VAT Penalties Blog

20.10.2014

Golf Clubs Handicapped on VAT Repayments

And so the saga goes on!

Despite the European Court having ruled back in December 2013 that VAT should not be levied on green fees charged by not for profit members’ clubs, here we are, almost 12 months later, not much further forward.

The reason is that HMRC is having a serious case of the jitters about how much all of this is going to cost them!

HMRC have accepted that green fees are exempt- but they are still considering whether they can demonstrate that Clubs will be “unjustly enriched” by claiming back VAT they have paid on green fees in the past. A significant number of Clubs have already made claims totalling millions of pounds.

So, HMRC asked the Tribunal for more time to make their case- and this was refused. And a hearing was, we understand, recently held to decide how this matter should be progressed.

KPMG, who represent a number of claimants, together with other advisors, are looking to take another lead case on the unjust enrichment issue, and we understand that this is currently in progress.

HMRC have confirmed that they will not pay any claims in the interim.

So, watch this space. Perhaps we will have an answer by the time the next Ryder Cup takes place!

If you wish to discuss the impact of this decision on your business, please contact either Gill Yates or David Pegg on 0845 177 5500 or your usual Burgis & Bullock contact.

VAT-Penalties Team

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