ROA VAT SOLUTION
A Fast, Efficient, and Hassle-Free Solution for Your Racing VAT
Owning a racehorse inevitably involves paying VAT. However, reclaiming VAT has never been easier, thanks to the ROA VAT Solution.
Whether you are an ROA member or not, our team can liaise with HMRC (HM Revenue & Customs) on your behalf, making the VAT reclaim process seamless and hassle-free. This allows you to devote more time to the sport you love.
Our experts are available to provide guidance and support on VAT matters at every stage of your ownership journey.
With over 20 years of experience, we help owners recover VAT on racing-related expenses such as training, veterinary services, and travel. On average, owners save £4,700 in VAT annually. Owners can also make additional savings on the VAT paid on the horse’s purchase, which can amount to several thousand more.
What is the Racehorse Owners VAT Scheme?
Introduced in 1993, the Racehorse Owners VAT Scheme enables racehorse owners to register for VAT and reclaim it on eligible racing-related expenses. This scheme significantly reduces the financial burden of VAT by lowering the costs associated with owning a racehorse.
Who is Eligible?
Racehorse owners registered with the British Horseracing Authority (BHA) are eligible to apply for VAT registration with HMRC. Owners can register as individuals if they own at least 50% of a horse, either as a sole owner or as part of a partnership. Partnerships, syndicates, and clubs may register as a single entity, allowing them to recover VAT for all partners or members involved.
To qualify, owners must have a sponsorship agreement in place, and the racehorse must be officially registered with a trainer when submitting the BHA D1 (individual, company, or club) or D2 (partnership or syndicate) form.
The ROA VAT Solution is available to both members and non-members, including owners residing overseas. If you are already VAT registered, you can easily authorise the ROA to manage your VAT affairs as your agent.
How Does It Work?
For new VAT registrations:
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Complete the Agent Flyer and the relevant ownership forms (D1 or D2).
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Email the completed forms to [email protected].
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We will handle the VAT registration process with HMRC and manage all quarterly submissions.
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You will receive reminders before each return is due, and VAT refunds will be credited directly to your account.
For existing registrations:
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Authorise the ROA by completing the Agent Flyer.
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We will take over VAT submissions and ensure compliance with HMRC regulations.
Our fees:
ROA VAT Solution Fees for ROA Members - 2025
| ROA MEMBERS | Number of horses | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ownership status | 1 | 2 | 3 | 4 | 5 | 6 | 7+ | |||||||
| Net | VAT 20% | Net | VAT 20% | Net | VAT 20% | Net | VAT 20% | Net | VAT 20% | Net | VAT 20% | Net | VAT 20% | |
| Sole/company | 107 | 21.4 | 145 | 29 | 161 | 32.2 | 176 | 35.2 | 198 | 39.6 | 198 | 39.6 | Price on application | |
| Partnership/syndicate/club | 145 | 29 | 161 | 32.2 | 176 | 35.2 | 198 | 39.6 | 198 | 39.6 | 219 | 43.8 | ||
ROA VAT Solution Fees for non-Members - 2025
| NON-MEMBERS | Number of horses | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ownership status | 1 | 2 | 3 | 4 | 5 | 6 | 7+ | |||||||
| Net | VAT 20% | Net | VAT 20% | Net | VAT 20% | Net | VAT 20% | Net | VAT 20% | Net | VAT 20% | Net | VAT 20% | |
| Sole/company | 134 | 26.8 | 181 | 36.2 | 221 | 44.2 | 221 | 44.2 | 249 | 49.8 | 249 | 49.8 | Price on application | |
| Partnership/syndicate/club | 181 | 36.2 | 221 | 44.2 | 221 | 44.2 | 249 | 49.8 | 249 | 49.8 | 275 | 55 | ||
Registration Fees
| Registration Fee | Net | VAT 20% |
|---|---|---|
| Member | 32 | 6.4 |
| Non-Member | 32 | 6.4 |
Please note first VAT returns will be charged based on the number of quarters covered. E.g. 6 months will be 2 quarters. There will be a one-off registration fee of £32.00 plus VAT for all new VAT registration numbers, charged with the first VAT return.
Occasionally, there may be a VAT period where there are no invoices for VAT recovery, for example if you are between horses, or your horse is resting at home throughout the VAT period. In such instances a ‘nil return’ will be submitted and our fee will be reduced to £32.00 plus VAT for all ownership types and ROA membership statuses
For all other queries contact us at [email protected] or speak to one of our team on 0118 3385 685
Agent Flyer
Please either download the PDF and complete the form, or complete the onlie form below:
Agent-Flyer.pdf
VAT - Frequently Asked Questions
I want to become VAT registered under the registration scheme for racehorse owners. What is the qualifying criteria?
