Observed VAT implications for Charities involved in Theatre Productions 2019-08-14T17:26:39+01:00
Charity Theatre Tax Relief and VAT

Non-for-profit organisations often pay VAT for services and goods they receive. At the same time, their charges for live performances admissions (e.g. ticket sales) are often exempt from VAT.

The VAT exemption on ticket sales is frequently an important benefit which allows the non-for-profit organisation to maintain competitive ticket prices available to the general public.

This VAT exemption is often granted on the basis of ‘eligible body’ – i.e. the non-for-profit organisation needs to meet a strict criterion: 

  • Profits are not distributed, 
  • Profits are applied to benefit its cultural activities, and 
  • Management is performed essentially on a voluntary basis by persons with no financial interests in the organisation.

Involvement via a wholly owned trading subsidiary

Another commonly seen example is when the theatrical performance company as a wholly owned trading subsidiary of a not-for-profit organisation. This set-up can also similarly lead to the theatre production company paying VAT on purchases, but the sales of tickets for admission being exempt for VAT. 

Theatre tax relief for charities is a complex area. Charities should seek a professional advice to ensure it’s VAT exemption status, charity status and eligibility for theatre tax relief are not impacted by the various activities undertaken. 

The VAT law and applicable exemptions are quite a complex area for the purpose of this overview. The VAT guidance at Public Notice 701/1 Charities for how charities may be subject to VAT. 

Average R&D tax claim is £56,000

Ask us to review your R&D tax relief claim on your behalf. With our unique fee strcuture you don't pay us a penny until your R&D claim succeeds and provides a benefit to your business!

Start A Claim With Us

Latest News and Insights

See All News and Events

Become a Partner

Working with R&D Tax Solutions enables your service offering to be extended without jeopardising client service or quality. We are the trusted tax partner for a variety of businesses. Our team enables the partnerships to flourish with clear transparency of services provided and benefits obtained. Whether you are a boutique consultancy with a select few clients, or an accounting practice with a wide variety of clients our team will give you the peace of mind that your clients interests are our priority.

Find Out More

Any questions? Talk to our Tax Specialists

0161 298 1010