§ 70. Mr. HoltTo ask the Chancellor of the Exchequer what estimate he has of the number of amateur sports clubs which pay value added tax on collections to provide refreshments; whether he has any proposals to abolish this requirement; and what information he has as to whether this requirement obtains in other EEC countries.
§ Mr. LilleyThe VAT treatment of sports clubs' collections is determined by European Community VAT law, which defines what constitutes a taxable supply. If no conditions are attached to the collections, they are outside the scope of VAT. However, where they amount to a general charge for facilities, such as the provision of refreshments, VAT does apply. Whether or not these provisions are likely to change depends on developments in the Council, which is considering possible amendments to the law in this area. I regret that detailed information about the treatment of sports clubs' collections in other member states is not available.