DSU is VAT registered and as such must abide by the rules of HMRC. The fundamental principle with VAT is that if you pay VAT to HMRC on your income, then you can reclaim VAT on any associated expenditure.
In accordance with HMRC guidance student group within a Students’ Union has to account for VAT on any supplies the student group makes. As a result, any input VAT on purchases from a VAT registered organisation by the student group should be recoverable in full.
To access the VAT Guide for Students, please Click Here.
VAT will be deducted from all membership income paid into your account i.e. if you charge a £10 membership fee then your account will receive £8.33 with £1.67 being paid to HMRC .
For any purchases made you will be charged the net amount on the invoice with the vat being recoverable e.g. if you have an invoice for £10.00 only £8.33 will come out of your account the remaining Vat of £1.67 can be reclaimed from HMRC on your behalf.
Please note you must provide a valid vat receipt or invoice or the VAT cannot be reclaimed for your student group.
Student Group Finances (SGF)
DSU has ensured that the Student Group Finance system includes the ability to record any VAT incurred on purchases by the group. This VAT will need to be recorded (and will be taken from the suppliers VAT receipt) within SGF or the VAT cannot be reclaimed for your group. As such it is important that Student Groups carefully complete the SGF claim to ensure that the VAT is fully recovered. Please note that not all suppliers will be VAT registered or some supply will be zero or exempt from VAT and in this case there will not be any VAT on the receipt to reclaim.
HMRC guidance also allows for any membership fees to clubs and societies that relate to sporting and physical education services e.g. football, dance etc. to be exempt from VAT.
Sporting Student Groups
The following student groups are classified by HMRC as exempt Sports or Physical Exercise as such the VAT exemption applies:
- American Football
- Archery
- Badminton
- Basketball
- Bhangra
- Bollywood Dance
- Boxing
- Canoe
- Cheerleading
- Climbing
- Cricket
- Cycling
- Dance
- Dodgeball
- Equestrian
- Fencing
- Football
- Futsal
- Hip Hop Dance
- Hockey
- Jiu-Jitsu
- Lacrosse
- Netball
- Pole Fitness
- Pool and Snooker
- Rowing
- Rugby
- Running
- Salsa
- Skateboarding
- Snowsports
- Squash
- Steppers
- Swimming/Triathlon
- Table Tennis
- Taekwondo
- Tennis
- Trampolining
- Volleyball
- Karting