Golf courses and sports centres dragged into VAT scandal – Telegraph.co.uk

Residents who use local sports centres run by not-for-profit organisations also said they had not noticed prices falling.

Organisations refusing to cut fees were “pulling the same stunt as the airport shops”, they alleged.

Stores in Heathrow, Gatwick and other British airports typically ask for boarding passes so they can claim a 20 per cent VAT discount if the customer is flying outside the EU.

But many charge the same price as in the high street. This week, shops including Boots, WH Smith and Dixons were criticised by the Government for effectively pocketing millions of pounds in tax breaks intended for passengers. Boots is the only company to promise to review its practices.

Members of sports clubs and centres who pay annual fees already received VAT-free prices under a Revenue exemption.

But sources told The Telegraph that, even if they wanted to, golf courses were unable to lower green fees for visitors because it could compromise a court case.

Just under 500 clubs are seeking refunds of the VAT they paid to HM Revenue & Customs since 1990.

They are entitled to claim the money after the European Court of Justice ruled it was wrong for members and non-members of sports clubs to be treated differently.

HMRC has asked golf clubs to prove that they will pass refunds of around £150 million on to the golfers from whom they collected the money originally.

But the clubs argue that when they set their prices they never take VAT into account. Instead, the price is determined by costs and to match up against fees at other local courses, they say. Nearly all the clubs concerned intend on using any refunds to improve the course, facilities and other services, it is understood.

Should clubs cut future green fees to account for the VAT discount in January, experts say, lawyers for HMRC might be more able to argue that any rebates should be passed directly to golfers.

dan.hyde@telegraph.co.uk