Answer: Probably quite a lot, but this is quite important so you ought to read on!
The European Commission (EC) recently published its VAT green paper, with proposals for modernising the existing European Union VAT Directive.
The sports and not-for-profit sectors were well represented during the process, and echoed the Alliance’s calls to maintain the existing VAT exemptions and rate provisions for sport.
However, the EC has stated in a parallel document that sets out the principles guiding the consultation, that reduced rates and exemptions should be kept to a minimum to ease administrative burdens for business.
In light of these guiding principles, the EC will launch an assessment of the current VAT rate structure and make new proposals by 2013, following consultation with stakeholders and member states.
Throughout this time, the Alliance will lobby to retain reduced rates in the hope that once the economic climate has hopefully(!) improved, sport will be in a better position to push for exemptions that are already enjoyed in countries like Sweden and the Netherlands, like admission to sporting events and facility hire costs.
If reduced rates are abolished, then no such tax reliefs will be possible. The Alliance will therefore be committed in 2012 to working with its European partners to lobby the EC and Parliament to ensure that we don't miss out on appealing future opportunities for UK sport.
If you would like any more information, please get in touch with David Foster.
Merry Christmas!
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