In Esporta [2013] UKUT 0173 (TCC), the UT overturned the FTT’s decision that unpaid membership fees recovered through debt collection agencies were outside the scope of VAT. The case turned on the agreement between the member and Esporta, as contained in the member’s agreement. On analysing that agreement, the tribunal held that the late payments were consideration for the right to enter and use the facilities over the membership period.
