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Is it worth registering a sports club for VAT?

  • 08-12-2013 10:40pm
    #1
    Guffy
    Registered Users, Registered Users 2 Posts: 8,244 ✭✭✭


    We run an American football team and most of our gear is brought in from the UK. the cheapest starter pack is 200 sterling plus delivery, which as you can imagine is quite dear for new members to get involved.

    Is it possible for the club to become VAT registered so as to neutralise the VAT as an EU acquisition? What would we need to do in order to do this and how would this effect other revenue from fundraisers such as a table quiz, bucket collection, sponsorship etc. The idea would be for the club to buy the gear and keep ownership of them allowing our members, who pay a registration fee use of them.


Comments

  • #2
    Alan Shore
    Registered Users, Registered Users 2 Posts: 735 ✭✭✭Alan Shore


    To register for VAT you have to be in business. A club as you describe it would not be in business so therefore you could not register.

    You might argue that you are running a business and the business owes the equipment and hires it out but then you have vat on the income.


  • #3
    Guffy
    Registered Users, Registered Users 2 Posts: 8,244 ✭✭✭Guffy


    In that case need the rental income be adequate, ie. 1 euro a season rental fee. Or does this touch a bit to much on tax avoidance to ask here?


  • #4
    Red Crow
    Closed Accounts Posts: 5,139 ✭✭✭Red Crow


    gufc21 wrote: »
    In that case need the rental income be adequate, ie. 1 euro a season rental fee. Or does this touch a bit to much on tax avoidance to ask here?

    Exactly you're trying to evade tax.

    Theoretically you could set up a business and hire the equipment out etc. but at the outset what your suggesting is illegal.

    There is very little bargaining with tax here. Unfortunately you'll probably have to try and agree a deal with the supplier if the costs are too burdensome.


  • #5
    Guffy
    Registered Users, Registered Users 2 Posts: 8,244 ✭✭✭Guffy


    Red Crow wrote: »
    Exactly you're trying to evade tax.

    Theoretically you could set up a business and hire the equipment out etc. but at the outset what your suggesting is illegal.

    There is very little bargaining with tax here. Unfortunately you'll probably have to try and agree a deal with the supplier if the costs are too burdensome.

    Excuse me but in what way was I trying to evade tax? I was looking to use current tax laws to reduce liability.

    Either way the savings made would be off set by having to get the accounts audited.


  • #6
    Mr. Incognito
    Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    gufc21 wrote: »
    Excuse me but in what way was I trying to evade tax? I was looking to use current tax laws to reduce liability.

    Either way the savings made would be off set by having to get the accounts audited.

    http://www.revenue.ie/en/tax/vat/leaflets/sport-facilities.html

    Pay the VAT I am afraid.


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