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Introduction to sports bodies

Business/non-business activities and grants vs consideration for sports bodies

VAT in the UK is due only on taxable supplies made by a taxable person in the course or furtherance of a business. Consequently an activity that does not amount to a business does not give rise to any taxable supplies.

A sports body that is run as a commercial enterprise is clearly in business. But there are other circumstances where the position may not be so clear cut.

The concept of 'business' and the related European concept of 'economic activity' are complex and much litigated, they are addressed in Division V2.2.

Sports bodies should, in particular, consider the provisions surrounding 'deemed business' at V2.211. Broadly, these provisions deem that a club, association or organisation providing facilities or benefits to members for a subscription or other consideration is carrying out a business for VAT purposes.

There is a significant volume of case law on the topics of business and economic activity which is covered