VAT registration for non profit making sailing club

Lyndon

As a non practising but fully qualified AAT I am doing the books for a small sailing club (as the treasurer so all voluntary) and the total turnover is nearing the VAT registration threshhold.
My question is do I have to include all income when working out turnover?
Income sources are
Bar takings
Membership Subs
Donations
Grants for equipment

If I could take donations and grants out of the equation it would keep us well beneath the threshhold and allow us to keep the price of the beer down (very important....)!

Your thoughts would be appreciated.

Poodle

Hi Lyndon

I may be able to help a bit.

When deciding if you have to register for VAT it is your taxable supply turnover that you need to establish and the law defines taxable supply as any supply made in the UK that is not exempt from VAT whether you are registered for VAT or not.

You are right to question the donations and grants and if your club were a charity I know that gifts and grants are exempt where they are given freely and the donor expects nothing in return. But if the equipment is purchased for the members and a member makes the donation then I cannot see that this would apply as the member will be benefiting, and that may bring them back in as taxable supplies.

If no one else is able to help you could try the VAT National Advice Service on 0845 010 9000

Poodle

Lyndon

Thanks for that - I will give them a call