Orchestra loses VAT appeal
Presence of a paid executive on the board of the Bournemouth Symphony Orchestra means it cannot claim VAT exemption.
The Bournemouth symphony orchestra yesterday lost a VAT appeal with
implications for the entire charity sector.
The BSO was not allowed to claim exemption from VAT, Mr Justice Mann said,
since it had a paid executive on its board.
The paid executive meant its board was not ‘essentially voluntary.’
Tax experts were quoted in The Daily Telegraph saying that the ruling would
create confusion: ‘Many charities were hoping this case would create certainty
on when VAT exemption should apply. Rather, it has created even further
confusion.’