Which VAT Exemption is Available
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A recent case at the Upper Tier Tax Tribunal concerning a
considered the refusal of voluntary disclosures submitted for VAT
events such as gigs, balls and dances.
The Student’s Union had submitted voluntary disclosures for
VAT overpaid on
certain events. Essentially, they claimed that the Cultural Services
applied to gigs, events and balls, and that the Fresher’s Ball and
Balls should be considered as exempt fund raising.
The First Tier Tribunal had concluded that the Cultural
could not apply as the sabbatical officers were paid a sufficiently
amount and took a sufficient role in the ultimate decision making
therefore the condition regarding ‘managed and administered on an
voluntary basis’ could not be met. The First Tier Tribunal had also
that there was not enough evidence to demonstrate that the Fresher’s
Graduation Balls were primarily to raise funds for charity.
The Upper Tribunal agreed with the First Tier Tribunal
Cultural Services Exemption; however it considered that the First Tier
had not given the fund raising exemption enough consideration and
it back to a differently constituted First Tier Tribunal.
This case is of interest as it gives an indication that the
consider the applicability of the Cultural Services Exemption to
other than typical theatre and zoo admissions etc. The case also
complex nature of the Cultural Services Exemption and the conditions
be satisfied for the taxpayer to be treated as an ‘eligible body’ for
purposes of the exemption.
Whilst the applicability of the fund raising exemption has
back to the First Tier Tribunal for further consideration, one of the
messages is that the Commissioners viewed that the activities must be
shown to be taking place for charitable purposes.
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Article Published/Sorted/Amended on Scopulus 2013-11-07 11:55:56 in Tax Articles