Sports Facilities
General
The provision by a person other than a non-profit making organisation, of facilities for taking part in sporting activities are taxable and liable to VAT at the reduced rate.
The provision of facilities for taking part in sporting and physical education activities, and services closely related thereto, provided by non-profit making organisations, with the exception of subparagraphs (a) and (b) below, are exempt from VAT.
- The provision by a member-owned golf club of facilities for taking part in golf to any person who is not a member of the club where the total consideration received by the club exceeds the specific limit (€37,500 from 1/5/08) in any continuous period of twelve months.
- The provision by any other non-profit making organisation of facilities for taking part in golf to any person who is not a member of the club where the total consideration received by the club exceeds the specific limit in any continuous period of twelve months.
In the case of the services referred to in subparagraphs (a) and (b) above VAT is chargeable at the reduced rate.
It should be noted that the provision of facilities for taking part in 'Pitch & Putt' by non-profit-making organisations does not come within the scope of these exceptions and is accordingly exempt.
Where sporting facilities are hired out by sports clubs or sporting organisations the receipts are generally exempted from VAT on the grounds that the provision of the facility is not considered to be in the course or furtherance of business.
Determination under Section 8(3E) VAT Act
Where non-profit making organisations, the State, or a Local Authority, provides facilities for taking part in sporting and physical education activities, in excess of the appropriate specified limit, and the Revenue Commissioners are satisfied that-
- the exemption of the service puts a commercial rival at a competitive disadvantage, or;
- the services are actually operating behind a 'not-for-profit' façade;
the Revenue Commissioners shall issue a determination in relation to some or all of the services provided specifying that the service or services are deemed to be taxable for the purpose of VAT. Where a determination is issued, VAT is chargeable at the reduced rate. Where a distortion of competition no longer exists the Revenue Commissioners may cancel the determination.
Please note that in order for Revenue to consider making a determination of this nature it must be satisfied that the sporting facilities are being provided at a commercial rate to the general public. It is not considered to be a commercial transaction where a Club arranges for a charge to be levied on an individual member or group of members of the same Club or Organisation to use the facilities.
Persons Liable
Only those persons providing sporting facilities on a commercial basis plus those covered by the exceptions listed at paragraphs 1 or 2 above, are liable to VAT.
Applications for registration are made using Form TR1 or TR2, which is available on request to the Revenue District responsible for your tax affairs, and it also available on the Revenue website: under Business & Self Assessment/Popular Forms.
What is a non profit making organisation?
In deciding what is a non-profit making organisation the Revenue Commissioners will have regard, for example, to the organisation's constitution or articles of association as to whether or not it is precluded from distributing profits. In practice, most private member golf, tennis or similar clubs will continue to qualify for exemption insofar as the provision of sporting facilities for members is concerned.
Promotion of and Admissions to Sporting Events
VAT liability applies only to charges made for facilities for participation in sporting activities. There is no change insofar as spectators are concerned. Admission to sporting events, as well as receipts arising from promotion of sporting events by non-profit making organisations, are exempt.
What are Sports Facilities?
'Sports facilities' means any grounds or premises designed or adapted for playing sport. This includes bowling alleys, driving ranges, gymnasia, golf courses, lands let for fishing or shooting, snooker halls, skating rinks, squash courts, swimming pools and tennis courts. Leisure complexes which normally comprise a gymnasium or swimming pool, together with ancillary facilities such as jacuzzi, sauna or steam room are also included.
'Sporting facilities' does not include the following:
- facilities provided for activities which do not amount to a sport, for example, board or card games, computer or video games or amusement machines;
- provision of equipment only, for example, the hire of golf clubs as a charge separate from green fees. In these circumstances the rate of VAT appropriate to the hire of equipment will apply. However, where hire of equipment is incidental to the provision of the sports facilities without separate charge, for example, shoes provided for persons using indoor bowling facilities, the charge will be deemed to relate to the sporting facilities and so qualify for the reduced rate.
Advertising and Sponsorship
Receipts from advertising and sponsorship by Sporting Clubs are not treated as taxable turnover.
Further information
Enquiries regarding any issue contained in this Information Leaflet should be addressed to the Revenue District responsible for the taxpayer’s affairs. Contact details for all Revenue Districts can be found on the Contact Details Page.
VAT Interpretation Branch,
Indirect Taxes Division,
Stamping Building,
Dublin Castle.
January 2010