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</head><body><p>Geoff<br></p><p>Quick answer: because one is a 'stautory licence', the other is not.<br></p><p>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. <br></p><p>The licences granted by PPL and PRS etc are contractually agreed by way of business, and so do come within the scope of VAT.</p><p>Alex<br></p><blockquote type="cite">On 03 January 2017 at 23:06 Geoff Rogers <geoff@susyradio.com> wrote:<br><br><div dir="ltr">This is a quick query prompted only by our recent invoice from PPL and PRS.<div><br></div><div>The above is subject to 20% VAT but is sold to us as a a 'licence' to play the artistes' repertoire. </div><div><br></div><div>However, we also pay Ofcom for a 'licence' and these are not subject to VAT.  </div><div><br></div><div>Can someone explain simply why VAT is payable on one form of licence and not the other.</div><div><br></div><div>Happy New Year to all.</div><div><br></div><div>Kind regards,</div><div><br></div><div>Geoff<br clear="all"><div><br></div>-- <br><div class="ox-22d9b2db14-gmail_signature">Geoff Rogers<br>Programme Director<br>Susy Radio, Local Community Radio for Redhill and Reigate<br>On-air across Sussex and Surrey on 103.4FM NOW<br>Web: <a href="http://susyradio.com" target="_blank">susyradio.com</a> <<a href="http://www.susyradio.com" target="_blank">http://www.susyradio.com</a>><br><br>Susy Radio Ltd. A company registered in England and Wales.<br>Registered Office: 54 Nutfield Road, Merstham, Redhill, Surrey, RH1 3EP.<br>Registered Number: 06748586<br><br></div></div></div>_______________________________________________<br><br>Reply - cma-l@commedia.org.uk<br><br>The cma-l mailing list is a members' service provided by the Community Media Association - http://www.commedia.org.uk<br>Twitter: http://twitter.com/community_media<br>http://www.facebook.com/CommunityMediaAssociation<br>Canstream Internet Radio & Video: http://www.canstream.co.uk/<br>_______________________________________________<br><br>Mailing list guidelines: http://www.commedia.org.uk/about/cma-email-lists/email-list-guidelines/<br>_______________________________________________<br><br>To unsubscribe or manage your CMA-L mailing list subscription please visit:<br>http://mailman.commedia.org.uk/mailman/listinfo/cma-l</blockquote></body></html>