“Penalty for incorrect zero rating certificate” by Les Howard, partner in vatadvice.org, a specialist VAT practice

FTT decision raises a number of serious issues and highlights how complex VAT has become, says Les Howard

Westow Cricket Club had a new pavilion constructed. It issued a zero rating certificate to the building contractor on the basis that the building was to be used as a ‘village hall,’ as defined in Note 6(b) to Sch 8, Group 5.

The certificate was invalid since the club was a Community Amateur Sports Club (CASC). It is now well established that a CASC is NOT a charity. It is therefore unable to benefit from zero-rating under the ‘Relevant Charitable Purpose’ provision.

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