Golf Club Managers’ Association 1

VATVAT

Martyn SeniorMartyn Senior

Partial Exemption

• Members – No Vat – Private Members Club

• Bar / Catering – VAT

• Visitors Green Fees - VAT

• Everything else – Partially Exempt

% Calculation Total VATable Income x 100

Total Income

Golf Club Managers’ Association 2

Golf Club Managers’ Association 3

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VAT on InvoicesVAT on InvoicesWHOLLY TO TAXABLE SUPPLIES

( FULLY RECOVERABLE ) ( TAXABLE INPUT TAX )

• Social Membership

• Green Fees

• Payphone

• Snooker

• Bar Sales

• Catering Sales if invoiced by the Club

• Fruit Machine

Golf Club Managers’ Association 5

VAT on InvoicesVAT on InvoicesExempt Supplies

( Non-Recoverable Input Tax)

• Playing Members Entrance Fees

• Playing Members Subscriptions

• Lockers for Members

• One Off Fund Raising Events

• Club Competitions

• Open Competitions/ Facility Fees

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VAT on InvoicesVAT on InvoicesThe Pot

NON – ATTRIBUTABLE (OPEN TO NEGOTIATION)

(RESIDUAL INPUT TAX) % RECOVERABLE

Pro Retainer Course Maintenance

Clubhouse Maintenance Stationery

Electricity / Gas Office Maintenance

Office Telephone Computer Maintenance

Refuse Collection Photocopier Upkeep

Affiliation Fees Audit Fees

Professional Fees General Expenses

Partial Exemption Annual Calculation

Golf Club Managers’ Association

7

Annual VAT Calculation 1998 1999 2000 2001 2002 2003

Gross Taxable Income

Bar 127402.27 127029.69 120269.17 124352.00 123837.00 121389.00

Green Fees ( Not including facility fees or weekend subscribers) 85570.13 86325.44 76948.20 96471.47 87378.29 88918.00

Gaming Machine Takings 17053.57 15632.14 9056.70 9568.93 6350.08 7443.00

Functions 8820.64 8396.66 14273.75 13849.39 14644.17 10096.19

Payphone 802.29 668.43 388.17 355.81 379.49 424.68

Ties & Badges 149.71 293.90 2899.89 5027.08 1753.98 576.61

Company Day 6095.70 5168.16 4936.13 0.00 0.00 0.00

Coffee Machine 1813.46 1745.39 1075.81 2122.30 462.75 0.00

Lost Card Fees 58.51 194.04 720.18 122.12 153.18 2297.16

Total 247766.28 245453.85 230568.00 251869.10 234958.94 231144.64

Bar 127402.27 127029.69 120269.17 124352.00 123837.00 121389.00

Green Fees 85570.13 86325.44 76948.20 96471.47 87378.29 88918.00

Gaming Machine Takings 17053.57 15632.14 9056.70 9568.93 6350.08 7443.00

Functions 8820.64 8396.66 14274.00 13849.39 14644.17 10096.19

Payphone 802.29 668.43 388.17 355.81 379.49 424.68

Ties & Badges 149.71 293.90 2899.89 5027.08 1753.98 576.61

Company Day 6095.70 5168.16 4936.13 0.00 0.00 0.00

Coffee Machine 1813.46 1745.39 1075.81 2122.30 462.75 0.00

Lost Card Fees 58.51 194.04 720.18 122.12 153.18 2297.16

Membership Subscriptions 253251.31 258962.53 264520.00 297766.00 324687.00 336424.00

Entrance Fees 11378.00 19377.00 24467.50 20646.00 28560.00 24836.00

350.00 500.00 640.32 369.74 374.08 0.00

Shares 5.00 130.00 0.00 0.00 0.00 0.00

Locker Rents 1481.00 1404.00 9525.00 3951.00 3801.00 3754.00

Weekend Subscriber Fees 1515.00 1210.00 430.00 457.50 250.00 10.00

Waiting List Fees 360.64 750.00 1000.00 1600.00 1850.00 1650.00

Open Entries 24445.13 24953.98 44851.50 35004.00 31720.00 30291.00

Competition Entry Fees 11978.41 12579.50 12736.69 13984.95 15020.37 14637.51

Easter Tournament Entry Fees 1177.18 833.64 0.00 0.00 0.00 424.68

Snooker Income 1046.95 731.07 718.19 821.63 738.73 762.22

Facility Fees 21580.00 4317.50 7302.50 10687.54 8950.00 4500.00

Total 576334.90 571203.07 596759.95 637157.46 650910.12 648434.05

Calculation 43 43 39 40 36 36

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Golf Club Managers’ Association 8

Recoverable VAT CalculationsRecoverable VAT CalculationsOutput Tax At Standard Rate

Income Subject To VAT = £ 50,000

(eg Green fees, Bar Sales, Catering)

(VAT @ 20% on £ 50,000 = £10,000)

Exempt (eg Subscriptions ) = £ 100,000

Total Income (ex VAT ) = £ 150,000

RATIO - ( Partial Recoverable ) =

50,000 x 100% = 33.33% = 34%

150,000

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INPUT ( on Purchases )

Recoverable in full = £ 3,071 .43

Partially Recoverable (The Pot) = £ 4,732 .31

Total £ 7,803 .74

ACTUAL INPUT RECOVERABLE

Recoverable in full = £ 3,071.43

Partially Recoverable £4,732.31 x 34% = £ 1,608.99

Total £ 4,680.42

SUMMARY :- OUTPUT VAT = £10,000.00

INPUT VAT = £ 4,680.42

VAT PAYABLE = £ 5,319.58

Golf Club Managers’ Association 10

Example Golf ClubExample Golf Club

VAT Return For Year Ended 31st December 2010Output Standard Exempt Output

OUTPUT VAT Tax Rate Rate Ex VAT£ £ £ £

Qtr To 31 Mar 2010 6,338.10 36,194.34 313,074.68 349,269.02Qtr To 30 Jun 2010 8,895.57 50,833.53 40,186.35 91,019.88Qtr To 30 Sept 2010 10,770.96 60,799.56 33,163.89 93,963.45Qtr To 31 Dec 2010 9,900.35 56,573.67 140,196.00 196,769.67Total For Year 35,904.98 204,401.10 526,620.92 731,022.02

RATIO FOR YEAR 204,401*100/731,022 = 27.96% SAY 28%

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Example Golf ClubExample Golf ClubVAT Return For Year Ended 31st December 2010INPUT Recoverable In Full Partially

Recoverable £ £

Qtr To 31 March 2010 20,604.12 2,071.11

Qtr To 30 June 2010 20,793.69 6,366.76

Qtr To 30 September 2010 8,209.04 10,903.36

Qtr To 31 December 2010 6,528.36 7,759.10

Total For Year 56,135.21 27,100.33

Input VAT Recoverable For Year £Recoverable In Full 56,135.21

Partially Recoverable £27,100*28% 7,588.00

Total Input VAT Recoverable 63,723.21

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Example Golf ClubExample Golf ClubVAT Return For Year Ended 31st December 2010

£Output VAT for Year 35,904.98

Input VAT for Year 63,723.21

TOTAL VAT REPAYABLE TO CLUB -27,818.23

VAT Paid Or Reclaimed During Year £

Qtr To 31 Mar 2010 -14,493.84Qtr To 30 June 2010 -15,463.21Qtr To 30 Sept 2010 - 4,525.03Qtr To 31 Dec 2010 1,121.85 -33.360.23

VAT Adjustment For Year Payment due to Customs 5,542.00

Golf Club Managers’ Association 13

VATVAT

Martyn SeniorMartyn Senior