The ownership entity must own at least 50% of a horse, which is in training in the UK with a licensed trainer and is covered by a third-party sponsorship.
The BHA have D1 and D2 forms for VAT registration. Which should I use?
Use a D1 to register an individual owner (sole proprietor), company or Racing Club for VAT. Partnerships and Syndicates should use a D2 form.
I only own 25% of a horse. Does that mean I can’t recover VAT I have paid?
You wouldn’t be eligible to register for VAT as an individual (sole proprietor). However, you can recover the VAT you have paid by registering for VAT as a partnership with other partners, as long as the aggregate share you own is 50% or greater.
I sponsor my own horse as a self –sponsorship. Is this sufficient to qualify?
No, the sponsorship must be by a third-party. This can be in addition to a self-sponsorship.
I own several horses (all 100% in same ownership). Do I need to register for VAT for each horse?
No, the VAT registration will cover all qualifying horses for the ownership entity.
I bought the horse before I registered for VAT. Can I reclaim the purchase?
When registering for VAT you will be given an effective date of VAT registration (EDR), usually the date BHA approve your D1/D2 application. You can recover VAT on the purchase invoice of the horse up to four years prior to the EDR if the VAT entity owns the horse 100%, this is reduced to six months for a lesser ownership share. For all other VAT recovery, e.g. training, vet fees etc you can recover VAT on valid invoices dated up to six months prior to the EDR.
How often are the VAT returns done?
Racehorse owners VAT returns will fall on a quarterly basis, so are submitted every three months.
How do I send in my invoices for ROA VAT Solution to recover VAT?
Invoices can be uploaded or emailed into Xero via Hubdoc or sent by post.
What items can I recover VAT on?
A non-exhaustive guide to VAT recoverable items under the Racehorse Owners VAT Scheme can be found in the following document:
RECOVERABLE VAT FOR RACEHORSE OWNERS.pdf
I am selling a horse. What are the VAT implications?
If you are selling a horse, you must charge VAT on the sale price at the standard rate (currently 20%). If you are selling the horse through a sales house (e.g., Tattersalls/Goffs) please advise them of your VAT number prior to the sale to ensure VAT is applied to the selling price. If you are selling the horse privately, ensure a sale invoice is raised to include VAT and your VAT number is raised. ROA VAT Solution can assist with a sale invoice template if necessary.
N.B. If VAT is not applied to the sale HRMC will treat the sale as VAT inclusive so 20% of the sale price will need to be declared to HMRC, otherwise client will lose out!
Why have I received VAT on prize-money, but not on the Prize Percentage of Stakes?
Prize-money is subject to VAT at the standard rate. Percentage Prize of Stakes is outside of scope for VAT, as is made up from portion of entry fees which are also outside scope of VAT.
My return has been submitted to HMRC. When can I expect funds to be received in my account?
Typically, funds are received within 7-10 working days from the date of submission. However, HMRC advise to allow 30 days before they can be contacted for chasing of funds.
It is possible that for larger VAT returns (VAT received exceeds £10,000) HMRC will request further information before processing which can delay the receipt of payment.
I was previously VAT registered and have purchased a new horse. Can I use/resurrect my old VAT registration?
If the previous VAT Registration was deregistered with HMRC, you will have to re-register and will receive a new VAT Registration number.
Still have a query? Contact our VAT Solution team on [email protected] or on 0118 3385 685
VAT RESOURCES
Don't get caught out by HMRC changes
Whilst racing is a passion for owners, when VAT-registered, HMRC considers it to be a business operating under the Scheme.
Benefits of being VAT registered
There are many benefits of being VAT registered for your racing activities. Find out more here
Sponsorship now open to two-year-olds
Starting January 1, all yearlings turn two, opening the doors for the ROA Tote sponsorship scheme and VAT registration under the Racehorse Owners VAT Scheme.
New Licensing Rules for Syndicates: What Racehorse Owners Need to Know About VAT
Anyone looking to set up a new racehorse syndicate or racing club will now need to apply for a license from the BHA. If you’re an owner dealing with VAT, here’s how these new rules might affect you
THE ROA VAT SOLUTION GUIDE TO THE SALES
With the sales season in full swing, it's a good time to remind members how buying or selling a horse can impact their VAT position.
Rapid results with ROA VAT Solution
The current lead time for new VAT registrations is 40 working days, however, we have been successful in registering Owners for VAT within 50% of this time frame.