HMRC have finally published their policy on the Bridport Golf claims. This follows their earlier loss in the courts as to whether green fees were subject to VAT. The members clubs successfully argued that these fees should be treated as VAT exempt.

The new policy can be found here:https://www.gov.uk/government/publications/revenue-and-customs-brief-25-2014-vat-supplies-of-sporting-services-by-non-profit-making-bodies/revenue-and-customs-brief-25-2014-vat-supplies-of-sporting-services-by-non-profit-making-bodies

Essentially HMRC are continuing to resist. You can obtain a refund if you can show how you repay the players that wrongly paid VAT. This is an unjust enrichment argument. If you won’t repay the green fees VAT then they will not pay out yet as they are still considering their position.

In my view ultimately HMRC will have to accept that at least part of the cost of the VAT fell on the club. Green fee golf played by non members is a very significant source of income for many clubs now that have experienced a decline in membership levels. in practice the green fee is set with reference to what the local market will bear and as such it cannot be the case that the club would only have charged the VAT exclusive amount had VAT not been charged.

Feb 15 Update – I understand HMRC are now paying out an interim payment here pending economist reports.