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29 November 2000
Customs news
Road tolls
On 12 September the European Court of Justice ruled that the operation of a tolled road, bridge or tunnel by a local authority, passenger transport committee, bridge board, etc. is outside the scope of VAT when that body is acting in the capacity of a public authority. Where this is not the case, the toll charge is consideration for a supply which should be taxed at the standard rate of VAT.
Road tolls
On 12 September the European Court of Justice ruled that the operation of a tolled road, bridge or tunnel by a local authority, passenger transport committee, bridge board, etc. is outside the scope of VAT when that body is acting in the capacity of a public authority. Where this is not the case, the toll charge is consideration for a supply which should be taxed at the standard rate of VAT.
Customs news
Road tolls
On 12 September the European Court of Justice ruled that the operation of a tolled road, bridge or tunnel by a local authority, passenger transport committee, bridge board, etc. is outside the scope of VAT when that body is acting in the capacity of a public authority. Where this is not the case, the toll charge is consideration for a supply which should be taxed at the standard rate of VAT.
This means that in the United Kingdom, toll charges will remain outside the scope of VAT in the following cases: Cleddan Bridge, Clifton Suspension Bridge, Erskine Bridge, Forth Bridge, Humber Bridge, Itchen Bridge, Mersey Tunnel, Tamar Bridge, Tay Bridge, Tyne Tunnel.
Customs are to consult with the operators of the tolled roads, bridges and tunnels which will be affected to devise a scheme of Government support to offset the cost of VAT. Details of the consultation will be announced in due course.
(Source: Customs Business Brief 15/00 dated 22 November 2000.)
Road tolls
On 12 September the European Court of Justice ruled that the operation of a tolled road, bridge or tunnel by a local authority, passenger transport committee, bridge board, etc. is outside the scope of VAT when that body is acting in the capacity of a public authority. Where this is not the case, the toll charge is consideration for a supply which should be taxed at the standard rate of VAT.
This means that in the United Kingdom, toll charges will remain outside the scope of VAT in the following cases: Cleddan Bridge, Clifton Suspension Bridge, Erskine Bridge, Forth Bridge, Humber Bridge, Itchen Bridge, Mersey Tunnel, Tamar Bridge, Tay Bridge, Tyne Tunnel.
Customs are to consult with the operators of the tolled roads, bridges and tunnels which will be affected to devise a scheme of Government support to offset the cost of VAT. Details of the consultation will be announced in due course.
(Source: Customs Business Brief 15/00 dated 22 November 2000.)
