Green fees tax will be partially refunded

HMRC will pay or credit 50% or 33% of VAT charged on golf clubs’ green fees.

The announcement follows the judgment by the Court of Justice of the EU in Bridport & West Dorset Golf Club (Case C-495/12) [2014] STC 663 in which the court ruled that green fees were exempt from VAT. After that HMRC said they would consider whether clubs would be unjustly enriched if their claims were refunded in full.

The department decided that if they were some clubs would be unjustly enriched by 50% and others by 67%. As a result it will pay or credit 50% or 33% depending on the level of green fee charges of the value of valid claims ahead of any court decision.

The brief includes the proviso that there may be direct tax implications if a club does not pass on to the affected customers the...