Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

VAT is largely driven by EU VAT directives. When the European Court of Justice makes a ruling, it applies to Ireland whether we legislate domestically or not. We have to legislate domestically to incorporate it in the body of our VAT law. This is a very minor change and the reason it was not mentioned in the Budget Statement was that it was so minor. It was in the supporting documents for the budget.

Before any announcement was made, VAT was not paid on membership. Members of golf clubs were not liable for VAT on their membership fees. Visitors to golf clubs were charged VAT on green fees and the ruling of the European Court of Justice is that they should also be exempt. That is a disadvantage to many golf clubs because, while there was a small return on VAT from visitors paying green fees, member-owned golf clubs had the capacity to reclaim VAT for inputs. If a member-owned golf club spent €500,000 on upgrading a golf club, it was able to claim back the VAT, which was charged at 9%. Now, as a quid pro quo, golf clubs will no longer be able to do that.

It is difficult to get statistics on this, but I have received advice from my Department and the Revenue Commissioners that the influence on the Exchequer will be negligible and one balances the other. It is a very minor issue and there is no big gift to golfers coming from the change. The measure is simply to comply with a ruling of the European Court of Justice. We try to be compliant and operate in accordance with the law.

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