Fleet News

Talks to take place over VAT on tolls

CONSULTATION will soon be taking place between HM Customs & Excise and operators of toll bridges and tunnels subject to VAT charges. The European Court of Justice ruled in September that only toll crossings operated by public authorities fall outside the scope of VAT.

Although prices will not change for crossings such as the Humber Bridge or the Mersey Tunnel, company car drivers could face the added administration of claiming back VAT for using the Severn Bridge or Dartford crossings.

The Government wants to devise a scheme of support to offset the cost of VAT and to make it as simple as possible for business motorists to reclaim as input tax the VAT eventually paid on toll charges.

A statement from Customs & Excise said: 'We will shortly be asking for comments and suggestions concerning the precise operation of this planned scheme, and at that time we will make a brief paper available discussing some suggested options.'

To register for a copy of the paper contact John Munford at HM Customs & Excise, Policy Group, Commercial Division, New King's Beam House, 22 Upper Ground, London SE1 9PJ.

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