Resale of Tickets (Trade Show)

Broken_sunflower

Hi there,

I run a VAT registered business and bought 4 tickets to a trade show last year. I ended up selling 2 to another business at face value as I didn't need them and they had sold out.

Do I need to charge VAT on the ticket sales? I purchased them for £236 (no VAT) and have sold them for £236, so if I should have added VAT I would be making a loss which is fine, just wondering if that's the correct treatment?

I have asked our accountant but thought I'd try here too as they can be quite slow in coming back to me!

Thank you!

Bookworm225

why was there no Vat on the 236 purchase price?

Broken_sunflower

The event is run by a charity so I assume that's why

Savvy_Sue

Broken_sunflower said:

The event is run by a charity so I assume that's why

Charities are not automatically exempt from paying VAT. It's possible their VAT-able income is beneath the limit.

Bookworm225

Broken_sunflower said:

The event is run by a charity so I assume that's why

charities ("eligible body") are not exempt from VAT
in principle an event ticket is subject to VAT unless the event itself is a specific exclusion, in which case the ticket is exempt.
Admission charges to cultural events (VAT Notice 701/47) - GOV.UK

It is therefore important for you to properly understand the VAT status of the event ticket as you cannot charge VAT on the resale of an exempt item 
Charge, reclaim and record VAT: When not to charge VAT - GOV.UK

the logical next step is to ask the people who sold the ticket in the first place.  You describe the event as a "trade show" which suggests it is less likely to be an exempt activity, but you'd be wise to check!

are you still within your VAT quarter or would any "correction" now need to be declared as a prior quarter?

Savvy_Sue

Although I say again ...

Savvy_Sue said:

Broken_sunflower said:

The event is run by a charity so I assume that's why

Charities are not automatically exempt from paying VAT. It's possible their VAT-able income is beneath the limit.

Bookworm225

Savvy_Sue said:

Although I say again ...

Savvy_Sue said:

Broken_sunflower said:

The event is run by a charity so I assume that's why

Charities are not automatically exempt from paying VAT. It's possible their VAT-able income is beneath the limit.

and everyone is able to read it without you repeating it.
as we seem to be repeating posts I say again, some tickets are subject to VAT, some are not, it depends on the circumstances which OBVIOUSLY includes whether the selling entity is VAT registered in the first place. 

DullGreyGuy

Savvy_Sue said:

Although I say again ...

Savvy_Sue said:

Broken_sunflower said:

The event is run by a charity so I assume that's why

Charities are not automatically exempt from paying VAT. It's possible their VAT-able income is beneath the limit.

Didnt need to repeat it. 

Based on the cost of the tickets they'd only need to sell 382 tickets to hit the threshold. The median attendance at a trade show is 3,000. Now clearly trade shows vary in size but at 382 it would be a very small one so being less than that is possible but increasingly unlikely. 

It's also fairly unlikely that a single trade show a year is their only sales. 

So possible but feels unlikely 

Broken_sunflower

OK, maybe trade show was the wrong description. It was for Chelsea Flower Show, we're in the industry so to us it's a trade show. Does that help?

The VAT stated to be charged on the original purchase was £0.73 so I think relating to a processing fee.

Thanks all.

DullGreyGuy

Broken_sunflower said:

OK, maybe trade show was the wrong description. It was for Chelsea Flower Show, we're in the industry so to us it's a trade show. Does that help?

The VAT stated to be charged on the original purchase was £0.73 so I think relating to a processing fee.

Thanks all.

So you bought general attendance tickets not being an exhibitor or such?

https://www.rhs.org.uk/shows-events/misc-shows/non-transfer-policy reselling tickets is against the terms but that aside... 

https://www.gov.uk/guidance/admission-charges-to-cultural-events-and-vat-notice-70147 there are exemptions to certain "cultural events"

Bookworm225

DullGreyGuy said:

Broken_sunflower said:

OK, maybe trade show was the wrong description. It was for Chelsea Flower Show, we're in the industry so to us it's a trade show. Does that help?

The VAT stated to be charged on the original purchase was £0.73 so I think relating to a processing fee.

Thanks all.

So you bought general attendance tickets not being an exhibitor or such?

https://www.rhs.org.uk/shows-events/misc-shows/non-transfer-policy reselling tickets is against the terms but that aside... 

https://www.gov.uk/guidance/admission-charges-to-cultural-events-and-vat-notice-70147 there are exemptions to certain "cultural events"

Chelsea flower show is not a cultural event , as explained in the link I previous gave, which you have now repeated