Duplicate bridge is not a sport, but could be a cultural activity for VAT purposes
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Duplicate bridge is not a sport, but could be a cultural activity for VAT purposes
Duplicate bridge is not a sport, but could be a cultural activity for VAT purposes
Thu 09 Nov 2017
The CJEU has issued a press release and its decision, holding that duplicate bridge is not a ‘sport’ for the purposes of the VAT exemption as it applies to sport. The Court considered ‘sport’ in this context meant the ordinary meaning of that word, which did not encompass an activity with a negligible physical element. However it commented that, subject to meeting the requirements, the activity might meet the conditions for VAT exemption of cultural activities.
The case concerned a dispute between the English Bridge Union (EBU) and HMRC over whether the EBU’s duplicate bridge competition entry fees should be VAT exempt. The EBU is a not for profit body responsible for regulating and developing duplicate bridge in England. The CJEU commented that its decision that duplicate bridge was not a sport, was without prejudice to whether the activity qualified for the cultural activity VAT exemption (implemented in the UK in VATA 1994 Sch9 group 13). This would depend on “..the way in which duplicate bridge is practised, its history and the traditions to which it belongs, in a given Member State, and whether it holds such a place in the social and cultural heritage of that country that it may be regarded as forming part of its culture”.
It will be interesting to see how the Upper Tribunal interprets the CJEU decision and whether indeed duplicate bridge is part of England’s cultural heritage. In February 2017 the CJEU (case C-592/15) held that it was up to Member States to specify the cultural services that met the criteria for the exemption. In other words the exemption was to be interpreted narrowly and the EU VAT directive specifying “certain cultural services” could not be read directly by bodies seeking to extend the scope of a particular Member State’s interpretation.
VATA 1994 Sch9 Group 13 provides that cultural services VAT exemption only applies to rights of admission to museums, galleries, art exhibitions, zoos, of performances of a cultural nature which are theatrical, musical or choreographic. It is difficult to see how the English Bridge Union and its duplicate bridge competitions could come within any of those categories.
To discuss the implications of this case on the VAT status of services or activities provided by your organisation, please get in touch with a member of the Mazars indirect tax team.
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