GOLFERS in Bridport have scored a landmark victory in a VAT battle with the HM Revenue and Customs.

The Bridport and West Dorset Club won a judgement in a test case taken by accountants KPMG in determining the liability to VAT of green fees for non-profit making clubs.

Now it – and clubs nationwide – could claim back thousands of pounds, although HM Revenue and Customs has 56 days to appeal the tribunal ruling.

A club spokesman said: “The First-Tier Tribunal has allowed Bridport & West Dorset Golf Club Limited (Bridport)’s appeal.

“The case, argued on behalf of the taxpayer by KPMG, concerned the liability to VAT of green fees charged for visitors at non-profit making golf clubs.”

He added: “The tribunal has determined that green fee income in the circumstances of Bridport is exempt from VAT and that UK legislation could not be relied on.”

The club argued that British laws governing VAT on green fees were harsher than the over-riding EU legislation for non-profit making clubs.

Under UK legislation, the club – a non-profit making body – was exempt from VAT on membership fees but was liable on green fees paid by visiting golfers or non-members.

The club’s representatives argued under European law that there is no distinction for exemption purposes between membership and green fees.

KPMG argued that green fees did not represent additional income but income directly relating to the principal objects of the club.

The club spokesman said: “The arguments on behalf of the golf club were that UK VAT legislation limiting exemption only to membership fees was more restrictive than the authorising European legislation for non-profit making bodies.”

The tribunal also determined that only where income from green fees was earned on an ad hoc or occasional basis with a view to raising extra funds for purposes other than general running costs would it be deemed ‘additional income’ and fall outside of the exemption.

HMRC had 56 days from the start of June to appeal against the decision.

Several Scottish clubs have already signalled their intent to claim back payments covering hundreds of thousands of pounds as well as interest.

Bob Gaiger, HM Revenue & Customs’ Dorset spokesman said: “HMRC is looking at the judgment and will issue a Revenue & Customs Brief once we have considered the decision with our legal advisers.”