[cma-l] Licensing and VAT

[Ian Hickling]

The answer from my viewpoint Geoff is that the PRSfM and PPL payments are commercial service charges which is why they are subject to VAT at the current rate.
The Royalties organisations are commercial businesses, they are not Licensing Authorities as is Ofcom.

They refer to their invoice/agreement as a "Licence" whereas it fact it is not.
As has been pointed out recently here and elsewhere, neither association has ever submitted an application to the Copyright Tribunal for a mandate under the Copyright Acts and is relying solely on its own assertion of its entitlement to collect revenue.
You may choose to make a decision as to whether you feel  they are acting transparently and within the Law.
You will probably have guessed mine.


Ian Hickling

Partner

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________________________________
From: cma-l-bounces at mailman.commedia.org.uk <cma-l-bounces at mailman.commedia.org.uk> on behalf of Geoff Rogers <geoff at susyradio.com>
Sent: 03 January 2017 23:06:54
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>

Susy Radio Ltd. A company registered in England and Wales.
Registered Office: 54 Nutfield Road, Merstham, Redhill, Surrey, RH1 3EP.
Registered Number: 06748586

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