In Netbusters (UK) Ltd v HMRC [2020] TC07915, the First Tier Tribunal (FTT) allowed the taxpayer’s appeal finding that a single exempt supply of football and netball pitches was made.
- Netbusters organised competitive football and netball leagues and supplied pitches which it had hired from third parties for these league matches to be played on.
- Following the Goals Soccer Centres plc v HMRC (TC 02253) decision and publication of Revenue & Customs Brief 8 (2014), Netbusters submitted a claim for over-declared output VAT of £414,622 on the basis that its supplies were:
- Partly exempt (the supply of the pitch or court) and
- Partly taxable (the supply of league management services).
- Netbusters also appealed against assessments totalling £218,542.
Group 1, Schedule 9 of VATA 1994 exempts the grant of any interest in or right over land or of any licence to occupy land, subject to a number of exceptions.
The FTT allowed the appeal, finding that:
- Netbusters made a single supply to its customers: the pitch hire provided by Netbusters went hand-in-hand with participation in one of the leagues organised.
- This differentiated it from the Goals Soccer Centres decision where two separate supplies were made.
- The nature of Netbusters’ single supply was the granting of interests in, rights over or licenses to occupy land: an exempt supply.
Useful guides on this topic
Land & Property VAT
An outline of the VAT treatment of some of the more common supplies of land and property.
Mixed supplies: Single or multiple supply?
Where a business supplies mixed services it is important to establish whether this is a single supply or multiple supplies if different VAT rates may apply.
Opting to tax land and property
What is an option to tax? What do I need to do to opt to tax? What happens if I buy an opted property?
Partial exemption & input VAT
How do you calculate the amount of input tax you can recover under the VAT partial exemption rules? What are the de minimis rules?
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