VTUPB8000 - Registration fees

In order to practise certain professions, persons may be required to register with a statutory body and pay fees that are prescribed by law. These fees are normally outside the scope of VAT because, in performing such statutory functions, the organisation is not supplying a service in the course of business. However, where there is no such statutory requirement, the liability will vary.

• Registration in return for a subscription payment: When no additional fee is charged and the member is automatically registered upon payment of his subscription, the service will be a standard-rated supply unless the service of registration is referable to the aims of the association. If registration is so referable, the supply qualifies for exemption under Group 9 of Schedule 9 to the VAT Act 1994.
• Registration for a separate fee: Since the supply of registration is in return for a payment other than a membership subscription, even if registration is confined to an association’s members and is referable to the association’s aims, it cannot qualify for exemption under Group 9 of Schedule 9 to the VAT Act 1994. The supply will therefore be standard-rated.

If the registration is accompanied by other clearly identifiable supplies of services or goods, the fee will need to be apportioned accordingly.