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VAT concession to be withdrawn from 1 April.
The concession enabling sports clubs to treat affiliation fees as exempt from VAT will be withdrawn from 1 April.
This comes after a consultation and puts profit-making commercial clubs in a similar position to those that are non-profit making, in that they did not need to account for output tax on the fee charged.
It achieves this by allowing profit-making commercial clubs to treat these re-charges to their members as though they were disbursements.
After the concession is withdrawn the onward charge of the affiliation fee will be liable to VAT at the standard rate of 20% unless it meets the conditions of a disbursement. It has no effect on the treatment of these fees by non-profit making sports governing bodies.
Paragraphs 3.6.1 and 3.6.2 of Notice 701/45 and VAT Sport Manual at VSPORT2020 will be amended.
