VAT on Gym Membership

[IWalkLikeHimaMartian]

The government currently charges 20% on gym memberships.

Pure Gym boss calls for VAT-free memberships
VAT at the standard rate of 20% is charged on gym memberships and passed on to customers.

https://www.bbc.co.uk/news/business-44534957
More Brexit deceit, this time direct from the government:

The Treasury suggested its hands were tied by European Union VAT rules.
Responding to Mr Cobbold's comments the Treasury said: "If a gym does not make a profit its members will pay no VAT on membership fees under EU law.
"But until we leave the EU it is not possible to extend this exemption to profit-making gyms."

https://www.bbc.co.uk/news/business-44534957

Agreed, but they could apply a reduced rate!

The government could easily decide that gym membership is a reduced VAT service:

LIST OF SUPPLIES OF GOODS AND SERVICES TO WHICH THE REDUCED RATES REFERRED TO IN ARTICLE 98 MAY BE APPLIED
(14) use of sporting facilities;
(15) supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136;

https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32006L0112&from=EN

Just how deceitful does this government have to be before people wake up to their deceit!
The Gym boss ought to appeal to the EU while he still has a chance.
That is why non-profit gym memberships can avoid VAT charges, because they appealed to the EU!

 

[HawkEye244]

Labour policy to do this was it ?

They usually **** up all the important stuff and get one or two things like this right. I wouldn't be surprised in the least. Saving about £2 a month on your gym membership,.. cracking idea, that's going to save the country.

Did fat abbot mention it in the commons? That would be ironic on many many levels now wouldn't it..

 

[IWalkLikeHimaMartian]

Labour policy to do this was it ?

Make your own educated guess:

Summary The VAT liability of sports clubs has proved a long and complex issue. In April 1994 the rules determining the VAT treatment of non-profit-making clubs were amended, following complaints by sports clubs and the European Commission that UK law was incompatible with European VAT legislation

researchbriefings.files.parliament.uk/documents/SN01052/SN01052.pdf

• Theresa May. Conservative, 2016 - 2018.
• David Cameron. Conservative, 2010 - 2016
• Gordon Brown. Labour, 2007 - 2010.
• Tony Blair. Labour, 1997 - 2007.
• John Major. Conservative, 1990 - 1997. .
• Margaret Thatcher. Conservative, 1979 - 1990. ...
• James Callaghan. Labour, 1976 - 1979. ...
• Harold Wilson. Labour, 1974 - 1976. ...
• Edward Heath. Conservative, 1970 - 1974.

They usually **** up all the important stuff

Agreed. At least we agree on something.

Saving about £2 a month on your gym membership,.. cracking idea, that's going to save the country.

It is not about saving the country. It is about encouraging people to exercise. (I do not mean sitting on the sofa, waiting for the TV licence inspector to call so you can jerk off)

Did fat abbot mention it in the commons?

Now be honest, given your state of celibacy, you are grateful for the mere presence of TV licence inspectors outside your windows for your self-accomplished sexual gratification.

 

[HawkEye244]

Make your own educated guess:
researchbriefings.files.parliament.uk/documents/SN01052/SN01052.pdf


Agreed. At least we agree on something.


It is not about saving the country. It is about encouraging people to exercise. (I do not mean sitting on the sofa, waiting for the TV licence inspector to call so you can jerk off)


Now be honest, given your state of celibacy, you are grateful for the mere presence of TV licence inspectors outside your windows for your self-accomplished sexual gratification.

Ironically if everyone did in fact stop paying the TV nonce fee they would be £150 heavier every year, enough to pay for a month's gym membership... And probably a couple of hundred thousand braincells saved from not paying to watch lefty nonce-wing propaganda garbage.

 

[IWalkLikeHimaMartian]

Ironically if everyone did in fact stop paying the TV nonce fee they would be £150 heavier every year, enough to pay for a month's gym membership... And probably a couple of hundred thousand braincells saved from not paying to watch lefty nonce-wing propaganda garbage.

My OP was clearly intended to show how the government willfully, blatantly and deceitfully blames the EU for its own policies.
Echos of straight bananas and immigration, etc.

 

[Notch7]

Just how deceitful does this government have to be before people wake up to their deceit!

It is not deceitful, you've even agreed that zero VAT for profit making gyms is not allowed. What part of a lie is that?

In any case even if it was zero VAT do you think it would get passed onto the customer?....more likely the government would get less revenue and the gym more profit....

 

[IWalkLikeHimaMartian]

It is not deceitful, you've even agreed that zero VAT for profit making gyms is not allowed. What part of a lie is that?

Pedantically speaking, it is not a lie to say that non-profit making gyms must charge VAT.
But to blame the EU for not reducing the VAT on gym membership is appalling deception. The government can easily choose to reduce the VAT to 5%, but they prefer to blame the EU for keeping it at 20%.
That is outrageous deception and to blame the EU for it being kept at 20% is a willful and blatant lie.

 

[motorbiking]

Having the break would be a nice touch, but what about private medical or private school - I've no idea about the tax status of these ? All reduce the burden on the state. Then what about bicycles, gym clothes, home exercise kit?

 

[Notch7]

Pedantically speaking, it is not a lie to say that non-profit making gyms must charge VAT.
But to blame the EU for not reducing the VAT on gym membership is appalling deception. The government can easily choose to reduce the VAT to 5%, but they prefer to blame the EU for keeping it at 20%.
That is outrageous deception and to blame the EU for it being kept at 20% is a willful and blatant lie.

Are any gyms non profit making?

 

[IWalkLikeHimaMartian]

If the sports facilties are non-profit making it is immaterial who operates them, hospital, school, LA, trust. etc.
The EU rules apply to facilties not the clothes, nor the food, nor the steroids, etc
It is charges for the use of, not the purchase of such equipment. If the business is VAT registered, they will surely reclaim the VAT on such purchased equipment.

 

[motorbiking]

Are any gyms non profit making?

Nuffield Health aren't supposed to be for profit, still cost £50+ a month.

 

[IWalkLikeHimaMartian]

Nuffield Health aren't supposed to be for profit, still cost £50+ a month.

Individual gyms are free to set their fees, unless they are managing them under some sort of contract arrangement for the owners.
The thread is not about the price of gym membership, it is about the appalling deception of the government’s presentation of the reason behind the 20% VAT on gym membership, ie blaming the EU.

 

[IWalkLikeHimaMartian]

Additionally, the owners of such facilities, ie those provided primarily for the use of students, patients, staff, etc might have sound financial reasons for overloading fixed and variable costs onto the “public” side of the operation, which are then operated by a contractor.

 

[Notch7]

The thread is not about the price of gym membership

That is relavent, if not for profit gyms are in very small number or no cheaper, it could just be your idea of a great deception over half a dozen gyms countrywide.

Not for profit can be an accounting exercise rather than a genuine

 

[IWalkLikeHimaMartian]

FFS stop trying to invent an argument where none exists.
Non profit gyms are free of VAT according to EU rules and against UK government wishes. Remember UK sports facilities owners and managers had to appeal for EU rules to override UK rules. No doubt post Brexit VAT will be reapplied to non profit sports facilities.
The UK government could reduce VAT for profit sports facilities but decides not to and blames the EU.