Vol. 432 No. 3
46 Mr. M. McDowell asked the Minister for Finance whether he will exempt from VAT all golf facilities recognised and approved by the Irish Golfing Union given the cost distortions which will inevitably arise between clubs operated on a membership basis and those which are privately owned and operated.
The provision, on a commercial basis, of facilities for taking part in sporting activities became liable to VAT at the 12.5 per cent rate from 1 July 1992. Prior to that date the position was quite confused. The provision of certain sporting facilities, including golf courses, had been treated as exempt, while the 21 per cent rate applied in other cases. However, all sporting facilities provided as part of a hotel operation were liable to VAT at 10 per cent.
The exempt treatment of commercial entities could not have been allowed to continue as it was contrary to EC rules and created distortions of competition between sporting facilities provided by hotels and similar facilities provided by other commercial operators which were exempt. This distortion had become far more pronounced because of the trends in the commercial sector over the last few years.
Golf facilities which are being provided in the course or furtherance of business are properly liable to VAT and there can be no question of exempting them from the tax. On the other hand golf clubs established on a non-profit making basis, for the benefit of their members, are exempt from VAT under the provisions of EC law.
