HAULIERS LEASING VEHICLES MUST REDUCE VAT BILL BY ACCIDENT ONLY – EUROPEAN JUDGES
February 1st, 2008
BY KEITH NUTHALL
LEASING companies providing hauliers with lorries and vans may not manipulate linked financial and insurance packages to avoid charging their customers VAT, the European Court of Justice (ECJ) has ruled. In a complex Italian case involving a company now in liquidation - Part Service, formerly Italservice - the court ruled that leasers cannot artificially split such supplementary services from their core leasing business, simply to avoid charging VAT on them, restricting sales taxes to leasing alone. This would be "abusive practice" ...
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