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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4995
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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A golf club have a levy on members which is put onto a memberscard.

Resolved Question:

A golf club have a levy on members which is put onto a members'card'. The card is used to pay either for goods purchased from the bar operated by the club or for food/beverages purchased from a caterer who operates in the club. If the member pays the caterer cash for goods purchased from the caterer the caterer is responsible for the vat transaction. If the members card is used to register the payment for the caterer's supply and the amount is the passed onto the caterer at a later date by the club who is responsible for the vat transaction?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

In basic terms the person or organisation responsible for VAT transactions is the body registered for the tax. If the club is registered the members card transactions fall to the club. The caterer, of course, is responsible for bar transactions done in the normal way.

If, as I suspect, this situation is across 2 VAT registrations then there may have to be invoices raised to finally put the VAT to bed in the correct area, ie the bar. Such charges are sometimes known as 'transferred management charges.'
Customer: replied 3 years ago.
My query said the club operated the bar but your answer says the caterer is, of course, responsible for the bar income. You don't appear to have read my query!
Expert:  bigduckontax replied 3 years ago.
Actually, I did read your query. Clearly both sides are responsible. The membes levy is an input transaction for VAT purposes and the ultimate settlement with the caterer the output transaction in the club's books.

I would gently point out that for the caterer to actually operate the bar in a golf club as well as other totally unconnected catering activities is far from unusual.
Customer: replied 3 years ago.
You do not appear to understand basic English. At no stage have I said that the caterer was involved in the bar but you continue to suggest he was???
Expert:  bigduckontax replied 3 years ago.
Incedentally, I did not say this, I merely mentioned that the situation of the caterer also being involved in running the bar is far from an unusual occurrence in golf clubs!

In any event I would again point out that the caterer is clearly involved in the bar as there are bar transactions between the two organisations.

I might suggets that your best course of action would be for the committee to appoint a professional person to review the exact way in which your club and the caterer operate. I have met this problem before where the ralationship is not clearly defined. In one case I investigated a massive fraud was exposed which I trust will not be the case here.
Customer: replied 3 years ago.
Relist: Inaccurate answer.
The 'expert' didn't appear to have read my question. There seems little point in getting another answer from your company experts.
Expert:  taxadvisor.uk replied 3 years ago.

Hello and welcome to the site. Thank you for your question.

As I see it, the money held on member's card is like a float. The member can use the card for usage at the bar and/or with the caterer.

The card is just a payment method similar to one using a credit/debit card to make a purchase instead of paying cash on the spot..

The answer to your question "If the members card is used to register the payment for the caterer's supply and the amount is the passed onto the caterer at a later date by the club who is responsible for the vat transaction?"


It is the caterer who is ultimately responsible for the VAT transaction being the organisation making a taxable supply. The Club has merely passed the cash on to the caterer and taken the money from the member's card for goods supplied by the caterer.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4995
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 3 years ago.
I thank you for accepting my answer.

Best wishes.
Expert:  bigduckontax replied 3 years ago.
I see that you have accepted an answer effectively saying what I advised you and you did not challenge his assessment of the caterer's activities. In this light perhaps you might consider reviewing your rating.
Customer: replied 3 years ago.
I qualified as a Certified Accountant in 1972 and worked with VAT for 30+ years. The reply bore no resemblance to the advice you offered. I have no reason to revise my assessment of your advice.
Expert:  bigduckontax replied 3 years ago.
I am tempted to ask why you needed to ask the question in the first place!
Customer: replied 3 years ago.
Although I have a thorough knowledge of VAT and was sure the supply is being made by the caterer and the therefore the caterer is responsible for the VAT I wished to establish with a VAT expert there wasn't some nuance of either VAT legislation or Customs and Excise interpretation I was unaware of. You failed to give me any confidence in your VAT expertise. If you disagree with my opinion I suggest you take up the matter with JustAnswer.
Expert:  bigduckontax replied 3 years ago.
Really