More NewsBritish bank loses VAT battle with Italian government

British bank loses VAT battle with Italian government

European Court of Justice backs Italy in dispute with FCE Bank

VAT cannot be reclaimed on supplies from a European Union company to an
unincorporated branch in another EU country, the European Court of Justice has
ruled.

Judges said that under the EU’s sixth VAT directive, such a wing of a company
‘should not be treated as a taxable person’.

The ruling comes in a dispute between Britain’s FCE Bank and the Italian
finance ministry and revenue agency. FCE was trying to reclaim VAT on supplies
it made to an unincorporated Italian department, called FCE IT.

This was challenged by the Italian government, which denied there had been
any kind of taxable supply by FCE to FCE IT. The court agreed, stressing that
the Italian wing was ‘not a legal entity distinct from the company of which it
forms part’. The case is an EU-wide precedent for similar cases that might
arise. An appeal could be launched, but only on points of law.

Related Articles

Amazon UK halves its corporation tax bill despite increased turnover

More News Amazon UK halves its corporation tax bill despite increased turnover

4m Alia Shoaib, Reporter
Increase in UK business confidence despite Brexit, according to ICAEW

More News Increase in UK business confidence despite Brexit, according to ICAEW

7m Alia Shoaib, Reporter
Live blog: Spring Budget 2017

Corporate Tax Live blog: Spring Budget 2017

9m Accountancy Age editorial
The Curious Incident of the Insolvency Sector in the Light of Economic Turbulence

Insolvency The Curious Incident of the Insolvency Sector in the Light of Economic Turbulence

11m Accountancy Age editorial
Leonard Curtis called in as administrators for builders Boshers

Legal Leonard Curtis called in as administrators for builders Boshers

11m Stephanie Wix, Writer
New Year Honours of 2017

Accounting Standards New Year Honours of 2017

11m Stephanie Wix, Writer
"Not enough time" to implement MTD by 2018, says Tyrie

Corporate Tax "Not enough time" to implement MTD by 2018, says Tyrie

1y Stephanie Wix, Writer
Colin: A spoonful of investment...

Governance Colin: A spoonful of investment...

1y Stephanie Wix, Writer