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[Part 08-06] Application of VAT to the Supply by a Public Body of Facilities for Partaking in Sporting and Physical Education Activities

1. Background

A range of activities of public bodies came within the scope of VAT from 1 July 2010. A public body for VAT purposes means a Department of State, a local authority or a body established by any enactment, such as, a University or a Vocational Education Committee. Some activities, termed community facilities, did not come within the scope of VAT on 1 July 2010 but were subject to a Commencement Order signed by the Minister for Finance.

2. Commencement Order

The Minister for Finance signed a Commencement Order (S.I. 392 of 2012) effective from 1 January 2013 in respect of facilities for taking part in sporting or physical education activities and services closely related to the provision of such facilities, including facilities for taking part in pitch and putt, where the facilities are provided by a public body. The provision of facilities for taking part in golf by a public body has been liable to VAT for a number of years.

3. What are Facilities for Taking Part in Sporting or Physical Education Activities?

Facilities for taking part in sporting or physical education activities include premises used, designed or adapted for taking part in sporting or physical education activities, such as, swimming pools, gymnasiums, leisure centres, bowling alleys, driving ranges together with lands let for fishing and shooting and outdoor centres that cater for water and adventure activities.

Facilities for taking part in sporting or physical education activities do not include:

  • facilities provided for activities that do not amount to a sport, for example, board or card games; and
  • the hiring of halls and grounds to non-profit making sporting, cultural, social and community organisations. In this context, grounds include outdoor playing pitches in public parks that are leased on a yearly-basis to non-profit making sporting organisations.

4. What are Services Closely Related to the Provision of Such Facilities?

The provision of equipment, such as racquets, sail boards and wetsuits, to persons taking part in sporting or physical education activities are regarded as services closely related to such facilities.

5. What VAT Rate Applies to the Provision of These Facilities?

The provision of facilities for taking part in sporting or physical education activities is liable to VAT at the second reduced rate, currently 9%. Where services closely related to the provision of such facilities are provided without a separate charge the same reduced rate also applies. Where services closely related to the provision of such facilities are provided subject to a separate charge the related services are liable to VAT at the standard rate, currently 23%.

Source: Revenue Commissioners. Operation Manual. www.revenue.ie Copyright Acknowledged.