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11 September 2000
The Government intends to draw up a scheme to protect motorists from the consequences of the European Court of Justice judgment, in Commission of European Communities v United Kingdom (C-359/97), that some bridge toll charges should be subject to VAT. The Court has ruled that while the United Kingdom is right not to levy VAT on tolled roads operated by public authorities, VAT should be applied to tolls levied by private operators.
The Government intends to draw up a scheme to protect motorists from the consequences of the European Court of Justice judgment, in Commission of European Communities v United Kingdom (C-359/97), that some bridge toll charges should be subject to VAT. The Court has ruled that while the United Kingdom is right not to levy VAT on tolled roads operated by public authorities, VAT should be applied to tolls levied by private operators.
In an unusual spate of benevolence to the motoring public (no doubt spurred on by the fuel crisis) Customs is to hold consultations with operators of the tolled bridges and roads affected to devise a fully funded scheme of Government support to offset the cost of VAT. The aim of the scheme will be to ensure that motorists do not pay more, as well as making it as simple as possible for businesses to reclaim VAT.
In an unusual spate of benevolence to the motoring public (no doubt spurred on by the fuel crisis) Customs is to hold consultations with operators of the tolled bridges and roads affected to devise a fully funded scheme of Government support to offset the cost of VAT. The aim of the scheme will be to ensure that motorists do not pay more, as well as making it as simple as possible for businesses to reclaim VAT.
