Following HMRC’s release of the above publication two weeks ago a better understanding of the contents is now available:
The purpose of Business Brief 10/2016 is to provide information on how HMRC will treat claims for VAT refunds from sports clubs following the First Tier Tribunal (FTT) Decision in Berkshire and Others handed down on 07 December 2015. This brief cancels Revenue and Customs Brief 25/14 and 19/15.
In the brief HMRC accept the decision on unjust enrichment and that clubs are now due 90% of the VAT claimed on overpayment of visitor green fees. HMRC also confirm that the green fee element of corporate golf and green fee supplies to tour operators (Tour Operators Margin Scheme – TOMS) is taxable and claims will have to be adjusted to take this into account.
VAT Information Sheet 01/15 which details the processes involved in ensuring a claim is valid, as far as HMRC are concerned, has now been updated.
Clubs, who have submitted claims independently, must now re-submit their claims and making sure they follow the guidance within VAT Information Sheet 01/15. Those clubs who are represented by an agent, such as KPMG, should follow their instructions before taking any action.