Sporting decision

Exemption for recreational facilities

The London Borough of Ealing operated sports facilities and accounted for VAT on admissions to them. In 2013 it claimed a repayment believing that the fees were exempt under Council Directive 2006/112/EC Art 132(1)(m).

HMRC rejected the claim on the ground the taxpayer was not an eligible body (VATA 1994 Sch 9 Group 10 note 3). It said this was to help to prevent distortion in the market. The taxpayer appealed.

The First-tier Tribunal referred the matter to the Court of Justice of the EU.

The CJEU said Art 132(1)(m) which provides that member states may exempt supplies of services closely linked to sport or physical education made by non-profit making organisations extended to all such organisations. It added that the possibility made available to member states of excluding the exemption under Art 133(d) (risk of distortions to competition) is more...