andrewwb1

Thanks for the reply Jay. As for my role, I am just a member, not a committee member or an official of the club. I have been asked my opinion as i am a qualified accountant - but a long time away from the front line of VAT requirements! My suggestion to them was that they pay for the expert opinion. The idea of a separate Ltd Co is the way the idea was pitched to me. To your example, if NewCo bought the "mower" for £100k and rented it to the connected club, presumably VAT would need to be added to the rental? I understand that it would need to be at an "arms length" rate rather than £1/month.

I am a member of a sports club. The Club itself is not VAT registered. It has a bar/function room that is hired out to the public which is VAT registered. The question is, can the club create another "trading entity" that would be VAT registered? The sole purpose of this new entity would be to buy/sell sport equipment for use within the current club, but also to trade with "other" clubs. If that is allowed, what level of activity would be required to show that the business was trading in sports equipment? Can that new entity also then rent it assets to the sports club? Would that be a VATable supply?