Dáil Éireann Debate, Thursday - 16 January 2014
60. Deputy Brendan Griffin asked the Minister for Finance if the Revenue Commissioners has finalised guidelines on a potential VAT refund for member-owned golf clubs in view of the recent European Court of Justice decision on a club (details supplied); if so, the details of same; and if he will make a statement on the matter. [1964/14]
View answerI am advised by the Revenue Commissioners that the European Court of Justice issued its judgement in the Bridport & West Dorset Golf Club Ltd case, C-495/12, on 19 December 2013. The issue in dispute centred on Article 132(m) of the EU VAT Directive that provides exemption for the supply of certain services closely linked to sport or physical education by non-profit-making organisations to persons taking part in sport or physical education. The question before the ECJ was whether the supply of golf facilities by non-profit making organisations to non-members could also benefit from this exemption. The Court found that non-members could not be excluded from the exemption.
Irish VAT law must comply with the EU VAT Directive and Article 132(m) is transposed in Irish VAT legislation in paragraph 3(4) of Schedule 1 to the Value-Added Tax Consolidation Act 2010, which states that the provision by non-profit making organisations of facilities for participation in sporting or physical educational activities is exempt from VAT. This exemption means that while such non-profit making organisations do not charge VAT on their supplies they have no entitlement to a credit for VAT incurred on their inputs.
In Ireland, green fees charged by non-profit making organisations, such as member owned clubs, to visitors have been liable to VAT at 9% and such clubs have been claiming a VAT credit for inputs that relate to these visitor green fees. Revenue are currently examining the ECJ judgement and are identifying the implications, current and historic, in terms of VAT exemption and related non-allowable input credits. Revenue expects to issue guidelines for member-owned golf clubs outlining their position on the matter as soon as that examination is completed.
