Grassroots football club Meadow Park Farm, which runs 16 youth clubs in the Worcestershire area, is at risk following a £70,000 VAT bill.
The club has built new changes facilities costing over £300,000 due to fundraising efforts and a grant from the Football Foundation, but is now facing difficulty in paying the VAT.
The club’s chairman, Paul Hutchin, told BBC News that the costs put the club’s future at risk.
He said: "It went up and cost us another £6,500 on our bill so now we're looking at a £70,000 VAT bill depending on the figure, which is just obscene really.
"This is (about) people working day and night to get this project on the ground and we're hit with a £70,000 VAT bill which is putting the whole project in jeopardy."
Local MP Sajid Javid has said that he will try and help the club by seeking to clear up the potential confusion over the bill.