Fleet News

Court ruling makes road tolls liable for VAT

COMPANY car drivers could face extra charges on road tolls following a ruling by the European Court of Justice which has ruled that VAT should be charged on tolls of privately funded crossings.

Although the Government has decided that motorists should not have to pay extra and is working with toll crossing operators to devise a plan, motoring organisations are concerned about whether it will work.

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

The scheme aims to ensure motorists do not pay more, as well as making it as simple as possible for businesses to reclaim VAT. The crossings affected by the ruling will be Dartford, Severn and Skye, Erskine, Aldwark (Yorkshire), Clifton Suspension (Bristol), Dunham (Lincolnshire), Rixton and Warburton, Shrewsbury (Kingsland), Swinford, Whitney on Wye and Whitchurch.

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