VAT on golf club membership fees

[Payney1802]

Hi all,

I am looking at setting up a business but I'm a bit confused around the VAT implications, a bit of help and guidance would be greatly appreciated!

In a nut shell i plan to sell golf club memberships on the golf clubs behalf on my website, taking a small commision. Effectively i will sell a memebrship through my website/business and pay the golf club the membership fee due, retaining a % commision. Turnover will therefore be very high as every memebrship sold will be paid to me in the first instance.

My queiries are therefore:

Is VAT payable on golf club memebrship fees?

Will i therefore have to charge VAT to my customers but also be able to reclaim this from the golf clubs (as i am effectively 'buying' their memberships to sell)

If a club is not for profit i understand they are VAT exempt on all elements. Would this mean that in these memberships sold i do not charge any VAT to the customer but similarly wont reclaim from the club?

If both the above situations are as i understand them the VAT balance (input v output) would remain largely equal?

Thanks in advance

[les35]

Lots of questions! You will need to speak with an Accountant and, I suggest, a Solicitor.
Membership of non-profit Golf Clubs is VAT exempt, subject to conditions. You will need to get the Club to confirm they meet the criteria.
Membership of private clubs is charged at 20%.
Your introductory commission will always be standard rated, whether you are agent of the club or the 'joiner.' This is where a Solicitor will come in, to ensure your Terms and Conditions are correct.
Your turnover will (should) be the value of your commissions received, even if the 'joiner' pays the gross amlount to you, and pass on a portion to the club.
So, back to you!