HC Deb 11 December 1980 vol 995 cc477-9W
23. Mr. Eastham

asked the Chancellor of the Exchequer what was the total income collected from value added tax during the past 12 months.

Own Resources Contributions in 1980
(a) (b) (c) (d) (e) (f)
Total levies and duties VAT Liability if total revenue in (a) raised through Increase (+) or reduction (-) in liability
MEUA percentage of EC9 MEUA percentage of EC9 MEUA MEUA
Belgium 595.40 7.42 312.87 4.54 364.31 -231.09
Denmark 158.10 1.97 180.77 2.62 210.24 +52.14
Germany 2153.90 26.84 2259.59 32.80 2632.05 +478.15
France 1171.90 14.61 1699.91 24.67 1979.64 +807.74
Ireland 74.70 0.93 59.10 0.86 69.01 -5.69
Italy 1106.70 13.79 750.88 10.90 874.67 -232.03
Luxembourg 4.83 0.06 13.90 0.20 16.05 +11.22
Netherlands 833.00 10.38 417.15 6.05 485.48 -347.52
United Kingdom 1925.97 24.00 1195.84 17.36 1393.05 -532.92
Total EC9 8024.50 100.00 6890.01 100.00 8024.50 —
Source: Columns (a) and (c): Draft Supplementary and Amending Budget No. 1.
EC9: The nine members of the existing Community, as listed in the left-hand column.

Mr. Waldegrave

asked the Chancellor of the Exchequer whether he will make a statement on his policy as regards the application of value added tax to competition entry fees.

Sir Geoffrey Howe

Yes. From the introduction of VAT until recently such entry fees had been regarded by the commissioners of Customs and Excise as outside the scope of the tax. In consequence of two decisions given

Mr. Peter Rees

Net receipts of VAT in the 12 months to September 1980 were £10,767.9 million—provisional. Monthly figures are published inFinancial Statistics.

47. Mr. Hannam

asked the Chancellor of the Exchequer what representations he has received concerning the application of value added tax on charitable disablement organisations.

Mr. Peter Rees

I refer my hon. Friend to the answer I gave to the right hon. Member for Manchester, Wythenshawe (Mr. Morris) on 7 November about one such representation.—[Vol. 991, c.700.] There have been a number of other representations to the effect that specified charities generally should be relieved from value added tax on the goods and services they receive.

Mr. Marlow

asked the Chancellor of the Exchequer what would be the positive or negative effect on the net budget contribution of each EEC country if agricultural levies and import duties became the property of individual member countries and the total of EEC own resources, an amount equal to current levels, was raised entirely by an enhanced rate of levy on value added tax.

Mr. Lawson

The table below gives the Commission's latest estimates of member States' levy and duty and VAT contributions to the 1980 Community budget, in European units of account and as percentages of the Community total. Columns(e) and (f) show the hypothetical effect on member States' contributions of raising a total amount of revenue equivalent to the yield of customs duties and agricultural levies through a higher rate of VAT.

by the independent VAT tribunals the commissioners were obliged to issue a new ruling that from 1 January 1981 persons registered or liable to be registered for VAT would be accountable for the tax on entry fees charged for participating in a competition or event.

I have subsequently received many representations from sporting bodies that this ruling would adversely affect a number of such bodies and many individual competitors. Having considered them in consultation with my hon. Friend the Minister with responsibility for sport I now propose to restore substantially the original relief. A Treasury order is accordingly being laid today to exempt from VAT entry fees to competitions involving sport or physical recreation where the whole of the entry fees are returned as prizes, or where the competition is organised by a non-profit making body established for the purposes of sport or physical recreation.