THE ROA VAT SOLUTION GUIDE TO THE SALES

With the sales season in full swing, it's a good time to remind members how buying or selling a horse can impact their VAT position. Whether you're purchasing or selling, understanding the VAT scheme is crucial to comply with HMRC and make the most of potential savings.

How the VAT Scheme Works

VAT is applied to most goods and services, including horses, when sold by VAT-registered businesses. If you are, or become,  VAT-registered, you can reclaim the VAT paid on horses purchased as long as you have a valid VAT invoice for a qualifying horse. Similarly, when selling a horse, you may need to charge VAT depending on your VAT status and where the buyer is located. Knowing how to handle VAT correctly ensures compliance and helps maximise savings.

	VAT Registered	Not VAT registered
Purchased a Horse	Ensure the invoice is in the name of the sole, partnership, syndicate or club entity.   If the trainer has purchased the horse on your behalf, ask the sales house to turnover the invoice in the name of the sole, partnership, syndicate or club entity.   You can reclaim VAT on the purchase if the entity owns a minimum share of 50% in the horse.	Ensure the invoice is in the name of the ownership entity.   Even though you are not VAT registered, if the seller is, then you will pay VAT on the purchase price.   Consider registering under the registration scheme for racehorse owners (VAT notice 700/67) if you have purchased 50% or more to reclaim your racing VAT.
Sold a Horse	Provide the sales house with the entity’s VAT registration number.   VAT will be charged on top of the sales ring price.   Declare the output VAT on your next VAT submission.	If a horse is owned jointly by a non-VAT registered entity and a VAT registered entity, only the portion of the ownership held by the VAT registered entity will be subject to output VAT

 

If you want to register to reclaim your VAT, move providers, or just want to have a chat about the scheme, please contact Rebecca, Davina or Glen on 01183385685, or email the team on [email protected].

 

TOTE SPONSORSHIP

 

Owners who are not yet taking advantage of the VAT for Racehorse Owners Scheme can apply to join the ROA / Tote owner sponsorship scheme.

The scheme provides sponsorship for horses in training which are wholly owned by ROA members. In the case of a Racing Club or Syndicate, then all club/syndicate managers need to be ROA members in order for the horse to be eligible, or where the horse is owned in a Partnership, all owners need to be ROA Members.

We run four schemes throughout the year with each running for a 12 month period.

A sponsorship payment of £100 per horse is made to the owner entity once the particular scheme their horse is sponsored under has closed. This is paid into their Racing Account.

Sponsored horses will need to carry a Tote logo on the chest and collar of the owner's colours. There are no provisions for branding on attendant's clothing or horse rugs.

Sponsorship allows the ownership entity to register for and reclaim the VAT charged on the purchase price of their horse and many associated fees. This can represent an annual VAT recovery of over £4,700 for each horse, benefiting owners to the tune of £7.5m each year.

To find out more and to apply online, see roa.co.uk/sponsorship