Accenture ruling ‘will threaten jobs’

The Accenture ruling on VAT on outsourced services will threaten jobs, the
finance director of Aviva has said.

The ruling meant that financial services companies outsourcing work in the EU
had to pay VAT on the work. They are usually exempt, and experts say the extra
17.5% charge often entirely outweighs the benefits of outsourcing.

The ruling ‘can positively encourage companies, such as my own, to look to
outsource to less developed economies,’ Andrew Moss, the group FD at Aviva, told
the Financial Times.

Related reading

Life Belt with Computer Folders