Bridport and West Dorset Golf Club brought a case several years ago against HMRC contending members’ clubs should not have to account for VAT on visitor green fees. Member subscriptions at such clubs are already exempt from VAT but proprietary owned, for profit clubs are required to account for 20% VAT on both subscriptions and green fees. The case was heard by the ECJ in October, and judges have issued their decision supporting Bridport.
Vaughn Chown, Head of VAT at Gabelle tax said:
This decision has been awaited for years and will require HMRC to make significant payments. Our VAT department is busy reviewing substantial VAT reclaims and partial exemption methods which must be applied to the claims before repayment will be made by HMRC.
For further information on all aspects of VAT please contact the TaxDesk on 0845 4900 509 and ask for Vaughn Chown.