Changes to "eligible body" for VAT exemption for cultural organisations

Howard Lake | 11 December 2003 | News

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HM Customs & Excise has now recognised that ‘voluntary’ in UK law means ‘essentially voluntary’. As a result more cultural organisations may become eligible bodies and therefore not charge VAT on admission fees, and others may be able to reclaim VAT already charged.

The redefinition of ‘voluntary’ comes after The Zoological Society of London (“London Zoo”), won its case at the European

Court of Justice (ECJ) which ruled on the UK’s interpretation of the words “managed and administered on an essentially voluntary basis” in EC VAT law.

Admission to museums, galleries, art

exhibitions, zoos, theatrical, musical or choreographic performances of a cultural nature are exempt from VAT when supplied by an “eligible body”. London Zoo was originally deemed ineligible because some of its staff were paid. The ECJ drew a distinction between the taking of key policy decisions and the implementation of them.

As a result of this ruling, Customs are revising their policy and will this month be publishing an updated Public Notice 701/47 ‘Culture’ (December 2003) . Cultural bodies that think they now qualify as an eligible body and wish to make a claim for overpaid VAT in respect of past periods may do so.

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About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale. He is the founder of Fundraising Camp and co-founder of GoodJobs.