VAT ON TOLLS

Keith Nuthall
THE BRITISH government is facing a possible order to pay massive recurring fines of maybe Euro 100,000-a-day, because it has not notified the European Commission about how it has implemented a court order to pay VAT on privately operated road and bridge tolls. Because many of these road charging systems in the UK are managed by companies, the European Court of Justice in 2000 ruled that their exemption from VAT was illegal under the EU's Sixth Council Directive.

Indeed its judges went further, saying that the UK should repay the VAT ...


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