VAT – Vatable Income
The VAT position for members’ clubs can be complex and depends on the nature of the income and the way activities are organised. Set out below is a general guide to the VAT treatment of the more common sources of club income.
Standard rated (VAT at the standard rate)
- Bar takings
- Catering
- Juke boxes and video machines (where income is retained by the club)
- Telephone coin boxes
- Admission charges for entertainment (e.g. discos, karaoke), subject to the exemptions noted below
- Advertising income
- Sales of furniture and equipment
- Subscriptions from social, visitor and temporary members
Zero rated (VAT liable at 0%)
- Books, handbooks and similar printed matter
Exempt
(Not taxable, but may restrict the recovery of VAT on related expenditure)
- Small-scale bingo, including session and participation charges
- Lotteries, including raffles, 200 clubs and totes
- Gaming machine income (subject instead to Machine Gaming Duty)
- Admission charges for live entertainment of a cultural nature
- Pool and snooker charges to members
- Interest and dividend income
Exempt, with option to tax available
- Rental income
- Hire of halls or rooms for meetings, conferences and similar events
Outside the scope of VAT – (No VAT chargeable)
Further guidance
Further detail on vatable and non-vatable income is available in HM Revenue & Customs VAT Notices, including:
- VAT Notice 701/5 – Clubs and Associations
- VAT Notice 701/27 – Bingo
- VAT Notice 701/28 – Lotteries
- VAT Notice 701/45 – Sports and Physical Education