Cultural Services VAT Exemption

In addition to the Tour Operators' Margin Scheme (TOMS), I specialise in repayment claims under the exemption for cultural services.

There are 3 conditions for this exemption:

- You sell admission to cultural events eg art gallery, dance performance, music performance, museum, theatre performance or zoo.

- You are a "non profit making body" ie your constitution prevents distributions. Charities normally qualify.

- You are managed & administered on an essentially voluntary basis. Again charities normally qualify if the trustees are the decision making body and are unpaid.

Exemption is generally beneficial if you are VAT registered and tend to owe Customs money most quarters. Exemption may be disadvantageous if you get regular repayments from Customs eg if you have a large programme of building works. Partial exemption calculations may be necessary.

The exemption was introduced by EU law in 1990 but was only gradually implemented in the UK and remains the subject of much confusion. A surprising number of taxpayers are still ignorant of the exemption and continue to pay VAT on such exempt income over to Customs.

Contact Me if you think the exemption may apply to some of your income but you are still paying VAT on that income.

There is a 3 year time limit on repayment claims so the sooner the better.

Contact Me today.