VAT on golf

One of the most discussed subjects in the golfing industry is the rate of Value Added Tax (VAT) levied on a round of golf, and the often huge variances in duty between proprietary clubs and members clubs. From 25 per cent on yearly fees and green fees in Denmark for ‘commercial' courses and a zero rate for noncommercial courses, to golf course owners in countries like the Netherlands who pay a lower rate of just six per cent, the subject of VAT is often cause for concern to many golf course owners. Various VAT levels result in false competition between golf clubs and can have a detrimental effect on the development of the game with the ‘commercial' clubs -who traditionally promote and teach new golfers - having to charge VAT whilst their ‘non-commercial' counterparts do not.

Various national tax authorities in the European Union treat commercial and non-commercial golf courses different for VAT. The EGCOA sees this as a serious case of distortion of competition. Therefore, the EGCOA has launched a working group in cooperation with the English Golf Union to work on the VAT polices and regulations affecting the golf business. The EGCOA aims at equalizing the VAT level that golf owners pay throughout the whole European Union.

For more information: please contact Alexander Hagen:
Alexander is a former Tax Lawyer of Andersen/Deloitte and specialised in VAT. He recently joined the EGCOA and the Dutch Golf Course Owners Association NVG and will participate in the Dutch Tax comittee of the NVG and the European VAT working Group of EGCOA. His first effort is to prepare an overview of the pending VAT issues in various EU countries. This will enable us to have an understanding of the VAT basics and share for instance relevant information on legal proceedings.

Should there already be information you would like to provide to Alexander, please do not hesitate to send him an e-mail. You will in any case receive his first findings in a few weeks time.

Usefull weblinks to partner organisations:
English Golf Union (EGU)
EGU: VAT Seminar Meeting Report
A Walk Down the Fairway of Value Added Tax: A Practical Guide to Vat for Golf Clubs
Scottish Golf: VAT and Golf Clubs

Articles regarding VAT on golf:
Golf Management Europe - VAT needs one rule for all
Lawandtax-news.com - UK Golf Clubs Urged To Reclaim Ten Years' Worth Of VAT

See also:
Mark Bodt (Price Waterhouse Coopers) during EGCOA Conference 2009 - Presentation VAT and Golf