Golf club article
Submit Articles Back to Articles
16th January 2015
Many of you will be aware from our previous articles
that HMRC have been reluctant to release the VAT over declared by not
profit and members golf clubs on visitors greens fees. This is despite
the success in the Courts of the lead case involving Bridport and West
HMRC contended that economic research indicated that such
golf clubs would be unduly enriched if they were repaid the VAT due to
order to support this argument HMRC requested additional time from the
so that they could employ an economist to ‘prove’ that this argument
The economist has completed his research and stated that
there is some pass through of VAT to the non-members (pass through =
by the non-member rather than the club absorbing the cost) and the rate
through this depends on the area, type of club and local completion.
On the back of this research HMRC are now contending that
more than 50% of the economic burden of the VAT was borne by the
that golf clubs would therefore be unduly enriched if repaid more than
the VAT declared in error on green fees. Interestingly HMRC have also
that they will submit that clubs would be unjustly enriched to the
are repaid more than 50% of the VAT claimed, indicating perhaps that
simply intend to remit 50% of all claims.
It is unclear at this stage if HMRC will offer to pay up to
50% of the VAT claim due to clubs pending further litigation to decide
matter or if clubs will have yet another long wait while a further
this specific point goes through the tribunal system and possibly on to
European Court of Justice to decide.
If you or your client is affected by the Bridport and West
Dorset decision and have not yet made a claim it is not too late to do
please give our free VAT helpline a call to discuss this further.
About the Author
VAT People are leading VAT and Customs Duty
consultants based in the
North West of England. We work with a wide range of businesses
throughout the UK as well as assisting our accountancy colleagues to
unravel the thorny VAT issues for their clients. We are one of the UK's
largest and most comprehensive sources of VAT and Customs advice, our
consultancy team having over 140
years of experience in VAT and Customs
gained in either HMRC or a Big 4 accountancy practice environment.
Call us on our VAT helpline 0800 077 4604 to discuss. All initial discussions are free with no-obligation.
Follow us @Scopulus_News
Article Published/Sorted/Amended on Scopulus 2015-01-28 09:01:24 in Tax Articles