Readers’ forum: Golfing fee: exempt or standard rated?

One of my not-for-profit golf club clients is enjoying a membership boom because three other clubs in the local area have permanently closed for the development of a housing development.

To capitalise on the boom from prospective members the club committee decided to charge them a £500 fee which means they will be put on a joining list and will be able to join the club once there is a vacancy. The vacancies will be filled in chronological order. The new member will then pay a one-off joining fee of £1 000 which will be reduced to £750 if they have patiently waited for more than three months to join. Annual membership playing fees will be charged as well.

The joining and membership fees are exempt from VAT but we are confused about the £500 advance payment. One of our committee members thinks it is wholly VATable because...