VAT on pitch hire

Discussion in 'Accounts & Finance' started by kirstie27488, Oct 10, 2020.

  1. kirstie27488

    kirstie27488 UKBF Newcomer Free Member

    27 0
    Hi,

    We are a NPO that provides football sessions for children. We have been issued an invoice for pitch hire that includes 20% VAT. My understanding of this is that we are exempt from the supply of VAT as we are a non profit organisation.

    Can someone confirm this for me so that I can appeal this?

    thanks
     
    Posted: Oct 10, 2020 By: kirstie27488 Member since: Apr 6, 2010
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    24,866 3,030
    Sure, just send the invoice issuer a copy of your exemption certificate.

    There will be certain things you are exempt on. Do you normally hire pitches from VAT registered organisations and not pay VAT?
     
    Posted: Oct 10, 2020 By: Mr D Member since: Feb 12, 2017
    #2
  3. kirstie27488

    kirstie27488 UKBF Newcomer Free Member

    27 0
    Hi,

    We currently only hire the pitch from our local football team.

    when you say the exemption certificate, who would have issued this and would it have to have been applied for?
    Thanks
     
    Posted: Oct 10, 2020 By: kirstie27488 Member since: Apr 6, 2010
    #3
  4. Mr D

    Mr D UKBF Legend Free Member

    24,866 3,030
    Its for you to prove that VAT should not be charged.
    Exemption by HMRC from what I hear.
     
    Posted: Oct 10, 2020 By: Mr D Member since: Feb 12, 2017
    #4
  5. kirstie27488

    kirstie27488 UKBF Newcomer Free Member

    27 0
    So basically, it is a organisation that has set up a large amount of football teams, we charge subs per month and we also buy kits and pay out the pitch fees. We’ve never registered with HMRC and therefore do not have an exemption certificate.

    Does the club have to register with HMRC to get the exemption status?
     
    Posted: Oct 10, 2020 By: kirstie27488 Member since: Apr 6, 2010
    #5
  6. Scalloway

    Scalloway UKBF Legend Free Member

    16,477 3,486
    If you are a registered charity you can quote your charity number to get certain goods and services zero rated. Pitch hire is not among them.

    There is no blanket exemption from VAT for charities or other non profit organisations.

    https://www.gov.uk/vat-charities/what-qualifies-for-relief
     
    Posted: Oct 10, 2020 By: Scalloway Member since: Jun 6, 2010
    #6
  7. paulears

    paulears UKBF Big Shot Full Member

    4,525 1,193
    Many charities believe that they are automatically exempt from VAT, and we often get questions from VAT registered suppliers who get told that a client is exempt and they expect the VAT to be removed from an invoice. It happens to me quite often. The answer is always a very simple one. If the client presents evidence of their exemption, the supplier can submit an invoice without the VAT. If they don't, then if inspected, the VAT officials will deem that the VAT content should have been collected - after all, it's their money, not the suppliers - they merely collect the tax. If you have their approval for it not to be collected, that's fine. Without it, the onus (and risk) is on the supplier, not you.

    So many charities see others exempt and think it is automatic. It isn't, and others believe exemption is a blanket one - applying to anything they purchase.
     
    Posted: Oct 10, 2020 By: paulears Member since: Jan 7, 2015
    #7