HMRC refuse to retire to the clubhouse
HMRC have announced in the wake of their defeat in the case of Bridport and West Dorset Golf Club (see our blog: Tribunal Decision is a swing in the right direction) that they have sought permission to appeal the decision to the Upper Tier Tribunal.
This is not unexpected, in fact it would have been a shock if HMRC admitted defeat!
Any clubs that treat their supplies of green fees to non members as taxable at the standard rate should lodge protective claims going back 4 years as soon as possible. You can contact me us 01962 735350 or email vat@thevatconsultancy.com if you would like further advice on this.
Tribunal decision is a swing in the right direction
The result of the Bridport and West Dorset case has just been announced. The tribunal, brought about by Bridport and West Dorset Golf Club, ruled that clubs owned by their members should not face VAT on the charges issued to players who are not members.
Historically these fees have been treated as attracting the standard rate of VAT, but this ruling now suggests that these charges should have been exempt from VAT. This could result in a large refund for many golf clubs, even after any adjustments in their partial exemption calculations.
The technical argument revolved around whether the UK law contained within Group 10 of Schedule 9 to the VAT Act 1994 was consistent with the exemption as defined in the EC law within arts 132 to 134 of the Principal VAT Directive.
This is the latest in a long line of cases in both national and European courts where legislation enacted by member states has been seen as incompatible or inconsistent with EC law, the case of Bog being one in Germany which was recently a subject of another blog from The VAT Consultancy.
If you are affected by this case but haven’t yet put in a claim you could still go back four years, and the VAT Consultancy would be pleased to help you. Contact us on 01962 735350 or email vat@thevatconsultancy.com
HMRC have not commented upon the outcome yet and they may appeal the decision. We will announce any developments as they happen.