VAT refunds from sports clubs

HMRC has published Revenue and Customs Brief 10 (2016), providing information on how claims for VAT refunds from sports clubs will be treated, following the First Tier Tribunal (FTT) decision in Berkshire and Others handed down on 07 December 2015.

The Court of Justice of the European Union found, in the case of Bridport & West Dorset Golf Club, that the UK had incorrectly applied VAT to certain supplies made to visitors of non-profit making clubs. HMRC had subsequently denied repayment of VAT claims for overpaid VAT on the basis they would be unjustly enriched.

The FTT concluded the clubs would be unjustly enriched by 10% and were therefore entitled to a 90% refund of the VAT incorrectly paid. HMRC has decided not to appeal the decision and will be making VAT refunds.

Brief 10/16 cancels Revenue and Customs Briefs 25/14 and 19/15. The principle piece of guidance, VAT information sheet 01/15, has also been updated.