Another issue on VAT and affiliation fees is the way a county union charges clubs. HMRC has initially ruled that the affiliation fee charged by a county union to a proprietary club is VAT exempt. That is despite the fact that the club, rather than the golfer, is liable.
This is why that ruling is crucial to us. The county union simply has the same status as any member-owned golf club. The proprietary club is in effect a corporate member. If the fee charged by a county golf union to a proprietary club is VAT exempt it would follow that the corporate membership fee to a members’ club is VAT exempt. And we don’t want that!
At present members’ clubs have to charge VAT on corporate membership subscriptions and we want that to remain.