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Customs to face flood of VAT claims

Link: Customs faces VAT rebate crisis

A case at the European Court of Justice suggests that the issuing of shares may not be an economic activity, meaning VAT should be recoverable.

A second VAT tribunal case also decided that where VAT related to an AIM listing is incurred for two purposes, a share issue and to enhance the trading ability/reputation of the company, the costs are considered to be general overheads. In such a case, VAT would be recoverable.

PKF is advising companies to make protective claims now so that the VAT doesn’t fall out of time, which takes three years.

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