TaxCorporate TaxCustoms in early VAT defeat

Customs in early VAT defeat

Tens of millions of pounds may have to be repaid by Customs after a preliminary European Court overturned Customs' decision not to pay back VAT that had been paid on purchases of computer chips and mobile phones.

Traders await ECJ verdict on VAT clampdown

The decision means that companies such as Bond House, Optigen and Fulcrum, along with dozens of other businesses waiting in the wings, could be due rebates totalling hundreds of millions of pounds.

Dragon Futures, a physical commoditites trader, told Accountancy Age that Customs’ previous stance had left it out of pocket to the tune of £16.5m and forced it to withdraw from the UK, never to return.

Don Mavin, director of the VAT investigations team at accountancy firm, Chiltern, said said the preliminary judgement would give Customs ‘an extremely strong hint’ that the way to tackle carousel fraud is to go after the fraudsters.

‘Today’s decision is excellent news for many businesses who have been inadvertently caught up in this overly aggressive campaign by Customs,’ said Mavin.

‘We have been acting for a number of clients who have been struggling financially, as Customs has withheld VAT owing for over two years now.ÿWe sincerely hope that the European Court will endorse this opinion and see that these innocent parties are refunded what is rightfully owed.’

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

4m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter