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Introduction to clubs and associations

This section and V6.190 examine the VAT issues affecting clubs and associations of all types, from commercial enterprises and members' sports clubs through to trade unions and professional bodies. Such bodies are often faced with complex VAT issues. This is largely due to the fact that they often receive income which may have any status for VAT purposes: exempt; outside the scope; standard-rated; zero-rated and even reduced-rated.

It is important at the outset to draw a distinction between organisations that are run on a 'commercial' basis and those which are run on a non-profit basis. This is because the VAT issues facing each are markedly different.

It might be argued that those which are run on a commercial basis are slightly more straightforward from a VAT perspective. This is because non-profit making clubs or associations are less likely to be able to recover VAT (due to a lack of business supplies) and there are additional exemptions that may be applicable (such as the exemption