Disclosure rules – Customs seek comments on Budget changes

Customs have published a draft Statutory Instrument that adds two new "listed schemes"- relating to cross border face value vouchers and the removal of the option to tax upon the surrender of a lease - and a new "hallmark scheme", relating to vouchers where less than 75% of the vouchers issued are redeemed. An important point in relation to the two new "listed schemes" is that if a business has not previously disclosed their use, because it has been given a disclosure number by a promoter, the business itself will now have to make a disclosure. Customs are seeking comments on the new provisions by no later than 29 April 2005. Please speak with your usual Deloitte contact for further information

Outsourcing - Customs to release Business Brief?

Businesses involved in outsourcing for insurance companies are facing a period of uncertainty following the ECJ decision in the case of Arthur Andersen & Co. (now Accenture). Customs are expected to release a Business Brief outlining their views and opening a consultation process on both the detailed changes and proposed timings for implementation. Businesses involved in work of this kind need to consider the implications of the decision for their contracts and what they should do now in order to protect their position.

Germany – retrospective VAT claims on business entertainment?

Businesses incurring entertainment costs in Germany may be able to submit retrospective refund claims now that the German Supreme Tax Court has ruled that the German rules limiting the right to recover VAT on business meals are illegal under EU law. Although the case referred specifically to business meal expenses it could extend to other types of business entertainment expenses.

Nursing Homes – VAT free buildings

Some nursing homes may be able to claim VAT refunds now that the VAT Tribunal has rejected an attempt by Customs to impose VAT on the construction of a new building to house the mentally ill. Customs argued that the building was a "hospital" and subject to VAT but the Tribunal decided that it was a "home" and VAT-free

Hula Hoops - Tribunal "shakes" off VAT-free treatment

The VAT tribunal has ruled that adding a flavouring sachet in a packet of "shake to flava" crisps does not amount to "further preparation" allowing the product to be VAT-free. The product was therefore subject to VAT.

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