More Waiting on the Tee for Golf Clubs in VAT Case
The First Tier Tax Tribunal in the Bridport & West Dorset Golf Club VAT case released its decision in June this year.
Many golf clubs have already submitted sizeable protective claims (some going back to VAT periods in 1990) so the fact that the Tribunal found in the golf club’s favour that visiting non members’ green fees were VAT exempt was greeted with some optimism.
At the time, HMRC was allowed two months to appeal the case and only recently it was confirmed HMRC has sought permission to appeal to the Upper Tier Tribunal on the grounds that the Tribunal had erred in interpreting EU law. HMRC still holds the view that where clubs that run membership schemes make charges to non-members for the use of certain sporting facilities, such as green fees, the charges are standard rated.
Chiene + Tait has advised several golf clubs on this issue and our view remains that the Tribunal reached the correct conclusion – a view shared by the legal team taking the Bridport case. However, given the number of golf clubs affected (and the value of the claims at stake) HMRC has reasonable chance of being granted leave to appeal and for the technical arguments to be discussed in a higher Court.
Any claims that have already been submitted will remain stood behind this case, as will any subsequent claims for later years.
In the meantime HMRC advises golf clubs to continue to charge VAT on visitors’ fees; however there are still opportunities to make protective claims for VAT charged on visitor income paid in the last four years.
Further updates will be released on the Chiene + Tait website but if your golf club has not made a claim yet, or you would like to discuss these issues in more detail, please contact Lynn Gemmell our VAT Director on 0131 558 5800 or email lynn.gemmell@chiene.co.uk