HMRC for non-profit sports clubs.

It’s important to note that not all services provided by sports and leisure clubs are able to claim this VAT treatment. For instance, services such as catering, social memberships, and accommodation are generally subject to VAT. Furthermore, if a service is provided by a profit-making entity or does not directly benefit the individual participants in sport or physical education services, VAT exemption is unlikely to apply.

Missteps in understanding whether your sports club is an eligible body or qualifies as a non-profit making organisation can lead to significant tax liabilities, so seeking professional advice to navigate these rules is highly recommended.

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