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HMRC’s sporting approach to VAT repayments follows Bridport ruling

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In Revenue & Customs Brief 25/2014, HMRC explains how it will deal with repayment claims following the recent CJEU decision in Bridport & West Dorset Golf Club (C-495/12). HMRC now accepts that supplies of sporting services to both members and non-members of non-profit making sports clubs are exempt from VAT. This is provided that the services are closely linked and essential to sport and are made to persons taking part in sport. HMRC will legislate by 1 January 2015 to reflect this.

HMRC intends first to deal with repayment claims (under VATA 1994 s 80) by members clubs that decide to reimburse non-members. Secondly, it will examine the scope for restricting repayments, on unjust enrichment grounds, to clubs that do not make such reimbursements.

Where a submitted claim has already been rejected by HMRC and the claimant has not appealed, that claim cannot now be resubmitted. Any claims submitted now will be a new claim subject to the four-year time limit. Rejected claims that were appealed to the First-tier Tribunal, however, are still open.

Issue: 1223
Categories: News , Indirect taxes , VAT