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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
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A Sports Club Ltd is constituted as a non-profitmaking organisation

Resolved Question:

A Sports Club Ltd is constituted as a non-profitmaking organisation and is recognised as a Community Amateur Sports Club.

As such they do not pay VAT on playing subscriptions, match fees etc. and they are able to reclaim VAT on sports related supplies providing the VAT on these do not exceed the de minimis level in each accounting year.

As a small club the VAT on sports related supplies has never exceeded the annual de minimis level of £7,500 in previous years. (Supplies average about £15,000).

However, in this financial year a £30,000 + VAT resurfacing of our tennis courts may take place and a £60,000 + VAT refurbishment of our changing rooms may take place in our next financial year.

Are we able to reclaim any VAT on these capital projects?

The following is approx. income for the financial year to March 31st 2013

Members Subscriptions Playing 25,000 Exempt
Social 1,500 Standard
Donations 700 Outside
Sponsorship 450 Standard
Bar Sales 56,500 Standard
Pool table 200 Exempt
Room hire 600 Standard
Fund Raising Events 2,200 Exempt

Of course these are for the past financial year and I am only using them to give you an idea of the kind of income we typically expect.

I think these figures would give approx. 30% of irrecoverable VAT if we are able to reclaim on the improvements – but would that be applied to the bar supplies as well as the sports related supplies?

Many thanks
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.

Rakhi Vasavada :

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

Rakhi Vasavada :

In your case, you would be eligible to reclaim VAT on the capital expenses as well. This is usually possible if you satisfy some of the conditions which most of the not-for-profits satisfy.

Rakhi Vasavada :

I am sorry, there is a typographical error, which changes the meaning. Let me come over again.

Rakhi Vasavada :

In your case, you would NOT be eligible to reclaim VAT on the capital expenses as well. This is usually possible if you satisfy some of the conditions which most of the not-for-profits satisfy.

Rakhi Vasavada :

Going further, so far as purchase / maintenance / repair of capital goods / equipments are concerned, you would reclaim / or not pay VAT only if you are an eligible body as defined as under:

For the purposes of buying qualifying goods and services at the zero rate of VAT an eligible body includes:

=>certain health bodies - for example National Health Service trusts
=>research institutions whose activities are not carried out for profit
=>certain charitable institutions - for example those that are approved to provide institutional care, or medical or surgical treatment, where the majority of the recipients are chronically sick or disabled
=>charities providing certain transport services, or rescue/first aid services for humans or animals

Rakhi Vasavada :

Further to these, such capital expenses are not funded by donations as well.

Rakhi Vasavada :

In such a case, your sports club, not being an eligible body would not be able to reclaim / not pay VAT on such capital expenditures mentioned by you.

Rakhi Vasavada :

Are you there ?

Rakhi Vasavada :

Is there anything more that I can assist you with ?

Rakhi Vasavada :

I am sure this would help.

You may please leave a positive rating if this helps as this is the only way we receive credit for assisting you. Alternatively, please feel free to revert back with a reply if you need further assistance and I would be more than happy to assist you further.

Warm Regards

Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 3906
Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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Expert:  Rakhi Vasavada replied 1 year ago.
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