HMRC will refund golf clubs’ VAT

Revenue and Customs Brief 10/2016: VAT – unjust enrichment: non-profit making sports clubs  explains that HMRC will repay overpaid VAT on golf club green fees. This is as a result of its decision not to appeal the First-tier Tribunal decision in Berkshire Golf Club and others (TC4774).

In an earlier case  Bridport and West Dorset Golf Club v CRC (C-495/12) the Court of Justice of the EU had ruled that the UK had incorrectly applied VAT to some supplies made to visitors of non-profit making clubs. HMRC refused to repay the VAT on the basis they would be unjustly enriched. The Berkshire Golf Club along with some others challenged this refusal. The First-tier Tribunal concluded the clubs would be unjustly enriched by 10% and were therefore entitled to a 90% refund of the VAT incorrectly paid.

Claims must meet the terms of VAT Information Sheet 1/15 . New claims will...