VAT on membership fee

by **njbuster** on Thu Oct 06, 2011 4:05 pm

Hi,

Could someone help me please?

I am in the process of setting up a sports related, for profit, organisation that is membership based. We will sell no goods. The member will pay an annual fee to us which then gives them access to incentives offered by our partners (other companies) that the member would access directly with that partner. Is there any VAT chargeable element to this and if so, is it at the full or reduced rate? We will sell memberships globally but from a UK based and registered business.

Thank you in advance for your help.

by **Generix** on Thu Oct 06, 2011 4:37 pm

Fully taxable at standard rate.

May be possible to bring this VAT cost down - am thinking with a Lux VAT registration, although am also thinking this may not work but can't think why!

Let me dwell on it, sketched out far too many supply chain scenarios today and my head is spinning now, I'll get back tomo (unless someone else does).

(God! I sound like a great VAT advisor right!? :mrgreen:

)

by **Generix** on Fri Oct 07, 2011 3:39 pm

So first question; how sport related is it?

Is this going to get them e.g. free gym access, or will it more likely be access to discounts and exclusive offers (e.g. 50% off football tickets)?

by **njbuster** on Fri Oct 07, 2011 7:05 pm

Generix wrote:So first question; how sport related is it?

Is this going to get them e.g. free gym access, or will it more likely be access to discounts and exclusive offers (e.g. 50% off football tickets)?

Many thanks for your help here :O) it is more the latter, access to discounts...that our partners offer to our members.