Customs to face flood of VAT claims
Companies should be able to claim back millions of pounds in VAT paid on past and present share issues and AIM listings, according to top ten accountancy firm, PKF.
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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