[cma-l] Licensing and VAT

[Bob Tyler]

Richard

I recall many years ago with probably the then regulator, the IBA who lost an appeal in respect of charging VAT.

I am pretty sure they refunded sums too. 

I might well have been to do the then licence was deemed to not provide any service elements.

Bob



> On 4 Jan 2017, at 10:45, Richard Hilton <Richard.Hilton at bitc.org.uk> wrote:
> 
> 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> [mailto: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
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