Value Added Tax Consolidation Act 2010 Schedule 3 paragraph 12

Sporting facilities

Schedule 3 paragraph 12 applies the second reduced rate of VAT to the provision of facilities for taking part in sporting and physical education activities, with the treatment varying according to whether the provider is a commercial operator, a non-profit making organisation, a member-owned golf club, or a public body.

• Commercial providers of sporting facilities charge VAT at the second reduced rate (currently 9%) on fees for the use of those facilities, including charges for closely related services such as equipment hire, provided no separate charge is made for the equipment.
• Non-profit making organisations providing sporting facilities are generally exempt from VAT, but Revenue may issue a determination under section 18 removing the exemption where it creates a competitive distortion or the organisation is operating behind a not-for-profit façade.
• The State or a public body providing sporting facilities must account for VAT at the second reduced rate where total annual turnover from those facilities exceeds the services threshold of €42,500 in the current or previous calendar year.
• Member-owned golf clubs and other non-profit organisations providing golf facilities are brought within the charge to VAT at the second reduced rate once specified membership receipt or turnover thresholds are exceeded.