(by Will Drysdale, Accountancy Daily, 3 January 2024)
The oldest Grand Lodge of Freemasons in the world has lost an appeal for VAT refunds of £2.83m for charges on membership fees as primary aim was not philanthropic
The Grand Lodge has an annual income of approximately £13m, with £9m of this coming from membership fees and room rental. The two claims related to 2014 and 2018 and totalled £2.83m in VAT refunds from membership fees.
As the largest representative body of freemasonry in the UK with 175,000 members, the Grand Lodge, which was founded in 1717, has net assets of £70m and employs 90 people, operating as a not-for-profit organisation.
Originally, the Grand Lodge appealed to the First Tier Tribunal (FTT) claiming that the organisation was exempt from the VAT charges under Article 132(1)(1) of Council Directive 2006/112/VAT (PVD). This exemption is applied to organisations whose aims consist of a philosophical, philanthropic or civic nature.
The tribunal dismissed the two claims for VAT periods 06/10–03/18, stating that the organisation had more than one ‘main aim’ and was not solely philanthropic.
The FTT said…
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Originally, the Grand Lodge appealed to the First Tier Tribunal (FTT) claiming that the organisation was exempt from the VAT charges under Article 132(1)(1) of Council Directive 2006/112/VAT (PVD). This exemption is applied to organisations whose aims consist of a philosophical, philanthropic or civic nature.
The tribunal dismissed the two claims for VAT periods 06/10–03/18, stating that the organisation had more than one ‘main aim’ and was not solely philanthropic.
The FTT said…
read more:
The FTT said…
read more:
