Banks and UK Customs in VAT recovery battle |
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4 October 2011 The UK's Customs and Excise is taking to the UK High Court an appeal on the recovery of VAT on bank foreign currency transactions. The case relates to a re-interpretation of the liability of VAT on FX trading by banks. The UK has long held that VAT charged in the UK on foreign banks' trading was not recoverable. However, the European Court of Justice ruled in 2002 that this was incorrect. The UK's HMRC then agreed to refund VAT charged back to 1978. Click here to read about European VAT rules. The Norwegian bank. DnB NOR, is now pushing for refunds back to the time when the UK introduced VAT: 1973. |
