Virtual Schoolbag (VSB)

10 Jun 2019
Business managers, bursars and secretaries, governors, headteachers of all schools
For information
Information
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2019/182
Schools Lettings VAT Reminder

Important VAT information when hiring out School Halls and Sports Facilities

This note is to update schools on the VAT liabilities when letting facilities to various persons. Hiring out areas of the building(s) including the School Hall are generally exempt from VAT, however if other facilities are being provided in relation to Theatre Hire or Sports Hire then there are extra rules to consider:

Theatre Hire
Theatre hire to third parties where extra facilities including box office services, lighting/sound technician and catering services are provided is standard rated.
If the theatre or hall is being hired out without extra facilities and the group/company are providing their own technician/box office etc, it remains an exempt transaction.

Sports Facilities Hire
Following the CJEU judgement in the London Borough of Ealing, HMRC accepts that local authority supplies of sporting services should be treated as exempt from VAT. This means that the hire of a school sports facility by a club can be exempt from VAT, whether ‘block booked’ or not, provided it is for the benefit of individuals taking part in sport, such as the club’s members

Premises designed or adapted for playing any sport or taking part in any physical recreation and hired out:

  • Commercial Organisations – Standard Rated
  • Informal groups, clubs, associations or organisations representing affiliated clubs or constituent associations and the hire is for the benefit of the individual persons within these groups – Exempt from VAT
  • Individual Persons – Exempt from VAT
Maxine Fifield
Sarah Rice
Schools Finance Manager

Phone: 01273 482547
Email: sarah.rice@eastsussex.gov.uk