§ Lord Moynihanasked Her Majesty's Government:
Further to the Written Answer by the Lord McIntosh of Haringey on 11 December 2003 (WA 82), whether they will clarify the scope of the exemption under the European Community Sixth VAT Directive for "certain services closely linked to sport or physical education supplied by non-profit-making organisations to persons taking part in sport or physical education". [HL902]
§ Lord McIntosh of HaringeyThe provision quoted from Article 13(a)(l) of the Sixth VAT Directive [77/388/EEC] concerns services supplied by non-profit-making organisations to persons taking part in sport or physical recreations. The supply of services to such organisations, including construction services, is not eligible for exemption under Article 13(a)(1).
This article is transposed into UK legislation in item 3 of group 10 of Schedule 9 to the Value Added Tax Act 1994 as:
the supply by an eligible body to an individual, except, where the body operates a membership scheme, an individual who is not a member, of services closely linked with and essential to sport or physical education in which the individual is taking part.The term "eligible body" is defined in the legal notes to the group. Full guidance on the application of the exemption is given in Customs and Excise's Public Notice 701/45 which is available from its website at www.hmce.gov.uk.