General VAT question

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General VAT question

Postby halifax71 » Tue Apr 20, 2010 7:44 pm

Bit off topic so apologies. I've done F6 and don't recall covering this and similarly i cannot see it covered on the HMRC site, so I thought i'd ask you Advanced tax bods.

An organisation runs a staff club (nominal monthly fee) whereby, amongst other things, they sell tickets for various activities, but they sell them at less than cost as a membership benefit.

E.g. they buy a ticket for a show for £10, then sell it to a member for £9.

Now VAT thresholds aside can the staff club reclaim the excess input VAT? My thinking here is the staff club is paying excessive VAT, i.e. the input VAT part of the £10, when it should be paying the output VAT part of the £9.

Thanks in advance.
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