VAT exemption

Customs have withdrawn their appeal to the High Court against the decision of the VAT Tribunal in the case involving Chobham Golf Club in the south of England. The case centred on whether or not the golf club had to pay VAT on subscriptions paid by members.

European legislation allows VAT exemption for certain sporting services provided by non-profit making organisations - i.e., private golf clubs.

Thankfully Irish golf clubs have never had to pay VAT on members' subscriptions but, despite vigorous lobbying, do have to pay it on green fees and outings if the amount per annum exceeds £20,000. Many of the busy clubs around the country, such as the famous links courses of Kerry, would easily exceed this figure and would therefore be liable for substantial VAT bills. Customs, however, have attacked the arrangements entered into by a number of sports clubs in the UK on the basis that the scope of the exemption was being abused. Of course, no fear of that happening here.