Radio: VAT Exemptions

(asked on 12th March 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what criteria his Department uses to classify a community radio station as a public interest body in relation to VAT exemption.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 20th March 2020

A public interest body is a non-profit making body which has objects that are in the public domain and are of a political, religious, patriotic, philosophical, philanthropic or civic nature. Examples include: trade unions, professional associations and learned societies. Supplies from such bodies to their members are VAT exempt when no payment, other than a subscription fee, are payable for them providing that they are referable to the aims of the organisation.

VAT is a broad-based tax on consumption, and the standard rate of 20 per cent applies to most goods and services. While there are exceptions to the standard rate, these are strictly limited by domestic law as well as by fiscal considerations.

At present, there is no specific VAT exemption for the community radio sector or relief available for radio broadcasting more generally, and there are no plans to review this at this time.

The Government recognises the social and cultural contribution that community radio stations make to the wider community. It therefore committed £430,448 to fund grants to help further the financial stability and future sustainability of community radio stations in 2019/20. Further information on the Community Radio Fund scheme and application process is available on the website of Ofcom.

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