The European Commission has decided to refer the UK to the Court of Justice over its failure to amend the VAT (Terminal Markets) Order, SI 1973/173, which allows zero-rating for certain commodity derivatives in the UK (see bit.ly/2FY1zMd).
The European Commission has decided to refer the UK to the Court of Justice over its failure to amend the VAT (Terminal Markets) Order, SI 1973/173, which allows zero-rating for certain commodity derivatives in the UK (see bit.ly/2FY1zMd). The Commission began infringement proceedings in March 2018 with a ‘letter of formal notice’ and sent its reasoned opinion in July.
The Commission argues that the original Terminal Markets Order was allowed as a derogation from the VAT directive under a ‘standstill’ provision for certain special measures already in place at 1 January 1977. Since then, the UK has extended the scope of the order several times without reference to the Commission.
HM Treasury says referral to the Court of Justice ‘is part of the normal infraction process and was anticipated’, and that the government ‘will respond in due course’.
The government’s view of the legal position remains as set out in a statement issued at the time the Commission issued its letter of formal notice, namely:
‘The tax treatment of commodity derivatives is unchanged. UK tax law stands unless and until such time as it is changed and therefore past and current trading activity under the Terminal Markets Order is not affected’ by the Commission’s letter. See bit.ly/2GhmFm5.
The European Commission has decided to refer the UK to the Court of Justice over its failure to amend the VAT (Terminal Markets) Order, SI 1973/173, which allows zero-rating for certain commodity derivatives in the UK (see bit.ly/2FY1zMd).
The European Commission has decided to refer the UK to the Court of Justice over its failure to amend the VAT (Terminal Markets) Order, SI 1973/173, which allows zero-rating for certain commodity derivatives in the UK (see bit.ly/2FY1zMd). The Commission began infringement proceedings in March 2018 with a ‘letter of formal notice’ and sent its reasoned opinion in July.
The Commission argues that the original Terminal Markets Order was allowed as a derogation from the VAT directive under a ‘standstill’ provision for certain special measures already in place at 1 January 1977. Since then, the UK has extended the scope of the order several times without reference to the Commission.
HM Treasury says referral to the Court of Justice ‘is part of the normal infraction process and was anticipated’, and that the government ‘will respond in due course’.
The government’s view of the legal position remains as set out in a statement issued at the time the Commission issued its letter of formal notice, namely:
‘The tax treatment of commodity derivatives is unchanged. UK tax law stands unless and until such time as it is changed and therefore past and current trading activity under the Terminal Markets Order is not affected’ by the Commission’s letter. See bit.ly/2GhmFm5.
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")