[cma-l] Licensing and VAT

[Alan Coote]

I concur with Alex – This is the answer we received a few years ago when we spotted the difference.

 

Seems strange at first, but then obvious that Ofcom is the exception - so it would be unfair to bash PRS/PPL… for once.    

 

Alan

 

From: <cma-l-bounces at mailman.commedia.org.uk> on behalf of "tlr at gairloch.co.uk" <tlr at gairloch.co.uk>
Reply-To: "cma-l at mailman.commedia.org.uk" <cma-l at mailman.commedia.org.uk>
Date: Wednesday, 4 January 2017 at 10:45
To: "cma-l at commedia.org.uk" <cma-l at commedia.org.uk>, "geoff at susyradio.com" <geoff at susyradio.com>, "cma-l at mailman.commedia.org.uk" <cma-l at mailman.commedia.org.uk>
Subject: Re: [cma-l] Licensing and VAT

 

Geoff

Quick answer: because one is a 'stautory licence', the other is not.

The issuing of statutory licences by public bodies such as Ofcom is not regarded as a 'business activity', and therefore does not come within the scope of the VAT system at all. 

The licences granted by PPL and PRS etc are contractually agreed by way of business, and so do come within the scope of VAT.

Alex

On 03 January 2017 at 23:06 Geoff Rogers <geoff at susyradio.com> wrote:

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://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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