HMRC will not invite VAT repayment claims in the wake of the Upper Tribunal’s decision to refer the case of HMRC v Bridport & West Dorset Golf Club Ltd TC 1214, concerning a golf club’s supplies to non-members, to the Court of Justice of the European Union.
The Upper Tribunal’s decision was published on 30 July. Mrs Justice Proudman said: ‘The issue is one potentially of great importance for the [European] Community in general. Moreover, within the UK there are a very great number of cases which turn on or are affected by it’.
Any new VAT claims will be rejected, HMRC said in Revenue & Customs Brief 25/12.
‘It is HMRC's view that green fees charged by members' clubs cannot fall within the VAT exemption because … these transactions are additional income which is obtained in direct competition with commercial enterprises liable for VAT.’
The CJEU is not expected to hear the case until summer 2013. In the meantime, HMRC’s position remains as set out in Revenue and Customs Brief 30/11.
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