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Where Taxpayers and Advisers Meet

Football Transfers

BarryJK
Posts: 13
Joined: Wed Aug 06, 2008 4:06 pm

Postby BarryJK » Wed Mar 05, 2008 1:15 pm

This is a bit of a pub argument to be honest, but are football transfers subject to VAT? I know they used to be. My point was that if they are, then the transfer window is unfair if a club's VAT quarter ends in December, they buy in January but have to wait 3 months to claim the money back.

vatexpert
Posts: 152
Joined: Wed Aug 06, 2008 3:25 pm

Postby vatexpert » Thu Mar 06, 2008 1:46 am

The transfer of footballers is subject to VAT in the same way as any other goods or services. Domestic transfers in the UK are taxable at the 17.5% standard rate. However, transfers between football clubs in the EU are relieved of VAT. Sales from a UK club to a buyer outside the EU are also free of VAT, although if a UK club buys a player from outside the EU it must account for VAT on the purchase.

The transfer window has no real effect on the VAT position. If a club has a December VAT period, but wants to buy a player in the first week of January it could bring the tax point forward by requesting a VAT invoice from the selling club on 31 December. Of course, this might meant that the selling club has to pay its VAT three months earlier.

Eamon McNicholas
Posts: 73
Joined: Wed Aug 06, 2008 3:37 pm

Postby Eamon McNicholas » Thu Mar 06, 2008 2:31 am

Since this is a pub argument and weÂ’ve done the technical bit Â….
whose round is it anyway ?

Eamon Mc Nicholas
Tax Barrister

www.EamonMcNicholas.com

[The above is not to be taken nor used as specific advice]


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