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Readers’ forum: Part of the furniture

27 October 2015
Issue: 4524 / Categories: Forum & Feedback

Input tax on bar furniture; does it need to be restricted under partial exemption?

I act for a non-profit making members’ golf club which is partly exempt as far as VAT is concerned. The club has recently been subject to a VAT compliance visit. Although the HMRC officer was pleased with the records he is seeking to reallocate input tax from “taxable” to “residual” in relation to tables and chairs that were purchased two years ago for the bar. I think we scored an own goal (or a shot in the bunker to use a golfing phrase) when the officer asked us whether customers who came into the bar always bought a drink.

We answered “no” and explained that golfers sometimes come into the bar and sit down while they are waiting for their playing partners to arrive or if they are waiting for it to stop raining before they play golf. The latter is quite common because the club is based...

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