The European Court of Justice has ruled that member states can introduce their own schemes to simplify the payment of VAT and to prevent avoidance and evasion of the tax even when that means that intermediate suppliers cannot claim a reimbursement of VAT when goods are not paid for.
The European Court of Justice (ECJ) ruled in favour of the taxpayer in two cases yesterday that looked at whether the leasing transactions were set up to avoid VAT. However, in one case, there are still some questions for the UK courts to decide concerning abusive practice.
Tax advisers are worried that taxpayers’ claims for refunds of goods and services tax (GST) in New Zealand will be delayed after a decision of the Supreme Court in Wellington. However, the tax authorities do not believe the ruling will change the way they deal with similar situations.
The Supreme Court in London has refused to hear HM Revenue & Customs's challenge to a Court of Appeal decision that a group of taxpayers had made their application for the payment of compound interest in relation to VAT refunds on time.
