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HMRC internal manual

VAT Sport Manual

From
HM Revenue & Customs
Updated
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Introduction: flowchart to aid decision-making

The main issues in VSPORT are outlined in theSport Flowchart.

Alternatively, you may find it easier to follow the flowchart in this tabular form.

Question 1: Is the fee consideration for the grant of a right to enter a competition in sport or physical recreation? (See VSPORT5040 Scope of the Exemption.) Yes: Go to Question 2.
No: Entry fee is standard-rated.    
     
  Question 2: Are all entry fees are returned as prizes in that same competition? (See VSPORT5030.) Yes: Entry fee is exempt under item 1.
No: Go to Question 3.    
  Question 3: Is the competition organiser a non-profit-making body established for sport or physical recreation? (See VSPORT5060.) Yes: Go to Question 4.
No: Entry fee is standard-rated.    
  Question 4: Do competitors receive other benefits in addition to the right to enter the competition? (See VSPORT5070.) Yes: Go to Question 5.
No: Entry fee is exempt.    
  Question 5: Are they zero-rated supplies? (See VSPORT5070.) Yes: Apportion payment between zero-rated supplies and exempt/standard-rated entry fees. Then apportion payment between standard-rated supplies and exempt entry fee.
No: Go to Question 6.    
  Question 6: Are they essential goods and services? (See VSPORT5070.) Yes: Entry fee is exempt.
No: Apportion payment between standard-rated supplies and exempt entry fee.