So what is the law on VAT? The VAT exemption is for certain services closely linked to sport. Exemption is only given if the services are ESSENTIAL. We say that if a golfer says “I don’t want to belong and I won’t to pay for this” he is in effect saying, “I don’t think it is essential!”
Our case is that a mandatory levy cannot be VAT exempt if someone else has to pay for the golfer who won’t pay. How can it be ESSENTIAL if he doesn’t want it?
We say that the affiliation fee MUST be the liability of the individual golfer and not anyone else.
England Golf are terrified of this. They know that if the affiliation fee was only payable for those people wanting a CONGU handicap many golfers simply wouldn’t pay. Counties know that most people wouldn’t bother to support them.
Proprietors have always been happy to help collect the fees; but not to be on the receiving end of threats of expulsion if money isn’t handed over before it can be collected. And even worse – when you can’t collect it!
It is a burden golf club owners simply don’t need. And when push comes to shove, many members’ clubs don’t want to part with vast sums to England Golf and counties.
So we’ll keep up to speed on that.
Click here to read on: Making affiliation optional