Fitness centres and other sports facilities: when does 6% VAT apply?

Following the judgement of the Court of Justice, the VAT administration has today published a new notice with the new rules applicable to the granting of access to a sports establishment subject to VAT (such as a fitness centre).

What is important about the new notice published today for you as an entrepreneur?

In very concrete terms, the following VAT rules are applicable:

• Right of access to a fitness centre, supplemented, where appropriate, by information on the use of the equipment: 6%
  • Regardless of whether the customer has to pay an additional fee (for example, in the case of a new customer requiring a comprehensive tour with explanations about the types of equipment and their operation)
• Right of access to a fitness centre that also offers personal coaching and/or group lessons
  • If the fitness centre grants a customer the right of access to the fitness centre as well as personal coaching/group lessons: 6%
    • in this case, the administration will assume that the coaching/group lessons are incidental to the right of access
    • in this case, the customer must also have access to the fitness centre outside the times of the personal coaching/group lessons so that they can use the sports equipment on their own (without personal guidance and outside the group lessons)
    • the main objective must be to allow access to the fitness room
  • If the customer only has access to the fitness centre for the duration of their personal coaching/group lessons: 21%
  • In the case of remote guidance only (live stream): 21%

There is also a summary of what fitness centres often offer besides the subscription and what the VAT rate will be.

For example:

• sales of clothing, footwear = 21%
• slimming machines = 21%
• nutritional advice = 21%
• access to the swimming pool = 6%, etc.

Other sports facilities

The notice also provides a list of other sports facilities that may or may not be able to use the reduced VAT rate (provided that the VAT exemption provided for in Article 44 of the VAT Regulation is not applicable). Some examples:

• A subscription to a tennis club that grants the holder the right to use the grounds to play tennis without any guidance
• A golfer who has an annual subscription to a golf club. The subscription gives them the right to use the golf course and the driving range individually. The golfer who wishes to improve their technique and books several private lessons with a club trainer (a golf club employee or hired by the golf club)

Subject to 21% (provided that the VAT exemption provided for in Article 44 of the VAT Regulation is not applicable).

Some examples:

• A tennis instructor who rents out a court at a club to give tennis lessons at their own expense. Consequently, the player only has access to the court for the duration of the lesson. The player pays the fee to the independent instructor, who is responsible for both the right of access and the lesson
• Ballet and other dance classes (as a rule, the main component is training or teaching, where the dancers’ right of access to the dance hall is limited to classes and is only incidental)
• Watersports lessons at sea (sailing, surfing, etc.). The sea is in the public domain, so there can be no question of the right of access to a sports facility.

VAT refund

Warning! Entitlement to a refund of overcharged VAT in 2019 can still be corrected until the end of this year.

Our Bofidi experts will be happy to assist you further.

Do you have specific questions about this new notice or need assistance?  Don’t hesitate to contact us .

The Bofidi VAT team will be happy to assist you further.