There are two types of student societies, and the VAT treatment differs for each type. The distinction lies in whether your group qualifies as a “sporting” group. 

Definition of a Sporting Group

 A “sporting" group is defined as one whose activities primarily involve physical activity, such as sports, dance, or fitness. A “non-sporting group” focuses on non-physical aims and objectives, which may include academic, cultural, political, or activist purposes.

To qualify as a sporting society, physical activity needs to be the group’s core purpose. Societies that offer sports membership alongside other activities will still be categorised as non-sporting and subject to taxation if their primary aim is not related to sports alone. This classification means that expenditure can still be recoverable for these societies. It's important to note that academic societies that organise sporting events may also face similar considerations in terms of VAT treatment.

Unlike non-sporting groups,  sporting groups will keep 100% of their membership fees; however, you cannot claim VAT back on expenditure related to the core activity of the group (e.g. if the group purchases yoga mats, a pole dancing pole, etc). 

List of active sporting-society's

If your group is not included in the list below, you are classed as a non-sporting group. For information about how VAT affects your group, click here. 

• Airsoft 
• Bench Ball Society 
• Body Society 
• Ballroom and Latin Soc 
• Baseball Society  
• Exeter Running Society
• Callisthenics Society 
• Dance Society 
• Exeter Just Dance Society 
• Exeter Padel Society 
• Five-a-side Football 
• Judo Society 
• Muay Thai
• Medics Basketball 
• Medics Football Club 
• Open Water Swimming 
• Pole Fitness Society 
• Pickleball Society 
• Roller Skating Society 
• Salsa Society
• Swing Dance Society 
• Legion Dance Society 
• Yoga Society  

How VAT affects sporting societies

The list of societies above falls within the sporting exemption from VAT. HMRC provides a specific list of Activities that qualify for this exemption. 

For these Societies, no VAT is due on income from members for: 

• Membership Fees 
• Use of sporting facilities (including pitches, lockers and changing rooms) 
• Match fees 

As VAT is not charged on this income, any VAT on related expenditure cannot be reclaimed. 

VAT will still need to be paid on income from members for: 

• Social events and activities 
• Spectator admission charges 
• Stash sales  
• Other Activities that are not VAT exempt 

However, VAT incurred on expenditure directly related to these taxable income streams may be reclaimed, subject to correct VAT documentation being provided.

To find out more about specific exemptions that might apply to your society activity, please click here. 

VAT treatment for sporting groups' income

The following table shows the treatment of income streams for VAT purposes:

VAT treatment for sporting group's expenditure 

If VAT is charged on income, VAT incurred on expenditure directly related to this taxable income stream may be reclaimed, subject to correct VAT documentation being provided. VAT cannot be reclaimed on exempt activities. Some suppliers do not issue VAT invoices/receipts as standard, and you will have to request them, such as restaurants, supermarkets, and online purchases (Amazon).

The following table shows the treatment of types of expenditure for VAT purposes:

VAT is not recoverable on the following costs:

Why? These items are classed as overheads, which fall into the partial exemption rules. We do not have the capacity to review every claim and establish what VAT rules apply. 

It is therefore prudent to treat as non-recoverable. These types of costs are likely to be minimal.  

• Office Supplies (stationery, printer ink, postage supplies 
• IT equipment 
• Software Subscriptions 
• Marketing  
• Advertising- creating and displaying an advert 
• Photocopying 
• Printing 
• Agency Fees 
• Website Hosting 
• Promotional merchanise/freebies 
• Gifts to members (small amounts, e.g. leaving or thank you gesture)