Is golf membership VAT rated?

Talking to a mate of mine tonight who is a member of the same club as me. We were talking about this year's fees and how the club had stated that there was no increase this year except to track the increase in VAT.

Got us wondering if we were actually paying the increase as VAT - or if this was their crafty way of increasing the fees without taking blame themselves (i.e. increasing the fees to cover THEIR increased expenses on what they pay out in VAT for raw materials, services etc.)

I'm sure I'd find the answer if I scrutinized the small print but I wondered if anyone know if membership fees were VAT-rateable or not). Do you pay VAT on your green fees?

It depends on the club is the answer. A member owned club usually not. But a club owned and run for profit. The latter pays vat so must charge it to the members.

However you can reclaim that if you are vat registered.

I know our club does not charge VAT on membership but there are many local ones that do these in our area tend to be muni's as they are there for profit, so all are charged VAT for there fees. But as LJ says they can also reclaim VAT on any expenditure even if it's zero rated VAT law is very complex had to look into it when we set up our businesses and thankfully Mrs Mav being a chartered accountant deals with it, but gets even more complicated if your selling services to those outside the EEU, which many course do now they try to bring in corporate business

Almost guys. LJ is quite right that it depends on the nature of the club as to whether they charge VAT.
However you certainly cannot reclaim the VAT if paid. Unless playing golf is the business for which you are registered for VAT. Just in the same way you can't reclaim VAT on your new PS3 just because you happen to be VAT registered!
Please don't try it unless you want a hairy tax inspector at your door!

Unless you can legitimately claim it ad a business related expense. Which mav could as he plays and entertains clients

Entertaining clients generally isn't an allowable business expense. Some entertaining of staff you could get away with but that's most likely as far as you could push it

Depends upon various things. But ww write off a fair few millions for pga tour sponsorship plus course memberships

It doesn't depend mate. Trust me, it's what I do.
Sponsorship is totally different to entertaining.

If you fancy an interesting read -

http://www.hmrc.gov.uk/vat/managing/reclaiming/entertainment.htm

You claim what you like matey. I'm just telling what is ok by law

One thing is for sure, LJ never lets the facts get in the way of his opinions.

This is correct LJ I cannot claim back the expense of taking clients for a round. I can claim back the costs of a company golf day provided those playing are all my staff but there are other factors to consider too tax and vat are very complex things to get around that's why mrs mav the accountant deals with it

Good answers guys, thank you

Looks like my club isn't trying to pull a fast one then

Ha, no afraid not Davie
What club out of interest?

Our club increased the rates this year, but looking at it, its in line with the new VAT rate. So they did it and didn't mention it

All clubs pay VAT on stuff they buy, like the phone bill, cleaning, maintenance and so on. Most clubs will reclaim most of this.

Clubs owned by the members don't charge VAT on their GOLF subs (social members have to pay VAT). Proprietary clubs do have to charge VAT.

Therefore members' clubs will get a VAT refund, because they have little or no incoming VAT to balance what they pay out in VAT. Proprietary clubs do have VAT coming in, so (in simple terms) they only pay the balance of VAT received over VAT paid out.

MustPuttBetter wrote:Ha, no afraid not Davie
What club out of interest?

Sand Martins in Wokingham

Davie wrote:

MustPuttBetter wrote:Ha, no afraid not Davie
What club out of interest?

Sand Martins in Wokingham

Hi Davie,

I'm a rather nosey fellow and live relatively close (35.4 miles according to multimap) and had never heard of it so I thought I'd have a look at the website. It looks like a really lovely course.

Is it really only £24 for visitors Mon-Fri do you know?

Hibbz

Think it's gone up a little since that page - but there appears to be more up to date visitors fees here - http://www.sandmartins.com/visitors-prices-and-offers.asp

It really is a very nice course and in superb condition at the moment. The front nine is traditional parkland, the back nine is more like heathland or even links-ish (if it wasn't so far from the sea!)

Oh yes thank you it does say from £24. Still good value would you say? Do you think there would be a discount for a day ticket (36 holes). I always prefer to play a new course twice in case I've badly messed up one hole that would spoil my opinion.

Sorry I should really just call/email to find out.

Don't actually know if they do day tickets but they are very helpful in the pro shop and I'm sure they could sort something out for you

2 goes at the 17th is a very good idea

I find it uncomfortable that the members of Royal Troon do not pay VAT for thier golf but the many members of the municipal clubs accross the road pay VAT on thier season tickets.

There is a strong argument that municipal golf courses are 'not for profit' and should be exempt.

Come the revolution brothers

The cost of running a golf course is whatever it is. Whether VAT is added on top is a decision for government tax advisors, not members of golf clubs or local councils.

George
The majority of golfers start playing on municipal golf courses, especially the young.
The government spends loads of money on positive health schemes, most of it poorly.
This is one area that they could easily change.

It makes the £250 season ticket £300 and the £15 green fee £18 and is a cost barrier to many who wish to play or to continue to play