VAT Number: GB 551463648

1. Introduction

This policy sets out the Society of Television Lighting & Design’s (STLD) approach to charging Value Added Tax (VAT) on membership subscriptions and sponsorship arrangements. It ensures compliance with UK VAT legislation, including VAT Notice 701/5: Clubs and Associations, and provides clarity to members and sponsors worldwide.

STLD is registered for VAT in the United Kingdom. All VAT treatment is based on UK law and HMRC guidance.

2. Membership Subscriptions

2.1 Professional, Associate, Student and Retired Memberships

• All membership subscriptions are treated in accordance with VAT Notice 701/5.
• The supply of membership benefits by STLD is zero-rated for VAT purposes.
• This applies equally to members in the UK, EU, and worldwide.
• No VAT is added to membership invoices.

2.2 Sponsor Nominee Memberships

• Sponsor nominees who receive individual membership rights as part of their organisation’s sponsorship package are treated the same way as ordinary members.
• These memberships are zero-rated under VAT Notice 701/5.
• No VAT is added to nominee membership fees.

3. Sponsorship

Sponsorship income is considered a taxable supply of advertising and promotional services by STLD. Membership elements within a sponsorship package remain zero-rated, but the sponsorship itself is standard-rated (20%) in the UK or treated under the B2B place-of-supply rules for overseas sponsors.

3.1 UK Sponsors (Domestic)

• VAT is chargeable at the UK standard rate (currently 20%) on all sponsorship fees.
• Invoices will clearly state the VAT amount and STLD’s VAT registration number.

3.2 EU Sponsors

• Sponsorship is treated as a supply of advertising/promotional services.
• Under B2B rules, the place of supply is where the customer is established.
• Therefore:
  • If the EU sponsor is VAT-registered, STLD does not charge UK VAT. The invoice will state:
    “Reverse charge: customer to account for VAT under Article 196 of the EU VAT Directive.”
  • If the EU sponsor is not VAT-registered, UK VAT is charged at the standard rate.

3.3 Sponsors Outside the EU (Worldwide)

• Sponsorship supplied to businesses outside the EU (e.g. USA, Asia, etc.) is outside the scope of UK VAT.
• STLD will not charge UK VAT on these supplies.
• Invoices will state:
  “Outside the scope of UK VAT – place of supply is customer’s country.”

4. Invoicing & Documentation

• All invoices will include STLD’s VAT registration number (where VAT applies).
• Where the reverse charge applies (EU sponsorship), invoices will reference the correct wording.
• STLD will retain evidence of sponsors’ business status (e.g. EU VAT numbers) for VAT records.

5. Summary Table

6. Review

This policy will be reviewed annually and updated in line with HMRC guidance and UK VAT legislation.

Last Reviewed: 26th Sept 2025 - John Piper (Treasurer)