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HMRC reveal two-part post-Bridport approach
HMRC have published an update on how they will deal with VAT repayment claims following the decision in Bridport & West Dorset Golf Club (C-495/12).
The judgment by Court of Justice of the European Union last December led to the Revenue agreeing that supplies of sporting services to members and non-members of non-profit-making sports clubs are exempt from VAT – provided the services are closely linked and essential to sport and made to persons taking part in sport. The tax department says it will legislate by 1 January 2015 to reflect its approach.
Officials intend to deal with claims for the repayment of overpaid tax for previous periods in two phases, the first being for members’ golf clubs and other non-profit-making sports clubs that decide to use their refund to reimburse non-members who paid green fees.
HMRC say the organisations will need to show they have made arrangements to pass on the VAT and make a legally binding commitment to do so.
The second phase will be for clubs not intending to reimburse players. The Revenue is examining the scope for restricting repayments to clubs to avoid unjust enrichment. Further advice is set to be issued on these claims after the tax authority has reached a decision.
Claims cannot be resubmitted it they already been rejected by HMRC and the claimant did no appeal. Claims appealed to the First-tier Tribunal remain open.
Claims can be amended if a claimant wishes to include additional amounts in respect of non-members that were either overlooked or the result of calculation errors for accounting periods in the original submission.
All claims should be sent to VAT Bridport Claims S0483, PO Box 200, Bootle L69 9AH, and will have to be adjusted to reflect over-claim of input tax by application of partial exemption and/or capital goods scheme calculations, as appropriate.
More details are available from Revenue & Customs Brief 25/14.
