[cma-l] Licensing and VAT

[Richard Hilton]

VAT?!  How long have you got?

It may well be that PPL / PRS are partially registered for VAT purposes (don’t ask!) and it is in their interest to charge VAT on as much of their income as they can.

My suggestion is to politely ask PPL / PRS why they are charging VAT on their ‘licence’ when, for example, Ofcom don’t charge VAT on their ‘licence’.  Insist that they give their answer in writing – so best to email them.  Then ask Ofcom, again politely, why they don’t charge VAT on their ‘licence’.    Undoubtedly both will have taken (expensive) advice and cleared it with HMRC.  But if there is an obvious inconsistency then maybe raise it with HMRC.  But be warned, it may end up with Ofcom charging VAT on their ’licence ‘!

Richard


From: cma-l-bounces at mailman.commedia.org.uk [mailto:cma-l-bounces at mailman.commedia.org.uk] On Behalf Of Geoff Rogers
Sent: 03 January 2017 23:07
To: CMA-L
Subject: [cma-l] Licensing and VAT

This is a quick query prompted only by our recent invoice from PPL and PRS.

The above is subject to 20% VAT but is sold to us as a a 'licence' to play the artistes' repertoire.

However, we also pay Ofcom for a 'licence' and these are not subject to VAT.

Can someone explain simply why VAT is payable on one form of licence and not the other.

Happy New Year to all.

Kind regards,

Geoff

--
Geoff Rogers
Programme Director
Susy Radio, Local Community Radio for Redhill and Reigate
On-air across Sussex and Surrey on 103.4FM NOW
Web: susyradio.com<http://susyradio.com> <http://www.susyradio.com>

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