TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

ECJ: Sports Club Ruling

The ECJ has ruled that services supplied to sports clubs may be exempt from VAT.

Under the Sixth VAT Directive, certain services closely linked to sport, supplied by a non-profit-making organisation to persons taking part in sport, are to be exempt from VAT.

In the judgement of Canterbury Hockey Club and Canterbury Ladies Hockey Club v The Commissioners for H.M. Revenue and Customs (C-253/07) which was delivered on 16 October, it was noted that to be eligible for that exemption, the services must satisfy three conditions:

  • they must be supplied by a non-profit-making organisation;
  • they must be closely linked and essential to sport; and
  • the true beneficiaries of those services must be persons taking part in sport.

Supplies of services which do not meet those criteria, particularly those linked to sports clubs and to their operation such as, for example, advice about marketing and obtaining sponsors, cannot be exempted.