Output vat on cricket teas

[simpsonite]

Hi all,
Just wondering if anyone would be able to clarify output vat and cricket teas!

If the cricket club is vat registered then would I be correct to assume that cricket teas would be a taxable standard rate supply?
Does it depend if the food cricket teas supplied are hot or cold whether they would be standard rate or zero rated?

Are cricket clubs in any way exempted for vat registration?

Any thoughts would be welcome

simpsonite

[les35]

Fees for sports activities can be VAT exempt, where they are provided by a non-profit making organisation. This means a charitable trust or company or association. HMRC guidance is in Notice 701/45 (http://customs.hmrc.gov.uk/channelsPort ... _CL_000115)
If exemption applied, then it may be that the cricket club would not be required to be registered for VAT. Your teas would then not attract VAT. (There is an argument that teas might be exempt anyway, following recent case law.)

Under your current arrangements, if the cricket club is VAT registered, then the teas will also be taxable. The only exception is if food is served to be eaten away from the premises on which the game was being played!

[simpsonite]

thanks for the response.
do you have any links for recent case law?

[simpsonite]

just to clarify one point,
you mention that case law exists which might exempt cricket teas from vat.
But if the cricket club is registered for vat then cricket teas would be a taxable supply regardless of this?

[section 44]

Aside from where turnover is below the VAT registration threshold, whether or not you are VAT registered shouldn't impact whether something is subject to VAT

[simpsonite]

Yes , quite section 44.
I am a little unsure why Les 35 seemed to suggest that if the cricket club is registered for vat then the teas would automatically be a taxable supply?!
Les 35 also seemed to suggest that recent case law might exempt teas in any case.
Can you expand on this point please Les 35.

Anythign further to add section 44?

cheers
simpsonite

[les35]

If the cricket fees are exempt, then exemption can extend to goods and services supplied as part of the overall services. This follows the Brockenhurst College case, which held that meals provided as part of exempt education could themselves be exempt. There is therefore an argument that may be pursued that will bring the teas within the exemption.
If the fees for playing are taxable, then there is no question of exemption for teas. The only issue is whether you could argue that cold food taken away for consumption 'off premises' would be zero rated.

[simpsonite]

thanks for that Les 35