Volunteer-friendly? Advantageous? Troublesome? In Swedish Sport Associations -A qualitative research about the effects of a VAT liability in Swedish sport associations

摘要

Background and Problem Definition: Swedish sport associations, which are regarded as public benefit non-profit associations (public NPAs), receive a favourable fiscal treatment since they are exempt from income tax and VAT, even if it pursues economic activities. This exemption violates the binding rules and regulations of the VAT Directive, which Sweden, as a Member State in the EU, is obliged to follow. An enforcement of the VAT Directive would result in a VAT liability for Swedish sport associations. This fact has created strong reactions in Sweden, which state that a VAT liability would cause severe problems for the sport associations.Purpose: The purpose of this bachelor thesis is to describe the reason behind a VAT liability for Swedish sport associations and to understand and concretely explain its anticipated effects from the associations’ perspective.Delimitations: The thesis will focus on Swedish sport associations who are still run by volunteers and real enthusiasts. The scope of the study concerns VAT, its accounting, effects and regulations in Sweden as well as the important principles of the VAT Directive that concern the Swedish sport associations.Methodology: The research has been executed through 15 qualitative interviews with sport associations and tax experts. The empirical material has principally been analysed from the associations’ perspective, which has been linked with previous described effects, knowledge and information in our field of study.Findings and Conclusions: The interviewed sport associations anticipate that a VAT liability will result in increased costs and administration, loss of income and increased difficulties to recruit new members to the committee. New ways of thinking and the disappearance of irresponsible and unreliable associations were some positive effects. The tax experts perceive similar effects but their interviews established that many effects described by the sport associations are based on uncertainties and lack of knowledge. The sport associations’ anticipated effects depend mainly on the treasurer’s experiences and accounting competence, the sport association’s current accounting systems, the financing structure and sources of income and the sport association’s attitude towards changes.Suggestions for Further Research: It would be interesting to find out how a VAT liability would affect other public NPAs with different activities. In addition, Sweden is not the only Member State that has not fully harmonized its VAT regulations. Therefore, it would be interesting to find out their attitudes towards the VAT Directive or if a harmonization already has occurred. Since one reason for the anticipated cost increases depends on the associations’ financing structure, a further research could be to investigate if and how their financing structure would change as a result of VAT liability.