Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

GOVERNMENT TO PROTECT MOTORISTS FROM ECJ JUDGEMENT

  • Comment
The government has announced it is drawing up a scheme to protect motorists from the consequences of the European C...
The government has announced it is drawing up a scheme to protect motorists from the consequences of the European Court of Justice judgement that some bridge toll charges should be subject to VAT.

Andrew Smith said: 'We have always opposed the principle of charging VAT in this area and fought hard to keep all toll charges free of VAT. We are determined to protect motorists from the impact of this unwelcome ruling.

'I have asked Customs and Excise to hold urgent consultations with operators of those tolled bridges and roads affected to devise a scheme of Government support to offset the cost of VAT. It will be fully funded.'

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.

Notes

1. The United Kingdom, France, Holland, Ireland and Greece currently do not levy VAT on road, bridge and tunnel toll charges. The majority of tolls are operated by, or on behalf of, the public sector and tolling has been viewed as simply an alternative means of funding public roads.

2. In the late 1980s the Commission questioned this, arguing that tolls should be taxed at the standard rate of VAT. The UK explained its reasoning to the Commission, which did nothing until 1996 when it announced it would take the five member states to Court.

3. 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.

  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.