MRC issue Brief on VAT repayments

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Summary
Two years on from the Court of
Justice judgment in Bridport,
HMRC has announced that,
subject to conditions, golf clubs
may be entitled to a repayment
of the VAT overpaid on green
fees.
The conditions are fairly
stringent and, unless met, are
likely to invalidate any claim.
HMRC has stated that any golf
clubs which disagree with the
conditions will not have their
claims considered until the
outcome of the Tribunal
litigation is known.
Clubs need to act now if they
wish to be considered for a
partial refund.
9 November 2015
Revenue & Customs Brief 19/2015
After many months of waiting, golf (and other sports) clubs that submitted claims for the
repayment of overpaid VAT can expect to receive partial refunds. HMRC has announced in
its Revenue & Customs Brief that, even though the First-tier Tribunal has not yet pronounced
on the issue of unjust enrichment, it is to consider making partial repayment of claims.
This is, clearly, great news for golf clubs. Provided that certain condition are met, HMRC has
said that it will credit up to 50% of any valid claims ahead of any court decision. Clubs,
which have the ability to charge a green fee in excess of £100, will receive only 33% of their
claim.
Conditions
For any claim to be partially repaid under this Brief, HMRC has announced that not only must
the claim be compliant with Information Sheet 01/2015, the following conditions must also
be met:
• each club should notify HMRC that, where appropriate, claims have been adjusted in
accordance with VAT information sheet 01/15
• each club should confirm whether its green fees are less than, or over £100 per round
• each club should confirm that it would like an interim payment / credit
Information sheet 01/2015 confirmed that, to be a valid, claims must be calculated for each
VAT period and must only relate to supplies made to individuals participating in the sport. In
other words, it is HMRC's view that Corporate days and supplies made through travel agents
and tour operators do not qualify for exemption and, as such, should not be included in any
claim for repayment. These issues were litigated at the Tribunal which will deliver its judgment
in due course. In the meantime, clubs wishing to receive a partial refund should exclude such
income from the claims. If the court rules against HMRC on these points, further refunds
would, of course, need to follow.
For further information, golf clubs should contact their usual Grant Thornton contact or one
of the VAT Partners listed below.
HMRC to make partial VAT payments to
Golf Clubs
VAT Alert
Contact
Stuart Brodie Scotland stuart.brodie@uk.gt.com (0)14 1223 0683
Karen Robb London & South East karen.robb@uk.gt.com (0)20 772 82556