What is a non-profit body?

For VAT purposes a non-profit body is any society, association, or organisation ( whether incorporated or not ) that is not carried on for profit or gain of any member, and whose rules do not allow the distribution of money, or other property, to any of its members, proprietor or shareholders.

Most charitable organisations, sports clubs, service organisations, professional groups, churches, social clubs, school committees, and Parents & Teachers Associations are non-profit bodies for the purpose of Value Added Tax.

When is a Non-profit organisation taxable?

Whether a non-profit organisation is taxable or not depends on:

• the particular supply it makes.
• whether its supply is considered to be to the disadvantage of  a registered person.

Whether a non-profit organisation is carrying on an activity in competition and to the disadvantage of a taxable activity, will depend on the following factors:

• the nature and type of goods and services being supplied.
• the value of supplies.
• whether the consideration received is less than the cost of making those  supplies.
• the value of any unconditional gifts received both in kind and money, and
• whether the making of the supplies is being subsidised by the unconditional gifts received.

Subject to the above factors, a non-profit organisation will be considered to be carrying on a taxable activity if it engages in the following on a continuous and regular basis and the gross turnover exceeds FJ$50,000 :

• the right of admission or membership of a club, association through subscription fees etc.
• charging for the admission of persons to any premises.
• the leasing or hiring of any real/personal property.
• the operation of a commercial oriented venture that involves the supply of goods and services at a price.
• the supply of advertising services by way of a fee/sponsorship and
• the right to participate in any event carried on/organised by that non-profit organisation, for a fee/charge.