Golf clubs could reclaim VAT totalling thousands of pounds after EU ruling

http://www.theguardian.com/business/2014/jan/14/golf-clubs-vat-european-court-ruling

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British golf clubs could start lining up VAT rebates worth thousands of pounds following an EU ruling regarding how they charge non-members to play.

Since the 1990s, charges for playing sport at not-for-profit clubs have been exempt from VAT, but HM Revenue & Customs restricted these exemptions to club members.

However, the European court ruled last month that the VAT exemption should include charges made to non-members, following a long-running case brought by Bridport & West Dorset Golf Club.

Gemma Gower, VAT manager at accountants Mitchell Charlesworth, said: "This is an industry changing decision which could see golf clubs claiming hundreds of thousands of pounds back from HMRC. Golf clubs should not delay starting the process of claiming back what is rightfully theirs, as the longer they delay, the more VAT they stand to lose. Getting a claim moving now could bring real financial benefits, particularly to small clubs and those which are struggling with a downturn in usage or membership".

The accounting firm added that claims brought now can be backdated by four years, and in some circumstances, back to 1990. The claim lodged by Bridport & West Dorset is one such claim, and is expected to be worth in the region of £140,000.

Future charges for non-members playing not-for-profit courses will also be exempt from VAT. It will be up to individual clubs whether they pass this 20% saving on to non-members.

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