Member-owned golf clubs in the UK could be in line for a considerable windfall after the European Court of Justice ruled that their visitor green fees are not liable to VAT.
Bridport and West Dorset Golf Club, brought a case some time ago against HM Revenue and Customs, arguing that, since they were not-for-profit organisations, member’s clubs should not be liable for VAT on visitor green fees. Member subscriptions at such clubs were already treated as being exempt from VAT. The case was heard by the European Union’s highest court in October, and judges have now issued a decision, supporting Bridport.
The sums involved could be substantial. Bridport, a relatively small club in a stated in the case documentation that it was seeking a refund of over £140,000 in incorrectly paid VAT.
If you are a golf club that has not already submitted a claim to recover VAT paid on non-members green fees, or should you need assistance with assessing the impact of receiving additional VAT exempt income going forward, please do not hesitate to contact either Gill Yates, or David Pegg for a no obligation discussion.