Saved By VAT
It has been mentioned here on previous occasions: a substantial reduction in the Value Added Tax (VAT) could well be the only way the governments of countries where such a tax is charged can help the sport and physical activity sector to survive the SARS-CoV-2 crisis.
In the United Kingdom, the rate of VAT, which applies to defined supplies in the hospitality and tourism industry, was reduced from 20% to 5% in July as part of the wider ‘Plan for Jobs’ initiative aiming to support businesses to bounce back from the impact of the COVID-19 pandemic. Similar steps were taken earlier by several other EU governments, Germany among them.
Now, the Sport and Recreation Alliance and ukactive, which between them represent more than 4,000 sport and physical activity providers, announce their “urgent request” to include their members in a similar relief package.
Spain has a its own campaign in progress, with national and regional sports federations as well as a few umbrella organisations petitioning the government, specifically the Superior Sports Council, to reduce the VAT rate for sports from currently 21% to 4%.