VAT on supplies of childcare services

Key points

• A business provided various services for children including holiday camps.
• Were the holiday camps exempt for VAT?
• Other cases considered were Plant Sport Ltd and Sport Academies Ltd.
• The provision of childcare was the predominant supply.

When is a supply of services for children exempt for VAT purposes? This thorny issue has been disputed with HMRC in several cases with four reaching the tribunals only for the taxpayer to lose on each occasion.

So it was a great victory for RSR Sports when after a lengthy process with HMRC including a failed alternative dispute resolution procedure the First-tier Tribunal found for our client. The services in question were holiday camps a popular form of childcare during the school holidays in particular.

Facts

RSR Sports Ltd provides a...