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HMRC could be paying out at least £115m in overpaid VAT to not-for-profit member-owned sports clubs in the UK.
A multitude of claims could arise after the European Court of Justices’ (ECJ) decision in the case brought against HMRC by Bridport & West Dorset Golf Club. The ECJ ruled that member-owned golf clubs did not have to charge VAT on the green fees charged to visitors.
This rule has been further updated by the decision in the case Berkshire Golf Club v HMRC where it was decided that VAT charged to non-members were entitled to a refund of 90% of the VAT overpaid.

How to make the claim
If the Sports Club is to make a claim then it should follow the guidance laid down in the updated VAT Information Sheet 1/2015.
Claims will be subjected to a four year time limit.
It may also be advisable to ask for compound interest to be paid on the claim. There is further case being examined by the ECJ which will decided whether compound interest should be charged on the VAT incorrectly levied. If the ECJ finds against HMRC in this case, then claimants will be placed in the queue to benefit from a compound interest award.
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