westendgirlDirk GentlyThe 17 Bus why do folk go on about VAT so much, there is a cost, with or wothout, if it costs £2 per item it makes no difference , they will have a bottom line figure, the vat is only 15% of the total, so on a low priced item is hardly imposrtant
Agreed, it's not massively significant on small numbers, but work it through.
If you add a non-vatable item like a book to the ST purchase, and give it a cover price of £19.99, the VAT you don't have to pay on that item is £2.98. Not much, and you do have to cover the book production costs out of that.
But now do the sums if you're pretty much assured of selling 18,000 STs. With that sort of print run you could easily get the printing costs down to under a quid a copy - so that saves you paying VAT of about £2 per ST - or about 36 grand in all, which is not to be sniffed at, and is perfectly legal. You could do a lot of useful stuff with that money (or pay a player for 10 days!)
That's why I agree it's less worthwhile if it is tax-orientated than it was when they did it with the yearbook.
Not sure you are right that the £19.99 part for the book can be taken out of the equation for VAT as the principal supply is that of a seat at the stadium and so standard rated and in a composite supply the VAT follows the main supply. This is why your airline ticket is still zero rated evenif you fly with someone who 'feeds' you on the plane. The food supply should be standard rated but the courts decided it is incidental and so the whole supply is zero.
I don't think the club could justify people buying a season ticket to get hold of the book do you? The book was a lot more incidental than a meal on a transatlantic flight.
Although it can work the other way. During the Miners Strike of 1974 [?] and the 3 day week matches were often played on both Saturday and Sunday to avoid using floodlights midweek. At the time it was illegal to charge for admission to a match on a Sunday - so admission was made free - provided you bought a programme [which oddly enough cost as much on its own on a Sunday as admission and a programme cost on any other day...]