Entertainment Events (proms, balls, etc.)

Academies are often keen to offer pupils a chance to celebrate their achievements and to enjoy a formal ball or school prom. Alternatively a school disco, magic show or film may be offered in return for payment of an admission charge. Sometimes events are extended to the general public, such as summer music festivals.

While many events may be held as fundraisers or as free entry events with a suggested voluntary donation, there may be instances where such treatment is not suitable. As income from fundraisers and donations have different VAT rules it is very important to be clear about the type of entertainment event being offered.

A limited range of cultural events (museums, galleries, art exhibitions and theatrical, musical or choreographic performances) can qualify for VAT exempt treatment, but this is unlikely to be available to academies or subsidiaries as only non-profit organisations that apply their profits for future cultural events and are run by volunteers satisfy the conditions for this exemption.

VAT Treatment