VAT exemption for services relating to sports – guidelines

The Office of the CfR has issued guidelines on the VAT exemption in terms of item 5 of Part 2 to the Fifth Schedule of the VAT Act, which applies to services relating to sports supplied by non-profit making organisations.

The guidelines clarify that the exemption, which implements article 132(1)(m) of Directive 2006/112 EC, applies where:

• the service provider is a non-profit making organisation as defined in item 5 of part 5 of the Fifth Schedule to the VAT Act; and
• the services are closely linked to sport or physical education and the services are provided to the person taking part in sport or physical education.

A copy of the guidelines can be downloaded at this link.