Revised to take account of the changes as a result of theCanterbury Hockey Club and Ladies Hockey Club case.VAT isprobably the furthest thought from anyone's mind as theylook out from the clubhouse towards the first tee. But for anyone involved in the administration of golf clubs,and in particular with their finances, grappling with VAT has been a thorny issue ever since it was introduced inthe UK in 1973. This book is intended as a guide to the basic rules of VAT as they affect golf clubs for club secretaries, treasurers, finance committee chairmen and accounting practices that have golf clubs as their clients. It highlights many of the most common problems likely to arise in the context of VAT, and offers some practical solutions, such as how to avoid an unexpected VAT bill on a refurbishment of the clubhouse. With this book as a reference, it will be easier to avoid the many VAT "bunkers" which can create unwelcome and costly traps for golf clubs.
CONTENTS
CONTENTS. iii
FOREWORD.. v
CHAPTER 1: THE STANCE. 1
The Status of Golf Clubs. 1
CHAPTER 2: THE GRIP. 5
The VAT Exemption for competition and entry fees. 5
CHAPTER 3: THE RULES OF GOLF. 7
The VAT Exemption for Sport and Physical Recreation. 7
CHAPTER 4: A BIRDIE OR AN EAGLE. 11
1990 Refunds of VAT. 11
CHAPTER 5: BUNKER PLAY.. 13
Partial Exemption. 13
CHAPTER 6: DRIVER OR A NINE IRON.. 17
VAT Liability – taxable or exempt?. 17
CHAPTER 7: THE HANDICAP SYSTEM... 21
The VAT Legislation and liability of fees. 21
Meaning of “individual”. 22
Social Facilities. 22
Artisan Golf Clubs. 23
Governing Bodies. 23
Commercial Influence. 24
Emoluments. 25
CHAPTER 8: MIXED FOURSOMES. 27
Attribution of input tax to taxable supplies – some specific examples of club expenditure 27
The Clubhouse. 27
Bar and Catering. 29
The Course. 31
CHAPTER 9: LOCAL RULES. 33
Less common VAT rules. 33
Gaming Machines. 33
Lotteries. 33
Entry Fees. 34
Value of supplies. 34
Prizes. 35
Letting of Sports Facilities. 36
The Golf Professional 36
CHAPTER 10: AN 18 HOLE PLAY-OFF. 39
Recent decisions of the Courts and Tribunal that materially affect accounting for VAT by members’ clubs 39
CHAPTER 11: A VISIT FROM THE ROYAL AND ANCIENT GOLF CLUB 47
How to deal with a VAT inspection. 47
CONCLUSION.. 51
APPENDIX A:
Legislation Extracts. 53
EC 6th Directive, Article 13. 53
VATA 1994. 54
Income and Corporation Taxes Act 1988 s. 839. 62
APPENDIX B:
HMRC notices. 65
Customs & Excise Business Brief 3/96. 65
HM Revenue & Customs Budget Notice BN 78 dated 12th March 2008 67
APPENDIX C:
Golf Club VAT cases. 71
EU Legislation. 71
Whether or not a non-profit making body. 75
Recovery of input tax. 78
VAT liability of income. 81
Different classes of membership. 83
Miscellaneous. 83
Default Surcharge Assessments. 87
Index. 89
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