Sports
This page outlines the role of VAT in relation to sporting services.
Sports Centre Income
The University receives income from services supplied to students, staff and the wider community. The VAT treatment of the supplies depends on to whom the supply is made: an individual, or group or organisation.
Supplies to Individuals
The supply of sporting services to individuals by the University as a non-profit making body is exempt from VAT. For the purposes of this exemption, an “individual” is a person who actually takes part in the sporting or physical education activity. This includes family groups, informal groups, and non-profit making entities, where one individual makes a booking on behalf of a group and the true beneficiaries are the persons taking part in the activity.
Supplies to Organisations
The supply of sporting facilities to a commercial organisation is a standard-rate supply, unless the supply qualifies for exemption under one of the following concessions:
- The facilities are provided for a continuous period of use exceeding 24 hours. The person to whom the facilities are let must have exclusive control of them throughout the period of letting; or
- The grant of facilities is for a series of ten or more periods.
As mentioned above, informal groups and non-profit making bodies qualify as individuals and are not subject to these group rules.
Group Classes
A class which is led and directed rather than merely supervised by staff is classified as education and is exempt from VAT. If the mere presence of staff is to supervise on health and safety or insurance grounds, the service is a grant of facilities and the conditions above (Supplies to Groups/Organisations) apply.