Current Information

VAT exemption sports

As from 1 January 2019, many sport-related services that are being provided without a profit motive have been exempted from VAT. This is the result of new European legislation and also applies to the Dutch situation and, consequently, to Sportcentrum Olympos, which is managed by Utrecht Student Sports Foundation Mesa Cosa (hereinafter called Mesa Cosa).
 
It sounds quite promising: ‘exempted from VAT’. However, it is not. It means that sports organisations without a profit motive can no longer deduct the VAT charged over the costs of maintenance, water & energy, freelance instructors, sports equipment, cleaning services etc. and that Mesa Cosa will no longer get a tax return. As a result, sports organisations such as Mesa Cosa/ Olympos are faced with higher costs.  
 
Unfortunately, we are compelled to charge our athletes and lessees with part of these additional expenses. Our aim is to ensure that the increased rates do not render us more expensive for, in particular, students and employees than the ‘market rates’. The rate increase, however, does not cover the full increase in costs as a result resulting from the new VAT legislation. We are still working out further options to minimize its negative impact.  
 
Below please find an overview of the new rates and a number of frequently asked questions. 
 

What effect does this new legislation have on the OlymPas rates? 

Until 31 December 2018, the OlymPas rates included 6% VAT which, as from 1 January 2019, has been cancelled. An important part of our costs, however, will see a 21% increase. These rate changes have beengradually incorporated in the price of the OlymPass. 
 
The following rates will apply as from 1 August 2019: 
 
Rates OlymPas Per 01-08-2019
  Year Month
Category A €140 €17.50
Category B €270 €27
Category C €395 €39.50
Category X €355.50 €35.55

 

What about the current OlymPas?

Any current subscription will remain valid until its expiry date. The new rates will apply from and depend on the moment the OlymPas is being extended. 
 

Doesn’t the VAT rate go from 6 to 9%?

Indeed, the (lower) VAT rate on, for instance, food, the hairdresser’s etc and which used to apply to sports too has been increased from 6 to 9%. The same applies to commercial suppliers (including fitness centres) but not to non-commercial sports providers (e.g. sports clubs and foundations such as Mesa Cosa) as these are ‘exempted from VAT’. 
 

What about the ambition to encourage participation in sports?

This still is the aim of both the EU and the Dutch government. In effect, however, we have always been able to use the Dutch VAT legislation to our advantage and this benefit has now been taken away from us.  The same applies the municipalities and other university sports centres. Internationally and with regard to commercial providers as opposed to public providers (such as sports organisations and Mesa Cosa), the situation really is fairer now but, unfortunately, this does not work out beneficially for us nor our athletes.  
 

Are there no subsidies available to remedy the negative effects? 

We do indeed have subsidies that can be used towards the purchase of sports equipment or the renovation of our courts and pitches. This budget, however, is limited and not structural (max. of 4 years). We expect that we will be able to acquire some additional subsidies in the first year, but eventually we will have to do without such subsidies. Moreover, the subsidies do not cover the ongoing expenses for, for instance, instructors, cleaning services, gas, water, light and regular maintenance.
 

More information? (in Dutch)

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